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9.2.2 To determine by the use of feasibility analysis (cash flow, net present value, and internal rate of return) differences between conventional and vacuum drying for 4/4 red oak lumber 1. Conventional drying and vacuum with no air drying scenarios were feasible for both companies studied; vacuum with no air drying was more feasible than conventional drying due to their respective values of NPV and IRR. Vacuum with air drying had negative values of NPV and IRR, which makes the scenario not economically viable. 2. The capital costs of the vacuum kilns and raw material costs were the parameters that impacted the total costs among the three different scenarios. For plant C the capital investment of the kilns of vacuum with air drying was 23% higher than in conventional drying; and vacuum with no air drying was 61% higher than in conventional drying. For plant D the total capital investment of the kilns of vacuum with air drying was 44% higher than in conventional drying and vacuum with no air drying was 71% higher than in conventional drying. In terms of inventory cost, vacuum with air drying was 60% more than in conventional for Plant C; while for Plant D, vacuum with air drying inventory cost was 66% more than conventional drying. 9.2.3 To determine if the high capital cost of vacuum drying equipment can be justified with the reduction of WIP and cycle time, and by meeting the desired throughput through two case studies in flooring manufacture. 1. 2. Vacuum drying can reduce WIP and CT while meeting desired throughput for a part of flooring production line. Cycle times from case A and B respectively were 87% and 95% less than conventional drying for Plant C. WIP from case A and B were 48% and 84% less than conventional drying for Plant C. 125PDF Image | Impact of Vacuum-Drying on Efficiency of Hardwood Products
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