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Rexnord Total Cost of Ownership Customer Soft drink manufacturer Industry Food & Beverage Application Bottle conveyor to palletizer Rexnord Solution: Roller Upgrade System (RUS) with High-Performance, Low Backline Pressure Rollers Total Annual Savings $73,592 Soda manufacturer drinks in savings of $73K with Roller Upgrade System. Challenge A global leader in the beverage industry was conveying containers of cans and two-liter bottles of soda over four powered roller conveyors. The lines were mostly suspended overhead, and conveyed soda cases up an incline to palletizers. The two lines transporting cases of PET bottles were old, with many of the rollers no longer turning. As a result, containers were stranded weekly and required the use of a manlift to reach and dislodge them. In addition to lost production, jam ups from the stranded containers caused excessive wear on the incline conveyors and necessitated frequent replacement of the rollers and roller drive O-rings. Soda cases got stranded on the powered roller conveyor, causing downtime to retrieve product from the suspended line. Rexnord Solution Rexnord proposed upgrading two of the existing roller conveyors to a trouble-free modular chain using the Rexnord Roller Upgrade System. The easy-to-install system includes a chain, support brackets, wear strips and Rexnord’s unique drive shaft support module. Adaptable to many common Rexnord’s Roller Upgrade System resulted in 90% annual savings. roller or belt conveyor installations, the Roller Upgrade System would provide smooth, high-speed case conveying, while eliminating lost production and maintenance costs. Rexnord Solutions and Savings in Action By installing the Roller Upgrade System, the soft drink manufacturer was able to save $18,800 in maintenance costs because they no longer needed to replace the conveyor rollers and broken O-rings or deal with the product jam ups. More importantly, the customer eliminated the weekly lost production costs associated with retrieving stranded product, thus saving $62,400 annually. Based on the successful performance of the Roller Upgrade System, the customer plans to install the same system at another plant. For a detailed cost analysis for your application, contact your local Rexnord Representative. TCO4-012 Rexnord Total Cost of Ownership Calculating the Annual Total Cost of Ownership (TCO) Rexnord worked with the customer to determine their current cost of ownership and compared that to the cost of the Rexnord solution. Factors considered were: • Acquisition costs of the Roller Upgrade System • Installation costs • Reduced maintenance events • Lost production due to downtime Annual Cost Analysis Breakdown Replace Rollers Events/Year Labor Cost/Event Material Cost/Event Total 36 $200 $200 $14,400 Events/Year Labor Cost/Event Material Cost/Event Total 2 $1,200 $1,000 $4,400 Current product Roller Upgrade System would eliminate this cost. Replace Live Roller Rubber Belts Current Product Roller Upgrade System would eliminate this cost. Lost Production Repair conveyors and remove stranded product Events/Year Downtime Cost/Hour Total 52 $1,200 $62,400 Current Product Roller Upgrade System would eliminate this cost. Total Current Annual TCO $81,200 RUS Acquisition & Conversion Costs Annualized based on 7 years life Cost Expected Life (Years) Annual Cost Installation labor $19,999 7 $2,857 Materials $33,257 7 $4,751 Total Annual RUS Cost $53,256 $7,608 Rexnord Solution Annual Savings Summary Total current cost $81,200 Total proposed cost Total savings per year TCO reduction percent $7,608 $73,592 90.6% Total Cost of Ownership Annual Savings: $73,592 866-REXNORD ©2012 Rexnord Corporation • www.rexnord.com TCO4-012 Printed in USA 3/12