Manufacturing Economics

Economics of Manufacturing
Manufacturing: Organized way of converting raw material to end product We talked about
Selection of material Product design Selection of manufacturing process Manufacturing cost

When evaluating the value ask these questions

Can the design be simplified? Are the tolerances and surface finish necessary? Will the assembly be easy? Do you need to design new part or can you use old design?

Selection of Material
Physical properties Strength Toughness Ductility Hardness Fatigue Creep Density Thermal conductivity Manufacturing property Castability Formability Machinability Weldability

Product design and cost of material

High production and automation Cost of material becomes a significant part of the cost Design Optimization (FEM)
Produce lighter parts Optimum factor of safety

Substitution of materials
Reduction in cost Improved performance Strength to weight

Substitution of material in the Auto industry

Metal being replaced by plastics Metal fender, gears, pumps, clamps, tanks are all being made with plastics Engine parts have ceramic components Cast products, powder metallurgy Composite materials for connecting rods

Selection of Manufacturing Process

Have all the alternate processes investigated Are the methods economical Production rate Tolerances Can the part be cast instead of machined Is there a lot of scrap Are the production methods optimized Automation How the inspection/quality control can be met

Selection of Manufacturing Process

Selection depends on
Characteristics of material (strain rate sensitivity etc) Shape, size, thickness Tolerances, surface finish Production volume Functional requirements (Single crystal blade)

Process Capability
Mold filling: Complex shapes Metal forming: properties Metal removal: easy cheap Metal joining: composite materials, fabricated

Effect of tolerances and surface finish

Tolerance and surface finish Cost of manufacturing increases as the required surface finish increases and higher tolerances Production Volume
Production volume Rate of production Economic size demand

Economics
Machining cost
Labor cost Machine overhead Time to machine

Idle time
Cost of setting up machine Cost of loading, unloading tools and work piece

Tooling Cost
Cost of tool Cost of regrinding tool Cost of tool regrinding machine

Machining economics
Minimum cost of part Max production rate Cp = Cm + Cs + Cl + Ct
Cp : cost per piece Cm : machining cost Cl : cost of load and unload Ct : tool cost

Cm

= Tm (Lm + Bm)
Tm : machining time Lm : labor rate Bm : machine over head

Setup Cost Cl = Tl (Lm + Bm) Tl : time involved in loading and unloading Tooling cost Ct = [Tc( Lm + Bm) + Tg(Lg+Bg) + Dc]/Np Np: number of parts machined / tool grind Tc : time to change tool Tg : time to grind Bg : over head for tool grinding Dc : Depreciation of tool in number of grindings

Time needed to produce one part

Tp = Tl + Tm + Tc/ Np Tm: time for particular operation For turning Tm = pLD / fv
L: length of cut D: diameter of work piece f : feed v : cutting speed

Material Removal Rate

A milling operation is carried out on a 12 in long, 4 in wide, mild steel block, feed = 0.01 in/tooth d= 1/8 in. Cutter Diameter D= 2 in, has 20 teeth, N=100rpm. Calculate mrr, power cutting time for this operation. Linear speed v= f*n*N = 0.01 * 100 * 20 = 20 in/min MRR = w*d*v, = 4* 1/8 * 20 = 10 in^3/min Power = Unit power given in Table 8.4 * MRR = 1.1 * 10 = 11hp Torque = Power / Rotational Speed = 578 lb-ft lc = (Dd)^ = 0.5 in Cutting time t = (l +l (c) / v)= (12 +0.5 )/20 = 37.5 sec

Relation between labor cost and material and capital cost

Minimum cost calculations

We can calculate cost per piece in terms of several variables.
Cp = Cm + Cs + Cl + C t

dCp/dV = 0 (see eq. 8.55 of the text) -for getting optimum cutting speed and also optumum tool life for minimum cost (see eq 8.56 and 8.57) dTp/dV = 0 (see eq. 8.58 of the text) for optimum cutting speed and also optimum tool life for maximum production. We can find V and T to achieve this. (see eq 8.59 and 8.60)

Relevant tool life curves Time between machining Tool change, tool grinding time Machine overhead etc.

Decide Minimum cost Maximum production in minimum time Determine all parameters Machining parameters Cost factors

Cost per piece of machining

time per piece of machining

Unit Cost