Enameling cost calculation

Introduction

When you are consider installing a new porcelain enameling factory, altering the enameling process and/or new equipment of your existing enameling plant or in/outsourcing your coating operation, you most probably want to determine your Return-On-Investment by comparing your actual versus future enameling cost.

Enameling cost components

Although enameling cost may vary significantly from one process/plant to the other, it always carry the following significant cost components :

1) Amortization of capital investment
2) Direct enameling cost
3) Indirect enameling cost

Example of enameling cost study

Below the outcome of an old feasibility study for a manufacturer of electrical boilers.

Remarks

Ad 1) The capital investment of an enameling plant comprises of equipment cost, packing & freight and installation expenses.

In addition you have to take in consideration :

• cost of capital
• necessary building (space)
• enlargement of existing utilities
• import duties
• supply of specific exclusions from the OEM’s scope of supply.

The primary drivers for the capital investment are the required hourly production, the chosen enameling process and the level of plant automation.

Other drivers are the chosen amortization period, expected equipment utilization and cost of capital.

Ad 2) Direct enameling cost comprises of material cost (for enamel & other chemicals), labor cost (for handling the goods and/or manual operated process steps) , energy cost (gas, oil, electricity, compressed air and/or water) and waste (treatment).

The primary drivers for the direct enameling cost are the chosen enameling process, the performance of the chosen equipment and level of (process) automation.

Ad 3) Indirect enameling expenses comprise of various management, quality & maintenance expenses.

Assistance with estimating enameling cost

Based on 40 years hands-on experience with industrial porcelain enameling plants & processes, DTC has developed advanced cost calculation models, which may be used to help determine your (future) enameling cost.

Please feel free to contact us for more information and/or assistance.