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ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
7
Average Costs
Average tax, insurance, and interest
rates over the life of the machine.
T
A
= average annual tax and insurance rate
I
A
= average annual interest rate
(
+ + =
A A o f
I T
l
C C
1
|
.
|
\
|
+
=
l
l T
T
A
1
2
|
.
|
\
|
+
=
l
l I
I
A
1
2
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
8
Annual direct costs per year (C
d
)
Attributable to a particular operation:
labor
materials
power
set-up
Well look at later.
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
9
Indirect (or Overhead) costs
Machine
maintenance
Material handling
Engineering
Inspection
Office help
Administration
Building costs
depreciation
interest
taxes
insurance
heat
light
ventilation
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
10
Indirect (or Overhead) costs
Handled as a percentage (B)
of direct costs.
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
11
Hourly machine costs (C
H
)
H = hours of use per year
D = annual depreciation (= 1/l)
M
A
= average annual maintenance rate
n = number of operators per machine
| | ( ) B L n M I T D
H
C
C
A A A
o
H
+ + + + +
|
.
|
\
|
= 1
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
12
Machine operation cost per piece (C
p
)
Single point tool
C
p
= C
m
+ C
i
+ C
s
+ C
c
+ C
g
+ C
r
C
m
= machining cost
C
i
= idle cost
C
s
= set-up cost
C
c
= tool changing cost
C
g
= tool and regrinding costs
C
r
= raw material cost
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
13
Machining Cost (C
m
)
C
m
= t
m
x R
m
t
m
= machining time / piece
R
m
= fully burdened labor rate
= L
m
x (1+B
m
)
L
m
= labor rate
B
m
= overhead (burden) rate
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
14
Idle cost (C
i
)
C
i
= t
i
x R
m
t
i
= idle time/piece
loading, unloading, adjusting
speeds, feeds, personal breaks,
etc.
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
15
Set-up cost (C
s
)
C
s
= t
s
x R
s
/ N
s
t
s
= set-up time
R
s
= fully burdened set-up labor rate
= L
s
x (1+B
s
)
N
s
= number of pieces made per set up
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
16
Tool changing cost (C
c
)
C
c
= t
c
x R
m
x (t
m
/ T)
t
c
= tool changing time
t
m
= machining time per piece
T = tool life
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
17
Tool and regrinding costs (C
g
)
C
g
= [t
g
x R
g
+ D
g
] x (t
m
/T)
t
g
= tool regrind time
R
g
= fully burdened regrind labor rate
= L
g
x (1+B
g
)
D
g
= cost per tool edge
regrind = tool cost # permissible regrinds
insert = tool cost # edges
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
18
Raw material cost (C
r
)
We saw how to handle it in the
economics module.
C
r
= C
M
= [Part weight + Scrap weight x (1-S)]
x Cost/weight
S is the salvage value of the scrap
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
19
Total cost per piece (C
p
)
C
p
= t
m
x R
m
+ t
i
x R
m
+ t
s
x R
s
/N
s
+ t
c
x R
m
x (t
m
/T)
+ [t
g
x R
g
+ D
g
] x (t
m
/T)
+ C
r
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
20
Machining time (t
m
)
For a turning operation:
t
m
= L/fN
L = axial length of cut
f = feed rate [ipr]
N = V/tD [rpm]
VT
n
= C
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
21
Cost per piece (C
p
)
| |
1
1
1
1
1
1
1
r
n
n
g g g
n
n
m c
s
s
s
m i m p
C
C f
V D L
D R t
C f
V D L
R t
N
R
t
R t R
f
V D L
C
+
|
|
|
.
|
\
|
+ +
|
|
|
.
|
\
|
+
|
|
.
|
\
|
+
+
|
|
.
|
\
|
=
+ +
|
.
|
\
|
=
1
1
0
2
2
)
c
c
V
C
p
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
25
Minimum cost tool life (T
cm
)
( )
m
g g g m c
cm
R
D R t R t
n
T
+ +
|
.
|
\
|
= 1
1
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
26
Production time (t
p
)
t
p
= t
m
+ t
i
+ t
s
/N
s
+ t
c
x (t
m
/T)
Note: tool regrinding and material
costs do not contribute time.
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
27
Maximum production rate
(minimum production time)
Calculate
0 =
c
c
V
t
p
n
c
tm
t
n
C
V
(
|
.
|
\
|
=
1
1
c tm
t
n
T
|
.
|
\
|
= 1
1
0
2
2
)
c
c
V
t
p
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
28
Note:
S (V), f are typically discrete, not
continuous, variables.
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
29
Cutting cost - Ex. 1-1
For the following cut, determine the
velocity for the minimum cost (V
cm
)
and for the maximum production
rate (V
tm
) per piece using a HSS
tool.
