EYE ON FIBER

A Guideline for Choosing the Lowest Cost Connector Installation Method

Consider Four Factors

When choosing a connector installation method, you must consider at least four factors. These factors include: total installed cost, suitability of the connector to the environment in which the connector must survive, suitability of the method to the environment of installation, and convenience. Each of the four most commonly used methods, epoxy, quick cure adhesive, Hot Melt Æ, and cleave and leave have their advantages and disadvantages with respect to these four factors. In this memo, we present a simplified summary of our investigations on the first factor, total installed cost.

The three main factors in total installed cost are: connector cost ($/connector), labor cost ($/hour), and installation rate (connectors/hour). With one exception, the higher the rate of the installation method, the higher the cost of the connector. In a recent issue of Eye on Fiber, we presented an extensive analysis of the four main methods. That analysis, which is too long for presentation here, generated guidelines to use for choosing a method based on total installed cost.

Connector Installation Rates Vary Widely

Connector installation rates range from 8 to 30 connectors per hour. These rates assume two ideal conditions. The first condition is that there is no time consumed for activities other than that of installation. For example, these rates assume no time for travel to the site of installation, set up of equipment, clean up after installation, and packing of equipment for the next site. We shall refer to these times as overhead time.

The second condition is that the installer will make no mistakes and achieve 100 per cent yield, or good connectors. Real yields depend on both the level of experience of the installer and the method of installation.

Simple Approach To Determine Lowest Installed Cost

With these two ideal conditions, we can present a simple approach for determining the best installation method, based on total installed cost. Since the methods with the high installation rates have higher costs than the methods with low installation rates, again, with one exception, we can divide the labor cost per hour by the installation rate to estimate the labor cost per connector for both methods. The difference between these two labor costs per connector represents the maximum premium price you should pay for the connectors that use the installation method with the high rate.

For example, we have created a table of cost per connector for labor rates from $30/hour to $85/hour and for installation rates from 8 per hour to 30 per hour (Table 1). Note that labor cost includes salary or hourly rate, fringe benefits, such as medical insurance, retirement benefits and vacations, taxes paid by the employer, and tools provided to the employee for his use.

Table 1: Labor Cost Per Connector Vs. Loaded Labor Rate

	No.	of	Connectors	Per	Hour
$/man-hour	8	12	15	20	25	30
30	3.75	2.50	2.00	1.50	1.20	1.00
35	4.38	2.92	2.33	1.75	1.40	1.17
40	5.00	3.33	2.67	2.00	1.60	1.33
45	5.63	3.75	3.00	2.25	1.80	1.50
50	6.25	4.17	3.33	2.50	2.00	1.67
55	6.88	4.58	3.67	2.75	2.20	1.83
60	7.50	5.00	4.00	3.00	2.40	2.00
65	8.13	5.42	4.33	3.25	2.60	2.17
70	8.75	5.83	4.67	3.50	2.80	2.33
75	9.38	6.25	5.00	3.75	3.00	2.50
80	10.00	6.67	5.33	4.00	3.20	2.67
85	10.63	7.08	5.67	4.25	3.40	2.83

From this table, you can determine the cost per connector. For example, if your labor rate is $30/ hour, a connector installation method that allows 8 connectors per hour has a labor cost of $3.75 per connector, while a method that allows 30 connectors per hour has a labor cost of $1.00 per connector. The difference between these two costs, $2.75, represents the maximum price premium you should pay for a connector that allows a rate of 30/hour.

If you pay $4 for the connector that allows a rate of 8/hour, you should pay no more than $6.75 (=$4+$2.75) for the connector that allows a rate of 30/hour. Otherwise, your total installed cost will be higher with the high rate connector than with the low rate connector.

However, if your labor rate is $70/hour, the difference in cost per connector between the low rate connector method, 8/hour, and the high rate method, 30/hour, is $6.42 (8.75-2.33=6.42). In this case, you would be justified in paying $10.42 for a high rate connector instead of $4 for a low installation rate connector, At $10.42, your total installed costs would be equal.

Of course, your goal is to choose a method with the lowest total installed cost. At $6.75, or $10.42, your estimated total installed cost by both methods is the same. Your real goal requires prices lower than these two values.

We based this analysis on the assumptions of two ideal conditions. When we use realistic overhead time, realistic yields and add in costs for supplies required for connector installation, we find the benefit of increased connectors per hour is less than what we would expect. In other words, you will benefit from an analysis that is more detailed than that in this article. For a more detailed analysis, request Eye on Fiber, V.2, I.2 at fiberguru@ptnowire.com .

Mr. Eric R. Pearson is President of Pearson Technologies Incorporated, a Certified Professional Consultant, a Certified Fiber Optic Specialist, a Director of the FOA, an editorial advisor to Fiberoptic Product News, and a 26-year veteran of fiber optics. Pearson Technologies provides technical and marketing consulting, legal support and training.

Respectfully submitted for your consideration,

Eric R. Pearson, CPC, CFOS

President

Pearson Technologies Inc.

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