Additive Manufacturing Cost Analysis
Introduction
Many products and parts made by the industry are produced by taking pieces of raw material and cutting away sections to create the desired part or by injecting material into a mold; however, a relatively new process called additive manufacturing is beginning to take hold where material is aggregated together rather than formed in a mold or cut away. Additive Manufacturing (AM) is defined as “the process of joining materials to make objects from 3D model data, usually layer up on layer ,as opposed to subtractive manufacturing methodologies, such as traditional machining” (ASTM Standard). The lack of tooling makes RM economically suitable for low and medium production volumes. Using additive techniques, an assembly of parts made
…show more content…
There are two major ways in which the costs for manufacturing using the additive manufacturing can be examined:
• Comparison with traditional technologies: This examination determines in what way is additive manufacturing is cost-effective as compared to the traditional machining technologies.
• Identifying use of resources: This examination aims at identifying the amount of resource used at various steps of the manufacturing processes and hence determines whether a more judicious use of resources is possible or not. In this way it is judged in what ways an steps the cost can be reduced.
As discussed by Young (1991)[1], the costs of production can be categorized in two
…show more content…
The most important issue which was not considered is the material properties of the parts produced. The administrative overhead cost as well as energy, space rental, and ancillary equipment, are not taken into account. However, it can be observed from previous studies that these terms can affect the total cost by 10 percent. Delays due to tooling, that normally take several weeks of work, are avoided. Eliminating the delays leads to a considerable financial benefit.
Results from the cost analysis[4] Figure 1 Graphs of unit cost for the 3.6gramme part according to production volume
Figure 1 shows graphs of the unit costs for the smallest part according to the total number of parts produced. As would be expected the unit costs for producing low volumes by injection moulding are very high whereas the unit cost for producing parts by Stereo lithography are constant irrespective of the total number of parts made. The elimination of tooling helped to significantly reduce unit costs for the parts when using Stereo lithography as
Unit 13 P4 Business
580 Words | 3 PagesManufacturing – within a business the manufacturing department works alongside several other departments such as marketing and purchasing to make sure that they manufacture products efficiently. Manufacturing is generally a long process as detailed designs of products have to be assembled before construction can begin. Manufacturing varies can depend on the organisation type large companies are likely to manufacture products themselves, and they tend to do this on a large scale in order to be able to buy resources in bulk in order to save a substantial amount of money. Small businesses tend to design their own products but may not have the ability to manufacture; therefore they usually hire other companies to manufacture for them - this can be quite costly, so they commonly perform manufacturing on a large scale
Hrm 531 Week 6 Resource Management Plan
457 Words | 2 PagesThe cost of resources and cost of resources by work package I found out by selecting resource usage option from the view menu. The total cost of all the resources by totaling up the individual costs of the resources is $55,600. In my opinion this is a reasonable cost given the overall budget of $100,000. But it has to be ensured that the equipment, inventory and rest of the materials that need to be procured should be done with the remaining amount of $44,400.
Unit 4 P4 Essay
753 Words | 4 PagesUnit 4: Impact of the use of IT on business systems Bradfield would want to upgrade the software in IT system to allow employees to progress and develop their work whilst using latest programs. Upgrading the system would allow the computer to run with high quality and would increase the speed of the computer. Quality of work As a manager at Bradfield, it is important that employees produce quality work for the organisation. Having it upgraded would increase the speed which would allow the computers to run faster than before.
Comparison Of Office Depot, Meijer, And Small School Store
1727 Words | 7 PagesOffice Depot, Wal-Mart, Meijer, and small school stores, would be Staples Competitors in the retail business. The reason I have picked these stores is because they sell similar products as Staples. Sometimes these stores could be more convent or even cheaper than Staples. In order for Staples to keep their customers, they need to make sure they can compete with the products, prices and customers satisfaction.
Lessons From The Assembly Line Analysis
1665 Words | 7 PagesSome lessons from the Assembly Line by Andrew Braaksma is an article describing the authors motivation for taking school seriously. In his article Braaksma, identifies the work he chooses to carry out during summer months to be utter "torture" compared to campus life. Although he describes the jobs in such manner he admits he learns valuable lessons from his experience as well as his temporary coworkers who often remind him to keep studying. Braaksmas article is an excellent piece to read when you find yourself slacking in your studies. The point is clear in which Braaksma is conveying.
