Financial considerations of a proposed lift assist at SGI, Chippewa Falls manufacturing site

Abstract

A new product is being built on the production floor of SGI at the Chippewa Falls manufacturing site. This product brings with it several new and unique manufacturing processes that may require new material handling equipment. The material handling device that SGI plans to purchase is a pneumatic lift assist device. This device would be considered a capital expenditure. This paper will determine if the pneumatic lift assist is the proper solution to for SGI to purchase by preparing a cost benefit analysis. This analysis will determine whether or not the too being considered will pay for itself in a timely manner. The cost comparison will be the cost of the equipment to the cost of potential losses that may be incurred with any injuries that may result if the tooling is not in place within the time line of the return on the capital investment. Conclusions will be drawn and a suggestion will be made to SGI, in regard to the purchase of the equipment by use of the information contained in this analysis. SGI will also be given a time line for the return on capital investment for the device.