FSM 122 Equipment and Capital Budget Yuen Wai Lee 3/5/2013

Purchase Justification

Reason for requesting the purchase of a new oven A new oven is needed as the oven igniter of the old oven no longer works. The old oven has been used for more than 15 years. The maintenance cost has been increasing for the past few years because some of the parts have to be replaced. Many customers have complained about having to wait for a long time for food to come. Workers have also complained about the low efficiency of the oven; it usually takes more than 20 minutes to preheat to 350. This is not acceptable in this busy foodservice we have.

Descriptions of the two Ovens chosen from fishnicks Full-size convention Gas oven: Southbend GS-15 Reason: The Southbend GS-15 was chosen because of its high efficiency and preheat rate. Full-size convention electric oven: Moffat E32MS Reason: The Moffat E32MS was chosen because it has a low idle energy rate so less energy is wasted and electric cost will be less. It also has a high efficiency and preheat rate.

Comparison of the six ovens chosen For the full-sized gas and electric convention ovens chosen, they were both compared with a gas and electric base efficient and energy efficient oven respectively. The Base efficient electric oven has the lowest initial cost comparing to all of the six ovens chosen. Generally, the initial costs of all electric ovens are lower than that of the gas ovens. The energy efficient ones are the most expensive comparing to the other two in both gas and electric ovens with the base efficient ones as the cheapest. Regarding the performance of the gas convention oven, the southbend GS-15 has an efficiency of 46.2% and production capacity of 89.4lbs/h which are the highest comparing to the other two gas ovens. The gas electric efficient oven has a lowest idle energy rate of 11758 Btu/h whereas the GS-15 oven has a slightly higher energy rate of 13990 Btu/h. The base efficient oven has a highest idle energy rate among all three. However, the GS-15 has a preheat energy of 8680 Btu which is the lowest comparing to the others. It will take longer time for the oven to heat up to a desired temperature. For the performance of electric ovens, the Moffat E32MS oven has the lowest preheat energy of 0.58kWh and idle energy rate of 0.77kW but has a highest heavy-load energy efficiency of 79.8%. For the production capacity, energy efficient oven has the highest capacity which is 82.0lbs/h and the capacity of E32MS is slightly lower which is 76.8 lbs/h. By comparing the two types of ovens, it was found that the electric ovens have a much higher efficiency but a lower production capacity than the gas ovens. The efficiency of the electric ovens ranged from 65-79.8% whereas the efficiency of gas

ovens ranged from 30-46.2% only. The production capacity of Moffat E32MS is 76.8lbs/h which is lower than that of Southbend GS-15 which is 89.4lbs/h. For the energy cost of the ovens chosen, the gas ovens all have a lower energy cost than the electric ones. However, the electric ovens have a slightly lower maintenance cost than that of the gas ovens. The total lifetime cost of E32M S electric oven is lowest among all the six ovens chosen. It cost about $14718. The lifetime cost of GS-15 is slightly higher and is $15667. Except the E32M S electric oven, generally all other gas ovens have a much lower lifetime cost than the electric ovens.

Recommended oven for purchasing Moffat E32MS Reasons for choosing Moffat E32MS The Moffat E32MS electric convention oven is chosen because it has the highest energy efficiency comparing to the six ovens chosen. A high efficient oven is required by our facility because we have a very busy kitchen during rush hours. The idle energy rate is low so less electricity is wasted when the oven is not in use. The energy cost will be less when less electricity is wasted. Although the electric ovens has a much higher energy cost than the gas ovens, their lower initial cost and higher efficiency made the lifetime cost lower. The Moffat E32MS electric convention oven has the lowest lifetime cost so it is more cost-efficient.