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Chapter 3

Answers to Problems

3.1 A round shaft 6.5 in. OD has a specified length of 31.675 in. The facing dimension necessary for a smooth end
finish is 1/16 in. The width of the lathe cutoff tool is 3/16 in. The length of the raw bar stock is 12 ft. The lathe collet
requires a minimum of 4 in. for gripping the last part. The material costs $0.95/lb and has a density of 0.29 lb/in3.
(a) Determine the number of pieces that can be removed from the raw bar.
(b) What is the unit cost for the raw material?
(c) What is the value of material that is lost to waste, given that waste material has a salvage value of 10% of the
original value?
(d) Find the shape yield.

Answer:
(a) Length required per part: 31.675 + 1/16 + 3/16 = 31.925 in.
(144 – 4) / 31.925 = 4.38 => 4 parts per bar
(b) Volume of a raw bar: π(6.5/2)2 x 144 = 4778.3 in3
Cost of one part: (4778.3 x 0.29 x 0.95) / 4 = $329.11
(c) Volume of parts from bar: π(6.5/2)2 x (31.675 x 4) = 4204 in3
Volume of waste material: 4778.3 – 4204 = 574.3 in3
Value of raw material lost to waste: 574.3 x 0.29 x 0.95 = $158.22
Salvage value of waste: 574.3 x 0.29 x 0.095 = $15.82
Net loss per part due to waste: ($158.22 - $15.82)/4 = $35.60
(d) Shape yield: 4204/4778.3 x 100 = 88.0%

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Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management
3.2 Examine the 2024-T4 aluminum shaft in Fig. P3.2. Raw material is purchased to match the outside dimensions.
The bar stock for this part is supplied in 12 ft lengths. The density is 0.0975 lb/in.3 and the cost is $1.20/lb. Assume
and state allowances for facing, cutoff and collet grip length for the last part. (Hint: Ignore the radius and tapered end
in the hole.)
(a) Determine the number of parts per bar.
(b) Estimate the cost of the raw material per part.
(c) Find the approximate shape yield.

Figure P3.2

Answer:
(a) Lengths:
Part = 8.8, facing = 1/16, cutoff = 3/16, grip length = 4
Length per part = 9.05 in
Bar length = 144, less grip length = 140 in
Parts per bar: 140 / 9.05 = 15.46 => 15 parts per bar.
(b) Cost per bar: π(4.5/2)2 x 144 x 0.0975 x 1.20 = $267.96
Cost per part: $267.96 / 15 = $17.86
(c) Volume of part:
[π(4.5/2)2 x 3.9] + [π(3.0/2)2 x 4.9] – [π(2.05/2)2 x 3.9] -[π(2.05/2)2 x 2.86]
= 74.35 in3
Volume of parts per bar: 74.35 x 15 = 1115.25 in3
Volume of raw bar: π(4.5/2)2 x 144 = 2300.41 in3
Yield: 1115.25 / 2300.41 x 100 = 48.5%

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Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management
3.3 (a) Determine the theoretical and actual material required to produce the part, shown in Fig. P3.3. Raw stock is
supplied in 0.875 in. diameter. A lathe cutoff tool width is 0.125 in. A 0.015 in. stock allowance is necessary for
facing the small diameter end of the part. Allow 4% of shrinkage and bar end losses. The raw material weighs 2.05
lb/ft.
(b) Find the shape yield.
(c) What is the unit cost for this hot-rolled steel stock, which costs $0.88/lb?

Figure P3.3

Answer:
(a) Theoretical material volume:
[π(.875/2)2 x 0.093] + [π(.2493/2)2 x (0.397 – 0.093)] – [2π(0.125/2)2 x 0.093]
= 0.0685 in3
Actual material volume:
π(0.875/2)2 x (0.397 + 0.125 + 0.015) = 0.323 in3
(b) Yield: 0.0685 / (0.323 x 1.04) x 100 = 20.4%
(c) Cost per part: [(0.397+0.125+0.015) x 1.04] x (2.05/12) x .88 = $0.084

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3.4 In the integrated circuit (IC) fabrication process, individual circuit chips are rectangular in shape. Multiple chips are
produced on round silicon wafers. The chips are laid out in a rectangular array on the wafer with a saw clearance (called a
street) in between, which is used in the subsequent dicing process where the chips are cut apart. Square IC chips, 5 mm on
a side, will be fabricated on a 200 mm diameter wafer. The streets are 0.1 mm wide.
(a) Calculate the number of chips that can be laid out on the wafer.
(Hint: For simplicity, assume that all of the chips are laid out in a rectangular area inscribed within the circular
wafer. For the more challenging problem the semi-rounded areas outside of the inscribed rectangle can be
utilized for additional chips.)
(b) Based on the area, determine the amount of waste.
(c) Assume a scrap allowance of 10% of the chips and no shrinkage. Determine the material yield.

