Ch03

Ch 3 Manufacturing Models
and Metrics
Sections:
1. Mathematical Models of Production Performance
2. Manufacturing Costs
2008 Pearson Education, Inc., Upper Saddle River, NJ. All
rights reserved. This material is protected under all copyright laws
as they currently exist.
No portion of this material may be reproduced, in any form or by
any means, without permission in writing from the publisher. For
the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
1
Production Concepts and

Mathematical Models
Production rate Rp
Production capacity PC
Utilization U
Availability A
rights
Manufacturing
lead
time MLT
reserved. This
material
is protected under all copyright laws
as they
currently exist.WIP
Work-in-progress
2
Operation Cycle Time

Typical cycle time for a production operation:
Tc = To + Th + Tth
where
Tc =reserved.
cycle time,
rights
This material is protected under all copyright laws
To =currently
processing
time for the operation,
as they
exist.
No Tportion
of this material may be reproduced, in any form or by
h = handling time (e.g., loading and unloading the
any means,
withoutmachine),
permissionand
in writing from the publisher. For
production
theTexclusive
use of adopters
of the time
bookto change tools)
=
tool
handling
time
(e.g.,
th
3
Production Rate
Batch production: batch time Tb = Tsu + QTc
Average production time per work unit Tp = Tb/Q
Production rate Rp = 1/Tp
2008
Pearson
Education, Inc., Upper Saddle River, NJ. All
Job shop
production:
rights reserved.
For Q =This
1, Tmaterial
p = Tsu + Tc
For quantity high production:
Rp without
= Rc = 60/T
Twriting
0
p sincein
su/Q from
any means,
permission
the publisher. For
flow line
theFor
exclusive
use production
of adopters of the book
Automation,
and Computer-Integrated
Tc =Production
Tr + Max TSystems,
o and Rc = 60/Tc
4
Production Capacity
Plant capacity for facility in which parts are made in
one operation (no = 1):
PCw = n Sw Hs Rp
where PCw = weekly plant capacity, units/wk
2008
Pearson Education,
Upperparts
Saddle
River, NJ. All
Plant capacity
for facilityInc.,
in which
require
rights
reserved.
This material
multiple
operations
(no > 1):is protected under all copyright laws
nSw Hs R p
PC =
no
any means,wwithout permission
where n
of operations
in the routing
Automation,
Production
Systems,
and Computer-Integrated
o = number
5
Utilization and Availability

Q
Utilization: U =
PC
where Q = quantity actually produced, and
PC = plant capacity
rights reserved. This MTBF
materialisMTTR
protected under all copyright laws
A exist.
=
asAvailability:
they currently
MTBF
any
means,
without
permission
in writingfailures,
from the and
publisher. For
where
MTBF
= mean
time between
MTTR = mean time to repair
6
Availability MTBF and MTTR Defined

7
Manufacturing Lead Time
MLT = no (Tsu + QTc + Tno)

where MLT = manufacturing lead time,
no =reserved.
number This
of operations,
rights
material is protected under all copyright laws
setup time,
as T
they
exist.
su =currently
NoQportion
of quantity,
this material may be reproduced, in any form or by
= batch
anyT means,
without
permission
=
cycle
time
per
part,
and
c
Tno = non-operation
Automation,
Production time
Systems, and Computer-Integrated
8
Work-In-Process
WIP =
AU PC MLT
S w H sh
where WIP = work-in-process, pc;

A = availability,
U =Inc.,
utilization,
2008
Pearson Education,
Upper Saddle River, NJ. All
PC reserved.
= plant capacity,
pc/wk;
rights
This material
as MLT
they currently
exist.
= manufacturing
lead time, hr;
NoSportion
of this
material
may be reproduced, in any form or by
=
shifts
per
week,
w
per
hr/shift
sh = hours
theHexclusive
use
of shift,
adopters
of the book
9
Costs of Manufacturing Operations

Two major categories of manufacturing costs:
1. Fixed costs - remain constant for any output level
2. Variable costs - vary in proportion to production
output level
2008
Pearson
Education,
Inc., Upper
Adding
fixed
and variable
costsSaddle River, NJ. All
TC = FC + VC(Q)
total
costs,may be reproduced, in any form or by
Nowhere
portionTC
of =
this
material
anyFC
means,
= fixed
without
costspermission
(e.g., building,
in writing
equipment,
from thetaxes),
publisher. For
theVC
exclusive
use of
adopters
the book
= variable
costs
(e.g.,oflabor,
materials, utilities),
Q = output level.
10
Fixed and Variable Costs

11
Manufacturing Costs
Alternative classification of manufacturing costs:
1. Direct labor - wages and benefits paid to workers
2. Materials - costs of raw materials
3. Overhead - all of the other expenses associated with
2008running
Pearsonthe
Education,
Inc., Upper
manufacturing
firmSaddle River, NJ. All
rights reserved.
This
material is protected under all copyright laws
Factory
overhead
Corporate overhead
12
Typical Manufacturing Costs

13
Overhead Rates
Factory overhead rate:
FOHC
FOHR =
DLC
2008
Pearson Education,
Inc., Upper Saddle River, NJ. All
Corporate
overhead rate:
COHC
COHRmay
= DLC
No portion of this material
be reproduced, in any form or by
the exclusive
use of
adopters
of the
book
where DLC
= direct
labor
costs
14
Cost of Equipment Usage

Hourly cost of worker-machine system:
Co = CL(1 + FOHRL) + Cm(1 + FOHRm)
where Co = hourly rate, $/hr;
C
L = labor rate, $/hr;
rights
reserved. This material is protected under all copyright laws
FOHR
= labor factory
as theyLcurrently
exist. overhead rate,
No
of this
material
Cm portion
= machine
rate,
$/hr; may be reproduced, in any form or by
FOHRm = machine factory overhead rate
15

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Ch 3 Manufacturing Models

Production Concepts and

Operation Cycle Time

Utilization and Availability

Availability MTBF and MTTR Defined

2008 Pearson Education, Inc., Upper Saddle River, NJ. All

Manufacturing Lead Time

MLT = no (Tsu + QTc + Tno)

where WIP = work-in-process, pc;

Costs of Manufacturing Operations

Fixed and Variable Costs

2008 Pearson Education, Inc., Upper Saddle River, NJ. All

Typical Manufacturing Costs

2008 Pearson Education, Inc., Upper Saddle River, NJ. All

Cost of Equipment Usage

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