piedmont trailer manufacturing comany solutions

7/24/2019 Piedmont Trailer Manufacturing Comany Solutions

1/26

Piedmont Trailer Manufacturing Company

Custom Order Tracking Project

Recurring Benefits

November 2 2!"#

Benefit

Storage Savings $30,000.00

Staff Reduction (2 people) $45,000.00

Reduced Order Rewor $!4,000.00

"ncreased Sales $!00,000.00

#aster Order rocessing $40,000.00

%etter &ata 'anageent $!25,000.00

Strealine ctivities $*0,000.00

Total Recurring Benefits $%&%!!!'!!

(ppro)imate*ollar +alue


2/26



One,Time Costs

November 2 2!"#

Cost

&evelopent ersonnel (!42,000.00)

+raining (45,000.00)

roect-Related +ecnolog/ urcases (5,000.00)

Site reparation (!05,250.00)

Miscellaneous

1onference-Related (,500.00)

Supplies (2,04.00)

&uplication (3,24.00)

Total One,Time Costs -&.!.!&'!!/



3/26



Recurring Costs

November 2 2!"#

Cost

Software 'aintenance ($55,000.00)

ardware ($30,000.00)

Supplies ($35,000.00)

"+ ositions (3 people) ($!0,000.00)

Site Rental ($3*,000.00)

Total Recurring Costs -$&"0!!!'!!/



4/26



1conomic easibility 3ummary

November 2 2!"#*iscount Rate "%4

5ear

5ear ! " 2 & % #Benefits

Recurring alue of %enefits $0 $ 434,000.00 $434,000.00 $434,000.00 $434,000.00 $434,000.00

resent alue #actor !.000000 0.*!3 0.4* 0.42 0.520*0 0.5!3

resent alue of %enefits $0.00 $3*0,0!.5 $333,4*.! $22,3.4 $25,2.*4 $225,40.00

Net Present +alue of (ll Benefits $!'!! $&0!.!"'.# $."%6#!'66 $"!!.#00'&! $"26%##"'"% $"%077#.'"%

Costs

One-+ie 1osts (30,03.00)

Recurring 1osts 0.00 (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00)


resent alue of Recurring 1osts 0.00 (2*,4.3) (244,0.) (2!4,40.4) (!**,2*!.53) (!5,!5.24)

Net Present +alue of (ll Costs -&.!.!&'!!/ -6%76#!'&./ -07%&%"'!%/ -""!070"'70/ -"27.26&'#"/ -"%62%22'.#/

Overall Net Present +alue

Cas8 lo9 (nalysis

6earl/ 7 1as #low (30,03.00) !0!,54.3 *,25*.23 *,2.0 *,*!.3! 0,24.

Overall 7 1as #low (30,03.00) (2*,4*.!) (!,0.3*) (!0!,33.*) (32,!2.3) 2,534.3

:RR; (30,03.00) !!,000.00 !!,000.00 !!,000.00 !!,000.00 !!,000.00

Break,even Occurs Bet9een; 6ears 4 and 5


5/26

Totals

$"%077#.'"%

-"%62%22'.#/

$2.#&%'&7

".'!%7%".4


6/26




November 2 2!"#*iscount Rate 04

5ear



resent alue #actor !.000000 0.252 0.*533 0.3*32 0.35030 0.*05*3

resent alue of %enefits $0.00 $40!,*5!.*5 $32,0*5.05 $344,523.! $3!,002. $25,33.!!