Answer:
(a) Maximum square inscribed inside of 200 mm dia. circle
sqrt(2002 / 2) = 141.42 mm
Number of chips along one side:
(141.42 / 5.01) = 28.23 => 28 chips
Total chips on wafer: 282 = 784
(b) Chip area: 784 x 5 x 5 = 19,600 mm2
Wafer area: π(1002) = 31,416 mm2
Scrap = 31,416 – 19,600 = 11,816 mm2
(c) Number of scrap chips: 784 x 0.1 = 78.4 => 78
Area of scrap chips: 78 x 5 x 5 = 1,950 mm2
Total loss: 11,816 + 1,950 = 13,766 mm2
Yield: [(31416 - 13766) / 31416] x 100 = 56.2%

3.5 A V-block is manufactured of cast iron. The finish dimensions are shown in Fig. P3.5. Because hot metal occupies a
greater volume than cold, a wood pattern is made using a shrink rule for the green sand casting. A 4% allowance on the
finished shape is given to cover extra stock for finishing all faces, and a 1.5% draft allowance is made on the vertical sides
for pattern removal. The as-cast material has a density of 0.26 lb/in.3 and costs $0.12/lb.
(a) Calculate the volume of the raw casting.
(b) Determine the cost of the raw casting.

Figure P3.5

Answer:
(a) (3 x 7.5) – [0.5(2.5 x 1.25)] – [0.5(1 x 0.5)] = 5.6875 in2
(5.6875 x 3) x 1.04 = 17.745 in3
(b) 17.745 x 0.26 x 0.12 = $0.55

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Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management
3.6 Circular blanks are to be stamped from strip stock. The company can buy the 0.125 in. thick cold-rolled steel in either
of two widths. The stamping patterns for each size strip are shown in Fig. P3.6. Both sizes of material are sold for
$1.14/lb and have a density of 0.278 lb/in3. Choose the material size to use for this job by determining the following:
(a) Estimate the material cost per blank for each strip size.
(b) Assume there is an additional 5% overall blanking loss. Find the total loss per part for each strip size. Determine the
shape yield.
(c) The salvage recovery value is 10% of the original material value. Find the net cost per piece for each strip size.
(d) Which size strip is preferred?

Figure P3.6

Answer on next page.

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Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management
3.6 Answer:
(a) Single row strip
Volume used per part: 1.625 x 1.875 x 0.125 = 0.381 in3
Cost per part: 0.381 x 0.278 x 1.14 = $0.121
Double row strip
Volume used per part: 0.813 x 3.343 x 0.125 = 0.340 in3
Cost per part: 0.340 x 0.278 x 1.14 = $0.108
(b) Blank volume: π(1.5/2)2 x 0.125 = 0.221 in3
Single row strip
Scrap: 0.381 x 1.05 = 0.400 in3
Loss: 0.400 – 0.221 = 0.179 in3
Yield = 0.221/0.400 x 100 = 55.25%
Double row strip
Scrap: 0.340 x 1.05 = 0.357 in3
Loss: 0.357 – 0.221 = 0.136 in3
Yield = 0.221/0.357 x 100 = 61.9%
(c) Single row strip
Scrap value: 0.179 x 0.278 x 0.114 = $0.006 / blank
Net cost: $0.121 - $0.006 = $0.115 / blank
Scrap value: 0.136 x 0.278 x 0.114 = $0.004 / blank
Net cost: $0.108 - $0.004 = $0.104 / blank
(d) The double row strip has the highest yield and lowest cost

3.7 A 12-fluid ounce beverage can is composed of the body, top and ring. The container body is blanked from 3004-H19
aluminum coils with the layout given by Fig. P3.7. An intermediate cup is then formed without any significant change in
thickness. The cup is then drawn to a side wall thickness of 0.0055 in. The bottom thickness remains unchanged. The can
is trimmed to a final height of 5.437 in. to give an even edge for later rolling to the lid. The coil stock costs $1.0728/lb and
has a density of 0.0981 lb/in.3 Recovered waste is sold at $0.530/lb.
(a) What is the volume of metal in the trimmed can? (Ignore the 0.05 in radius.)
(b) Find the yield of the can body to blank.
(c) Find the amount of metal from the strip used for each can.
(d) Determine the shape yield.
(e) What is the cost of the material from the strip used for each can?
(f) What is the recovered value from the sale of the recovered waste per can?
(g) Estimate the net cost of material per can body.

