18MEE323T

Process Planning and Cost Estimation

Handled by
Murali Subramaniyam
Associate Professor, Department of Mechanical Engineering
SRM Institute of Science and Technology, Kattankulathur.

GCR Link: https://classroom.google.com/c/NTM2MzUwNTA2NjYw?cjc=pxobdez

GCR Class Code: pxobdez
Gmeet Link: https://meet.google.com/gxi-uvtf-sqi

2022-23 ODD Semester

Syllabus
Syllabus
Syllabus
Syllabus

Components Tentative dates

CLA 1 08-08-2022
CLA 2 19-09-2022
CLA 3 03-11-2022
Assignment date 02-09-2022
Surprise Test 3rd Week of Oct 2022
Industrial visit

S.No Lab visit Tentative dates

1 Sheet metal cutting Lab 26-09-2022
2 Foundry Lab 19-10-2022
3 Machine shop 27-11-2022
Unit 1 – Process Planning
Process Planning

• Production system and Types of production

• Standardization and Simplification

• Production design and selection

• Process planning, Selection and analysis

• Manual/Experience based planning, Variant type CAPP

• Generative type CAPP

• Economics of process planning, case studies

• Processes analysis, Break even analysis

Industry 4.0

Source: https://blog.isa.org/what-is-industry-40
Industry 5.0

Source: https://www.raconteur.net/technology/manufacturing-gets-personal-industry-5-0
Production vs Manufacturing
Production
• Production
o The process of transforming resources into finished products.

o Production can be done with or without the use of machinery.

o It produces both tangible and intangible outputs (ex: goods as well as services).

o Man is sufficient for producing output.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Production
• Production divided into two levels
o Facilities
Manufacturing
▪ Factory, Equipment, Layout
systems
Facilities
o Manufacturing support systems Factory plant
layout
▪ Set of procedures used by the company to manage production

Production System Product design

Manufacturing
Manufacturing planning
Support System Manufacturing
control

Business functions
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Production
• Facilities
o The Facilities in the production system include the factory, production machines and tooling,
material handling equipment, inspection equipment, and computer systems that control the
manufacturing operations.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Production
• Facilities
Manual Work Systems

(Hand tools employed)

Worker-Machine Systems
Manufacturing systems
(Power tools employed)

Facilities
Automated Systems
Factory and plant layout (without direct participation of
human)

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Production

<Manual Work Systems> <Worker-Machine System>

<Automated Systems>
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Production
• Manufacturing support systems
o Business functions - sales and marketing, order entry,
cost accounting, customer billing

o Product design - research and development, design

engineering, prototype shop

o Manufacturing planning - process planning,

production planning, MRP, capacity planning

o Manufacturing control - shop floor control, inventory

control, quality control

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Manufacturing
• Manufacturing

o Latin: manus (hand) + factus (make)

• Manufacturing is the process of converting raw materials into useful products

Processed
Material
Manufacturing
Process
Raw Material
Scarp and waste
Manufacturing Vs Production
• When the raw material is used as input to produce goods with the use of machinery
is known as a Manufacturing. The process of transforming resources into finished
products is known as Production.

• In the case of Manufacturing, the company outsources the raw material or procures
it from some vendor, and then finally processes it to derive the final product.
However, in the case of Production, the raw material may or may not be procured
from outside, but the company owns it and after specific processing, converts it into
the final product.
Manufacturing Vs Production
• In manufacturing, the use of Men, Machinery, Materials are must whereas
production can be done with labour.

• In manufacturing, the output generated will be tangible in nature, i.e. goods only, but
in the case of production it produces both tangible and intangible outputs, i.e. goods
as well as services.

• It can be conveniently said that every type of Manufacturing is Production but every
Production is not a Manufacturing.
Manufacturing Vs Production
• Example: Producing bakery goods is manufacturing. Moreover, designing and creating
a turbine by various processes is Manufacturing. However, assembling the various
parts of an engine that can be a part of the turbine is Production.
Types of Manufacturing System
• Types
o Intermittent system
▪ Job production

▪ Batch production

o Continuous system
▪ Mass production

▪ Process production

Source: http://nptel.ac.in/courses/108105063
Types of Manufacturing System

Source: https://www.logistiikanmaailma.fi/en/production/production-types/
Types of Manufacturing System

Source: http://nptel.ac.in/courses/108105063
Continuous / Mass Production
• To produce standardized products with a standard set of process and operation
sequence in anticipation of demand. This ensures continuous production output.

• It is also termed as mass flow production or assembly line production.

• This system results in less work in process (WIP) inventory but involves high capital
investment in machinery and equipment.

• Large volume and small variety of output. E.g., oil refineries, cement manufacturing
and sugar factory, etc.

