Define the framework of comparison
Compare solutions for the same task and the same period. Note annual quantity, loading, workflow and planned service life. If one variant requires additional transfers and another does not, this difference must be visible in the calculation. Technical suitability must be clarified before an economic decision.
Which items belong in it?
Besides purchase, cleaning, inspection, return and replacement can be relevant. Working time for loading and removal can also play a role. Costs due to damaged parts may only be included if the underlying data is reliable. An unproven reduction in scrap is not a secure saving.
Simplified time example
Suppose a changed process saves 15 seconds on each of 200 pallet changes per day. That results in 3,000 seconds or 50 minutes per day. Assuming 220 working days, that is around 183.3 hours per year. At an internal rate of 40 euros per hour, this corresponds mathematically to a time value of about 7,333 euros.
These freely chosen values are not a performance promise for MFP. In addition, working time freed up on paper is not automatically a cash saving. For that, you would have to look at how it is actually used in the company.
Include the stock required
A solution can be cheaper per carrier but need more carriers because of lower usable occupancy. So first calculate the carrier quantity, taking waiting time and return into account. The required initial stock can then be evaluated with the prices offered.
Work with scenarios instead of false precision
For uncertain figures, calculate with a low, medium and high approach – for example for cycle time or replacement needs. This shows which assumption has a particularly strong influence on the decision. That figure should be measured more precisely in a trial or in ongoing operation.
Summarise the result clearly
A good decision paper contains the technical prerequisite, the period considered, the main cost items and open assumptions. Separate measured values from estimates. Update the calculation after a representative period of use. This keeps the economic assessment verifiable and allows it to be adjusted traceably when things change.
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