Replacement Of Capital Equipment (252a4ea9-bf4a-4af6-ba3c-4dfbae4fc16e)

The New York Trap Rock Corporation has four plants located along the Hudson River, all within 70 miles of New York City. The company produces crushed stone for use as construction aggregate, with a total annual production amounting to 6 million tons. The crushed stone is moved to markets in metropolitan New York, New Jersey and Long island areas by water transportation. There are daily deliveries of approximately 35 scowloads to the market area. Its customers are contractors with ready-mixed concrete and asphalt plants located on the water, where the aggregate is unloaded for its ultimate use. For a number of years capital equipment was replaced only when the current operating machinery was no longer serviceable, or when' a need was apparent for a different type of equipment. There was no particular regard for efficiency or for operating and maintenance costs. Such lack of system often resulted in the emergency purchase of equipment which was later found to be unsuitable for the job. A few years ago it became apparent that a systematic procedure was necessary. After evaluation of several systems, an individualized plan was evolved from the basic pattern developed by the Machinery and Allied Products Institute. The system adopted by New York Trap Rock has proved wholly satisfactory.