Introduction: Rip Evaluation Guide & Walkthrough
Why am I taking the time to do this? This Guide will calculate:
- True yield
- Cost to operate per hour & per day.
- Operating cost to produce 1MBF of rips
- Total Cost to run 1MBF of rough lumber
- Total cost to produce 1MBF of rips
Step 1: Data Needed
- Order List for rough lumber. You can use this program for a whole run >10,000 BF or simply per pack <1,200
- Cost paid per MBF of lumber. Include shipping and all other costs to get the most accurate results.
- How many board feet of RIPS on AVERAGE are produced per hour.
- A Tally/list of the various types of rips produced.
- Production costs such as how many employees you have, average wage, and how many hours it took to complete the run/pack. If this value is already known, you many manually enter it in section B under: Operating Cost/ Hour.
Step 2: Part 1: Inputs
A. How many feet of ROUGH LUMBER did you run? You may evaluate 1 pack or an entire run.
B. What was the final sale price? This includes delivery.
C. On average, how many board feet of rips did you produce? Do not enter in MBF
Step 3: Enter Data of Rips Produced
A. Enter in the following (in inches):
B. The above example run was a pack of 7-8' length 4.75" width rips.
C. You DO NOT have to enter in values to every row. If you only ran two different types of rips, your yield will be calculated correctly.
Step 4: Part 2: Production Costs
A. Enter in the following parameters. They may be approximations, be as precise as possible.
B. If you DO NOT know:
1. Maintenance Cost/ Day
2. Utility Cost/ Hour
3. Additional Costs/ Day
* You may skip them. Note that your final number will not be completely accurate.
C. If you already know your production costs per hour &/or per day you may enter them directly into the green cells. You will erase the equation in the cell, if you wish to go back and enter in other production numbers later...
COPY AND PASTE FOR THE FOLLOWING
Cost/hour enter this -> =(L6*L7)+L9+L10
Cost/day enter this -> =L5*((L6*L7)+L8+L9+L10)
Step 5: Part 3: Results Explained
A. Cost to Run/ MBF Input
This is how much money you spent running 1 MBF of ROUGH LUMBER
B. Cost to Run/ MBF Produced
This is how much money you spent to PRODUCE 1 MBF of RIPS
C. Input Needed to Produce 1 MBF of Rips from D
This is how many feet of ROUGH LUMBER is needed to produce 1MBF of RIPS