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Stuart McElrath Company

                            since 1992

 
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--[ THE GOALS ]--
When a foundry is planning a capital expansion it generally has one of two goals:

Significantly Increasing Production
without Impacting Product Costs.
or
Maintaining Existing Production
and
Reducing Production Costs.

Either one of these two goals can be accomplished once existing costs are documented (see Foundry Cost Studies), and proposed costs (based on proposed production changes- i.e. new equipment) are calculated.

--[ THE STUDY ]--
This is done as part of the Feasibility Study. The goal of the study can be summed up in a the following simple formula:

Existing Costs minus Proposed Costs
equals Project Feasibility

--[ THE BASIS FOR ]--
The Feasibility Study is undertaken with the help of the customer’s key personnel and examines all operations - technical and financial - from raw materials to the shipment of castings.

All studies are approached on the basis of the customer's needs and objectives. They provide management with all necessary facts for making a final decision on the feasibility of the project.

--[ THE REPORT  ]--
A comprehensive and detailed report is submitted to management which includes general arrangement drawings and evaluates all aspects of the projects feasibility on a step-by-step basis.

Cost estimates are established for the necessary facilities, equipment and installation. These estimates, taken together with projected operating costs, are used to determine the Return On Investment for the project.

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