Source: http://nptel.ac.in/courses/108105063
Continuous / Mass Production

cement manufacturing oil refineries

Continuous / Mass Production
Continuous / Mass Production

• How are Smartphones Made?

o Making of prototype

o Software installation

o Testing phase

o Mass production

o Packaging

o shipment

Source: https://www.prizminstitute.com/blog/how-are-smartphones-made/
Continuous / Mass Production
• Ford’s Assembly Line
o The concept of mass production was introduced when Henry Ford decided to produce an
inexpensive vehicle many Americans could afford. Although innovators like Eli Whitney and
Samuel Colt were committed to mechanized production, Ford is credited with bringing true mass
production to the manufacturing world with his use of the moving assembly line.

o It was Ford’s assembly line that enabled his company to keep up with consumer demand and
sell Model Ts at prices consumers felt good about.

o His mass production techniques soon spread to other automobile manufacturers and other
industries.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Continuous / Mass Production
• Characteristics
o Most of the machines are semi-automatic or automatic

o Semi-skilled workers are normally employed

o Cost of production per unit is very low owing to the high production rate

o Inventory of work in process is small

o Material handling also automatic (e.g. conveyors)

o Small varieties and large production volume

o Pre-defined line for product flow used

o Planning and control of the system is easier.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Job / Unit Production
• It involves production as per customer’s specifications.

• Characteristics
o Most suitable for heterogeneous products

o Man power should be skilled enough to deal with changing work conditions.

o Product cost is normally high because of high material and labor costs.

o Comparatively smaller investment in machines and equipment.

o Flexible in nature and it can be adapted to changes in product design/order size.

o Grouping of machines is done on functional basis.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Job / Unit Production

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Intermittent / Batch Production
• Production of different types of products in small quantities (batches).

• Goods may be produced partly for inventory and partly for customer’s orders.

• Example: components are made for inventory but they are combined differently for
different customers (automobile plants, printing presses, electrical goods plants)
o Grouping of machines is done on functional basis.

o Semi-automatic and special purpose machines are used.

o Labor should be skilled enough to work upon different product batches.

o In process inventory usually high.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Intermittent / Batch Production

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Types of Manufacturing System (recent add-on)
• Types
o Repetitive

o Discrete

o Job Shop

o Process (batch)

o Process (continuous)

o Additive
Types of Manufacturing System (recent add-on)
• What is Additive Manufacturing?
o Additive Manufacturing (AM) is an appropriate name to describe the technologies that build 3D
objects by adding layer-upon-layer of material, whether the material is plastic, metal, concrete or
one day…..human tissue.
o Common to AM technologies is the use of a computer, 3D modeling software (Computer Aided
Design or CAD), machine equipment and layering material. Once a CAD sketch is produced, the
AM equipment reads in data from the CAD file and lays downs or adds successive layers of liquid,
powder, sheet material or other, in a layer-upon-layer fashion to fabricate a 3D object.
o The term AM encompasses many technologies including subsets like 3D Printing, Rapid
Prototyping (RP), Direct Digital Manufacturing (DDM), layered manufacturing and additive
fabrication.
3S
• Simplification

• Standardization

• Specialization
3S (Simplification)
• Simplification
o It is a process of product analysis through which unnecessary varieties and designs are eliminated.
Only a limited number of grades, types and sizes of the product are retained.

o Simplification is a point disagreement between production and marketing departments.

o Production department favors minimum variety as it reduces the number of set ups and
utilization of production facilities is increased and be able to produce the component at the
reduced cost compared to more variety.

o Marketing department favors higher variety helps them to sell more as it helps them to meet the
needs of the larger customer groups.

o Thus an optimum variety of types of products is to be manufactured.

3S (Simplification)
• Simplification
o Advantages
▪ Reduce inventories of materials and components.

▪ Reduced investments in plant and machinery.

▪ Reduced space requirements of storage.

▪ Ease of planning and control.

▪ Reduction in selling price.

▪ Simplification of inspection and control.

o Disadvantages
▪ Not able to meet the needs of wide range of customer preferences.

▪ Possibility of loosing orders to competitors.

▪ Creates a constant source of conflict between marketing and production

3S (Standardization)
• Standardization
o It is the second step after simplification towards interchangeable manufacturing. Having selected
the varieties and grades of the products to be retained as much of its manufacturing details are
standardized as possible.

o Since manufacturing involves a large number of decisions from selection of raw material to the
process used for finishing, standardization of some of these items reduce unnecessary
repetition of work.

o Use of standard components reduces inventory costs, ensures interchangeability and makes
future maintenance easier.
3S (Standardization)
• What is interchangeability?
o The various components are manufactured in one or more batches by different persons on
different machines at different locations and are then assembled at one place.

o It is essential that the parts are manufactured in bulk to the desired accuracy and, at the same
time, adhere to the limits of accuracy specified. Manufacture of components under such
conditions is called interchangeable manufacture.
3S (Standardization)
• What is interchangeability?
o For example, assembly of a shaft and a part with a hole.

o The two mating parts are produced in bulk, say 1000 each. By interchangeable assembly any shaft
chosen randomly should assemble with any part with a hole selected at random, providing the
desired fit.