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
30
Cutting cost - Ex. 1-2
f = 0.008 ipr
d = 0.075
L
m
= $13/hr
B
m
= 115%
L
g
= $10/hr
B
g
= 120%
Tool cost = $3.75
Number of regrinds
per tool = 15
t
g
= 3 mins
t
c
= 2 mins
VT
0.1
= 175
V = ft/min
T = min
t
i
= 1.5 mins/part
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
31
Cutting cost - Ex. 1-3
R
m
= (13.00 (1+1.15)) / 60
= $0.466/min
t
c
= 2 mins
t
g
= 3 mins
R
g
= (10.00 (1+1.2)) / 60
= $0.366/min
D
g
= 3.75/15 = $0.25/edge
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
32
Cutting cost - Ex. 1-4
( )
( )
sfpm
V
cm
120
25 . 0 366 . 0 3 466 . 0 2 1
1 . 0
1
466 . 0 175
1 . 0
1 . 0
=
(
+ +
|
.
|
\
|
=
sfpm V
tm
131
2 1
1 . 0
1
175
1 . 0
=
(
|
.
|
\
|
=
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
33
Cutting cost - Ex. 2-1
Suppose now you are using a carbide insert
with 8 edges, that costs $2.50. Do again.
t
c
= 0.75 min
VT
0.2
= 400
R
m
= $0.466/min
t
g
= 0
R
g
= $0.366/min
D
g
= $2.50/8 = $0.3125/edge
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
34
Cutting cost - Ex. 2-2
( )
( )
sfpm
V
cm
283
3125 . 0 466 . 0 75 . 0 1
2 . 0
1
466 . 0 400
2 . 0
2 . 0
=
(
+
|
.
|
\
|
=
sfpm V
tm
321
75 . 0 1
2 . 0
1
400
2 . 0
=
(
|
.
|
\
|
=
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
35
Cutting cost - Ex. 2-3
HSS:
V
cm
= 120 sfpm
V
tm
= 131 sfpm
Carbide
V
cm
= 283 sfpm
V
tm
= 321 sfpm
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
36
Cutting cost - Ex. 3-1
Now calculate the minimum costs for both
previous cases.
C
r
(material cost/piece) = $0.85
C
s
(setup cost/piece) = $0.05
D (workpiece diameter) = 2.5
L (length of cut) = 10
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
37
Cutting cost - Ex. 3-2
For HSS tool:
N = V
/ tD = 12 x 120 / 2.5t
= 183 rpm
(T)
0.1
= 175 / V = 175 / 120
T
cm
= 43.5 mins
check
t
m
= L/fN = 10/(0.008 x 183)= 6.83 mins
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
38
Cutting cost - Ex. 3-3
C
m
= t
m
R
m
= 6.83 x 0.466 = $3.1831
C
i
= t
i
R
m
= 1.5 x 0.466 = $0.6990
C
s
= $0.05
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
39
Cutting cost - Ex. 3-4
C
c
= t
c
R
m
(t
m
/T
cm
) =
2 x 0.466 x (6.83 / 43.5) = $0.1463
C
g
= [t
g
R
g
+D
g
](t
m
/T
cm
) =
[3 x 0.366 + 0.25] x [6.83 / 43.5] =
$0.2117
C
r
= $0.85
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
40
Cutting cost - Ex. 3-5
C
p
= 3.1831 + 0.6990+ 0.05
+ 0.1463 + 0.2117 + 0.85
= $5.14 / piece
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
41
Cutting cost - Ex. 3-6
For the carbide insert:
only C
m
, C
c
and C
g
differ
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
42
Cutting cost - Ex. 3-7
N = 12 x 283 / 2.5t = 432 rpm
T
0.2
= 400 / 283
T
cm
= 5.64 mins
check
t
m
= L/fN = 10/(0.008*432)= 2.89 mins
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
43
Cutting cost - Ex. 3-8
C
m
= 2.89 X 0.466 = $1.3484
C
c
= 0.75 x 0.466 x (2.89 / 5.64) =
$0.1793
C
g
= (0 + 0.3125) x (2.89 / 5.64) =
$0.1603
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
44
Cutting cost - Ex. 3-9
C
p
= 1.3484 + 0.6990+ 0.05
+ 0.1793 + 0.1603 + 0.85
= $3.29 / piece
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
45
Cutting cost - Ex. 3-10
C
p
(HSS) = $5.14 / piece
C
p
(carbide) = $3.29 / piece
Note: HSS has
higher C
m
($3.18313 vs. $1.3484)
lower C
c
($0.1463 vs. $0.1793)
higher C
g
($0.2117 vs. $0.1603)
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
46
Cutting cost - Ex. 3-11
In this one case, we should cost the
entire tool to the one part.
C
c
= 0.75 x 0.466 x (1) = $0.3495
C
g
= (0 + 0.3125) x (1) = $0.3125
C
p
= 1.3484 + 0.6990+ 0.05
+ 0.3495 + 0.3125 + 0.85
= $3.61 / piece
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
47
Cutting cost - Ex. 3-12
HSS Carbide Carbide all
Vcm Vtm Vcm Vtm Vcm Vtm
N (rpm) 183 200 432 490 432 490
T (min) 43.5 18.1 5.64 3 5.64 3
Cm 3.1831 2.9125 1.3484 1.1888 1.3484 1.1888
Cc 0.1463 0.3218 0.1793 0.2972 0.3495 0.3495
Cg 0.2117 0.4655 0.1603 0.2657 0.3125 0.3125
Ci 0.699 0.699 0.699 0.699 0.699 0.699
Cs 0.05 0.05 0.05 0.05 0.05 0.05
Cr 0.85 0.85 0.85 0.85 0.85 0.85
Total ($) 5.14 5.30 3.29 3.35 3.61 3.45
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
48
Cutting cost - Ex. 3-12
So, one should minimize the cost per
part, rather than maximize the
production rate.
But, can you make enough parts to
meet demand? or do you need to add
shifts or equipment?
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
49
Cutting cost Ex. 3-13
Process is discrete
fractions of a cut are lost in terms of time
and cost
So what to do with lost tool cutting time?
ignore
add into cost
distribute over whole cuts / tool
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
50
Summary
Machine operation costs
Single point turning costs
Shop practice
Economic lot size
Equipment replacement
ME 6222: Manufacturing Processes and Systems
Prof. J.S. Colton GIT 2011
51