Continued on nest page

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Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management
Figure P3.7

3.7 Answers:
(a) Vo = π(2.479/2)2 (5.437) = 26.242 in3
VI = π(2.468/2)2 (5.4235) = 25.945 in3
Vc = 26.242 – 25.945 = 0.297 in3 in trimmed can
(b) Vb = π(5.700/2)2 (0.0135) = 0.344 in3 in blank
Yield = 0.297/0.344 x 100 = 86.3%
(c) (5.75 x 25.748 x 0.0135) / 5 = 0.3997 in3 strip material per can
(d) 0.297/0.3997 x 100 = 74.3%
(e) 0.3997 x 0.0981 x 1.0728 = $0.042 / can
(f) 0.3997 – 0.297 = 0.1027 in3 scrap per can
0.1027 x 0.0981 x 0.53 = $005 / can recovered scrap value
(g) $0.042 - $0.005 = $0.037 / can

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3.8 Look at Table 3.3 and Fig. 3.5 in the chapter. Find lead-time replacement, delivery and money-out-of-pocket unit
material costs for the following adjustments to Fig. 3.5.
(a) For just the JJ(t) changes in the table below.
(b) For TU(t) changes.
(c) For TS(t) changes.
(d) For the combined changes.

Period JJ(t) TU(t) TS(t)


2 1 2 2
3 2 3 0
4 0 1 2
5 1 3 4
6 4 4 8
Answer:
(a) Changing JJ only
LTR = $12.95 (2 units, t = 2 –1 = 1)
Delivery cost = $10.01 (8 units, t = 6)
MOOP = $10.54
(7.80 + 7.90x3)/4 + 7.90x2 + 12.95 + [(13.52 + 10.32)/2] x 4 = 84.31
(b) Changing TU only
LTR = $12.95
Delivery cost = $10.01
MOOP = $9.82
[(7.80 + 7.90)/2] x 2 + 7.90 + 7.90 + (7.90 + 12.95x2)/3 + [(13.52 + 10.32)/2] x 3 = 78.53
(c) Changing TS only
LTR = $12.95
Delivery cost = $10.01
MOOP = $10.94
[(7.80 + 7.90x3)/4] x 2 + 7.90 +(7.90 + 12.95)/2 + 12.95 + 12.97 + [(12.97x2 + 14.10x2)/4] x 3 = 87.48
(d) Changing all 3
LTR = $12.95
Delivery cost = $10.01
MOOP = $11.13
(7.80 + 7.90)/2 + 7.90 x 2 + (7.90 + 12.95x2)/3 + [(12.97x2 + 14.10x2)/4] x 4 = 89.06

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3.9 The inventory plan for a material is given by Fig. P3.5. Use Table 3.3 from the chapter and find the following unit
costs for the six units of stock used for JJ:
(a) Original
(b) Last
(c) Current
(d) Lead-Time Replacement
(e) Delivery
(f) Money-Out-Of-Pocket

Figure P3.9

Answer:
(a) $7.00 from 7 units received in period -3
(b) $12.00 from 2 units received at period 0
(c) $12.00 from 2 units received at period 0
(d) $12.95 from 2 units received at period 1
(e) $9.98 assume qty 6 at period 4
(f) $11.98 11.10 + 3x[(2x11.25 + 2x12.00)/4] + 2x12.95

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3.10 A flange is forged from C-1020 steel bar 1.5 in. O.D. Each bar is 7-9/16 in. long and will produce four flanges. The
bar includes a 1 in. long tong hold for all four flanges which is later trimmed off as waste. The material cost is $1.70/lb
and has a density of 0.29 lb/in.3 Waste and scrap are sold at 10% of original value. A labor crew consists of a hammer-
man (wage = $21.75 / hour) and a helper (wage = $19.65 / hour). Each member of the crew performs different elements of
the operation, and their joint output is 0.54 hour per 100 flanges.
(a) Find the material yield.
(b) Find the unit material cost, adjusted for the sold salvage material.
(c) Determine the labor cost per unit.
(d) Estimate the total unit cost.