<hole> <Shaft>
3S (Standardization)
• Objective of Standardization
o Interchangeability of parts, components etc.
o Keeping the variety minimum.
o Helps to achieve a better control due to reduced variety.

• Advantages
o Reduction of waste and obsolescence.
o Reduction in inventory.
o Reduced effort in accounting.
o Standardization reduces the price because of economy of sale.
o Ease in procurement because of availability.
o Reduction in maintenance and repair costs.
3S (Standardization)
• Classification in Standardization
o Basic standardization- (scales and weights, voltages, limit and fits, surface texture etc.)
o Dimensional standardization- (Engg. components such as nuts, bolts, screws, gears, keys)
o Material standardization- (raw materials, lubricants, coolants, tools etc)
o Equipment standardization- (specifications, location, layout etc.)
o Process standardization- (turning, grinding, welding etc.)
o Quantity standardization- (Economic Order Quantity i.e., EOQ)
o Safety measures standardization- (Rules and regulations)
o Personnel standardization- (worker selection, training, wage rates and operating times)
o Administrative standardization- (office methods and procedures for efficient working).
3S (Specialization)
• Specialization is applied to Products, Processes, Individuals, Companies, Jobs and
Equipments.

• In product specialization, a firm may produce and market only one or a limited range
of similar products. This leads to process and labor specialization, which increases
productivity and decreases costs.

• In labour specialization, a worker performs one operation instead of completing the

product and attains proficiency in that and becomes a specialist in that.
Selective Assembly (alternate method for
Interchangeability)
• For selective assembly, components are measured and sorted into groups by
dimension, prior to the assembly process. This is done for both mating parts.

• Consider a bearing assembly

−𝟎.𝟎𝟐 −𝟎.𝟏𝟎
• Hole with 𝟐𝟓+𝟎.𝟎𝟐 , Shaft 𝟐𝟓+𝟎.𝟏𝟒 clearance should be 0.14 mm

• Randomly if we take 𝟐𝟓−𝟎.𝟎𝟐 shaft and 𝟐𝟓−𝟎.𝟏𝟎 hole clearance will be 0.08 mm

• Hole and shaft pairing respectively which gives 0.14 mm clearance 24.97 and 24.83,
25.0 and 24.86, 25.02 and 24.88.
Production design and Process selection

• Product Design – the process of defining product characteristics

o Product design must support product manufacturability (the ease with which a
product can be made)

o Product design defines a product’s characteristics including appearance,

materials, dimensions, tolerances, performances, functional requirements, etc.

• Process selection - the development of the process necessary to

produce the designed product.
Production design and Process selection
• Step 1 - Idea Development - Someone thinks of a need and a product/service design to
satisfy it: customers, marketing, engineering, competitors, benchmarking, reverse
engineering

• Step 2 - Product Screening - Every business needs a formal/structured evaluation process: fit
with facility and labor skills, size of market, contribution margin, break-even analysis, return
on sales

• Step 3 – Preliminary Design and Testing - Technical specifications are developed, prototypes
built, testing starts

• Step 4 – Final Design - Final design based on test results, facility, equipment, material, &
labor skills defined, suppliers identified
Production design and Process selection
Production design and Process selection
Production design and Process selection
Factors impacting product design

• Design for Manufacture

o A series of guidelines to follow in order to produce a product easily and profitably.
▪ Design simplification

▪ Design standardization

• Product life cycle

• Concurrent engineering

• Remanufacturing
Designing Process

• Process Flow Analysis – A technique used for evaluating a process in

terms of steps from inputs to outputs with the goal of improving its
design.

• Process flowchart – A chart showing the sequence of steps in producing

the product or service
Process Performance Metrics

• Process Performance Metrics – Measurements of different process

characteristics that tell how a process is performing
o Throughput time – average amount of time it takes a product to move through
the system (including working and waiting time on the product).

o Process velocity – ratio of throughput time to value-added time.

o Productivity – ratio of outputs over inputs.

o Utilization – ratio of time a resource is used to time it is available for use.

o Efficiency – ratio of actual output to standard output.

Linking product design and process selection

• Decision of product design and process selection are directly linked and
cannot be made independently of one another.
o A type of product a company produces defines the type of operation needed. The
type of operations needed, in turn, defines many other aspects of the
organization.

• How to decide/select the product or process?

o Product design, competitive priorities, facility layout, product strategy, vertical
integration.
Process planning and selection analysis

• Process Planning
o According to the American Society of Tool and Manufacturing Engineers,
“Process planning is the systematic determination of the methods by which a
product is to be manufactured, economically and competitively.”
o Process planning can be defined as an act of preparing processing documentation
for the manufacturing of a piece, part or an assembly. Depending on the
production environment can be “Rough” or “Detailed”
o When process planning is done using a computer : “Computer Aided Process
Planning”
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Who does process planning?

• Traditionally, process planning is accomplished by manufacturing

engineers who (experts) are familiar with the particular processes in the
factory and are able to read engineering drawings.

