Process Planning Econimics

Any process planning must have the knowledge of the economic aspects to be considered while designing a process plan. Before design a process plan, one must analyse the following :

1. What type of machine is required?

2. What is the production capacity of the machine?

3. Existing machine/new machines.

4. What is the tooling cost?

5. Estimating material cost.

6. Estimating production rates.

Machine Selection

The machine selection process plays an important role in reducing the cost of production. Machine selection will effect the following economic factors considering :

1. Tooling cost

2. Set up cost

3. Production cost

4. Labour cost

Machine selection data will be collected and analysed with the aid of Break-Even Chart and Payback Period Method.