Figure P3.10

Answer:
(a) Bar size: A = π(1.5/2)2 = 1.767 in2
1.767 x 7-9/16 = 13.364 in3 / bar
Scrap = 1.767 x 1 = 1.767 in3
Yield = (13.364 – 1.767) / 13.364 = 86.8%
(b) Bar cost = 13.364 x 0.29 x 1.7 = $6.59
Scrap savings = 1.767 x .29 x (1.7/10) = $0.09
Final cost of material for 4 flanges = (6.59 – 0.09)/4 = $1.625 / flange
(c) Labor $21.75 + $19.65 = $41.40 / hour
(41.40 x .54)/100 flanges = $0.224 / flange
(d) $1.625 + $0.224 = $1.85 / flange

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3.11 A back plate is used as a “snap-in” cover for a mating cassette case. The back plate is molded of polystyrene resin
and weighs 0.02 lb/piece. There is no waste. Each shot fills 8 cavities. The high impact polystyrene costs $2.20/lb. and has
a density of 0.0365 lb/in3. Production time is 8 seconds per shot. The molding machine operator has a gross hourly direct
wage of $28.80/hour. The operator monitors 3 machines simultaneously with the back plates made on one of them.
Nothing is known about the operations on the other two machines.
(a) Expressing the information on a per 100 pieces basis, find the direct material cost, direct labor cost and total
cost per 100 pieces.
(b) A Canadian source has been found for the polystyrene resin at a cost of Can$7.39/kg due to a favorable
exchange rate of Can$1.4785 to U.S.$1.00. Should the company buy the Canadian material?

Answer:
(a) 0.02 lb/piece = 2lb/100 pieces
2 x $2.20/lb = $4.40/100 pieces
8 sec/shot ÷ 8 pieces/shot = 1 sec/piece
1 sec/piece x 100 pieces = 100 sec = 0.028 hr / 100 pieces
Operator $28.20/hr ÷ 3 machines = $9.60/hr/machine
$9.60 x 0.028 = $0.27/100 pieces
Total: $4.40 + $0.27 = $4.67/100 pieces
(b) 9g/piece x 100 = 0.9 kg/100 pieces
Can$7.39 ÷ 1.4785 = U.S.$5.00 / kg
$5.00 x 0.9 = $4.50 / 100 pieces
Don’t buy the Canadian material.

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3.12 Integrated circuits (ICs) are fabricated on 12 in. diameter silicon wafers that cost $75 each. For an IC design 441
chips can be patterned onto a single wafer. A normal production batch consists of a “boat” of 50 wafers. Six process-
monitoring wafers are included at the start of each batch and are removed one at a time at various points during the
processing to check on the quality of the processing. At the end of the processing, each IC is tested on the wafer. The cost
for processing a boat of wafers through fabrication is estimated to be $15,000. From the latest batch an average of 25 ICs
per wafer failed.
(a) What is the cost of a good IC?
(b) The process yield is calculated by:
Y = (Ng / Ns) x 100
where Y = percent yield
Ng = number of good parts
Ns = number of parts starting processing
Find the yield for this process.
(c) The company wants to increase the yield to 99%. How many failed chips per wafer are allowed? What is the
cost of an IC when this yield is reached? Explain what it means to have a fraction of an IC per wafer as a failure.

Answer:
a) Possible number of ICs:
50 – 6 = 44 product wafers
44 x 441 = 19,404 possible ICs
Failures: 25 x 44 = 1100 bad ICs
19404 – 1100 = 18304 good ICs
Batch cost:
Wafers: 75 x 50 = $3750
Plus processing: 15000 + 3750 = $18,750
Cost per good IC: 18750 / 18304 = $1.024 each

b) (18304 / 19404) x 100 = 94.3%

c) For 99% yield: 19404 x 0.99 = 19210 good ICs / batch


19210 / 44 = 436.59 -> approx. 436.6 good ICs / wafer
441 – 436.6 = 4.4 failures / wafer
Cost per good IC: 18750 / 19210 = $0.976 each

Failed chips per wafer is an average, some wafers can have more and some less, but the average of the integer number of
failures for the batch can be fractional.

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Challenge Problems

3.13 Find the part cost for the following casting. A foundry is to cast the motor cylinder shown in Fig. P3.13. Compute
the volume of the casting, the overall volume of metal required, and the cost of making the casting based on the following
factors: From experience, the shop yield is 54.5% and there is a metal loss of 10%. The furnace and overhead are $0.06
per pound of poured metal. The cost of the metal charged is $0.12 per pound. Forty percent of the charge is remelted
metal that is valued at $0.08 per pound. The density of the cast iron is 0.26 lb/in.3 Allow 1/8 in. of stock for all machined
surfaces (assume all surfaces are machined).
(Hints: The pouring weight is finished weight per shop yield. The remelted weight is the pouring weight X
remelt factor.)

Figure P3.13

Answers on next page.