• Based on their knowledge, skill, and experience, they develop the

processing steps in the most logical sequence required to make each
part.

• Some details are often delegated to specialists, such as tool designers

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Who does process planning?

• Requirements for process planner

o Must be able to analyze and understand part requirements

o Have extensive knowledge of machine tools, cutting tools and their capabilities

o Understand the interactions between the part, manufacturing, quality and cost.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Decisions & Details involved in Process Planning

• Interpretation of design drawings

o The part or product design must be analyzed to begin the process planning
procedure
▪ Starting materials
▪ Dimensions
▪ Tolerances

• Processes and sequence

o The process plan should briefly describe all processing steps used to produce the
work unit and the order in which they will be performed
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
More Decisions & Details involved in Process Planning

• Equipment selection
o The process planner attempts to develop process plans that utilize existing plant
equipment
▪ Otherwise, the part must be purchased, or new equipment must be installed in the plant

• Tools, dies, molds, fixtures, and gages

o Design of special tooling is usually delegated to the tool design group, and
fabrication is accomplished by the tool room

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
More Decisions & Details involved in Process Planning

• Methods analysis
o Hand and body motions, workplace layout, small tools, hoists for lifting heavy
parts

o Methods must be specified for manual operations (e.g., assembly) and manual
portions of machine cycles (e.g., loading and unloading a production machine)

• Work Standards
o Time standards set by work measurement techniques

o Cutting tools and cutting conditions for machining operations

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Process Planning for Parts

• Processes needed to manufacture a given part are determined largely by

the material out of which the part is made and the part design itself.

• The material is selected by the product designer based on functional

requirements.

• Once the material has been selected, the choice of possible processes is
narrowed considerably.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Typical Processing Sequence

• A typical processing sequence to fabricate a discrete part consists of

o Starting raw material
o A basic process
o One or more secondary processes
o Operations to enhance physical properties
o Finishing operations
o Finished part

• End result is a Route Sheet

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Typical Processing Sequence

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Process planning: Basic Process

• Process planning usually begins after the basic process has provided
initial part shape
o Example: machined parts begin as bar stock or castings or forgings, and these
basic processes are often external to the fabricating plant

o Example: stampings begin as sheet metal coils or strips purchased from the mill

• These are the raw materials supplied from external suppliers for the
secondary processes performed in the factory

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Process planning for Assemblies

• Depending upon
o Production quantity (small or large)

o Product complexity (number of components)

o Assembly method (bolts or welding)

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Process planning for Assemblies

• For single stations, the documentation contains a list of the assembly

steps in the order in which they must be accomplished

• For assembly line production, process planning consists of line balancing

- allocating work elements to particular stations along the line.

• As with process planning for individual parts, any tools and fixtures
needed to accomplish a given assembly task must be decided, and the
workplace layout must be designed.
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Process planning for Assemblies

• Line balancing is a production strategy that involves balancing operator

and machine time to match the production rate to the takt time.

• Takt time is the rate at which parts or products must be produced in

order to meet customer demand.
Concept of Process Planning

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Make or buy decision

• Inevitably, the question arises whether a given part should be purchased

from an outside vendor or made internally
o It should be noted that virtually all manufacturers purchase their starting
materials from suppliers

o Very few production operations are vertically integrated all the way from raw
materials to finished product

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Make or buy decision

• Given that a company purchases some of its starting materials, it is

reasonable to question whether the company should purchase the parts
that would otherwise be made in its own factory
o The answer to the question is the make or buy decision

o The make or buy question is probably appropriate to ask for every component
used by the company

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Make or buy decision

• Vendor will bid a unit cost for an estimated quantity

• Decision process
o Roll up in-house costs for comparison on a per unit basis
▪ Material cost

▪ Direct labor

▪ Labor overhead

▪ Equipment fixed costs

o Other considerations like idle cost, quality,….

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Make or buy decision
• The quoted part price from a vendor = $8.00 per unit for 1000 units. The same
part made in the home factory would cost $9.00. The cost breakdown on the
make alternative is as follows:
o Unit material cost = $2.25 per unit
o Direct labor = $2.00 per unit
o Labor overhead at 150% = $3.00 per unit
o Equipment fixed cost = $1.75 per unit
o Total = $9.00 per unit

• Should the component be bought or made in-house?

