iii
DESIGN IMPROVEMENT USING LIFE CYCLE COSTING METHODOLOGY
TAN SOON LAM
A project report submitted in partial fulfillment of the
requirements for the award of the degree
of Master of Engineering (Industrial Engineering)
Faculty of Mechanical Engineering
Universiti Technologi Malaysia
NOVEMBER 2009
v
ABSTRACT
With the increasing world population, pollution becomes more serious too. At
the present, pollution is increasing and developed countries had recognised pollution
as a severe problem and need legislation to overcome this problem. Ecologic
regulations are added to manufacturer to prevent further damage of environment. For
example, take back laws such as end of life vehicle directive also forcing the
manufacturer to be more concern with their product. Concerns are on the end of life
product, where manufacturer think about cost, because cost are needed to recycle end
of product. Life cycle costing is a method to help designer in decision making,
where cost influence type of design. If life cycle costing is not performed, the cost of
product design might be undercosting or overcosting and is out of the typical scope
or focus of product selection processes. Life cycle costing play important role in
helping manufacturer to choose better design to save cost and reduce waste. In this
project, Life cycle costing methodology is used to improve product design with
lower cost.
vi
ABSTRAK
Dengan populasi dunia yang semakin meningkat, pencemaran juga bertambah
serius, Pencemaran yang teruk di negara yang sedang membangun menyebabkan
masalah yang merunsingkan dan peraturan digubal untuk mengatasi masalah ini.
Undang-undang alam sekitar ditambah kepada pengilang untuk mengawal situasi in.
Sebagai contoh, undang-undang ambil balik pada jangka hayat akhir kenderaan
menyebabkan pengilang lebih bertangggungjawab pada produk mereka. Pengilang
akan memikirkan kos untuk penggunaan semula produk mereka. Jangka hayat
pengiraan adalah cara untuk membantu pereka produk dalam membuat keputusan.
Sekirannya, jangka hayat pengiraan tidak dibuat, kos produk mungkin melebihi
ataupun kurang daripada sepatutnya. Jangka hayat pengiraan juga memainkan
peranan penting dalam membantu pengilang untuk memilih reka bentuk yang lebih
baik dimana boleh mengurangkan kos dan pencemaran. Dalam projek ini, cara
jangka hayat pengiraan digunakan untuk membantu reka bentuk pada kos yang lebih
rendah.
vii
ACKNOWLEDGEMENT
A debt of gratitude to my talented supervisor, Dr. Muhamad Zameri b. Mat
Saman for his high dedication, advises and superb guidance, which prepared me in
overcoming the challenges in this master project.
I would also like to thank take this opportunity to thank to all those have been
involved in making this project a successes.
And finally, a warm thanks to ABC automotive company for developing the
wheel spacer and provided data that used in life cycle costing analyze.
viii
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGE
ABSTRACT
iii
ABSTRAK
iv
ACKNOWLEDGEMENT
v
TABLE OF CONTENTS
vi
LIST OF TABLES
ix
LIST OF FIGURES
x
INTRODUCTION
1
1.1
Background of the Project
1
1.2
Problem Statement
3
1.3
Objective and Scope of the Project
3
1.4
Significant of Research
4
1.5
Structure of Thesis
4
LITERATURE REVIEW
6
2.1
Overview
6
2.2
What is Life Cycle Assessment
6
2.2.1
What is Life Cycle Costing
8
2.2.2
Life Cycle Costing Application
9
ix
3
4
2.3
Development of Model
10
2.4
Cost Analysis
12
2.5
Summary
15
METHODOLOGY
16
3.1
Overview
3.2
Methodology
16
3.2.1
Define Life Cycle Costing Methodology Scope
18
3.2.2
Choose the Scope
18
3.2.3
Product Development
19
3.2.4 Cost Analysis and Evaluation
22
3.3
22
Summary
1
CASE STUDY OF WHEEL SPACER
23
4.1
Overview
24
4.2
Concept Development and System Level of Wheel Spacer
24
4.2.1 Sketch of Wheel Spacer
27
4.2.2
Process Flow Chart of Final Assembly Process
27
4.3
Detail Design of Wheel Spacer
28
4.3.1
Computer Drawing
28
4.3.2
Production Tooling
40
4.3.3
Operation and Maintenance Cost
42
4.3.4
Assembly of Product
46
4.4
Destructive Testing of Wheel Spacer
49
4.5
Summary
50
x
5
RESULTS AND DISCUSSION
51
5.1
Overview
51
5.2
Types of Design
52
5.3
Data Collection
53
5.3
Cost Analysis
54
5.3.1
Research and Development Cost
54
5.3.2
Production and Construction Cost
56
57
5.3.4
58
Retirement and Disposal Cost
5.4
Cost Evaluation
59
5.5
System Development
63
5.5.1
64
RUP (Rational Unified Process)
5.5.2 Software Justification
64
5.5.3 Database Design
65
Summary
68
CONCLUSION
69
5.6
6
5.3.3 Operation and Maintenance Cost
REFERENCES
71
xi
LIST OF TABLES
TABLE NO.
2.1
TITLE
Financial estimates for the P.Jones Cellulars SME
PAGE
10
in TEMBA
2.2
Consolidate data sheet EPS
8
4.1
Cutting tool and process parameter
41
4.2
Sequence of the Wheel Spacer fabrication
42
5.1
Manufacturing method of wheel spacer
52
5.2
Data collection from ABC automotive company
53
5.3
Research and development cost
54
5.4
Production and construction cost
55
5.5
Operation and maintenance cost
56
5.6
Estimated quantity to be produced and the total cost
56
5.7
Retirement and disposal cost
58
5.8
Quantity of wheel spacer collection at end of life
59
5.9
Summary the of the cost for alternative design
60
5.10
Cost comparison at net present value
61
5.11
Cost saving% of current design to the other design
62
xii
LIST OF FIGURES
FIGURE NO.
