Calculate the hourly cost of your lines – a tool by Dallan Spa

When it comes to production costs, the first fundamental step in evaluating the profitability and efficiency of processes and investments is to determine exactly the hourly cost of your lines.

However, the structure of this data is often unclear. Costs are "handed down" from manager to manager and from operator to operator, causing inconsistencies with the expected profitability at the end of the year. Knowing the exact operating cost of your machines can also be an advantage during negotiations, as it is an objective figure to explain any increase in selling prices.

When evaluating a new investment, how do you calculate the payback period? And how does it compare with the costs of the old machines? Dallan Spa wants to help you with a handy tool—an Excel spreadsheet that allows you to estimate the hourly cost of a new plant by simply entering a few figures. In this article, you will find detailed explanations of the individual formulas for calculating the hourly cost of a line.

To obtain the spreadsheet, follow the instructions at this link >>>

For over 40 years in the industry, Dallan has been a reference point for the design of machines for the production of first-class metal profiles.