Bimba Executive Summary
411 Words | 2 PagesExpendable tooling for the current month is $15.4k or 2.7% of sales down 2.2% from July 2014. Year over year expendable tooling is down from $231.9k or 3.5% of sales in FY2014 to $210.4k or 3.0% of sales in
Allegro Automotive Case Analysis
1681 Words | 7 PagesThe current state of the automotive industry is one of shrinking margins, changing consumer expectations and demands, as well as pressure from the government to increase fuel efficiency. There is increased competition in the American market as foreign companies challenge the “Big Two” automotive manufacturers. Costs increase while the price for their products has remained stagnant. One way that manufacturers have managed to stay profitable is actively working to decrease costs while needing to keep the selling price the same in order to be competitive. The most successful ones have changed their relationships with suppliers to a partnership between the two companies.
En1320 Unit 2 Case Study
697 Words | 3 PagesCurrently, the cars manufactured involve automated as well as manual processes of production. The overhead costing
Coca Cola Demand Curve
1041 Words | 5 Pages2. TECHNOLOGY: Automation is led way to decrease in the cost of production. Techniques to optimize production means the suppliers will supply more at a lesser rate. Coca cola recently implemented the Siemens automation to increase the capacity of its bottling plants. This ensures that the capacity of the plants increased manifolds and thus lowering the cost of production.
Alice Inc Case Study Solution
1145 Words | 5 PagesBased on our calculations in Appendix 1. at the first stage support costs were allocated to two existing departments, i.e. Machining and Assembly, based on direct labor hours. Therefore total amount of costs assigned to Machining department is $472.000,00 and to Assembly department is $248.000,00. At the second stage total costs from both departments were distributed to products (Regular and Deluxe). Referring to our calculations in Appendix 1.
Operations Management Case Study: American Connector Company
2441 Words | 10 PagesConsider both DJC’s performance in Kawasaki and its potential in the United States. The cost differences between plants of ACC at Sunnyvale and DJC at Kawasaki has been compared by calculating their manufacturing cost. In 1991, the two plants are located in different countries (US & Japan) and therefore, to compare the costs between the two, the cost indices values that have been provided in the case have been used. The main cost differences between the two companies: DJC and ACC with respect to their plant operations for the years 1986 & 1991 have been shown in Table 1.
Inventory Valuation Analysis
1594 Words | 7 PagesI have chosen Nobes because there are more related articles and essays can be searched from the web, also the international accounting differences across the countries in accounting treatment is controversial issue nowadays. Differences reporting standard in accounting treatment across the countries can result in significantly different amounts being reported on the balance sheet and income statement. These differences will have impacts on cross country merger or acquisition and cross-border company comparison. I have chosen the inventory valuation applied under UK (IFRS) and US (US GAAP) as different valuation method applied to inventories could lead to enhance comparability between countries. Also it will have impact on the reported income
Master Budget Analysis
3334 Words | 14 PagesIntroduction to Budgets and Preparing the Master Budget Budgets and the Organization Many people associate the word budget primarily with limitations on spending. For example, management often gives each unit in an organization a spending budget and then expects them to slay within the limits prescribed by the budget. However, budgeting can play a much more important role than simply limiting spending. Budgeting moves planning to the forefront of the manager's mind. Well-managed organizations make budgeting an integral part of the formulation and execution of their strategy.
Swot Analysis: SWOT Analysis Of Huqvarna Group
1848 Words | 8 PagesRoughly 42% of a sale price covers the cost of materials to make the product. These materials include either direct materials or materials or parts that are sourced from other providers, including engines. Engines are the most expensive and largest cost of materials for the Group. For example, for some basic law mowers, the engine can account for as much as 50% of the total product cost. Shared efforts by R&D and purchasing are focused on reducing costs in this area by 10% by 2016.
More about Additive Manufacturing Cost Analysis
Unit 13 P4 Business
580 Words | 3 PagesHrm 531 Week 6 Resource Management Plan
457 Words | 2 PagesUnit 4 P4 Essay
753 Words | 4 PagesComparison Of Office Depot, Meijer, And Small School Store
1727 Words | 7 PagesLessons From The Assembly Line Analysis
1665 Words | 7 PagesBimba Executive Summary
411 Words | 2 PagesAllegro Automotive Case Analysis
1681 Words | 7 PagesEn1320 Unit 2 Case Study
697 Words | 3 Pages1920's Inventions
807 Words | 4 PagesCoca Cola Demand Curve
1041 Words | 5 PagesAlice Inc Case Study Solution
1145 Words | 5 PagesOperations Management Case Study: American Connector Company
2441 Words | 10 PagesInventory Valuation Analysis
1594 Words | 7 PagesMaster Budget Analysis
3334 Words | 14 PagesSwot Analysis: SWOT Analysis Of Huqvarna Group
1848 Words | 8 Pages