TITLE
PAGE
2.1
Example product systems for LCA
7
2.2
Life cycle costing process
8
2.3
Flow chart of the developed LCECA
11
2.4
Generic remanufacturing process
12
2.5
Acquisition Cost Tree
13
2.6
Sustainable Cost Tree
14
3.1
Flow chart design improvement using life cycle costing
methodology
17
3.2
Generic product development processes
20
4.1
Concept design of wheel spacer using welding process
24
4.2
Concept design of wheel spacer using end mills process
25
4.3
Comparison of original and new design of wheel stud
25
4.4
Fixture of end mills wheel stud head
26
4.5
Flowchart of wheel spacer fabrication
27
4.6
Solid modeling of the wheel spacer
29
4.7
Solid modeling of the spacer
29
4.8
Solid modeling of the wheel stud
30
4.9
Solid modeling of the nut
30
4.10
3D of wheel Spacer
31
4.11
Overall view of the spacer
32
4.12
Isometric view of the spacer
33
xiii
4.13
Bottom view of the spacer
34
4.14
Top view of the spacer
35
4.15
Side View of the spacer
36
4.16
Coordinate of the holes for spacer
37
4.17
View of wheel stud
38
4.18
View of the nut
39
4.19
Drilling and milling machine
45
4.20
Special fixture of end mill the wheel stud
45
4.21
Hydraulic machine
46
4.22
Press in wheel stud into spacer
46
4.23
Isometric view of the complete assembly of the wheel spacer
47
4.24
Front view of complete assembly of the wheel spacer
47
4.25
Back view of complete assembly of the wheel spacer
48
4.26
Wheel stud with new design
48
4.27
Impact wrench
49
4.28
Impact wrench to tighten the nut
49
4.29
Destructive testing on wheel spacer
50
4.30
Wheel spacer on car hub
49
4.31
Wheel spacer on the wheel
50
5.1
Cost comparison among alternative design at net present
61
value
5.2
Activity diagram of life cycle costing
66
5.3
Use case diagram for life cycle costing analysis
67
5.4
Interface of the web application life cycle costing analysis
68 CHAPTER 1
INTRODUCTION
1.1
Background of the Project
Sustainable become hot issues on year 2009 since most of the material cost
become high and expensive. Seeing sustainable as serious issue, united nation take
various step to overcome this problem. And one of the millennium development
goals of the united nation is ensure environment sustainability. Because of a rise in
forest planting, landscape restoration and the natural expansion of forests,
deforestation of about 13 million hectares per year resulted in an estimated net
decline of 7.3 million hectares of forest area per year over the period 2000-2005,
compared to 8.9 million hectares annually in the previous decade (UNEP; 2008.
Ensure Environmental Sustainability).
Most of the manufacturer struggle with the high cost and low sales. Global
recession made the manufacturing industry gone worst since the demand is less.
The problem such as low demand and high cost made recent manufacturer struggle
now days. So manufacturer looking to the new area to invest in which provide
profit to company itself. As a result, some of them consider the area of end of life
product instead the early stage of manufacturing. Remanufacturing is processes
which include repairing and take valuable product and then resemble it into new
product. This method enables manufacturing to get material in lower cost compare
to buy new one.
2
Since remanufacturing is the new concept to most of manufacturer, they
likely to refuse to invest into it. Besides that, lack of knowledge in this area made
difficult for them to start new business. Life cycle assessment (LCA) is powerful
tool to measure the environment load of product. (Guinee 2002) So with this tool,
manufacturer can know the element of product and start studying of product.
Having a lot of information about product itself is useless unless economic
affordable is considered.
So the economic is one of the important elements in the manufacturer
business. Without proper judgment of economic of the product, manufacturer will
face the loss in the business. This idea is same applied the remanufacturer industry
itself. Before and while conducting the remanufacturing industry it is important to
study costing of product. Somehow it should be indicator to tell investor of the
situation itself. Using this life cycle costing, the top management can analyze the
element of remanufacturing and plan different strategy. Having overall total cost in
industry can help to achieve company business objective.
Life cycle costing (LCC) is similar to tool which concerned with the
comparison of life-cycle costs among alternative product. Life cycle costing also
similar with total cost assessment which provide identical function. This indicator
also helps the top management with decision making. Information of arrival rate
and customer demand influences the production planning and control. As a result,
this will influence the cost of operation in factory. Finally, higher cost means the
more expensive incur of the product itself.
By providing the proper life cycle costing to investor, it will increase the
interest in the remanufacturing industry. Besides interest, it also indicates where the
money is being used in the factory and improvement can be done in the particular
area. Finally, Life cycle costing serve as the multi purposes tool beside than
economic analyze itself.
3
1.2
Problem Statement
In the future, raw material will become more expensive and hardly to
available. So manufacturer need better strategic to overcome this problem. Besides
that, Manufacturer needs to be responsibility of their product. In the mean time,
automotive manufacturer need to recover their product to decrease solid waste and
contamination level of ecologic. Moreover, take back laws such as end of life vehicle
directive also forcing the manufacturer to more concern to their product. Life cycle
costing play important role in helping manufacturer to choose better design to save
cost and reduce waste.
1.3
Objective and Scope of Project
The objective of the project is to improve product design using life cycle
costing methodology.
The scopes of the project are listed below.
i)
Conduct case studies for wheel spacer
ii)
Develop a web application of life cycle costing analyze
4
1.4
Significant of Research
Life cycle costing will help decision makers select the product or process that
result the least cost to the total cost of manufacturing. This information can be used
with other factors, such as performance data to select a product or process. Life cycle
costing identifies each cost involved in product design and impacts from one media
to another and from one life cycle stage to another.
If life cycle costing was not performed, the cost of product design might be
undercosting or overcosting because it is outside of the typical scope or focus of
product selection processes.
1.5
Structure of Thesis
The structure of thesis consists of six chapters. The first three chapters were
done at master project. The following three chapters were done at master project two.
Chapter 1 describes about the background of the study, project problem
statement, and the objective and scope of the life cycle costing project.
Chapter 2 highlights some literature reviews related to the study, which
includes descriptions on life cycle costing, Life cycle costing application,
development of model. Besides that, it cost analysis used in industry application.
