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      Mill Modification ROI and Payback Calculator  
      (For 2 chambers mills and only mill's internals modification)            
                       
        Date            
        Company/Plant        
        Mill N°            
                       
        Mill shell diameter m 1,6 60,5      
        Length of chamber 1 m 2 63      
        Filling degree of chamber 1 % 2,4 66      
        Length of chamber 2 m 2,8 68,5      
        Filling degree of chamber 2 % 3,2 68,5      
              3,6 76,5      
      1 Data before modification(s):     4,2 86      
    4,8 92
        Mill absorbed Power (1) kW 5,2 94      
        (1) At terminals     6 98      
        All auxiliaries absorbed power (2) kW         
        (2) Pre-grinding system, weighfeeders, bucket elevator, separator, fans...etc          
                       
        Annual operating hours h          
        Operating percentage %          
                       
        Type of cements produced              
        Name    
        % of the total production %  
        Output t/h  
        Specific power consumption (mill only) kWh/t  
        Total specific power consumption kWh/t  
        Annual production in tons t    
                       
      2 Kind of modifications:              
        Chamber 1:              
        Weight of lifting lining/m2   kg/m2        
        Weight of first chamber lining   kg        
        1st chamber ball charge (3)   tons        
        (3) Complete or partial       Yes      
        Intermediate diaphragm  
      No      
        Chamber 2:              
        Weight of classifying lining/m2   kg/m2        
        Weight of second chamber lining   kg        
        2nd chamber ball charge (3)   tons        
        (3) Complete or partial              
        Outlet diaphragm  
             
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      3 Cost of the investment:              
        Material (4):              
        (4) All the prices herebelow are in US dollars per kg of material:            
        Price of the balls (chamber 1)   US$/kg        
        Price of the balls (chamber 2)   US$/kg        
        Price of lining chamber 1   US$/kg        
        Price of lining chamber 2   US$/kg        
        (4) All the prices herebelow are the total prices in US dollars:            
        First chamber lining   US$        
        1st chamber ball charge   US$        
        Intermediate diaphragm   US$        
        Second chamber lining   US$        
        2nd chamber ball charge   US$        
        Outlet diaphragm   US$        
        Total material   US$        
        Cost of manpower:              
        All the prices are total prices in order to simplify the calculator            
        Mill's internals   US$        
        Total manpower   US$        
        Total cost of the investment (material + manpower) US$        
        Mill downtime:              
        Number of days out of service   days        
        Number of operating hours lost   hours        
                       
      4 Expected improvement with the modification        
        Production increase in %   %        
        Mill absorbed power increase in %   %        
        Auxiliaries power increase in %   %        
        Annual operating hours increase in % (5)   %        
        (5) In the case where the modification results in a more reliable installation          
                       
      5 Expected production data after modification(s) for a production increase target:        
        Mill absorbed Power (6) kW          
        (6) At terminals              
        All auxiliaries absorbed power (7) kW          
        (7) Pre-grinding system, weighfeeders, bucket elevator, separator, fans...etc          
        Annual operating hours h          
        Operating percentage %          
        Type of cements produced              
        Name    
        % of the total production %  
        New output t/h  
        Specific power consumption (mill only) kWh/t  
        Total specific power consumption kWh/t  
        New annual production in tons t    
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      6 ROI and Payback calculations for a production increase target:          
        Price of the electrical power (8) US cents/kWh          
        (8) The price hereabove is an average price in order to simplify the calculation          
        Energy costs:              
        Before modification US$          
        After modification US$          
        Gain of energy during downtime (9) US$          
        (9) The installation didn't operate during modification            
        Cement production benefit:              
        Type of cement    
        Before modification:              
        Gross margin by ton of cement US$  
        Yearly gross margin by type of cement US$  
        Total yearly gross margin US$          
                       
        During modification:              
        Gross margin by ton of cement US$  
        Loss of production due to downtime US$  
        Total loss of production due to downtime            
        After modification:              
        Gross margin by ton of cement US$  
        Yearly gross margin by type of cement US$  
        Total yearly gross margin US$          
        ROI and Payback in the case where energy cost and increase of cement production are considered:      
        Cost of investment US$          
        Gain of energy US$          
        Loss of production US$          
        Total cost of investment US$          
        Yearly gain/loss in energy US$          
        Yearly gain due to production increase US$          
        Total yearly gain US$          
        ROI (yearly) %          
        Payback year      or months      
                       
      7 Expected improvement with the modification for a specific energy consumption improvement target:    
        Mill specific power consumption improvement in % %        
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      8 Expected production data after modification(s) for a specific energy consumption improvement target:    
        Mill absorbed Power (10) kW          
        (10) At terminals              
        All auxiliaries absorbed power (11) kW          
        (11) Pre-grinding system, weighfeeders, bucket elevator, separator, fans...etc          
        Type of cements produced              
        Name    
        % of the total production %  
        New Output t/h  
        Specific power consumption (mill only) kWh/t  
        Total specific power consumption kWh/t  
        Annual production in tons (12) t    
        (12) same as before modification              
        Annual operating hours h          
        Operating percentage %          
                       
      9 ROI and Payback calculations for a specific energy consumption improvment target:      
        Price of the electrical power US cents/kWh          
        Energy costs:              
        Before modification US$          
        After modification US$          
        Gain of energy during downtime US$          
        ROI and Payback in the case where energy cost and increase of cement production are considered:      
        Cost of investment US$          
        Yearly gain in energy US$          
        Life expectancy of the material years          
        Total gain expected US$          
        ROI %          
        Payback year      or months      
        Discounted Payback Period calculation (13)            
        (13) There are two main problems with the payback period method:          
        1. It ignores any benefits that occur after the payback period and, therefore, does not measure profitability.      
        2. It ignores the time value of money.              
        Because of these reasons, the discounted payback period is generally preferred.           
        The calculation for discounted payback period is a bit different than the calculation for regular payback period due to the fact that the cash flows used in
        the calculation are discounted by the weighted average cost of capital used as the interest rate and the year in which the cash flow is received.    
        This method is applied herebelow.              
        Discount rate (i) %          
        Year (y) 0 = year of the modification Cash Flow (C) in US$ Present Value Factor 1/(1+i)^y Discounted Cash Flow C*1/(1+i)^y Cumulative Discounted Cash Flow      
        0      
        1
        2
        3
        4
        5
        Discounted Payback Period year      or months
       
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