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3.13 Answer:
Compute outside volume: Vo = π(d/2)2 x L
Vo = π[(4.422+0.125)/2]2 x (4.156 + 0.25)
Vo = 71.54 in2
Compute inside volume: VI = π(d/2)2 x L
VI = π[(3.3755-0.125)/2]2 x (4.156 + 0.25)
VI = 36.56 in2
Volume of casting: V = V o – VI
V = 71.54 – 36.56 = 34.98 in3

Weight: W = (V x density) + loss


W = (34.89 x 0.26) x 1.1 = 10 lb.
Material Required: M = W / yield = 10 / 0.545 = 18.35 lb.

Material Cost:
CM = [M x (1 – remelt%) x metal cost] + [M x remelt% x remelt cost]
CM = [18.35 x (1 - .4) x 0.12] + [18.35 x .6 x 0.08]
CM = $1.91
Labor and over head cost: OH = M x OH cost
OH = 18.35 x 0.06 = $1.10
Total cost = $1.91 + $1.10 = $3.01

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3.14 A plastic material is blended, pigmented, and injection molded. The part is molded in a three-cavity mold and the
die has runners that connect the pieces to the sprue. The essential features of the simple product, called a button, includes
runners, and sprue and are given by Fig. P3.14.
The buttons are 1 _ in. OD x 1 in. high. Only the button is used. The runners and the sprue are trimmed and considered
waste, and cannot be reground and reused.

Figure P3.14

The raw material is a flour-like polymer, which when heated in the injection molding machine, becomes fluid and flows
into the cavities of the die. The material costs $2.50 per pound and has a density of 0.0275 lb/in.3
Dejoint the common cost for one injection molding shot, and find the cost of one button.
Hints: The following calculations may be useful.
Property
Volume for 3 buttons 3.6816 in.3
Weight for 3 buttons 0.1012 lb
Sprue 1.5708 in.3, 0.04312 lb
Runners 0.1473 in.3, 0.00041 lb

Answer:
$0.1237 per unit for one button.

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Ostwald and McLaren / Cost Analysis and Estimating for Engineering and Management
3.15 The inventory plan for a material is given by Fig. P3.15. Use Table 3.3 from the chapter and find the following unit
costs for the eight units of stock used for JJ:
(a) Original
(b) Last
(c) Current
(d) Lead-Time Replacement
(e) Delivery
(f) Money-Out-Of-Pocket

Figure P3.15

Answer:
a) $8.95 (3 units @ t = –2)
b) $9.00 (3 units @ t = –1)
c) $12.00 (1unit @ t = 0)
d) $10.01 (4 units @ t = 1)
e) $11.84 (3 units @ t = 5)
f) $9.78
[(8.95 + 9.00x3)/4] x 2 + [(10.01 + 12.00)/2] x 2 + 10.01x2 + 9.10x2 = 78.21

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3.16 A computer part is molded two at a time from clear polycarbonate plastic. A partially dimensioned sketch (Fig.
P3.16) provides the part size along with the sprue and runners for filling the mold. The sprue and runners will be removed
from the parts and recycled.
(a) Compute the volume and weight for one part and for the complete shot consisting of 2 parts, 2 runners and
the sprue. The material density is 0.0404 lb/in.3
(b) What is the yield of part material to total material?
(c) The cost of this material is $6.20/lb and waste is recovered at 15% of the original value. Find the net cost per
part, including the waste recovery.
(d) The cycle time for one operator running one injection molding machine is 45 seconds per shot. The “detab”
time is 10 seconds for both parts and is performed during the molding cycle. For a gross labor rate of $33
per hour, find the labor cost per part.
(e) What is the total cost per part?

Figure P3.16

Answers:
(a) Part volume: [(2.0 x 1.5) + (0.5 x π x 0.752) – (0.5 x π x 0.52)] x (3/64)
= 0.1636 in3
Part weight 0.1636 x 0.0404 = 0.0066 lb/part
Sprue volume: π x (9/32 x 0.5) 2 x 1.5 = 0.0932 in3
Runners volume: 2 x π x (0.25/2) 2 x 1-1/16 = 0.1043 in3
Tabs volume: 2 x 0.25 x 1/16 x 0.125 = 0.0039 in3
Total shot volume: (2 x 0.1636) + 0.0932 + 0.1043 + 0.0039 = 0.5286 in3
Total shot weight: 0.5286 x 0.0404 = 0.0214 lb.
(b) Yield: (0.1636 x 2)/0.5286 x 100 = 61.9%
(c) Scrap weight: 0.0214 – (2 x 0.0066) = 0.0082 lb
Material cost: [(0.0214 x 6.20) – (0.0082 x 6.20 x 0.15)]/2 = $0.063/part
(d) Labor: 2 parts/45 sec. = 22.5 sec/part = 0.00625 hr/part
Labor cost: 0.00625 x 33 = $0.206/part
(e) Total cost: $0.063 + $0.206 = $0.27 / part

