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 Quarrying News
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NPV of Cash Flows from Labor Savings
4225 t/y
$211,250
$105,650 $46,500
$0 $0
$10,000 $3,500 $20,000 $7,000
$800,800
$377,300 $578,000
Cleaner Carryback Labor Initial Annual NPV: 5 years Effect. Clean Up Cost/y @ Installation Maint. @ 10%
0.5 t/h Shoveling
 Half Solution 50% 2113 t/y 2 Precleaners
Full Solution 77.5%a 950 t/y 2 Precleaners &
2 Secondaries
 *Assume the dirty belt has 100 g/m2 of carryback. Effectiveness = 100 g/m2 x [(1-50%) x (1-55%)] = 22.5 g/m2 remaining on belt after cleaning or (100g/m2 - 22.5 g/m2)/100 g/m2 x 100% = 77.5% effective.
Figure 5 - NPV of Cleanup Labor Savings for Half and Full Solutions ©Martin Engineering 2023
$20,000 = 1.76 or 176%, which is very good. But ROI doesn’t tell the whole story, and that’s why the NPV method should be used. One could also consider adding tertiary cleaners, but at some point there is a diminishing return, as it’s not possible to clean a conveyor belt 100% consistently over time.
A company’s cost of money may be different, or it may have a different labor rate. Once the NPV spreadsheet is set up, it’s very easy to change assumptions, costs and savings to compare the results. If the cash flow from added sales and reduced accident exposure and other identifiable costs are included, it becomes even more clear that best financial, safety and production is the full solution. As is the case of most upgrades for the control of fugitive materials, the ROP is so great that the Internal Rate of Return is off the charts.
Prioritizing Safety Justifies the Cost
Often issues like excessive dust, mistracking, spillage, carryback, etc. are considered commonplace and “the cost of doing business.” In reality, they are extremely unsafe, costly and easily remedied with modern equipment. A common injury for cleaning or maintenance personnel is a muscle strain. The OSHA Safety Pays Calculator [4] estimates the cost of a single lost time muscle strain injury at $32,023 in direct and $35,225 in indirect costs for a total of $67,248.
Conveyor guarding may seem like additional cost, but injury statistics make it an essential component. ©Martin Engineering 2023
If there is a history of safety incidents, improvements can often be justified on safety alone. Identifying that an issue exists is the first hurdle; another is asking for help collecting data and making sure it’s recorded correctly. Keeping the project and equipment decisions simple and safety-focused is the best approach.
Make sure to read Part 2 for insight on how to prepare the project for success and justify the expense after installation.
 References
[1] Swinderman, R. Todd; Marti, Andrew D.; Goldbeck, Larry J.; Marshall, Daniel; Strebel, Mark G.: Foundations; Fourth Edition; pg. 465, pg. 443; Martin Engineering; Worzalla Publishing Company; Stevens Point, Wisconsin 2009.
https://foundations.martin-eng.com/foundations-4- book-download
[2] Martin Engineering Problem Solved Paper, https://www.martin- eng.com/content/case_study/16434/belt-cleaners- reduce-carryback-78-percent
[3] Swinderman, R. Todd; Marti, Andrew D.; Goldbeck, Larry J.; Marshall, Daniel; Strebel, Mark G.: Foundations for Conveyor Safety; First Edition; pg. 451; Martin Engineering; Worzalla Publishing Company; Stevens Point, Wisconsin 2009. https://foundations.martin- eng.com/foundations-4-book-download
[4] OSHA Safety Pays Calculator https://www.osha.gov/safetypays/estimator accessed 6/30/21
R. Todd Swinderman, P.E. / President Emeritus / Martin Engineering
R. Todd Swinderman earned his B.S. from the University of Illinois, joining Martin Engineering’s Conveyor Products division in 1979 and subsequently serving as V.P. and General Manager, President, CEO and Chief Technology Officer. Todd has authored dozens of
articles and papers, presenting at conferences and customer facilities around the world and holding more than 140 active patents. He has served as President of the Conveyor Equipment Manufacturers’ Association and is a member of the ASME B20 committee on conveyor safety. Swinderman retired from Martin Engineering to establish his own engineering firm, currently serving the company as an independent consultant.
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