What Cost-Benefit Analysis Applies to 40 TPH Wheel-Mounted Crushing Units?
Time:
3 January 2021
Conducting a cost-benefit analysis (CBA) for a 40 TPH (tons per hour) wheel-mounted crushing unit involves assessing the upfront costs, operational expenditure, and potential revenue or savings, alongside non-monetary factors such as environmental impact and operational flexibility. Below is a framework to evaluate the cost-benefit analysis for such equipment:
Cost Components
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Capital Investment
- Purchase price of the 40 TPH wheel-mounted crushing unit.
- Costs for transportation and installation.
- Taxes, duties, and insurance.
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Operating Costs
- Fuel (diesel or electricity consumption per hour).
- Labor costs (operators, technicians, etc.).
- Maintenance and servicing (lubrication, spare parts, etc.).
- Wear and tear on components like jaws, hammers, and conveyors.
- Tires and mobility-related upkeep.
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Additional Costs
- Site preparation and setup (ground leveling, permits, etc.).
- Storage or downtime costs.
- Safety and compliance measures.
- Depreciation expense.
Benefit Components
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Production Efficiency
- Output capacity: Approximately 40 tons per hour, enabling rapid material processing.
- Reduction in material cost if fed through crushing directly (processed material may be cheaper than purchasing aggregates).
- Portability allows crushing at multiple sites, minimizing transport costs for raw materials.
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Revenue Generation
- Selling crushed aggregates to customers (depending on the local demand for crushed stone, gravel, or other materials).
- Increased profitability from custom crushing services for contractors or companies.
- Waste material recycling into usable secondary products.
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Cost Savings
- Reduced transport costs as mobile units can process materials on-site.
- Lower dependency on fixed-location crushing plants.
- Reduced hauling and handling expenses for oversized materials.
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Flexibility
- Portability of wheel-mounted units allows optimization based on project needs.
- Ability to relocate quickly for new projects or temporary operations.
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Environmental Benefits
- Less environmental disruption with localized processing.
- Reduced fuel usage for transporting materials long distances.
- Opportunity to recycle and reuse construction materials on-site.
Quantitative Analysis
To make the CBA more actionable, consider:
- Net Cash Flow Calculation: Assess the expected total revenue minus total costs over the unit’s lifespan.
- Payback Period: Estimate how long it will take to recover the capital investment from the benefits generated.
- Return on Investment (ROI): Calculate the percentage return over the cost basis of the crushing unit.
Qualitative Analysis
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Risk Assessment:
- Uncertainties in demand for output materials.
- Equipment downtime and availability of spare parts.
- Regulatory changes or environmental restrictions.
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Competitive Advantage:
- Enhanced mobility gives an edge over stationary plants.
- Unique ability to access remote/quarry locations effectively.
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Project-Specific Realities:
- Crushing output type required (granularity, quality).
- Project timelines and schedule flexibility.
- Compatibility with complementary equipment or infrastructure (screening systems, additional conveyors, etc.).
Decision-Making
The final decision should align with project-specific parameters:
- For small-to-medium operations, a 40 TPH mobile unit can minimize costs while offering flexibility.
- For larger operations, scalability must be considered, as higher-capacity units might offer better long-term benefits.
Ultimately, a detailed financial projection (considering both direct and indirect costs and benefits) alongside qualitative insights will help optimize investment in a 40 TPH wheel-mounted crushing unit.
Contact Us
Shanghai Zenith Mineral Co., Ltd. is a leading manufacturer of crushing and grinding equipment in China. With more than 30 years of experience in the mining machinery industry, Zenith has built a strong reputation for delivering high-quality crushers, mills, sand-making machines, and mineral processing equipment to customers around the world.
Headquartered in Shanghai, China, Zenith integrates research, production, sales, and service, providing complete solutions for aggregates, mining, and mineral grinding industries. Its equipment is widely used in metallurgy, construction, chemical engineering, and environmental protection.
Committed to innovation and customer satisfaction, Shanghai Zenith continues to advance in intelligent manufacturing and green production, offering reliable equipment and comprehensive after-sales service to help clients achieve efficient and sustainable operations.
website: https://www.chinagrindingmill.net
Email:info@chinagrindingmill.net
Whatsapp:+8613661969651