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3.17 Compute the material cost for the part shown in Fig. P3.17 for a lot size of 500 units. THE material is cold rolled
steel bar 0.5 x 1.25 in., 10 ft. lengths, density: 0.26 lb/in.3, cost $1.27/lb, lengths less than 3 ft. are scrapped without
salvage value, and lengths over 3 ft are restocked without charge. Sawing is the operation of choice, and will require a
0.125 in. saw kerf per part.
Figure P3.17

Answer:
Part length: 3.25 + 0.125 = 3.375 in.
Parts per bar: 120/3.375 = 35.56 => 35 parts per bar
Number of bars: 500/35 = 14.29 => 15 bars required
Check for scrap: 120 x .29 = 34.8 in use on last bar
Remainder > 3 ft.
Use 14.29 bars
Volume of bars used: 0.5 x 1.25 x 120 x 14.29 = 1071.75 in3
Weight of bars used: 1071.75 x 0.26 = 278.655 lb
Cost of raw material: 278.655 x 1.27 = $353.89
Cost per part: $353.89 / 500 = $0.71

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3.18 To make wafers for the integrated circuit industry, extremely pure silicon is melted and allowed to solidify into a
single crystal (starting with a seed crystal attached to a drawing wire) in a reactor. The resulting crystal is roughly
cylindrical in shape (See Fig. P3.18) and is called a “boule.” After the crystal is grown the seed and tail ends are removed,
and then the outside diameter is ground to obtain a nearly perfect cylinder of single crystal silicon. The resulting cylinder
is then sawn into individual wafers and the wafer surfaces are polished.
An 8 in. dia x 36 in. long silicon cylinder is obtained by removing 125 in.3 from each end of the boule (which can be
sold for a salvage value of $2.25/lb) and then grinding 0.25 in. off of the diameter. Wafers 0.031 in. thick are obtained
after sawing the cylinder with a 0.012 in. thick saw blade and polishing 0.0008 in. off of each face. Determine the
following:
(a) Number of wafers obtained from a boule.
(b) Volume and weight. (Hint: The density of Si is 0.084 lb/in.3 of the total finished wafers, total starting boule
and waste.)
(c) An additional loss of 33% of the boule results from the melted Si remaining in the crucible, which can be
sold for salvage. Raw Si material has an original purchase cost of $110/lb. There is a per boule cost of $500
for indirect or overhead materials. Determine the material cost per wafer and the overall material yield.
(d) It requires 24 hours cycle time to grow a boule. During this time 3 operators (costing $25/hr each for salary
and benefits) attend 8 machines (with staggered cycles so only one reactor is being started or finished at a
time). Determine the per wafer cost of the labor and the total finished material cost per wafer.
Figure P3.18

Answers on next page.

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3.18 Answer:
(a) Wafer thickness plus cutting and polishing:
0.031 + 0.012 + (2 x 0.0008) = 0.045 in.
Wafers per 36 in. cylinder: 36 / 0.045 => 807
(b) Volume per wafer: π(8/2)2 x 0.031 = 1.558 in3
Weight per wafer: 1.558 x 0.084 = 0.131 lb/wafer
Finished volume of all wafers: 1.558 x 807 = 1257.3 in3
Finished weight of all wafers = 0.131 x 807 = 105.7 lb
Volume of cylinder before grinding: 8 + 0.25 = 8.25
π(8.25/2)2 x 36 = 1924.42 in3
Plus the removed ends:
1924.42 + (2 x 125) = 2174.42 in3 in original boule
Weight of original boule: 2174.42 x 0.084 = 182.65 lb
Waste volume: 2174.42 – 1257.3 = 917 in3
Waste weight: 917 x 0.084 = 76.91 lb
(c) Recoverable salvage:
In crucible: 182.65 x 0.33 = 60.27
In ends: 2 x 125 x 0.084 = 21 lb
Total Salvage: 60.27 + 21 = 81.27 lb
Salvage value: 81.27 x 2.25 = $182.86
Weight of raw material: 182.65 + 60.27 = 242.92
Cost to purchase raw material: 242.92 x 110.00 = $26721.20
Plus overhead materials: 26721.20 + 500 = $27221.20
Less salvage value: 27221.20 – 182.86 = $27038.34
Per wafer cost: 27038.34 / 807 = $33.50/wafer
Yield: Raw material, 242.92 lb, weight in wafers, 105.7 lb
(79.83/242.92) x 100 = 43.5%
(d) Labor per boule: ((3 x $25) x 24) / 8 = $225/boule
Labor per wafer: 225/807 = $0.28/wafer
Total material cost per wafer: 33.50 + 0.28 = $33.78/wafer

