Fixed and variable cost comparisons
While we sometimes become attached to our equipment, the answer to when equipment needs to be replaced should be objective rather than subjective. Each company is slightly different in how they approach their fixed and variable costs and what they consider to be an adequate return on investment (ROI) for evaluating new equipment. However, there is a commonality when analyzing the cost per part. No matter how fixed and variable costs are calculated, all related fixed and variable costs eventually affect the cost per part and, ultimately, a company’s competitiveness.
CO2 versus fiber laser comparisons
When looking at fiber laser cutting technology and considering the efficiency and productivity benefits over CO2, it is obvious why fiber lasers have become so popular for metal-cutting applications. Fiber lasers consume up to three times less energy than CO2 and are capable of up to five times faster speeds depending on power and material thickness. In addition, materials such as aluminum, copper, and brass are cut with ease due to the shorter wavelength of the fiber laser.
Repair and maintenance cost comparisons
One of the most significant variable costs for older equipment is repair and maintenance costs. How much does the equipment repair cost contribute to the total variable cost? How much more, as a percentage, does the cost to repair and maintain differ from when the machine was new? Of course, you must make this comparison based on an equal number of operating hours.
To see actual costs and trends, costs must be evaluated on a rolling basis and over time. Was it a one-time repair cost, or does the trend show increasing repair costs over time? Remember to include lost machine revenue due to downtime with the machine repair costs. Excessive repair costs significantly affect your profit and your cost per part.
Actual ‘cost per part’ factors
What about the actual ‘cost per part’ of your current equipment versus comparing the production of that same part with that of a new fiber laser machine? If we compare the new cost per part calculation based on the costs (fixed and variable) and the run time estimates from the fiber, how much lower is the percentage of the cost per part compared to the current equipment? Both the trend line in cost per part and lost bids should be analyzed to determine when these increasing trends become a trigger for considering new equipment. Lost bids and a higher cost per part affect sales revenues and profits.
Technology contributions to lower operating costs
The focused beam of even a 2kW fiber laser possesses 5 times more power density and 2.5 times more absorption than a 4kW CO2-focused beam due to the nature of the beam size and the wavelength comparison. This means that higher feed rates can be achieved with a fiber laser than a CO2 laser, producing up to five times more parts per unit of time, depending on the fiber laser power. Because you can produce three to five times more parts with fiber lasers, you have reduced the time to produce the parts and effectively reduced the cost per part. Producing parts faster creates additional machine capacity to cut additional parts, thereby increasing revenue.
Innovations like Bystronic’s BeamShaper allow thick steel materials up to 2.00-inch to be cut with high quality and speed. For example, 2.00-inch steel can be cut at 48 in/min on our 30kW fiber laser cutting machine.
Electrical consumption on a fiber laser is almost three times lower than that of a CO2 laser of the same output power wattage, lowering your effective cost per part. Eliminating maintenance on beam delivery optics, the beam path bellows and purge system, and the vacuum pump frees up additional machine capacity to produce higher revenue.
Another capacity opportunity gained is not having to wait 10 minutes until the CO2 laser is at full operating potential daily. The beam alignment and the beam size never change on the fiber laser, facilitating consistency of cut and repeatability of parameters daily. This benefit increases machine capacity by not spending time adjusting the parameters because the parts are always consistent in cut quality from shift to shift and from day to day.
Justifying the fiber laser investment
After evaluating the full potential of fiber laser technology, you will realize that you can produce three to five times more parts at half the operating costs while simultaneously creating additional machine capacity. This will enable you to cut additional parts, win more competitive bids thanks to a lower overall cost per part, and produce more revenue for your business.
By Frank Arteaga, Regional Director Marketing – Americas
Bystronic Inc., Hoffman Estates, IL
Voice.bystronic@bystronic.com