Net Present +alue of (ll Benefits $!'!! $%!"0#"'0# $..&7&6'7! $"""0%6!'!7 $"%&.%6&'!# $".&20&6'"6

Costs

One-+ie 1osts (30,03.00)

Recurring 1osts 0.00 (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00)

resent alue #actor !.000000 0.252 0.*533 0.3*32 0.35030 0.*05*3

resent alue of Recurring 1osts 0.00 (24,444.44) (22,33.4) (252,43*.5) (233,3.4) (2!,425.4)

Net Present +alue of (ll Costs -&.!.!&'!!/ -66#"%.'%%/ -7&..0"'"7/ -""7!2"7'0%/ -"%2&7#7'&%/ -"6%!&0%'.7/


Cas8 lo9 (nalysis

6earl/ 7 1as #low (30,03.00) !0,40.4! ,45!.30 2,0*4.54 *5,23.4 *,4.5

Overall 7 1as #low (30,03.00) (23,25.5) (!3,*44.2) (!,5.5) !3,503.! 2,45!.3

:RR; (30,03.00) !!,000.00 !!,000.00 !!,000.00 !!,000.00 !!,000.00



7/26

Totals

$".&20&6'"6

-"6%!&0%'.7/

$72%#"'&6

".'!%7%".4


8/26




November 2 2!"#*iscount Rate "!4

5ear



resent alue #actor !.000000 0.00! 0.*244 0.5!3!5 0.*30!3 0.202!

resent alue of %enefits $0.00 $34,545.45 $35*,. $32,00.2 $2,42.*4 $2,4.*5Net Present +alue of (ll Benefits $!'!! $&7%#%#'%# $.#&22&'"% $"!.727&'.6 $"&.#.2"'6! $"6%#2!"'%6

Costs

One-+ie 1osts (30,03.00)

Recurring 1osts 0.00 (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00)

resent alue #actor !.000000 0.00! 0.*244 0.5!3!5 0.*30!3 0.202!

resent alue of Recurring 1osts 0.00 (2*,00.!) (22,*0.2) (23*,!*.!!) (2!,!*.2*) (!,452.*)Net Present +alue of (ll Costs -&.!.!&'!!/ -6#7.7&'7"/ -7226!&'0&/ -""6"#2"'7&/ -"&.0.2!'2"/ -"#.6".&'"7/


Cas8 lo9 (nalysis

6earl/ 7 1as #low (30,03.00) !05,454.55 5,*. *,!52.52 ,22.5 2,02.*

Overall 7 1as #low (30,03.00) (25,24*.45) (!,3*0.) (*2,22*.!) (2,*.!) ,02*.2

:RR; (30,03.00) !!,000.00 !!,000.00 !!,000.00 !!,000.00 !!,000.00



9/26

Totals

$"6%#2!"'%6

-"#.6".&'"7/

$67!20'2.

".'!%7%".4


10/26




November 2 2!"#*iscount Rate "24

5ear



resent alue #actor !.000000 0.*2*5 0.!4 0.!!*0 0.355!* 0.542

resent alue of %enefits $0.00 $3*,500.00 $345,*2.!4 $30*,!2.3 $25,*!4.*5 $24,23.2

Net Present +alue of (ll Benefits $!'!! $&0.#!!'!! $.&&%02'"% $"!%2&7%'.. $"&"02!7'62 $"#6%%.2'0.

Costs

One-+ie 1osts (30,03.00)

Recurring 1osts 0.00 (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00)

resent alue #actor !.000000 0.*2*5 0.!4 0.!!*0 0.355!* 0.542

resent alue of Recurring 1osts 0.00 (2*3,2*.5) (253,50.5) (22,34.!2) (202,04.5) (!*0,44!.4)Net Present +alue of (ll Costs -&.!.!&'!!/ -6#%6&"'#./ -7!0"&7'22/ -""&%%0#'&%/ -"&&6#0!'!7/ -"#".!2"'0&/


Cas8 lo9 (nalysis

6earl/ 7 1as #low (30,03.00) !03,5!.43 2,44.4 *2,5.5! 3,20.!0 5,*2!.52

Overall 7 1as #low (30,03.00) (2,!3!.5) (!4,5.0*) (2,00.5) (!*,30.4*) 4,45!.04

:RR; (30,03.00) !!,000.00 !!,000.00 !!,000.00 !!,000.00 !!,000.00



11/26

Totals

$"#6%%.2'0.