Chapter 3 shows the overall methodology method use to improve design using
life cycle costing methodology. Steps by steps of the methodology are presented in
the flowchart to give the brief and clear understanding of the project.
Chapter 4 shows illustrate the design and assembly of case study (wheel
spacer component). Concept development and system level design of the drawing are
included. Sketch of different wheel spacer design is provided in sub section.
5
Chapter 5 provides explanation types of each design and data which is
collected from ABC Company which manufacture automotive part. Besides that,
details of each cost are described and calculations are shown in different table.
Besides that, the structures of web application of life cycle costing are demonstrated.
Chapter 6 makes a conclusion on the project where the best designs were
chosen. Cost and time study were chosen as criteria to select the important element in
product design.
6
CHAPTER 2
LITERATURE REVIEW
2.1
Overview
This chapter will explain overall background and literature review of design
improvement using life cycle costing. There are several sub sections in this chapter
which describe in details of life cycle costing and model development.
2.2
Life Cycle Assessment
Life cycle assessment (LCA) is a process to evaluate the environmental
burdens associated with a product, process or activity by identifying and quantifying
energy and materials used and wastes released to the environment, and to assess the
impact of those energy and material used and released to the environment by Allen et.
al. (1993)
7
Besides that, from ISO 14040 (2006) description, LCA considers the entire
life cycle of a product, from raw material extraction and acquisition, through energy
and material production and manufacturing, to use and end of life treatment and final
disposal. Through such a systematic overview and perspective, the shifting of a
potential environmental burden between life cycle stages or individual processes can
be identified and possibly avoided. Figure 2.1 show the example of product system
for LCA.
Figure 2.1
Example product systems for LCA
8
2.2.1
Life Cycle Costing
Life cycle cost is the total cost of ownership of machinery and equipment,
including its cost of acquisition, operation, maintenance, conversion, and/or
decommission (SAE, 1999). LCC includes every cost that is appropriate and
appropriateness changes with each specific case which is tailored to fit the situation.
LCC follows a process (Fabryck, 1991). Figure 2.2 show life cycle costing process.
Figure 2.2
Life cycle costing process (Fabryck, 1991)
9
2.2.2
Life Cycle Costing Application
Hunkeler et al (2002) highlighted Junichi kasai of Isuzu Motors showed
examples of LCC and LCA for the recycling of automotive plastic parts. The
analyses were based on GaBi3 and EcoIndicator'95. Isuzu has studied the recycling
of polypropylene (PP) bumpers into minor exterior parts of small trucks (e.g. tire
house liner). At present, 10% of the tire house liners come from recycled PP.
Overall, the LCIA did not result in a conclusive benefit of virgin or recycled
plastics, with some categories better for both, though recycling was marginally
better. The LC costs were approximately 5% lower for the recycled option, though
the breakdown of costs was quite different. Recycling had large costs involved in
palletizing (46%) and transport (35%) while the virgin PP's costs were dominated by
landfilling (62%) and dismantling (36%). Incineration was not included as an option.
10
2.3
Development Model
State of review on the product life cost cycle costing presented Aside and Gu
(1998). This paper studied the cost estimation models and reviews some of the
traditional method in costing. Besides this, this article also provide reviewed the cost
information tool to help designer in term of cost.
The life cycle environmental cost analysis model (LCECA) (Senthil et al.,
2003) was developed. This model characterizes a life cycle environmental cost
model to estimate and correlate the effects of these costs in the effects in whole life
cycle stages of product. This model is applied to manufacturers in Malaysia as case
study and their consolidate data sheet is shown on Table 2.1. The result showed cost
of energy C7 and C8 contributed the highest cost among all costs.
Table 2.1
Consolidate data sheet (Senthil et al., 2003)
Besides this, the quantitative expressions between total cost and other cost
were determined from mathematical model of LCECA. Figure 2.3 show flow chart
of the developed LCECA.
11
Figure 2.3
Flow chart of the developed LCECA
12
2.4
Cost Analysis
Sudin and Bras (2005) studied the function sales on the product
remanufacturing which have bring both economic and environment benefit. This
paper explained the advantage and gave argument on the functional which need to be
remanufactured .This journal also studied the remanufacturing process cleaning,
repair, disassembly, testing, storage, inspection and others in one of factory in
Sweden. And found the most critical process is cleaning and repair. Both of these
factors contribute to the high cost in the total remanufacturing cost breakdown.
Besides that, this report also highlight the improve remanufacturability of the
product. Product characters such ease of access, wear resistance, ease of
identification, ease of handling, ease of separation are so important in
remanufacturability. To attain high efficiency of remanufactuability product these
several elements must be included in early stage of product design. Information of
when and how many products going through the remanufacturing process is the
critical problem in remanufacturing business. Consequently, logistics and production
planning will vary due to the incoming material. Figure 2.4 show generic
remanufacturing process.
.
Figure 2.4
Generic remanufacturing process（Sundin and Bras, 2005)
13
Nakamura and Kondo (2005) developed hybrid LCA tool (Waste input output
WIO) which consist of LCA and LCC. This tool enables the product to be
manufactured environmentally friendly and economically affordable. The WIO price
model methodology was used to conduct case study of electric appliances in Japan.
The result showed cost of recycling is the highest while landfilling is lowest. The
author also argued that cost will decrease with advance design of disassembly.
Life cycle costing divided into two categories which are sustaining cost tree
and acquisition cost tree (Barringer, 2003). Both of the cost trees are shown by
figures below. Data such as gathering the correct inputs, building the input database,
evaluating the LCC and conducting sensitivity analysis are crucial to identify cost
driver. Figure 2.5 show Acquisition Cost Tree. And Figure 2.6 show Sustaining Cost
Tree.
Figure 2.5
Acquisition cost tree (Barringer, 2003).
14
Figure 2.6
Sustaining cost tree (Barringer, 2003)
Liang et al (2009) described remanufacturing is one of recovery options for
used products. As remanufacturing requires a continuous supply of used products,
the economic incentive is required to attract customers to return their used products
(called cores) and the problem of pricing a core becomes an important issue. Such a
pricing problem is analogous to pricing an option, which can be used to sell the
remanufactured cores (called core products).