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Make or buy decision

• Although the vendor's quote seems to favor the buy decision, consider
the possible effect on the factory if the quote is accepted
o Equipment fixed cost is an allocated cost based on an investment that has already
been made

o If the equipment is rendered idle by a decision to buy the part, then the fixed cost
of $1.75 continues even if the equipment is not in use

o The overhead cost of $3.00 consists of factory floor space, indirect labor, and
other costs that will also continue even if the part is bought
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Make or buy decision

• By this reasoning, the decision to purchase might cost the company as

much as:
$8.00 + $1.75 + $ 3.00 = $12.75 per unit

if it results in idle time in the factory on the machine that would have been used to
make the part

• On the other hand, if the equipment can be used to produce other

components for which the internal prices are less than the corresponding
external quotes, then a buy decision makes good economic sense
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Process planning

• A rough process plan

Process planning

• A detailed process plan

Process planning

• Bill of materials

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Process planning

• Operation planning sheet

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Process planning

• Observation sheet for time study

Source: Process Planning and Cost Estimation, M. Adithan, New Age International Publishers
Process planning

• Route sheet

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Process planning

• Route sheet

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Process planning in different environments

• In tool-room type manufacturing

o “make part as per drawing” is sufficient

• In metal-forming type operations

o The process planning requirements are embedded directly into the die.
o Process planning is fairly trivial

• Job-shop type manufacturing requires most detailed process planning

o Design of tools, jigs, fixtures and manufacturing sequence are dictated directly by
the process plan.
Traditional process planning

• Experienced based and performed manually.

• Variability in planner’s judgment and experience can lead to differences

in the of what constitutes best quality.

• Problem facing modern industry is the current lack of skilled labor force
to produce machined parts as was done in the past.

• Hence Computer Integrated Manufacturing and Computer Aided Process

Planning..
Computer aided process planning

• Also called Computer Assisted Part Programming.

• Write machine instructions using natural language type statements

• Statements translated into machine code of the MCU

• APT (Automatically Programmed Tool) Language

Computer aided process planning

• Programmer’s jobs
o Define geometry of workpiece

o Specify sequence of operations and tool path

• Computer’s jobs
o Input translation

o Arithmetic calculation

o Cutter offset computation

o Post Processor – generates the codes for tool path

Computer aided process planning
• APT has 4 statements
o Definition of geometry: The geometry of the component is defined with statements like POINT, LINE,
PLANE, CIRCLE, CYLINDER, ELLIPSE, VECTOR, CONIC, TABCYL (TABULATED CYLINDER) etc.
o Motion statements: The tool is assumed to around the workpiece to carry out the machining
operations.

GO, GODLTA, GOTO, OFFSET, TLLFT, GOLFT, GOUP, TLNDON

o Post processor statements: It is necessary to specify the cutter details, spindle speed, feed rate,
tolerances etc.,

FEDRAT, COOLNT, CUTTER, TOLER, etc.

o Auxiliary statements: a group of miscellaneous statements used to name the part program, insert
comments in the program, and accomplish similar functions.
Computer aided process planning

• Advantages
o Process rationalization and standardization
▪ CAPP leads to more logical and consistent process plans than traditional process planning

o Increased productivity of process planners

o Reduced lead time to prepare process plans
o Improved legibility over manually written route sheets
o Incorporation of other application programs
▪ CAPP programs can be interfaced with other application programs, such as cost estimating,
work standards, and NC part programming
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Computer aided process planning

• Advantages (continued..)
o Time saved in making a long part program

o Simplification of procedures

o Lesser errors

o Automatic code generation

o Optimum path can be analyzed

o Graphical plot is shown

o No requirement to learn machine dependant language as the program resembles English

statements
Computer aided process planning

• Advantages (continued..)
o Reduces the demand on the skilled planner

o Reduces the process planning time

o Reduces both process planning and manufacturing cost

o Creates consistent plans

o It produces accurate plans

o It increases productivity
Computer aided process planning

• Approaches to CAPP
o Variant or Retrieval systems

o Generative systems

o Automatic systems

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Variant or Retrieval systems CAPP

• Based on group technology and parts classification and coding

• A standard process plan is stored in computer files for each part code
number
o The standard plans are based on current part routings in use in the factory, or on
an ideal plan prepared for each family

o For each new part, the standard plan is edited if modifications are needed

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Variant or Retrieval systems CAPP

• If the file does not contain a standard

process plan for the given code number,
the user may search the file for a similar
code number
o By editing an existing process plan, or
starting from scratch, the user develops a
new process plan that becomes the standard
plan for the new part code
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Variant or Retrieval systems CAPP

• Final step is the process plan formatter

o Formatter may call other application
programs: determining cutting conditions,
calculating standard times, or computing
cost estimates

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Variant or Retrieval systems CAPP

Source: Automation, Production Systems, and Computer-Integrated Manufacturing,

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers Fourth Edition, by Mikell P. Groover
Variant or Retrieval systems CAPP

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Variant or Retrieval systems CAPP

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Generative CAPP systems

• Rather than retrieving and editing an existing plan from a data base, the
process plan is created using systematic procedures that might be
applied by a human planner
o In a fully generative CAPP system, the process sequence is planned without
human assistance and without predefined standard plans

o Designing a generative CAPP system is a problem in expert systems

▪ Computer programs capable of solving complex problems that normally require a human
with years of education and experience

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Generative CAPP systems (Components of an Expert System)

• Knowledge base
o The technical knowledge of manufacturing and logic used by process planners must be
captured and coded in a computer program

• Computer - compatible part description

o The description must contain all the pertinent data needed to plan the process sequence

• Inference engine
o The algorithm that applies the planning logic and process knowledge contained in the
knowledge base to a given part description

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Generative CAPP systems

• Generative CAPP approach is based on defining the process planning

logic.