-"#".!2"'0&/

$%.%#"'!%

".'!%7%".4


12/26




November 2 2!"#*iscount Rate "64

5ear



resent alue #actor !.000000 0.*20 0.43!3 0.405* 0.5522! 0.4!!3

resent alue of %enefits $0.00 $34,!3.3 $322,532.0 $2*,045.43 $23,4.34 $20,33.05

Net Present +alue of (ll Benefits $!'!! $&.%"&.'7& $6766.!'6& $7.%."6'!6 $"2"%%"!'%! $"%2"!%&'%#

Costs

One-+ie 1osts (30,03.00)

Recurring 1osts 0.00 (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00)

resent alue #actor !.000000 0.*20 0.43!3 0.405* 0.5522! 0.4!!3

resent alue of Recurring 1osts 0.00 (24,!3.3) (23,325.*0) (203,2.!4) (!5,2*.5) (!5!,403.4)Net Present +alue of (ll Costs -&.!.!&'!!/ -6%%0%!'7&/ -00""66'.&/ -"!0%07#'0./ -"26!#2%'%%/ -"%""720'&0/


Cas8 lo9 (nalysis

6earl/ 7 1as #low (30,03.00) !00,000.00 *,20.0 4,3!.2 4,05. 55,22.!!

Overall 7 1as #low (30,03.00) (20,03.00) (!*4,4.!0) (!!0,!.*!) (4,!!4.05) ,!!5.0

:RR; (30,03.00) !!,000.00 !!,000.00 !!,000.00 !!,000.00 !!,000.00



13/26

Totals

$"%2"!%&'%#

-"%""720'&0/

$7""#'!6

".'!%7%".4


14/26

6ears

0 ! 2 3

7et resent alue of ll %enefits $0.00 $ 3*0,0!.5 $ !4,50. $ !,00,5**.30

7et resent alue of ll 1osts $ 30,03.00 $ 4,50.3 $ *4,34!.04 $ !,!0*,*!.*

0 1 2 3 4 5

Years

$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

Net Present Value

of All Benets

Net Present Value

of All Costs


15/26

4 5

$ !,24,55!.!4 $ !,4*,5.!4

$ !,2,23.5! $ !,42,422.5


16/26

+e discount rate is !48 and te internal rate of return is !8. +e proect is ustifia9le 9ecause !8 is grea

" added te "RR to :conoic #easi9ilit/ ;orseet to f


17/26

er tan !48.


18/26



Recurring Benefits

November 2 2!"#

Benefit

Storage Savings $30,000.00

Staff Reduction (2 people) $,500.00

Reduced Order Rewor $!4,000.00

"ncreased Sales $!00,000.00

#aster Order rocessing $40,000.00

%etter &ata 'anageent $!25,000.00

Strealine ctivities $*0,000.00

Total Recurring Benefits $%66#!!'!!



19/26





5ear




resent alue of %enefits $0.00 $40,2!0.53 $35*,5.0 $3!4,*4.2! $2,205.45 $242,2*5.4*

Net Present +alue of (ll Benefits $!'!! $%!72"!'#& $.60"6.'"& $"!0&!%"'&% $"H%6'.7 $"6!"#&2'2.

Costs

One-+ie 1osts (30,03.00)

Recurring 1osts 0.00 (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00)


resent alue of Recurring 1osts 0.00 (2*,4.3) (244,0.) (2!4,40.4) (!**,2*!.53) (!5,!5.24)Net Present +alue of (ll Costs -&.!.!&'!!/ -6%76#!'&./ -07%&%"'!%/ -""!070"'70/ -"27.26&'#"/ -"%62%22'.#/


Cas8 lo9 (nalysis

6earl/ 7 1as #low (30,03.00) !30,23.! !!4,25.3 !00,233.2 *,23.2 ,!2.25

Overall 7 1as #low (30,03.00) (240,43.*4) (!2,!3.!) (25,40.4) !,*3.2* !3,!0.52

:RR; (30,03.00) !4*,500.00 !4*,500.00 !4*,500.00 !4*,500.00 !4*,500.00



20/26

Totals

$"6!"#&2'2.