As sales price of core products follows a geometric Brownian motion, we
propose a model here to evaluate the acquisition price of cores. This model links core
acquisition price with the sale price of core product but assumes other costs such as
logistics and remanufacturing to be deterministic. We have presented a numerical
example to show its applicability. Since the model proposed here is generic, it is
believed that the proposed model can be used in setting the core prices in many
situations.
15
As a large part of municipal solid waste (MSW) is biodegradable,
considerable attention should be paid to specific guidelines and tools developed for
biodegradable municipal waste (BMW). For the management of biodegradable waste
that is diverted from landfills, there is no single environmentally best option. The
environmental balance of the various options available for the management of BMW
depends on a number of local factors, inter alia collection systems, waste
composition and quality, climatic conditions, the potential of use of various waste
derived products such as electricity, heat, methane-rich gasor compost.
Therefore, strategies for BMW management should be determined with a
life-cycle approach. The European Commission committed to produce guidelines on
applying life-cycle thinking for the management of biodegradable waste. These
guidelines will be communicated to EU Member States in order to revisit their own
national strategies. These guidelines will also assist local and regional authorities that
are generally responsible for drawing up plans for management of municipal waste.
(European Commission, 2005)
2.5
Summary
This chapter demonstrated basic concept of the life cycle costing and the
application of the life cycle costing in the industry. Basically, Life cycle cost is the
total cost of ownership of machinery and equipment, including its cost of acquisition,
operation, maintenance, conversion, and/or decommission. Moreover, this stage also
demonstrated model development is very useful in assisting the application of life
cycle costing. Besides that, model development also helps to define the scope and
boundary of life cycle costing analyze.
16
CHAPTER 3
METHODOLOGY
3.1
Overview
This chapter will explain overall method use to improve design using life cycle
costing methodology. Steps by steps of the methodology are presented in the
flowchart to give the brief and clear understanding of the project.
3.2
Methodology
There are 4 major stages in improve design using life cycle costing
methodology. Figure 3.1 show the flow chart of design improvement using life
cycle costing methodology. The sequences of development follow by define life
cycle costing methodology scopes, choose the Scope, product development and cost
analysis and evaluation.
17
i.
Define Life Cycle Costing Methodology Scope
¾ Explain the objective
¾ Determine the criteria for selection
Choose the Scope
¾ Research and Development Cost
¾ Production and Construction Cost
¾ Operation and Maintenance Cost
¾ Retirement and Disposal Cost
Product Development
¾ Generic product development process
Cost Analysis and Evaluation
¾ Net present value
¾ Comparison cost
Figure 3.1
Flow chart design improvement using life cycle costing
methodology
18
3.2.1
Define Life Cycle Costing Methodology Scope
For the early stage, the first step in this project was to define scope of design
improvement using life cycle costing methodology. This is important since it will
determine the objective of this master project. Objective of this project is to
improve product design using life cycle costing methodology. Then element of
product design activities are study, review, analysis and organize.
Cost and time study were chosen as criteria to select the important process in
product design. The life cycle costing methodology is going to study cost involved
and time spent in product design activities.
3.2.2 Choose Life Cycle Costing Methodology Scope
For the second stage, Life cycle costing methodology scopes were chosen.
Life cycle costing methodology is used to identify the different output of product
design activities such as the planning cost used in machine, the production cost by
factory, recycling cost and other cost. For this project, life cycle costing
methodology is used to compare the cost involve in product design and end of life.
Fabrycky and Blanchard (1991) provided the guideline methodology to
develop life cycle manufacturing cost analysis model (LCRCA). Life cycle costing
model by Hussein et al (2008) consist of Research and Development Cost,
Production and Construction Cost, Operation and Maintenance Cost and Retirement
and Disposal Cost.
19
3.2.3
Product Development
The third stage is product development stage .In this stage development the
wheel spacer with generic product development process. The product development
process consists of six phases which include planning, concept development, system
level design, detail design testing and production ramp-up (Ulrich and Eppinger,
2004). Section 3.2 described in detail of each phases. Figure 3.2 is the flow chart of
the generic product development processes to develop wheel spacer.
Referring to Figure 3.2, Phase Zero is the planning phase which wheel spacer
project statement was developed, and where key assumptions and production
constraints were identified. Planning process is important to determine the success of
the project since it includes overall aspects of the product. Phase one is the concept
development for the wheel spacer. Alternative wheel spacer concepts were generated
and evaluated. Wheel spacer concept is a description of form, function and features
of a wheel spacer.
System level design in phase two phase comprise the wheel spacer design and
decomposition of the wheel spacer into wheel stud and spacer. Output in this phase
was geometric layout of wheel spacer, functional of the wheel stud and spacer, and
preliminary of process flow diagram for the final assembly process.
Phase three is the detail design of the wheel spacer involving the complete
specification of the geometry, materials and tolerances of the wheel spacer parts.
Document control consists of computer drawing, production tooling process plan for
fabrication and assembly were included in this chapter. Then, process plans for
fabrication and assembly of the wheel spacer were included.
20
.
Figure 3.2
Generic product development processes
21
Phase four was testing and refinement phase of the wheel spacer. The alpha
prototype was produced with intent parts. Wheel spacer was produced with same
geometry and material properties to determine wheel spacer will work as designed
and satisfies the key customer needs.
Phase five is the production ramp up phase. The purpose of ramp up is to
train work forces and to work out the any remaining problems in the production
process. This phase is leave to automotive phase to manage the production line and
not include in this report
22
3.2.4
Cost Analysis and Evaluation
Finally, in stage four, in this period data is collected and analyze the result.
This methodology is going for validation process by applying the case study on
industry. The study period for this case study is 5 year. The breakdown structure of
cost of product design are listed as below
i.
Research and Development Cost
ii.
Production and Construction Cost
iii.
Operation and Maintenance Cost
iv.