• Process planning logic

o Decision Tree

o Decision Tables

o Artificial Intelligence based approach

o Axiomatic approach

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Generative CAPP systems

• Generative CAPP approach is based on defining the process planning

logic.

• Process planning logic

o Decision Tree

o Decision Tables (conditions and actions are placed in rows while decision rules are identified in columns)

o Artificial Intelligence based approach

o Axiomatic approach

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Generative CAPP systems

• Decision Tree

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Generative CAPP systems
• Artificial intelligence (AI) Expert System
o Artificial intelligence techniques like formal logic, for describing components and expert systems, for codifying
human processing knowledge, are also applicable to process planning problems.
o In AI Expert system – the component definition can be with methods used for declarative knowledge, or more
specifically First Order Predicate Calculus (FOPC). Declarative knowledge using FOPC is represented by a Well-
Formed Formula (WFF) including a predicate symbol, a function symbol, and a constant which can be true or false.
o To represent, for example a hole, as one can write “Depth hole (X) 2.5” where the depth is the predicate symbol,
hole is the function symbol, and the constant is 2.5.
o Process selection knowledge is procedural knowledge, and as such, production systems which consists of
production rules in the form of “if-then” are usually applied. With procedural knowledge, rules can be structured to
relate processes to certain geometric or other features of the component, and with an adequate inference engine a
set of processes and their sequences can be defined for a given component.

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Generative CAPP systems
• Axiomatic approach
o Developed by MIT at the laboratory of Manufacturing and Productivity.
o Its intention is to provide a logical framework for designing products and processes.
o Functional requirements (FRs), must be defined to establish a design range. The surfaces needed to be machined
by one machine are grouped into surface groups.

1. List all the design (or production) parameters to be evaluated.

2. Divide the surfaces to be produced into surface groups, each of which is to be machined by a single machine.
3. List candidate machines for each surface group.
4. Evaluate all alternatives for the production and machine parameters.
5. Obtain the total information content and select the best machine combination based on the information content.

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 1

The annual requirement of an article (about 4000 pieces) can be met by

one semi-automatic turret lathe or by two engine lathes.

Which type of machine should be selected for the job?

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 1
The annual requirement of an article (about 4000 pieces) can be met by one
semi-automatic turret lathe or by two engine lathes.

The cost of turret lathe is Rs.80,000(installed) and that of the engine lathe is
Rs.32,000.

The useful life of each type of machine is 10 years.

The turret lathe takes up the same floor space as one engine, lathe, saving
Rs.480 per year in floor space.

Which type of machine should be selected for the job?

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 1
The annual requirement of an article (about 4000 pieces) can be met by one
semi-automatic turret lathe or by two engine lathes.

The turret lathe can produce 4000 parts in 2256 hours including set up time. Its
operator receives Rs.4 per hours.

One operator is required on each engine lathe, the wage rate being Rs.5 per
hour. Both engine lathes are operated for 2300 hours and produce a total of
3800 pieces.

Which type of machine should be selected for the job?

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 1

The annual requirement of an article (about 4000 pieces) can be met by

one semi-automatic turret lathe or by two engine lathes.

I = 6%, T = 4%, D = d = 10%, M = m = 6%, B = b = 55%. A 4-hp motor is used

on turret lathe and a 2 ½ hp motor on each of the engine lathe. The power
rate is Rs.0.35 per kwh.

Which type of machine should be selected for the job?

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 1
C = First cost of first machine (installed). D = Annual allowance for depreciation on first machine %
c = First cost of second machine (installed). d = Annual allowance for depreciation on second machine, %
N = Annual production of first machine.
M = Annual allowance for maintenance on first machine, %
n = Annual production of second machine.
m = Annual allowance for maintenance on second machine, %
L = Annual labour cost on first machine.
P = Annual cost of power for first machine.
l = Annual labour cost on second machine.
p = Annual cost of power for second machine.
B = Annual labour burden on first machine, %

b = Annual labour burden on second machine, % X = Unit production cost on first machine.

I = Rate of interest, % x = Unit production cost on second machine.

T = Rate of taxes and insurance, % F = Saving in floor space per year, of first over second machine.

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 1

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 1
The annual requirement of an article (about 4000 pieces) can be met by one semi-automatic
turret lathe or by two engine lathes. The cost of turret lathe is Rs.80,000(installed) and that of
the engine lathe is Rs.32,000. The useful life of each type of machine is 10 years. The turret
lathe takes up the same floor space as one engine, lathe, saving Rs.480 per year in floor space.
The turret lathe can produce 4000 parts in 2256 hours including set up time. Its operator
receives Rs.4 per hours. One operator is required on each engine lathe, the wage rate being
Rs.5 per hour. Both engine lathes are operated for 2300 hours and produce a total of 3800
pieces. I = 6%, T = 4%, D = d = 10%, M = m = 6%, B = b = 55%. A 4-hp motor is used on turret
lathe and a 2 ½ hp motor on each of the engine lathe. The power rate is Rs.0.35 per kwh.

