Optimizing the Financial Advantage of Using Cnc Machine Tools by Use of an Integrated Suite of Programs

Abstract

By evaluating the parameters relating to machine tool investment, with the aid of an integrated suite of programs based on discounted cashflow principles, it is shown that CNC machines are viable over a much wider range of applications than was previously considered. The program, as described in a companion paper (1), has been used to assess the effect of each parameter in the financial appraisal, with the corresponding results being discussed. The paper then goes on to describe how this technique can be readily used by a company to evaluate a range of possible options, thus enabling the optimum investment decisions to be made. Finally, it is shown that because previous authors used an incorrect methodology to evaluate returns, this resulted in an understatement of the financial benefits of CNC.