Retirement and Disposal Cost
Besides that, the cost of total cost of each category is calculated and
summation each total cost for several design is presented.
3.3
Summary
Steps by steps of the methodology are presented in the flowchart to give the
brief and clear understanding of the project. Besides that, developments the wheel
spacer with generic product development process are discussed. There are several
cost demonstrated in this chapter. Each cost is influence each of other in decision
making. From the prediction, it show the research and development cost and
production and construction cost are among high cost involved in product design.
23
CHAPTER 4
CASE STUDY OF WHEEL SPACER
4.1 Overview
This chapter illustrates the design and assembly of wheel spacer. Concept
development and system level design of the drawing are included. Sketch of different
wheel spacer design is provided in section 4.2. Wheel spacer fabrication flow chart
was drawn to provide the overall idea of manufacturing process. Besides that,
Section 4.3 described the detail design such as computer drawing, production
tooling, process plan for fabrication and assembly.
24
4.2
Concept Development and System Level Design
4.2.1 Sketches of Wheel Spacer
This section provided the concept design of wheel spacer using welding
process and milling process. All the sketches were based on the requirement needed
by automotive manufacturer which were further provided on section 5.2. The
sketches of the wheel spacers were important because it generate the basic concept
and idea serves as a draft before the final drawing are computerized for processing.
Figure 4.1 to Figure 4.4 shows the sketches of the wheel spacer.
Figure 4.1
Concept design of wheel spacer using welding process
25
Figure 4.2
Figure 4.3
Concept design of wheel spacer using end mills process
Comparison of original and new design of wheel stud
26
Figure 4.4
Fixtures to end mills wheel stud head
27
4.2.2
Process Flow Chart of Wheel Spacer Fabrication
Figure 4.5 shows the idea the wheel spacer fabrication in flow chart. This
flow chart shows process such as cutting off, boring, taper turning, turning, drilling
and end mills and finally the assembly of the wheel spacer.
Process Flow chart of W heel Spacer fabrication
Start
C utting off
B oring, Facing, Taper Turning (Inner R adius of W heel Spacer)
Facing, turning, taper turning (O uter Radius of W heel Spacer)
Drilling of 5 H oles
Step D rill of 5 holes
End M ills of 5 H oles
End M ills of the W heel Stud
Assem bly of W heel Spacer
Finish
Figure 4.5
Flowchart of wheel spacer fabrication
28
4.3
Detail Design
4.3.1
Computer Drawing
Control documentation consists of the computer drawing, production tool,
process plan for fabrication and assembly. Control documentation allows technician
and operator to know the exact fabrication details in sequence including the
geometry and dimension of the wheel spacer.
Computer drawing was important in this project because all the coordinate of
the holes can be determined in order to write a program in G-code. G-Code was
needed to define the coordinate of each hole. Besides that, the computer drawings
provide the information to the operator so that the wheel spacer can be fabricated
with correct dimension.
The following pages show the details of wheel spacer drawing in different
point of view. Figure 4.6 shows solid modeling of the Wheel Spacer. Figure 4.7 is
solid modeling of the spacer. Figure 4.8 solid modeling shows wheel stud with new
design in. Figure 4.9 shows solid modeling of the nut. Figure from 4.10 to Figure
4.18 are the computer drawing using Catia software to present the dimension of
wheel spacer, wheel stud and nut.
29
Figure 4.6
Figure 4.7
Solid modeling of the wheel spacer
Solid modeling of the spacer
30
Figure 4.8
Figure 4.9
Solid modeling of the wheel stud
Solid modeling of the nut
31
Figure 4.10
3D of wheel spacer
32
Figure 4.11
Overall view of the spacer
33
Figure 4.12
Isometric view of the spacer
34
Figure 4.13
Bottom view of the spacer
35
Figure 4.14
Top view of the spacer
36
`
Figure 4.15
Side view of the Spacer
37
Figure 4.16
Coordinate of the holes for spacer
38
Figure 4.17
View of wheel stud
39
Figure 4.18
View of the nut
4.3.2
Production Tooling
In order to get the desired surface roughness (Ra), the parameter such as
spindle speed and feed rates is important. Table 4.1 shows the parameter for
roughing and finishing for spindle speed and feed rates. Besides that, this table also
included the cutting tool materials and dimension. Each of the process use different
cutting tool as described in the Table 4.1.
The material used in wheel spacer is aluminum. This table gave the overall idea
of the wheel spacer fabrication tool. The parameter in table were derived by
experimentation because of many variables exist between one machining. The
variables are the tool wear, the condition of the machine and material properties of
workpiece. The calculation based on theory only can be guide to determine the
parameter.
41
Table 4.1
Types of
Cutting tool and process parameter
Cutting Tool
Process
Center Drilling
Feed Rates
(Rev /min)
(mm/min)
Roughing
Finishing
Roughing
800
1000
0.3
300
400
200
150
131
200
200
150
High speed steel
D20mm
Boring, facing,
Coated carbide
Taper turning
TiN
Facing, turning
Coated carbide
taper turning,
TiN
Drilling
High speed steel
D14 mm
Step Drill
Spindle Speed
-
1200
High speed steel
Step Drill
Finishing
75
1000
50
D20mm & D14mm
End Mills
High speed steel
D16 mm
1200
80
42
4.3.3
Process Plan for Fabrication
Fabrication of wheel spacer was planned properly to ensure the production
feasibility. Table 4.2 shows the manufacturing step by step to fabricate the wheel
spacer. In the Table 4.2, it also shows the original dimension of the workpiece and
desired dimension after the processing. Besides that, it also described types of
process in each column to give the clear idea of progression production in the
factory.
