Why outsource hooks and racks - Cost Analysis

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Buying vs. Making Hooks Cost Analysis   Hook Part Number: C-407                                                                         Description: 4”L x 0.076” “C” style standard hook   Assumptions   Employee Pay Rate Straight hourly rate $8.00/hr. employee   Cutting wire to Size Based on Mighty Hook time study 500 pieces. per hour average (One wire length cut per 7)   Forming Hook ( 2 ends per hook) Based on Mighty Hook time study 250 pieces per hour average (1 hook per 14 seconds)   Wire cost Based upon prevailing market pricing for wire 0.076” Diameter  x 8.5” Long hard drawn spring steel wire to produce 4” Long standard “C” style hook = $0.011/ea.   Calculations   Time to Produce 1000 hooks Cutting: 500 pieces/hr. * X = 1000; X=1000/500=2 Forming: 250 pieces/hr. * X=1000; X=1000/250=4 2 hrs. Cutting   4 hrs. Forming Total: 6 hours   Cost of cutting and bending 1000 pieces $8.00/hr. x 6 hrs. = $48.00   Cost of making each hook   $48.00/ 1000 + $0.011 = $0.059/ea.   Cost of making 2000 hooks $0.059/ea. x 2000 = $118.00   Cost of Buying Hooks from Coater One From Intech Services Standard Website Pricing List $54.00 per box of 2000 hooks   Savings from buying hooks from Coater One vs. making them in house $118.00 - $54.00 = $64.00   Visit www.intechservices.com to see our extensive CoaterOne Hooks & Racks product line.   In addition, if you have custom hook and rack requirements contact us for a free estimate.     Intech Services, Inc.  The Sole US & Canadian Distributor for DuPont Teflon* Finishes CoaterONE e-marketplace Online Purchasing & Information Resource for the Coating Industry 7 McMillan Way #101   Newark, DE  19713        Office (302) 366-8530