If one is able to upgrade a process to double throughput, you’re effectively saving your hourly charge - adding this to your bottom line, right?

But by doing so, you’re also effectively increasing your profit / hour by both the savings gained and the efficiency increase of twice the units. Therefore, upgrading double dips and not only saves you money, but gives you much higher earning potential, at least with that job?

Efficiency Gain (EG) = (New Earnings per Hour) - (Original Earnings per Hour) + (Savings in Labor Costs per Hour)

  • PhreaqinOPBEnglish
    1·
    1 year ago

    But essentially, for surface level simplistic perfect world scenario, if x operator produces 10 units an @ $50/h, and we now produce 20 units, we’re effectively saving $50 sn hour by this upgrade or change.

    But not only am I saving $50, my actual profit per hour greatly increases as originally, let’s say I was making $5 a unit, now @ the double rate I’m making $7.5 a unit, and I can actually produce double units so my profit per hour has more than doubled, even tho my real profit is essentially $50 an hour?