It is probable that some can sterilizing would continue because of com- 

 mercial deliveries. Consideration of utilizing a smaller unit in place of the 

 usual can sterilizer would hinge on whether the savings in space, depreci- 

 ation, and operating costs would exceed the loss on the sale of the old equip- 

 ment. 



Space savings because of the elimination of the scales might, or might 

 not. be tangible. Utilization of such space and the sale of the used equip- 

 ment become an individual problem. Loss from sale rests on two factors: 

 (1) age and condition of the equipment, and (2) the extent to which change- 

 over affects the used-equipment market. The released space must be included 

 in the revised operational setup or it becomes waste space. Also, the need 

 for additional holding tanks under bulk haul may further complicate the 

 problem of efficient space utilization. 



Greater flexibility in plant operation is provided by the ownership or 

 availability of a tank truck which can be used for milk storage to eliminate 

 processing on Sundays, holidays, or in an emergency. 



By weighing and buying the milk at the farm, the labor for receiving 

 and weighing at the plant can be reduced to a minimum, if not eliminated. 

 With 100 percent or with anything less than 100 percent change-over, the 

 labor and machine time in handling cans is reduced. There may be alterna- 

 tive uses for this labor in the plant which will not necessitate lay offs. On 

 the other hand, if part-time labor is available, or the reduced weighing and 

 receiving job can be allocated to other plant employees, through overtime 

 or recombination of duties, one man less is needed in the plant operation. 



If the plant only partially changes to bulk assembly, which is the more 

 probable immediate situation for New Hampshire production conditions, the 

 savings will be reduced accordingly. In fact the economical use of labor be- 

 comes a more difficult problem. Labor may be wasted because of the uncer- 

 tain arrival of cans which would not be true of a 100 percent conversion. 



Estimated Cost Savings to the Dealer 



The probable savings to a plant processing six to seven thousand pounds 

 of milk per day, if all milk is delivered by bulk, are estimated in Table 9. 



Table 9. Probable Savings per Hundredweight from Bu'k Handling for a Dealer Processing 



6,000 Pounds of Milic Daily 



Electricity 



Fuel > $ .03* 



Refrigeration 



Labor .065t 



Can replacement and retinning .0151 



) 



Total .110 



* Based on 1 hour per day savings for light, fuel, water, and washing fluid at 

 67.51 hundredweight per day. 



tBased on 3% hours labor saving at $1.25 per hour. 



JBased on replacement of 10 40-quart cans and 25 20-quart cans per year plus 

 retinning of 7 40-quart cans, 12 20-quart cans, and 10 covers. Total cost $373.50. 



As an example of the probable savings from using the tank for holding 

 milk over on Sundays, the estimates in Table 10 refer to plant costs. Addi- 

 tional savings may be possible if labor costs are also eliminated. 



16 



