Posted by Graham Stoppani on 27/04/2020 15:42:52:
I have to confess that it was the accountant in me talking. Slot Drill £7 slitting saw and arbour £21… 
Have to say, I agree with you!🙂 Your maths is impeccable. You are correct in that the initial outlay clearly leans the accountant in the direction of a slot mill.
However: Slot drill life span – not long; abor lifespan – a once-off purchase which will not need regular replacement, probably not even in the longer term.
Real on-the-shop-floor costs would be far lower for the slitting saw option – but an account (as you say) wouldn’t have a clue as to the practicality of making an investment for the future. All an accountant sees is the £££ return on investment over the next few days/months.🙂
I expect capital costs and operational replacements are treated differently by accountants, but as a practical costing (non-accountant) the outlay for the arbor would be a long term investment, whereas repeated seven quid a time (for regular slot mill replacement) would soon mount up.🙂
For a one-off operation, slot mills might just be the better option, but definitely not for on-going manufacturing in our very ‘manumatic’ operations environment.
The common disagreement between engineers and accountants, admirably demonstrated in a short post….short term monetary outlay and return versus a far better long term investment with a better practical solution to the problem at hand.
The company I worked for suffered from the same issue choices – do it cheap or do it properly. I won’t trouble you with examples, but the approx half million quid annual budget I had (35 years ago) was soon reduced by ‘circumventing’ the accountants directives.🙂. Accountants had no clue as to the equipment down-time with resultant loss of production (or increased repair costs) on the production line.
Edited By not done it yet on 28/04/2020 05:04:11