Cost Comparison
| Dual-Tip Punch |
vs. |
Conventional Punch |
| $170.00 per tool |
 |
$50.00 per tool |
Assume 40 parts per minute during production cycle
Assume conventional tools are changed at least 3 times per shift resulting in 13,800 parts per shift.
Assume 16,200 parts per shift with the Dual Tip punch.
Assume Dual Tip punch lasts 4.5 shifts before a tool change
| At 4.5 Shifts |
Dual-Tip Punch |
Conventional Punch |
| Tool Cost: |
$170.00 |
$675.00 |
| Production: |
72,000 units |
62,100 units |
| Tool Cost Per Part: |
$0.0023 |
$0.0108 |
This illustration indicates that for the manufacturing component, the tool cost of the conventional punch is 4.7 time greater than that of the tool cost for the Dual Tip punch.
