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Machinery purchase justification? How to justify buying new equipment?

Justifying a new machien purchase is often a complicated task. In order to help you with your machine justification, below is a way to help determine costs and benefits of a new machine purchase. Rank the items most important from 1-10, then Estimate benefits and expense for each... This list should help you determine what your priorities are when looking for the right machine tool.

Capacity efficiency
Personnel reduction
Cycle time
Amount of scrap material
Quality/Less defective parts
Less man hours running machine
Parts availability
Can one machine do the work of two
Time study from your dealer
Warranty-1 year parts and labor or more
Rigidity tighter tolerances
Better tool life
Trade in value/resale
Parts availability 3-4 weeks delivery from ?????
Easier repairs more service people are familiar with newer equipment
Wait for multiple things to go wrong with the machine before you try to justify it. For example, spindle bad-$12000+8 hours labor($1000), Bearings and Labor($1000), Needs Alignments ($1500) Etc.
Machine tool options control options.

Do not forget the extra costs

  • Conveyor
  • Tooling
  • High pressure coolant system

Machine justification chart