Table 4.2
Types of
Process
Cutting Off
Sequence of the wheel spacer fabrication
Pictures
Original
Dimension
Desired
Dimension
Thickness =
Thickness =
1000mm
27mm
Center Drilling
No Hole
Boring, facing,
Inner
Diameter
= 20cm
Taper turning
(Inner
diameter of
Hole
Diameter
=20cm
Front Inner
Diameter
=67cm
Back Inner
Diameter
=72cm
43
wheel Spacer)
Facing, taper
turning, turning
(Outside
Outer
Outer
Diameter
Diameter
=151 cm
=148 cm
diameter of
wheel Spacer)
Depth of
Drill Size
cut
Drilling
= 14mm
= 16mm
Step drill
Step Drill
Depth of
Diameter
cut
20mm and
12mm
14mm
Depth of
cut
End Mills
Drill Size
= 5mm
= 16mm
Horizontal
Movement
= 6mm
44
In order to modify the existing wheel stud, special fixture is requires to
fabricate the wheel stud. Figure 4.19 show the drilling and milling machine used in
factory where Figure 4.20 shows the special fixture is attached to the machine.
Figure 4.19
Drilling and milling machine
Figure 4.20 Special fixtures of end mill the wheel stud
45
4.3.4
Asssembly of Product
Hyydraulic maachine is thee machine which
w
uses hydraulic fo
force to exerrt on the
focus poinnt. Figure 4.21
4
show the hydrau
ulic machinne used by ABC Com
mpany to
assemble the wheel spacer. Figgure 4.22 sh
how the whheel stud beeing fit into
o spacer
during preess fit proceess.
4
Figure 4.21
Hyddraulic machhine
Figure 4.222
Fit w
wheel stud
46
After the fitting process, the bolt was put with nut on the top of wheel stud.
Figure 4.23 and Figure 4.24 demonstrates the finishing assembly of the wheel spacer
with wheel stud. There are total 5 pieces wheel stud used for the assembly of wheel
spacer.
Figure 4.23
Isometric view of the complete assembly of the wheel spacer
Figure 4.24
Front view of complete assembly of the wheel spacer
Besides that, Figure 4.25 shows back view of wheel spacer and Figure 4.26
shows the new design of wheel stud. Both of Figures show the picture of after
assembly of nut with spacer.
47
Figure 4.25
Back view of complete assembly of the wheel spacer
Figure 4.26
Wheel stud with new design
48
4.4
Destructive Testing of Wheel Spacer
Figure 4.27 show the Impact wrench used to tighten and loosen the wheel nut
in the wheel assembly for normal wheel. Impact wrench capability is to provide
powerful rotational force to tighten the nut. This tool widely used in the car
workshop.
Figure 4.27
Impact wrench
However, vehicles that use wheel spacer cannot use the impact wrench
because it will damage wheel stud. So torque wrench is used to tighten the wheel
stud in the wheel spacer. Figure 4.28 shows the impact wrench to tighten the nut.
Figure 4.28
Impact wrench to tighten the nut
Impact Wrench used as destructive testing equipment in this project to
provide rotation force on the wheel stud. Existing problem of the wheel stud is that
wheel stud will become loose when impact wrench issued to tighten nut. The red
circle indicates the bend area of the wheel spacer. Impact wrench provides a
powerful rotational force to twist the wheel stud and bend the wheel spacer. The
49
result of this testing showed that wheel stud can be tighten strong enough and
eliminate existing problem. Figure 4.29 show the picture of wheel spacer after
destructive testing.
Bending area
of the wheel
spacer
Figure 4.29
4.5
Destructive testing on wheel spacer
Summary
In this chapter, wheel spacer is used as case study in this project. Fabrication
of wheel spacer is described in details sub section including the manufacturing
process and parameter used. In this chapter, billet aluminum material is used to
describe manufacturing process. But in next chapter, several different types of
aluminum material are used to produce wheel spacer but using same manufacturing
processes. There are different in cost of buying different types of aluminum material.
In the chapter 5, there are more details in cost discussion using life cycle costing to
determine the total cost of product design.
50
CHAPTER 5
RESULTS AND DISCUSSION
5.1
Overview
This chapter will describe types of each design and data which is collected
from ABC Company which manufacture automotive part. Besides that, details of
each cost are described and calculations are shown in different tables.
i.
Research and Development Cost
ii.
Production and Construction Cost
iii.
Operation and Maintenance Cost
iv.
Retirement and Disposal Cost
Besides that, the cost of total cost of each category is calculated and
summation each total cost for several design are presented. Finally, the summation of
cost is converting to present value and comparisons were done. Study period is 5
year. Besides that, the structures of life cycle costing web application are
demonstrated.
51
5.2
Types of Design
There are four types of design discuss in this chapter which included the
current design, design A, design B and design C. The details of each design
described in Table 5.1.
From Table 5.1, Customized moulds usually do not require a lot of machining
because the holes are pre define and mould dimension is slightly different from final
dimension. That means product need small modification and lead time is short.
Table 5.1
Description
Manufacturing Manufacturing method of wheel spacer
Current
Design
Machining Design A
Machining Design B
Machining Design C
Outsourcing and Casting to other. Aluminum Mixed Aluminum None Billet T6061 Material Billet T6061 Method Material Customized or Standard Customized Customized Standard Dimension Dimension Dimension Mould Dimension None 52
5.3
Data Collection
There are several data collected from from ABC Company which
manufacture automotive parts. Table 5.2 shows the details the data and cost of each
data collected.
Table 5.2
Data collection from ABC automotive company
Types of Cost
Cost
Material
Material (Billet)
RM14-16
Cost Aluminum1kg
Material ( Casting )
RM 11
Cost Aluminum 1kg
Machining
Machining Cost lathe
RM40 per day
Machining cost Milling
RM70 per day
Average Cost of Tooling per piece
RM 5
Mould
Average Price
RM3000
of Billet Aluminum Mould
Average price of Die Casting Mould
RM12000
Recycling
Cost collection of per piece
RM3
Cost of Recycling Aluminum per kg
RM 2
53
5.4
Cost Analysis
5.4.1
Research and Development Cost
There are several types of cost involved in research and development cost.
The details of each costs described as below. Table 5.3 shows the details of research
and development cost.
i.
Product Planning
ii.
Engineering Design
iii.