Which type of machine should be selected for the job?

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 1 (solution)
Given data:

C = Rs. 80,000

c = 32000 × 2 = Rs. 64000

N = 4000

n = 3800

L = 2256 × 4 = Rs. 9024

l = 2300 × 2 × 5 = Rs. 23000

I = 6%

T = 4%

D = d = 10%; Turret lathe motor power = 4 hp.

M = m = 6%; Engine lathe motor power = 2 ½ hp.

B = b = 55%; Power rate = Rs.0.35 per kWh.

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 2
A part drawing is shown in Fig (Gear shaft for water pump). What are all the process planning
activities?

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 2

• Study and read the drawing so that the part features are identified. The
important feature of the part are:
o Three concentric cylinders constitute the part.

o There is one chamfer of 45° × 3 mm and one chamfer of 45° × 1.5 mm at the ends
of the shaft.

o The dimensional tolerances are ± 0.05 mm and the angular tolerance on the
chamfer is ± 1°.

o Material is SAE 1030 cold drawn steel.

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 2
• Only 5 pieces are required. The most feasible process is machining on a standard centre lathe.

• The parts can be machined from 25 mm diameter standard stock.

• One lathe operator is required to complete the order

• The next step is to identify the operations. To produce the part the following operations are required
o Facing
o Centre drilling
o Cutting off (or) part off
o Turning
o Chamfering
o Finishing (removing sharp edges)

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 2

• In addition, the process planner must estimate the time for each of
these operations : the set-up time, the cutting tools needed, jigs, fixtures
and gauges required, the machining parameters such as: Cutting speed,
feed, d.o.c. (depth of cut).

• Completing the process planning sheet. The operations listed are

sequenced in numerical order and are listed in the process sheet along
with other necessary information.

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Example 2

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Set of documents required for process planning
(i) Product design and the engineering drawings pertaining to all the components of the
product. (i.e., components drawings, specifications and a bill of materials that defines how

many of each component go into the product).

(ii) Machining/Machinability Data Handbook (Tables of cutting speeds, depth of cut, feeds for
different processes and for different work materials).

(iii) Catalogues of various cutting tools and tool inserts.

(iv) Specifications of various machine tools available in the shop/catalogues of machine tools in
the shop (speeds, feeds, capacity/power rating of motors, spindle size, table sizes etc.).

(v) Sizes of standard materials commercially available in the market.

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Set of documents required for process planning
(vi) Machine Hr. cost of all equipment available in the shop.

(vii) Design Data Handbook.

(viii) Charts of Limits, Fits & Tolerances.

(ix) Tables showing tolerances and surface finish obtainable for different machining processes.

(x) Tables of standard cost.

(xi) Table of allowances (such as Personal Allowance, Fatigue Allowance etc. in % of standard
time followed by the company).

(xii) Process plans of certain standard components such as shafts, bushings, flanges etc.

(xiii) Handbooks (such as Tool Engineers Handbook, Design Data Handbook).

Source: Process Planning and Cost Estimation, R. Kesavan, et al, New Age International Publishers
Break-Even Analysis
• Break-even analysis is a technique that can be useful when evaluating a new
product.
o This technique computes the quantity of goods a company needs to sell just to cover its
costs, or break even, called the “break-even” point.
o When evaluating an idea for a new product it is helpful to compute its break-even
quantity.
o An assessment can then be made as to how difficult or easy it will be to cover costs and
make a profit.
o A product with a break-even quantity that is hard to attain might not be a good product
choice to pursue.
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Break-Even Analysis

• Break-even analysis
o The total cost of producing a product or service is the sum of its fixed and variable
costs.

o A company incurs fixed costs regardless of how much it produces. Fixed costs
include overhead, taxes, and insurance.
▪ For example, a company must pay for overhead even if it produces nothing

o Variable costs, on the other hand, are costs that vary directly with the amount of
units produced, and include items such as direct materials and labor.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Break-Even Analysis

• Break-even analysis
o Together, fixed and variable costs add up to total cost: F + (VC) Q
Where,

F = Fixed cost;

VC = Variable cost;

Q = number of units sold.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Break-Even Analysis

• Graphical approach to Break-even analysis

o Fixed cost is represented by a horizontal line as this cost is
the same regardless of how much is produced.

o Adding variable cost to fixed cost creates total cost.

o When Q = 0; total cost is only equal to fixed cost.

o As Q increases, total cost increases through the variable

cost component.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Break-Even Analysis

• Graphical approach to Break-even analysis

o Blue diagonal in the figure is revenue, the amount of
money brought in from sales.
Revenue = Selling Price per unit (SP) * Q
o When Q = 0, revenue is Zero.
o As sale increases, so does revenue.
o Remember, however, that to cover all costs we have to sell
the break-even amount. This is the quantity QBE, where
revenue equals total cost.
Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Break-Even Analysis

• Graphical approach to Break-even analysis

o If we sell below the break-event point we incur a loss,
since costs exceed revenue.

o To make a profit, we have to sell above the break-even

point.

o Since revenue equals total cost at the break-even point,

we can use equations to compute the value of the break-
even quantity.

