Luis Salgado-Salazar Professor Frank FSM 122 3/5/14

Capital Request Form: Equipment Capital Budget Justication

Item Request: The foodservice facility needs to replace its old convection oven due to recent collateral damage from earthquake activity. A part of the roof fell on the facilitys convection oven and is now out of order.

Initial Cost: I have investigated the Vulcan VC4ED electrical convection oven, (VEO), and the Southbend GS-15 gas convection oven, (SGO), on www.shnick.com and the VEO has an initial cost of $3,049 where as the SGO has an initial cost of $4,770. The gas-powered energy efcient oven, (GEEO), has the lowest initial cost at $97 where as its electric-powered energy efcient oven, (EEEO), counterpart has the highest initial cost of $5,121. The gas-powered base efciency oven, (GBEO), has the initial cost of $150 and its electric-powered base efciency oven, (EBEO), counterpart has the initial cost of $2,160. From only this information, the GEEO would save us a lot of money and leave room for more spending in other areas of the budget because of its low initial cost of $97. The EEEO would initially cost more than any other oven at a price of $5,121.

Performance Value: The VEO has a heavy-load energy efciency of 69.8% and a production capacity of 93.2 pounds/hour. The SGO has a heavy-load energy efciency of 46.2% and a

production capacity of 89.4 pounds/hour. The GBEO has a heavy-load energy efciency of 30% and a production capacity of 70 pounds/hour. The GEEO has a heavy-load energy efciency of 45% and a production capacity of 83 pounds/hour. The EBEO has a heavy-load energy efciency of 65% and a production capacity of 70 pounds/hour. The EEEO has a heavyload energy efciency of 73% and a production capacity of 82 pounds/hour. The Vulcan/ electric oven performs more efcient than the Southbend/gas oven by 23% when dealing with heavy loads. It is possible to evaluate the ovens performance when calculating the heavy-load energy efciency to production capacity ratios. The lower the ratio then the lower the performance and vise versa. The table below shows the ratios:

Convection Oven

Ratio (heavy-load energy efciency:production capacity) 0.52 0.43 0.5 0.75 0.9 0.9

SGO GBEO GEEO VEO EBEO EEEO

From the ratios, the EEEO & EBEO perform the best when dealing with heavy-loads. If the facility needs to cook 100 servings of 4-8 ounces of foodstuff, then this means the oven needs to be capable of cooking 50 pounds per cycle. Since all ovens can potentially handle this load, the energy efciency matters more than the fact that the ovens can handle the typical need of 50 pounds. Therefore, when taking into account which oven has the highest heavy-load energy

efciency and the lowest ratio the EEEO out-performs the other ve ovens with a 73% energy efciency and a ratio of 0.9. The GBEO comes in last with a high ratio of 0.43 and a low heavyload energy efciency of 30%

Lifetime Costs: The Vulcan oven has a lifetime energy cost of $18,312, a lifetime maintenance cost of $1,260, and a total lifetime cost of $22,621. The Southbend oven has a lifetime energy cost of $9,264, a lifetime maintenance cost of $1,440, and a total lifetime cost of $15,474. The GBEO has a lifetime energy cost of $12,624, a lifetime maintenance cost of $36,504, and a total lifetime cost of $49,278. The GEEO has a lifetime energy cost of $8,340, a lifetime maintenance cost of $72,828, and a total lifetime cost of $81,265. The EBEO has a lifetime energy cost of $19,020, a lifetime maintenance of $1,440, and a total lifetime cost of $22,620. The EEEO has a lifetime energy cost of $14,676, a lifetime maintenance cost of $1,056, and a total lifetime cost of $20,853. The SGO has the lowest total lifetime cost at $15,474 and the EEEO trails in second with a total lifetime cost of $20,853. The SGO is the cheapest oven in terms of lifetime cost compared to all other ovens. The gas-powered energy efciency oven (GEEO) trails in last with a lifetime cost of $81,265.

Gas vs. Electric: In general, gas ovens have a higher total lifetime cost with those rare situations where some ovens like the SGO. That one has the lowest total lifetime cost from all six ovens. Nevertheless, electric ovens typically cost less than gas ovens. When evaluating the gas versus electric performance, the electric ovens have a more efcient output as seen by the ratios. It is clear why gas ovens have a lower initial cost compared to electric ovens.

Recommendation: Although the Southbend oven cost less in the long run, I would recommend buying the electric energy efcient oven (EEEO) for our facility. It is better for the environment if we can purchase renewable power from the facilitys utility provider. Also, the fact remains that the EEEO has the best heavy-load energy efciency relative to its production capacity capability as seen by the highest ratio. The EEEO is the best oven when it comes at using energy more efciently with heavy-loads and makes it more adequate to produce the quantity of food the foodservice requires during peak production periods. Even though the SGO has the lowest total lifetime cost, the EEEO is only $5,379 more expensive. These $5,379 are worth the investment if the oven can perform more efcient than the other ovens. As a safety measure, gas ovens might be dangerous considering the last oven was damaged by earthquake activity and so, a gas oven exacerbates the risk of having a gas leak during another potential earthquake.