Product Test & Evaluation
Table 5.3 Research and development cost
Option Product Planning Engineering Current
Design
3000 Design A Design B Design C 2000 2500 2800 2500 3000 2800 2500 1500 2500 2000 500 7000 7500 7300 5800 Design Product Test & Evaluation Total Cost 54
5.4.2 Production and Construction Cost
There are several types of cost involved in production and construction cost.
The details of each described as below. Table 5.4 shows the details of production and
construction cost.
i
Cost of Mould
Average price of Billet Casting Mould = RM3000
Average price of Die Casting Mould = RM12000
ii
Quality Control Cost
iii
Logistic Cost
Table 5.4 Production and construction cost
Option
Material
Average Weight Current
Design
2.5kg*16
=40
Design A
Design B
Design C
1.8kg*11
=21.6
2.0kg*15
= 30
2.5kg*20
= 50
Average Time
Per piece 2.3*3.1= 7.1
0.6*3.1=1.9
1.8*3.1=5.6
0
Logistic Cost 3
4
5
10
Quality Control cost Sub Total Cost * Quantity Mould
3
3
2
5
53.1*50 23.5*50 42.6*50 65*50 0
12000/1000
3000/200
0
Total Cost
2655
1775
2880 3250
55
5.3.3
Operation and Maintenance Cost
There are several types of cost involved in operation and maintenance cost.
The details of each described as below. Table 5.5 shows the details of operation and
maintenance cost.
i.
Average Time to Machining Wheel Spacer
Current Design = 2.3 Hours, Design A = 0.6 hour, Design B = 1.8 Hours
ii.
Cost of Material (Weight)
Current Design = 2.5kg, Design A = 2.5kg,
Design B = 2.0kg, Design C = 2.5kg
iii.
Labour Cost
= 600/8h/24days= RM3.125 per hour
iv.
Machining Cost
Cost lathe = RM40 per day
Cost Milling = RM70 per day
v.
Tooling Cost
Average Cost of Tooling per piece = RM5
vi.
Transportation and Handling Cost
Average Cost per piece = RM2
56
From Table 5.5, it was found out that, wheel spacer with design A is the
lowest cost compare to the design B and design C. Besides that, the operation and
maintenance cost current design also more for expensive than Design A.
Table 5.5 Operation and maintenance cost
Option Current
Design
2.5kg*16 Design A Design B Design C 1.8kg*11 2.0kg*15 2.5kg*20 =40 =21.6 = 30 = 50 Average Time Per piece 2.3*3.1= 0.6*3.1=1.9 1.8*3.1=5.6 0 Labor Cost 1 0 0.5 0 Machining and Tool Cost Transportation and Handling cost Total Cost 3 1 2 0 2 2 2 2 51.1 36.5 44.1 50 Material Average Weight 7.1 Referring Table 5.6, Design A show the lowest total cost compare to other
design. Design C is the highest cost and this is followed by design C and design B.
Table 5.6 Estimated quantities to be produced and the total cost
Quantity
Produced*Cost
Current
Design
300*51.1
Quantity estimation
Produced*Cost
Total Cost
15330
Design
A
Design
BB
Design
C
300*36.5
300*44.1
300*50
10950
13230
17500
57
5.3.4 Retirement and Disposal Cost
There are several types of cost involved in retirement and disposal cost. The
details of each described as below. Table 5.7 show the details of calculation of
retirement and disposal cost.
i.
Cost of Recycling
Aluminum per kg = RM 2
ii.
Cost Collection
Per piece of wheel spacer = RM 3
iii.
Cost of Labor Hour
= 600/8h/24days= RM3.125 per hour
iv.
Average Time to Dissemble
= 15 minutes = 15/60= 0.25 hour
Table 5.7 Retirements and disposal cost
Option Cost of Recycling Cost of Disassembly Cost of Documentation Cost collection Total Cost (RM) Current
Design
2.5kg*2=5 0.25*3.125 =0.78125 5 Design A 1.8kg*2 =3.6 0.25*3.125 =0.78125 5 Design B 2.0kg*2=4 0.25*3.125 =0.78125 5 Design C
2.5kg*2= 5 0.25*3.125 =0.78125 5 3 3 3 3 13.78 12.38 12.78 13.78 58
Referring to Table 5.8, quantities estimate collect at end of life for design A
is 80 pieces. For the design B and design C, the quantities at end of life are 70 pieces.
Table 5.8 Quantity of wheel spacer collection at end of life
Quantity
Produced*Cost
Quantity estimation
Produced*Cost
Total Cost
5.4
Current
Design
60*13.78
Design
A
-
Design
BB
-
Design
C
-
-
80*12.38
70*12.78
70*13.78
826.8
990.4
894.6
964.6
Cost Evaluation
This section describes the cost comparison among the alternative design.
Table 5.9 shows the summary of the cost for alternative design. The study period for
this case is 5 years. The research and development cost only occur on first year. Then
for the year 2, there are mix cost of production and construction and operation and
maintenance. In year 3, year 4 and year 5, there only consists operation and
maintenance cost and retirement and disposal cost.
The data show that the total cost for current design, design C and design D
are highest at the second year. Meanwhile, for total cost of design A and design B are
highest when it is in first year. For all designs, cost at second year is high compare to
year 3, year 4 and year 5 because most of the capital spent on the production and
construction cost. The cost is essential because the product need to determine before
can be release into production run.
59
Table 5.9 Summary of total cost for alternative design
Year 1
Year 2
Year 3
Year 4
Year 5
4559
3066
1533
Current Design
Research and
Development
Production and
Construction
Operation and
Maintenance
Retirement and
Disposal
Total Cost
7000
2655
6132
826.8
7000
8787
4559
3066
2359.8
3285
2190
1095
Design A
Research and
Development
Production and
Construction
Operation and
Maintenance
Retirement and
Disposal cost
Total Cost
7500
2880
4380
990.4
7500
7180
3285
2190
2085.4
3969
2646
1323
Design B
Research and
Development
Production and
Construction
Operation and
Maintenance
Retirement and
Disposal cost
Total Cost
7300
1775
5292
894.6
7300
7067
3969
2646
2217.6
5250
3500
1750
Design C
Research and
Development
Production and
Construction
Operation and
Maintenance
Retirement and
Disposal cost
Total Cost
5800
3250
7000
964.6
5800
10250
5250
3500
2714.6
60
The web application develop at section 5.5 was used to calculate the net
present value for all design. The study period is 5 years for all design. The results
were shown at Table 5.10.