Source: Automation, Production Systems, and Computer-Integrated Manufacturing, Fourth Edition, by Mikell P. Groover
Break-Even Analysis

• Break-even point in terms of physical units:

At break-even point: Total cost = Total revenue

F + (VC) Q = (SP) Q

Solving for Q, we get the following equation:

QBE = [F / (SP – VC)]

QBE = [Fixed cost / (Selling price /unit – Variable cost/unit)]

Break-Even Analysis

• Break-even point in terms of sales value:

This method is suitable for a multi-product firm

𝑭𝒊𝒙𝒆𝒅 𝒄𝒐𝒔𝒕𝒔
Break-even sales = 𝑽𝒂𝒓𝒊𝒂𝒃𝒍𝒆 𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕
(𝟏− 𝑺𝒆𝒍𝒍𝒊𝒏𝒈 𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕 )
Break-Even Analysis

• Contribution
o The difference between the selling price and variable cost per unit is known as
contribution or contribution margin.

o Contribution is a companion measure of values that tells how much of the

revenue from the sale of one unit of a product will contribute to cover fixed costs
with the remainder going to profit.

o Contribution margin divided by selling price is known as contribution ratio.

Break-Even Analysis
Contribution = Selling price – Variable cost

C = SP – VC

Contribution ratio = Contribution / Selling price

Contribution ratio = (Selling price – Variable cost) / Selling price

Profit to volume ratio

P/V Ratio = Contribution / Sales

Break-Even Analysis
• Margin of Safety
o It is the difference between the existing level of output and the level of output at the Break-even
point.
𝑆𝑎𝑙𝑒𝑠 −𝑆𝑎𝑙𝑒𝑠 𝑎𝑡 𝐵𝐸𝑃
Margin of safety (in%) = 𝑋 100
𝑆𝑎𝑙𝑒𝑠

o The greater value of margin of safety means higher profits to the firm.

o If the safety margin is low, then the firm runs the risk of incurring losses.
Break-Even Quantity (Example)
• The fixed cost for a factory for the year 2021-22 is Rs. 1,50,000 and the variable cost is
Rs. 10 per unit produced. The selling price per unit is Rs. 25. Calculate the break-even
quantity.

FC = Rs. 1,50,000/-

VC = Rs. 10

SP = Rs. 25

Q at BEP = (FC/(SP-VC) = 150000/925-10) = 10,000 units.

Break-Even Analysis (to choices b/w machines)

• At the break even point, Total cost of machine A = Total cost of machine B

Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Example 3
A component can be produced on either a capstan lathe or an automatic lathe. The different cost
factors for the two machines are given below
• Machine I (Fixed cost = Rs.500; Variable cost = Rs.2 per piece)
• Machine II (Fixed cost = Rs.1600; Variable cost = Rs.0.5 per piece)
Assume that cycle time for production of the component is same for both the machines. Which
machine will you select for producing (a) 800, (b) 700 components.
Given data:
o FA = Rs.500
o VA = Rs.2 per piece
o FB = Rs.1600
o VB = Rs.0.5 per piece
o N1 = 800
o N2 = 700
Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Example 3 (Solution)

Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Example 4
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. 12000
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.
Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Example 4 (Solution)

Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Break-Even Analysis (to choices a process)
For a given job, more than one manufacturing process may be used. The most
economical process is that which gives the lowest total cost per part.
Let,

Nf = Total number of parts to be produced in a single run.

Q = Number of parts for which the unit cost will be equal for each of the two compared methods A and B brebreak-evenint

Ta = Total tool cost for methods ‘A’

Tb = Total tool cost for methods ‘B’

Pa = Units tool process cost for method ‘A’

Pb = Unit tool process cost for method ‘B’

Ca = Tool unit cost for method ‘A’

Cb = Tool unit cost for method ‘B’

Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Break-Even Analysis (to choices a process)

Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Example 5
The aircraft flap nose rib can be produced either by hydropress or by steel draw die. The
following data is available for Nt = 500.

Pa = Rs. 8.40

Pb = Rs. 14.80

Ta = Rs. 6480.00

Tb = Rs. 1616.00

Determine the quantity of production at ‘break even point’ and tool unit cost for method
‘A’ and method ‘B’.
Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Example 5 (Solution)
To find

(a) Quantity of production at break even point, Q.

(b) Tool unit cost for method ‘A’, Ca

(c) Tool unit cost of method ‘B’, Cb

Source: Process Planning and cost Estimation, Second Edition, by Kesavan et al, New Age International Publisher
Thank you