NOTES OF LESSON

Year/Sem : III/V

Department : Mechanical Engineering

Sub Code/Sub: MEC530/ Process Planning and Cost Estimation

Unit/Title : I/Process Planning

UNIT I – Syllabus

Introduction - concept - Information required to do process planning - factors affecting process

planning - Process planning procedure - Make or buy decision using Break Even Analysis -
Simple problems. Manual process planning - Introduction of Automated process planning and
generator process planning - Advantages of computer aided process planning - Principle of
line balancing - need for line balancing - Value Engineering - Definition - cost control Vs
cost reduction - value analysis when to do - steps information needed - selection of product.
INTRODUCTION

A process is defined as any group of actions instrumental to the achievement of the

output of an operation’s system in accordance with a specified measure of effectiveness. When
the product of the enterprise is designed, certain specifications are established; physical
dimensions, tolerances, standards, and quality are set forth. Then it becomes a matter of
deciding the specific details of how to achieve the desired output. This decision is the essence
of process planning.

PROCESS PLANNING—DEFINITION

Process planning has been defined as the sub-system responsible for the conversion of
design data to work instruction. Process planning can also be defined as the systematic
determination of the methods by which a product is to be manufactured economically and
competitively. It consists of devising, selecting and specifying processes, machine tools and
other equipment to convert raw material into finished and assembled products.

Purpose of Process Planning

The purpose of process planning is to determine and describe the best process for each
job so that,

1. Specific requirements are established for which machines, tools and others equipment

can be designed or selected.

2. The efforts of all engaged in manufacturing the product are coordinated.

3. A guide is furnished to show the best way to use the existing or the providing facilities.

Factors affecting process planning

1. Availability of machine

2. Delivery date

3. Quantity to be produced

4. Quality standards
Concept of Process Planning

Process planning procedure

1. Preparation of working drawings.

2. Deciding to make or buy.

3. Selecting manufacturing process.

4. Machine capacity and machine selection.

5. Selection of material and bill of materials.

6. Selection of jigs, fixtures and other attachments.

 7. Operation planning and tooling requirement.

8. Preparation of documents such as operation sheet and route sheet etc.

a) Make or buy decision

Make
It requires appropriate production equipment, suitable personnel, material, adequate space,
supervisions, design standards and overheads maintenance, taxes, insurances, management attention
and other indirect and hidden costs.
Buy
It permits lower investments, small labour force, less handling, lower plant cost for building
and up keep, less overhead or taxes, insurance and supervision and less problems of man-management
relations.
b) Determination of material requirements
1. Existing requirements for works on hand.
2. The new or extra material required. It is to be calculated from bill of materials.
3. Total material required.
4. Existing stock of materials.
5. Additional materials to be produced.

c) Selection of material, jigs, fixtures etc.

The selection of material has become complicated by the great increase not only in the kinds of
materials but also in the various forms. The material should be of right quality and chemical
composition as per the product specifications. The shape and size of material should restrict the
scrap.

Make or buy decision using Break Even Analysis

Break even point analysis is also used to make a choice between two machines tools to
produce a given component.

To determine which of the two machines is most economical, the total cost of the two machines
(fixed cost + variable cost) is plotted against the number of units. The point at which the two lines
representing the total costs of the two machines meet each other, is termed as break even point.

Towards the left of break even point figure, machine. A is economical than machine B and
if the quantity of production is more than that corresponding to break even point, machine B
becomes economical than machine A.
Mathematically, the above discussion can be written as,

This would give a positive value when fixed cost of a process is greater and variable cost less
than those of the other process. If both fixed cost and variable cost are lower than the other
process, then the latter process is always uneconomical whatever may be the production
quantity. This can also be done by graphical method.

Simple problems

1. The initial cost for machine A is Rs.12000 and the unit production cost of the machine
is Rs.6.00 each. For the other machine B, the initial cost is Rs. 48000 and the unit
production cost is Rs.1.20 each. Do the break even analysis.

Given data
Fixed cost of A, Fa = Rs. 1200
Variable cost of A, VA = Rs. 6.00
Fixed cost of B, FB = Rs. 48000
Variable cost of B, VB = Rs. 1.20
To find
Break even analysis.
Solution
At the break even point,
Total cost of machine A = Total cost of machine B
Total cost = Fixed cost + variable cost
Variable cost = Unit production cost × number of pieces
∴ If ‘Q’ is the quantity of production at break-even point, then,
 = 7500 pieces
Result
If production does not exceed 7500 pieces, it is more economical to purchase machine
A. For higher quantity production, the economy lies with machine B.

Manual process planning

This type of planning is known as non-variant process planning. It is the commonest
type of planning used for production today. Planning the operations to be used to produce a
part requires knowledge of two groups of variables.
1. The part requirements, and
2. The available machines and processes and the capabilities of each process.

