When you see several workers performing rework you can almost bet the packaging machine should be replaced. The true rework costs include materials, wages, line availability losses and production costs. Excluding the costs just mentioned, except the production costs, will give a low replacement value but using production cost alone still may be significant enough to warrant replacing a packaging machine.
To determine the increase in production quality, calculate this increase using the packaging equipment quality calculator below. With your production cost as a multiplier, determine the value of the increased quality output from replacement of piece of packaging equipment. This will give the value of increasing the number of good products produced over a one year period
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