3.19 A purchased bar is 12 ft. long and 2 in. OD. The drawing specifies a design that is 16 in. long in final dimension,
but engineering requires a facing dimension of 1/16 in. and a cutoff of 3/8 in. The gripping for the last piece by the collet
is 6 in. Scrap historically is 1% and shrinkage is _%. The cost per pound is $0.75 and the density is 0.283 lb/in.3 A total of
260 final units are required. How many bars are required? What is the yield? Find the material cost for each piece. The
labor for performing this job is paid at $18.50 per hour and the production rate is 1.825 hr per 100 pieces. Analyze this job
for direct costs.

Answer:
Length required per part: 16 + 1/16 + 3/8 = 16.4375 in
Scrap and shrinkage allowance: 16.4375 (1 + 0.1 + 0.005) = 16.684
Parts per bar: (144 – 6) / 16.684 = 8.27 => 8 pieces per bar
Bars required: 260 pieces / 8 pieces per bar = 32.5 => 33 bars
Material Cost: 33 x π(d/2)2 x 144 x .283 x .75 = $3168.65
Labor Cost: 1.825 x (260/100) x 18.50 = $87.78
Total direct cost: $3168.65 + $87.78 = $3256.43

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3.20 Sheet, cold-rolled carbon steel, 0.1345 x 36 x 96 in. with a density of 0.29 lb/in.3, is sold for $84.88 per 100 lb in the
U.S. A Canadian company that has adopted SI, desires to buy 5 sheets today. Typical exchange rates in U.S. dollars are
spot at 0.8378 and one year at 0.8506. (Hint: The SI conversion factor is 0.4535 kg/lb.) Each sheet produces 2 units of
product with a waste loss of 10%. There is no shrinkage or scrap. Salvage is figured at 5% of the original value.
(a) What is the quoted rate cost to the customer for the material, and the total cost for the purchase of the lot if the
transportation costs U.S. $10 per shipment from Detroit to the customer in Windsor?
(b) What is the Canadian material cost per unit if the product is to be produced in Windsor?

Answer:
Weight per sheet: 0.1345 x 36 x 96 x 0.29 = 134.8 lb/sheet
Material cost per sheet (U.S. $): 134.8 x (84.88/100) = $114.42
(a) Quoted cost: U.S.$84.88 / 100 lb.
100 lb. x 0.4535 kg/lb = 45.35 kg => U.S.$84.88/45.35 kg
U.S.$84.88/0.8378 = Can$101.31
Can$101.31/45.35 kg = Can$223.39 / 100 kg
Delivered total cost:
(5 x U.S.$114.42) + 10 = U.S.$582.10
582.10 / 0.8378 = Can$694.80
(b) Units produced: 2 x 5 = 10
Material cost, less delivery: U.S.$582.10 - 10 = U.S.$572.10
572.10 / 0.8378 = Can$682.86
Salvage value: 682.86 x .10 x .05 = Can$3.47
Actual material cost: Can$694.80 - 3.47 = Can$691.33
Cost per part: Can$691.33 / 10 = Can$69.13

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3.21 A cold rolled sheet is 36 x 96 in. in size. The sheet, commercial grade, oiled, No 10 thickness (0.1345 in.), costs
$85/each free on board (FOB) at the customer’s site. A manufacturer plans to first shear strips and then shear blanks from
the strips. A strip is either 36 or 96 in. long. The shearing process cuts along a straight line and loses no material, although
there may be a trim loss (drop-off) after shearing of strips and blanks. The placing of the strips along the sheet and the
choice of strip dimension followed by the selection of the blanking dimension along the strip can affect yield from the
sheet. Parts with dimensions of 5 x 10 in. are to be made.
What is the maximum number of parts that can be made from a sheet? What is the maximum shape yield? What
is the lowest cost of material per part if the salvage is sold back at 10% of original material cost? Assume an infinite
quantity run, and develop your answers with respect to one sheet.

