| The two charts below are called Cost/Bale
to Own Equipment and Cost/Bale to Operate Equipment. The Cost/Bale to Own
Equipment is charting yearly cost of equipment divided by yearly bales stacked which
is calculated in Step 1. |
| The Cost/Bale to Operate Equipment is
charting Cost/Hour for operating equipment divided be average Bales/Hour stacked which is
calculated in Step 2. Adding the numbers in the two charts gives you the Total
Cost/Bale which is calculated in Step 3. By analyzing the size and change in the
numbers on the charts, it is easy to visualize where the most savings can be achieved. |
| The formula for determining cost/bale is:
[(Total cost of equipment) X (Yearly Cost Factor) / (Total bales stacked per year)]
+[(Cost of Labor per hour used to operate equipment + Fuel used per hour to run equipment
+ Average maintenance cost per hour) /( Bales per hour stacked)] = Cost/Bale |
| This formula does not take into account major
repairs or salvage cost at the end of equipment life. We approximated those to be a wash
but one might conclude that the more expensive complicated equipment might require more
repairs than a simple easy to operate piece. |
| Also a tractor or truck will retain
its’ value better than a job specific piece of equipment. Other factors involved in
making a purchase of a new stacking system are: |
- Ease of loading to a truck from the way the stack is made.
- Skill of available operators and training time to learn how
to operate the machine efficiently.
- Speed required to remove bales for irrigation or weather.
- Is a backup stacking method readily available if the stacker
is out for repairs.
- Will repairs require a special technician to diagnose and fix
the problem.
- Is there trained personnel close by if the machine goes down
to fix it.
|
| The staff at Morris
Industries (USA) Inc. hopes that this information will help you
make the right purchase for your hay stacking needs. If you have
any questions about how to fill out this worksheet, or do not understand
the numbers that are generated, give us a call, we would be happy
to discuss it with you. Our number is (701) 837-1620. |
| Step 1. Determining the
Cost/Bale to Own Equipment. |
| Enter all equipment used in
stacking bales and the % time used for stacking |
Equipment List |
Total Price |
% Used For Stacking |
Cost |
| Tractor |
|
|
|
| Loader for Tractor |
|
|
|
| Truck |
|
|
|
| Truck |
|
|
|
| Tractor |
|
|
|
| Loader for Tractor |
|
|
|
| Wagons |
|
|
|
| Accumulators |
|
|
|
| Loader attachments |
|
|
|
| Automatic Bale Wagons |
|
|
|
| Self Propelled Stackers |
|
|
|
| Miscellaneous |
|
|
|
|
| Total cost for equipment is
______________________________ |
| Multiply Total Cost of equipment by a yearly cost factor
derived from the chart to the right. |
Yearly
Cost Factor Chart |
|
|
9% |
10% |
11% |
5 |
.256 |
.263 |
.270 |
6 |
.222 |
.229 |
.236 |
7 |
.198 |
.205 |
.212 |
8 |
.180 |
.187 |
.194 |
|
|
|
yearly cost of equipment |
| __________________ |
X |
__________________ |
= |
__________________ |
Total cost of
equipment |
|
yearly cost
factor (derived from yearly cost factor chart) |
|
yearly cost of equipment |
|
|
Cost/Bale to Own Equipment
divide the yearly cost of equipment by # of bales stacked. |
| __________________ |
/ |
__________________ |
= |
__________________ |
| yearly cost of equipment (answer
to question above) |
|
# of bales stacked per year |
|
Cost/Bale |
|
| Step 2. Determine the
Cost/Bale to Operate Equipment |
| Input all cost that are directly related to the
operation of the machine. If major repairs occur at consistent intervals they can also be
estimated. |
| List of
Cost |
Cost |
Usage Time |
Cost Per
Hour |
| Labor |
|
|
|
| Fuel |
|
|
|
| Daily Maintenance |
|
|
|
| Taxes |
|
|
|
| Licenses |
|
|
|
| Major Repairs |
|
|
|
| Miscellaneous |
|
|
|
|
| Total operational cost per hour is
__________________ |
| Cost/Bale to Operate Equipment |
| Total operational cost per hour divided by
average bales stacked per hour |
| __________________ |
/ |
__________________ |
= |
__________________ |
| Total operational cost |
|
average bales stacked per hour |
|
cost/bale to operate equipment |
|
| Step 3: Add Cost/Bale to Own Equipment and
Cost/Bale to Operate Equipment. |
| Cost/Bale to Own Equipment and Cost/Bale to
Operate Equipment equals Total Cost/Bale |
| __________________ |
+ |
__________________ |
= |
__________________ |
| cost/bale to own equipment (from
step 1) |
|
cost/bale to operate equipment
(from step 2) |
|
total cost/bale |
|
| Additional Cost that can be calculated: |
| Yearly cost to stack bales: |
| To determine total yearly cost to stack bales,
take Cost/Bale and multiply by the number of bales stacked per year. |
| __________________ |
X |
__________________ |
= |
__________________ |
| cost/bale (from step 3) |
|
bales stacked per year |
|
yearly cost to stack bales |
|
| Saving between two options: |
| To determine the yearly savings between two
stacking options, subtract the Cost/Bale of the two options and multiply by the
number of bales stacked. |
| __________________ |
X |
__________________ |
= |
__________________ |
Difference
between stacking options |
|
# of bales
stacked |
|
yearly savings |
|
| Cost per Ton |
| To determine cost per ton divide 2000 pounds
per ton by the average weight per bale in pounds. Then take that number and multiply by Cost/Bale. |
| 2000/________________ |
X |
__________________ |
= |
__________________ |
| average weight per bale in
pounds |
|
cost/bale |
|
cost/ton |
|
Cost/Bale to own equipment