A life-cycle cost analysis of a chromium recycling process system

Abstract

Based on a global environmental concern, a need for all the tanneries in Thailand to acquire a chromium recycling process system to operate with each tannery is identified. Presently, the chromium recycling process system is available for all the tanneries. However, due to the high costs, few tanneries in Thailand have acquired the system.

The ultimate objective of this project is to reduce the cost of the system to the level that it will be attractive to all the tanneries. The objective of the life-cycle cost analysis is to identify the system’s high-cost contributors for the purpose of initiating a continuous process improvement function. Once the system’s high-cost contributors are identified, each of them is analyzed to see if cost reduction can be achieved. The system is modified in response to the analysis results. The modified system design will be evaluated through a life-cycle cost analysis to see how the modification has cut down on the system’s total cost.

The purpose of this project is to initiate a continuous improvement process for the chromium recycling system. The initiation is accomplished with hopes of triggering future system improvement, and thus drive down the cost to an attractive level for all tanneries in Thailand. In this project, a life-cycle cost analysis of the system is accomplished, and the high-cost contributors are found. New design of the system that eliminates or reduces these high-cost contributors is considered. A life-cycle cost analysis of the new design is accomplished to compare the results. A significant reduction in system total cost will show that there is a potential for improvement, and the life-cycle cost analysis approach to reduce the total cost is the route to follow in future efforts to improve the system.