88
COST PER HOUR
Management & Merchandising
The link life to service point and destruction point is shown for reference purposes only
and is not included in the cost per hour comparison.
a. Single grouser shoe run to destruction and replaced twice to equal link:
b. Extreme service shoe run to destruction and replaced once to equal link:
c. Extreme service shoe run to service limit, regrouser then run to destruction to equal
link:
TOTAL COST PER HOUR AT (a.) (b.) (c.)
INITIAL COST OF SHOES
(as part of new track group) 4000 6000 6000
Cost to remove and install (Twice) (Once) (None)
Labor 400 200 200
Hardware 200 100 0
Cost of Replacement Shoes 8000 6000 (None)
Cost of Regrouser (None) (None) 2000
Cost of Track Group
Handling & Transportation 400 (Twice) 200 (Once) 0
Cost of Downtime 500 (Twice) 300 (Once) 400 (Once)
Trade-in Value N/A N/A -300
Exchange Value N/A -800 N/A
Scrap Value -200 N/A N/A
______ ______ _____
Total 13,300 12,000 8,300
13,300 12,000 8,300
Total Cost/Hr. ______ = 1.90 ______ = 1.71 _____ = 1.19
of Effective Life
7,000 7,000 7,000