Given these variables, the planner selects the combination of processes required to
produce a finished part. In selecting this combination of processes, a number of criteria are
employed.
Production cost and time are usually the dominant criteria in process selection.
However, machine utilization and routing affect the plans chosen. In general, the process
planner tries to select the best set of process and machines to produce a whole family of parts
rather than just a single part.
There are variations in the level of detail found in route sheets among different
companies and industries. Process planning is accomplished by releasing the drawing to the
production shop with the instructions ‘make to drawing’. More firms provide a more detailed
list of steps describing each operation and identifying each work center. The process planning
procedure is very much dependent on the experience and judgments of the planner.
The manual approach to process planning begins when a detailed engineering drawing
and data on batch size are issued to a production engineer. This information is used to
determine the following:
 The manufacturing processes involved.
 The machine tools required to execute these processes.
 The tools required at each stage of processing.
 The fixtures required at each stage of processing.
 The number and depth of passes in a machining operation.
 The feeds and speeds appropriate to each operation.
 The type of finishing process necessary to achieve the specified tolerances and surface
quality.
Introduction of Automated process planning and generator process planning

The process planning function bridges the gap between engineering design and
manufacturing and is thus a critical element in integrating activities within manufacturing
organizations. Current CAPP systems range from simple editors for manual planning to fully-
automated systems for planning a range of products. Some of the specific benefits of CAPP
are:
 Improved productivity
 Lower production cost
 Consistency
 Time savings

Variant Process Planning procedure

Advantages of computer aided process planning

 Reduction in process planning time

 Reduction in the required skill of the process planner
 Reduction in costs due to efficient use of resources
 Increased productivity and process rationalization
 Production of accurate and consistent process plans
 Maximization of Just-In-Time performance
Principle of line balancing

Line Balancing is leveling the workload across all processes in a cell or value stream to
remove bottlenecks and excess capacity. A constraint slows the process down and results
if waiting for downstream operations and excess capacity results in waiting and no absorption
of fixed costs.

Line balancing is defined as the procedure for creating work stations and assigning
tasks to them according to a predetermined technological sequence such that the idle time at
each work station is minimized.

Need for line balancing

In perfect line balancing, each work centre completes its assigned work within a fixed
time duration so that output from all operations are equal on the line. Such a perfect balancing
is difficult to achieve. Certain work station/centre take more operation time causing subsequent
work centre to become idle.

Balancing may be achieved by

 Rearrangement of work stations

 Adding m/c and or workers at some work stations.

So that all work centres take about the same amount of time.

Some terminologies used in line balancing:

1. Work station: It is a location on the assembly line where specified work is performed.

2. Cycle time: It is the amount of average time a product spends at one work station

3. Task : The smallest grouping of work that can be assigned to a work station.

4. Task time: Standard time to perform task.

5. Station time: Total standard time at a particular work station.

Value Engineering

Value engineering (VE) is a systematic method to improve the "value" of goods or

products and services by using an examination of function. Value, as defined, is the ratio of
function to cost. Value can therefore be manipulated by either improving the function or
reducing the cost. It is a primary tenet of value engineering that basic functions be preserved
and not be reduced as a consequence of pursuing value improvements.

Definition

Cost Control is a process which focuses on controlling the total cost through
competitive analysis. It is a practice which works to maintain the actual cost in agreement with
the established norms. It ensures that the cost incurred on an operation should not go beyond
the pre-determined cost.

Cost Reduction is a process, aims at lowering the unit cost of a product manufactured
or service rendered without affecting its quality by using new and improved methods and
techniques. It ascertains substitute ways to reduce the cost of a unit. It ensures savings in per
unit cost and maximization of profits of the organization.

Cost control Vs cost reduction

1. The activity of maintaining cost as per the established norms is known as cost control.
The activity of decreasing per unit cost by applying new methods of production in such
a way that it does not affect the quality of the product is known as cost reduction.

2. Cost Control focuses on decreasing the total cost while cost reduction focuses on
decreasing per unit cost of a product.

3. Cost Control is temporary in nature. Unlike Cost Reduction which is permanent.

4. The process of cost control is completed when the specified target is achieved.
Conversely, the process of cost reduction has no visible end as it is a continuous
process that targets for eliminating wasteful expenses.

5. Cost Control does not guarantee quality maintenance. However, 100% quality
maintenance is assured in case of cost reduction.

6. Cost Control is a preventive function as it ascertains the cost before its occurrence. Cost
Reduction is a corrective action.

Value analysis

An approach to improving the value of an item or process by understanding its

constituent components and their associated costs. It then seeks to find improvements to the
components by either reducing their cost or increasing the value of the functions.
When to do Value analysis

 For analyzing a product or process, to determine the real value of each component,

 When looking for cost savings, to determine components that may be optimized,

 Only when the item to be analyzed can be broken down into subcomponents and
realistic costs and values allocated to these.

Steps information needed

1. Orientation/Preparation

2. Information

3. Analysis

4. Innovation/Creativity

5. Evaluation

6. Implementation and monitoring