Answer:

66 pieces => 66 x 5 x 10 = 3300 in2


Raw sheet: 36 x 96 = 3456 in2
Scrap: 3456 - 3300 = 156 in2 => 4.5%
Yield = 100 - 4.5 = 95.5%
Cost per in2: 85/3456 = $0.0246/ in2
Salvage value per sheet: 156 x ($0.0246 x 10%) = $0.38
Cost per blank: (85 - 0.38) / 66 = $1.282

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3.22 A plant produces printed wiring assemblies (PWA) using an automated line. At the end of the line, the PWAs are
tested. Currently the line is producing PWAs with a yield of 85%. The cost of a completed PWA, good or bad is $55.
Some of the initially failed assemblies can be reworked to passing. For the current design, 65% of the failed assemblies
can be fixed. A model that reflects this situation is
N g = N s (Y ) + N s (1 − Y )( R)
where R = PWA units repairable, percent
and other variables are given in problem 3.12
(a) Find the total number of acceptable units from a batch of 500.
(b) If the cost of repair is $10 per unit, what is the unit cost of the delivered units?
(c) If the customer’s order is for 500 units, how many PWAs should the company start?

Answer:
a) 500(0.85) + 500(1-0.85)(0.65) = 473.75  473

b) (500 x 55) + (10 x 48) = $27,980 / lot


27980 / 473 = $59.15

c) 500 / (0.85 + (1-0.85)(0.65)) = 527.7  528

PRACTICAL APPLICATION

Great volatility is expected in raw material cost. These costs vary day to day even from the same supplier for identical
material requirements. Material delivered to a plant site or FOB at the dock of the supplier can affect the cost. Finding
these material costs will expose you to real world circumstances.
Your practical application is to find a cost that you would pay for this material if you ordered it for delivery to
your location today.
(Hint: You will find this information by calling or visiting a local material supplier, recent catalogs or the
Internet.)
In your report, give the conditions for the quotation. Be careful to note the specifications. Cite the source of your
information. (Remember you are asking for a “courtesy” quote, so be respectful for their efforts.)
(a) Steel bar stock, C-1020, 1 _ in. dia, sufficient for 1000 flanges. (Hint: Use Fig. P3.10.)
(b) Aluminum bar stock, 2024-T, 4.500 in. dia, 12 ft length, sufficient for 500 quantity. (Hint: Use Fig. P3.2.)
(c) Material that your instructor will specify.

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CASE STUDY: DESIGN FOR RUNNER SYSTEM

“What counts in this design is minimum plastic volume in the runner system” Sarah, the die designer for General Plastics,
mutters to herself. Sarah knows that for this plastic mold design it will be impractical to reuse the scrap because the plastic
part will be colored and thus have little value as salvage. The part to be molded is roughly 25 mm in diameter and 10 mm
thick, and has novelty impressions on the surfaces.
Sarah, recently hired in this job, has learned that full-round runners are preferred. They have a minimum surface-
to-volume ratio, thus reducing heat loss and pressure drop. Balanced runner systems permit uniformity of mass flow from
the sprue to the cavities, because the cavities are at an equal distance from the sprue. Main runners adjacent to the sprue
are larger than the secondary runners.
Sarah has designed three configurations and will select the one that uses the least amount of runner material. The
cycle time factor is not critical, because the three arrangements provide identical numbers of parts per shot. With the
design dimensions shown in the following table, determine that arrangement that has a minimum of material in the runner
system.
If the plastic costs $1.20/kg and the density is 1050 kg/m3, then what is the cost per part including the prorated
loss per unit? Determine the shape efficiency where shape efficiency = material in parts/material in shot

Runner Dia Section


Design Section (mm) Length (mm)
a 1 5 25
2 6 25
b 3 5 12
4 6 75
5 8 25
c 6 5 8
7 6 100
8 10 175

Case Study Figure C3.1 Runner system designs: (a) star, (b) “H” and(c) sweep.

Answer on next page.

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Case Study Answer:

Material in Runners:
Design (a) S(5/2)2 x 25 x 8 = 3927
S(6/2)2 x 25 x 4 = 2827
6754 mm3
2
Design (b) S(5/2) x 12 x 8 = 1885
S(6/2)2 x 75 x 2 = 4241
S(8/2)2 x 25 x 2 = 2513
8639 mm3
2
Design (c) S(5/2) x 8 x 8 = 1257
S(6/2)2 x 100 x 4 = 11310
S(10/2)2 x 175 x 2 = 27489
40056 mm3
Design (a) has the minimum material in the runner system.

Loss per unit:


Density of material: 1050 kg / m3 = 0.00105 g / mm3
Volume of parts: S(25/2)2 x 10 x 8 = 39,270 mm3
Cost of material in parts: 39270 x 0.00105 x (1.20/1000) = $0.0495
Cost of material in runner: 6754 x 0.00105 x (1.20/1000) = $0.0085
Total cost: 0.0495 + (0.0085/8) = $0.0506 / part

Shape efficiency:
Based on volume: [39270 / (39270+6754)] x 100 = 85.3%

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