-"%62%22'.#/

$"&7"!7'#2

20'.2%7"04


21/26



One,Time Costs

November 2 2!"#

Cost

&evelopent ersonnel (!42,000.00)

+raining (45,000.00)

roect-Related +ecnolog/ urcases (5,000.00)

Site reparation (!20,000.00)

Miscellaneous

1onference-Related (,500.00)

Supplies (2,04.00)

&uplication (3,24.00)

Total One,Time Costs -&0#%#&'!!/



22/26



Custom Order,Tracking Project


5ear


Recurring alue of %enefits $0 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00


resent alue of %enefits $0.00 $40,2!0.53 $35*,5.0 $3!4,*4.2! $2,205.45 $242,2*5.4*Net Present +alue of (ll Benefits $!'!! $%!72"!'#& $.60"6.'"& $"!0&!%"'&% $"H%6'.7 $"6!"#&2'2.

Costs

One-+ie 1osts (3*5,453.00)

Recurring 1osts 0.00 (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00)


resent alue of Recurring 1osts 0.00 (2*,4.3) (244,0.) (2!4,40.4) (!**,2*!.53) (!5,!5.24)Net Present +alue of (ll Costs -&0#%#&'!!/ -66%%!!'&./ -7!7!7"'!%/ -""2&.&"'70/ -"&"2!"&'#"/ -"%..".2'.#/


Cas8 lo9 (nalysis

6earl/ 7 1as #low (3*5,453.00) !30,23.! !!4,25.3 !00,233.2 *,23.2 ,!2.25

Overall 7 1as #low (3*5,453.00) (255,!*.*4) (!40,23.!) (40,0.4) 4,233.2* !24,35.52

:RR; (3*5,453.00) !4*,500.00 !4*,500.00 !4*,500.00 !4*,500.00 !4*,500.00



23/26

Totals

$"6!"#&2'2.

-"%..".2'.#/

$"2%'#2

26'.%7&!24


24/26





5ear




resent alue of %enefits $0.00 $3*0,0!.5 $333,4*.! $22,3.4 $25,2.*4 $225,40.00

Net Present +alue of (ll Benefits $!'!! $&0!.!"'.# $."%6#!'66 $"!!.#00'&! $"26%##"'"% $"%077#.'"%

Costs

One-+ie 1osts (30,03.00)

Recurring 1osts 0.00 (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00) (3!*,000.00)


resent alue of Recurring 1osts 0.00 (2*,4.3) (244,0.) (2!4,40.4) (!**,2*!.53) (!5,!5.24)Net Present +alue of (ll Costs -&.!.!&'!!/ -6%76#!'&./ -07%&%"'!%/ -""!070"'70/ -"27.26&'#"/ -"%62%22'.#/


Cas8 lo9 (nalysis

6earl/ 7 1as #low (30,03.00) !0!,54.3 *,25*.23 *,2.0 *,*!.3! 0,24.

Overall 7 1as #low (30,03.00) (2*,4*.!) (!,0.3*) (!0!,33.*) (32,!2.3) 2,534.3

:RR; (30,03.00) !!,000.00 !!,000.00 !!,000.00 !!,000.00 !!,000.00



25/26

Totals

$"%077#.'"%

-"%62%22'.#/

$2.#&%'&7

".'!%7%".4


26/26



Recurring Benefits

November 2 2!"# "RR for 1usto +racing S/ste= !8Proposed Project :RR

&eliver/ S/ste !5.08

uan Resources S/ste 2.*08

"nventor/ +racing S/ste !*.08

#orecasting S/ste 23.08

>ooing at te "RR?s,anageent sould not fund te custo order-tracing s/ste 9ecause it as a low

"RR(!8) copared to te proposed proects listed a9ove

piedmont trailer manufacturing comany solutions

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