Mill Project Impact Analysis: Return on Investment, Productivity Enhancement and Operational Performance

In today’s competitive environment, investments in mill technologies are not merely equipment purchases for businesses, but strategic decisions. Analysis of the concrete impacts of these investments on operational performance, productivity, and profitability is critically important for proper decision-making processes. As Tanış A.Ş., we are committed to providing measurable results and clear returns at every stage of the projects we offer to our customers.

In this article, we will examine detailed analyses of different mill projects in terms of productivity enhancement, quality improvement, cost optimization, and strategic business impacts with numerical data. The impact analyses and ROI calculations we present will provide a concrete perspective on expected returns for businesses considering investment in mill technologies.

Productivity Enhancement and Production Capacity Impact Analyses

Impact Analysis 1: Production Time Optimization with Automatic Cleaning System

Situation: A mill operation with 300 tons/day capacity was experiencing 1,200 hours of annual production loss due to manual cleaning and product changeover processes. 14% of total production time was spent on cleaning and transition operations.

Solution: Tanış A.Ş.’s developed TCS-2000 series automatic cleaning system automated cleaning and changeover processes with CIP (Clean-In-Place) technology and PLC-controlled transition protocols.

Numerical Results:

• Cleaning and transition times reduced by 78%, gaining 936 hours of additional production time annually
• Production capacity increased by 11,700 tons annually (13.5% increase)
• Labor productivity rose by 17% (production tons/worker-hour)
• 12-month monitoring confirmed consistent maintenance of gained production time

ROI Analysis:

• Investment amount: €385,000
• Annual additional revenue: €292,500 (11,700 tons × €25/ton contribution margin)
• Simple payback period: 15.8 months
• 5-year projection Internal Rate of Return (IRR): 72%

Impact Analysis 2: Milling Performance with Roller System Modernization

Situation: A mill using 20-year-old conventional roller systems faced problems with low extraction rate (72%) and high energy consumption (95 kWh/ton).

Solution: Tanış A.Ş.’s TVM-800 series high-efficiency roller systems improved milling performance with micro-adjustable roller gap technology and optimized diaphragm pressure control.

Numerical Results:

• Extraction rate increased from 72% to 78% (6-point increase)
• Energy consumption per ton decreased from 95 kWh to 76 kWh (20% reduction)
• Particle size distribution standardization reached 92% level
• Uniform gluten development improved by 47% (based on farinograph stability)

ROI Analysis:

• Investment amount: €620,000
• Annual extraction gain: €324,000 (60,000 tons × 6% × €90/ton)
• Annual energy savings: €108,300 (60,000 tons × 19 kWh/ton × €0.095/kWh)
• Total annual return: €432,300
• Simple payback period: 17.2 months
• 5-year Net Present Value (NPV): €1,275,000 (with 8% discount rate)

Impact Analysis 3: Pneumatic Conveying System Optimization and Line Efficiency

Situation: A mill facility with an old pneumatic conveying system was experiencing frequent blockages, high pressure losses, and unbalanced material flow problems. An average of 380 hours of system downtime occurred annually.

Solution: Tanış A.Ş.’s TPT-V series pneumatic conveying system increased line efficiency with optimized pipe geometry, intelligent pressure control system, and variable speed fan technology.

Numerical Results:

• System downtime reduced by 86% to 53 hours annually (327 hours gain)
• Material transfer rate increased by 32% (from 25 tons/hour to 33 tons/hour)
• Line imbalances reduced by 78% (based on standard deviation)
• Electricity consumption decreased by 23% per kg of transported product

ROI Analysis:

• Investment amount: €275,000
• Gain from reduced downtime: €196,200 (327 hours × €600/hour)
• Energy savings: €63,800/year
• Simple payback period: 16.3 months
• 10-year total cost of ownership (TCO) advantage: €2,430,000

Quality Improvement and Product Performance Impact Analyses

Impact Analysis 4: Product Standardization with Precision Sifting System

Situation: A flour mill was experiencing customer complaints and product returns due to fluctuations in product quality. Standard deviation in particle size distribution was at 18% level and product returns reached 2.7% of production volume.

Solution: Tanış A.Ş.’s TS-Precision series precision sifting system optimized sifting performance with adjustable eccentric mechanism and advanced sensor technology.

Numerical Results:

• Standard deviation in particle size distribution decreased from 18% to 5%
• Product returns decreased from 2.7% to 0.4% (85% reduction)
• Customer complaints reduced by 76%
• Standard deviation in quality control laboratory tests improved by 82%

ROI Analysis:

• Investment amount: €340,000
• Savings from return reduction: €172,500/year (75,000 tons × 2.3% × €100/ton)
• Quality control cost reduction: €48,000/year
• Simple payback period: 19.4 months
• Customer satisfaction and brand value increase: Difficult to quantify but strategic long-term value

Impact Analysis 5: Gluten Quality through Tempering System Modernization

Situation: A mill working with variable raw material quality was experiencing inconsistent gluten quality problems in the final product due to non-homogeneous tempering process. Farinograph stability value minimum-maximum range was 7.5 minutes at unacceptable levels.

Solution: Tanış A.Ş.’s TTM-3000 series automatic tempering system optimized the dynamic tempering process with moisture sensors and adaptive control algorithms.

Numerical Results:

• Farinograph stability value range decreased from 7.5 minutes to 1.8 minutes (76% improvement)
• Gluten index standard deviation reduced by 65%
• 22% increase in bread volume tests and 85% more consistent results achieved
• Final product quality rejection rate decreased from 4.3% to 0.8%

ROI Analysis:

• Investment amount: €295,000
• Savings from quality rejection rate reduction: €157,500/year (45,000 tons × 3.5% × €100/ton)
• Premium pricing effect: €67,500/year (45,000 tons × 3% price increase × €50/ton)
• Simple payback period: 13.1 months
• 3-year cumulative cash flow: €630,000

Cost Optimization and Financial Impact Analyses

Impact Analysis 6: Operating Costs with Energy Efficient Equipment

Situation: A mill facility with 80,000 tons annual capacity had operating costs above sector average with 92 kWh energy consumption per ton due to using old and inefficient motors. Energy costs constituted 37% of total variable costs.

Solution: Tanış A.Ş. developed a comprehensive energy optimization project including IE4 super premium efficient motors, frequency-controlled drives, and energy monitoring systems at all critical points.

Numerical Results:

• Energy consumption per ton decreased from 92 kWh to 71 kWh (22.8% reduction)
• Annual electricity consumption reduced by 1,680,000 kWh
• Carbon emissions decreased by 840 tons CO₂ equivalent annually
• Share of energy costs in total variable costs decreased from 37% to 29%

ROI Analysis:

• Investment amount: €520,000
• Annual energy savings: €218,400 (1,680,000 kWh × €0.13/kWh)
• Maintenance cost reduction: €35,000/year
• Simple payback period: 20.5 months
• 10-year energy savings (inflation-adjusted): €2,850,000

Impact Analysis 7: Total Cost of Ownership through Maintenance Strategy Optimization

Situation: A mill operation applying reactive maintenance approach was experiencing 620 hours of unplanned downtime annually and incurring high emergency maintenance costs. Maintenance costs constituted 18% of total operating expenses.

Solution: Tanış A.Ş.’s TPM (Total Productive Maintenance) and predictive maintenance infrastructure established an integrated maintenance optimization system including vibration sensors, thermal monitoring systems, and equipment condition tracking software.

Numerical Results:

• Unplanned downtime reduced by 78% to 136 hours annually
• Reactive maintenance ratio decreased from 82% to 24%
• Spare parts and emergency service costs reduced by 43%
• Equipment service life increased by an average of 28%

ROI Analysis:

• Investment amount: €310,000
• Gain from reduced unplanned downtime: €290,400 (484 hours × €600/hour)
• Maintenance cost reduction: €126,000/year
• Simple payback period: 9.5 months
• 5-year TCO (Total Cost of Ownership) reduction: €1,930,000

Strategic Business Impact and Long-term Value Analysis

Impact Analysis 8: Market Expansion and Product Diversification Capacity

Situation: A mill operation producing only standard flour had reached market penetration limits due to limited product portfolio and was under price competition pressure. It wanted to create product diversification capacity for access to different market segments.

Solution: Tanış A.Ş. developed a modular product line including rapid product changeover capability, flexible milling parameters, and precision blending system. The system was supported by fully automatic recipe management software.

Numerical Results:

• Product changeover time reduced by 85% from 3.2 hours to 28 minutes
• Product portfolio expanded from 2 product types to 14 product types
• Successful entry into 4 new market segments
• Premium product lines reached 35% of total production
• Average product profit margin increased from 14% to 22% (57% increase)

ROI Analysis:

• Investment amount: €680,000
• Annual additional profit: €264,000 (40,000 tons × 8% margin increase × €82.5/ton)
• Additional revenue from premium segment sales: €210,000
• Simple payback period: 23.4 months
• 5-year cumulative cash flow: €2,340,000

Impact Analysis 9: Sustainability Strategy and ESG Performance

Situation: A medium-scale mill facility wanted to respond to sustainability and ESG (Environmental, Social, Governance) performance pressures from customers and investors and position itself as a leader in the sector.

Solution: Tanış A.Ş. developed a comprehensive sustainability solution package: energy-efficient equipment, water-saving tempering systems, waste reduction technologies, and carbon footprint measurement-reporting system integration.

Numerical Results:

• Water consumption per ton reduced by 42% to 0.38 m³
• Energy consumption per ton decreased by 28% to 68 kWh
• Waste amount reduced by 36% and recycling rate increased to 92%
• Carbon footprint reduced to 82 kg CO₂ equivalent per ton of product (34% improvement)
• ESG rating upgraded from BB to A

ROI Analysis:

• Investment amount: €760,000
• Annual resource savings: €186,000
• Carbon credit revenue: €42,000/year
• Financing cost reduction through sustainable finance access: 1.2 points (€28,800/year)
• Simple payback period: 29.6 months
• Brand value and sustainable supplier status gain

Return on Investment (ROI) and Financial Impact Assessment

Impact Analysis 10: Financial Evaluation of Facility Expansion and Modernization Programs

Situation: A mill operation with 100 tons/day capacity was planning a comprehensive investment program targeting 80% capacity increase and general technology modernization in response to increasing market demand.

Solution: Tanış A.Ş. designed a 42-month phased modernization program. The program was implemented in four phases: (1) Roller and sifting systems, (2) Automation and control systems, (3) Cleaning and tempering units, (4) Packaging and storage systems.

Numerical Results:

• Production capacity increased from 100 tons/day to 180 tons/day (80% increase)
• Energy efficiency improved by 32% per ton
• Labor costs decreased from 24% to 14% of total costs
• EBITDA margin increased from 12% to 19%

Detailed Financial Analysis:

• Total investment amount: €2,650,000
• Annual additional EBITDA: €718,200
• Net Present Value (NPV, 10 years): €3,105,000 (8% discount rate)
• Internal Rate of Return (IRR): 24.6%
• Simple payback period: 44 months
• Dynamic payback period: 54 months

Sensitivity Analysis:

• If capacity utilization rate drops from 80% to 70%, IRR: 19.2%
• If raw material costs increase by 15%, IRR: 21.8%
• If sales prices decrease by 10%, IRR: 17.4%

Conclusion

The impact analysis and return on investment evaluations of Tanış A.Ş. mill projects reveal concrete and measurable results of technology investments. The case analyses we examined show average return periods for projects in different areas:

• Productivity enhancement projects: 14-18 months
• Quality improvement investments: 16-20 months
• Energy and maintenance optimization projects: 9-21 months
• Strategic capacity and market expansion projects: 23-44 months

These projects not only provide financial returns to businesses but also offer strategic advantages in terms of operational excellence, product quality consistency, sustainability performance, and market positioning.

As Tanış A.Ş., we provide comprehensive financial analysis and consultancy services to evaluate the financial impacts of your mill technology investments, develop project-based ROI analyses, and bring strategic perspective to your investment decisions. You can contact us for customized impact analysis and investment evaluation tailored to each business’s unique needs and objectives.