Table 5.10
Current
Design
Cost comparison at net present value
Design
A
Design
B
Design
C
Conventional
Calculation
25771.8
22320.4
23199.6
27514.6
Net present
value
calculation
21493.64
18805.47
19422.94
22745.82
Referring to Figure 5.1, the graph show choosing the design A is lowest cost
compare to the design B and design C. Besides that, cost of design C show is more
expensive than current design because it is outsourcing to the other manufacturer to
produce the product.
30000
25000
20000
15000
Conventional Calculation
Net Present Value
10000
5000
0
Current Design Design A
Design B
Design C
Figure 5.1 Cost comparison of alternative designs at net present value
61
Using the equation below, the cost saving percentage is calculated and the
summary of the calculation is represented by Table 5.11. Referring Table 5.11, the
design A reveals highest percent of cost saving which 12.5%, this follow by design B
which is 9.63. For design C, it show the negative cost saving which means if the
company switch the current design to the design C will experience higher cost in
producing wheel spacer.
Cost Saving
%=
Table 5.11
Cost saving
Cost saving % of current design to the other design
Current
Design
Design
Design
Design
A
B
C
0
12.50%
9.63%
-5.82 %
Design A show the highest percent cost saving because operation and
maintenance cost is low compare to other design. The design A requires initial cost
of mould but the production cost per piece of wheel spacer is low because less
machining and material is required.
62
5.5
System Development
5.5.1
RUP (Rational Unified Process)
RUP (Rational Unified Process) is another type of software development
process. It provides incremental and iterative approach to the system development.
According to Phillipe Krutchen, the RUP is a process product also process
framework that can be adapted and extended to suit the needs of adopting
organization. RUP include four phase in sequence, Inception, Elaboration,
UML (Unified Modeling Language) is used to design and document the RUP
process. Its usage includes system and project development, quality assurance,
design and testing. The objective of RUP is to produce high quality software that
fulfills end user’s needs in given schedule of time and cost. RUP is usually used to
develop object oriented or component based systems, which is based on architecturecentric approach to system development. It provides management visibility in the
development process with short term iterations, well defined goal as well as decision
making at the end of each phase.
Stated below are the advantages of RUP:
i. Each one of the iteration are partially designed and implemented, therefore it is
easier to detect the common parts or components of system. This facilitates
reuse of the parts of components.
ii. RUP is a free and openly published and distributed, and training are readily
available.
iii. Errors and faults can be corrected over several iterations to provide robust
system architecture.
iv. RUP is use-case driven, which are simple and easily understood by wide range
of stakeholder.
63
Below stated a few disadvantages of RUP:
i. The method is quite complex and there is high chance that experts are needed to
employ this method.
ii. It may lead to undisciplined and unorganized system development.
5.2
Software Justification
Some software are deployed and installed to developer’s PC to assist the
development of this system. The list of below shows the name of the software and
the functionality used by developer.
i. Microsoft Visual Studio 2008
- This software provides utilization for coding and major interface design of
software.The software is used to developed component, functions and subsystem.
ii. SQLite Database Engine and sqliteadmin.exe
- This software will be used to build database for the system. Using the
sqliteadmin.exe, tables and field attribute can be viewed and edited.
iii. Rational Rose Enterprise Edition 2002
- It is used to draw all the UML diagrams for the system. Use case and activity
diagram are drawn using this software.
vi. Microsoft Word 2007
- This software is used to write all documentations of this project.
vii. Endnote
- Endnote is deployed together with the Microsoft Word 2007 to do the referencing
of documentation of this system.
64
5.5.3
Database Design
Database is used to store data of the system. Database is designed in order to
ease the management of the data and maintain existing entities of the system. These
entities will interact with each other’s through different processes. Table 5.12 is the
data of the table in the database.
Table 5.12
Summary of database design
Data
Name
cost_rnd
cost_pnc
Cost_ons
cost_rd
Description
Research and
Development
cost
Production and
Construction cost
Operation and
Maintenance cost
Retirement and
Disposable cost
Data Structure
Type
Length Constraint
NVACHAR
10
NVACHAR
10
NVACHAR
10
NVACHAR
10
cost_total
Total cost
NVACHAR
10
prod_name
Product Name
NVACHAR
50
pv
Present Value
NVACHAR
10
discount
Discount Rate
NVACHAR
5
Not
Null
Not
Null
Not
Null
Not
Null
Not
Null
Not
Null
Not
Null
Not
Null
65
002 is usedd to draw uuse case diiagrams.
Raational rosee enterprise edition 20
Figure 5.22 show activvity diagram
m of life cyccle costing.
Figu
ure 5.2
A
Activity
diag
gram of lifee cycle costiing
66
k in varioous data before using the
t softwaree. Starting from
f
the
Usser need to key
key in stuudy period and cost innto the colu
umn. Then followed bby calculatee button,
save buttoon, next button and viiew display
y table. Figuure 5.3 dem
monstrated use
u case
diagrams for
f life cyclle costing annalysis.
Figgure 5.3
Use case diagrams
d
fo
or life cycle costing anaalysis
67
u
to calcculate the cost of eachh design in previous
p
Thhe web appllication is used
section annd result is show in Figure
F
5.4. The data were
w
obtainned and cateegorized
from pervious sectionns.
Figu
ure 5.4
5.6
Interface of the web ap
pplication liife cycle coosting analysis
Su
ummary
Thhis chapter discussed the
t details of each cost involvedd in severall design.
Result shoow choosingg the designn A represen
nt the lowesst cost comppare to the design
d
B
and designn C. Besidees that, desiign C also show
s
cost is
i more exppensive than
n current
design because desiggn C is outtsourcing to
o the otherr manufactuurer to prod
duce the
product, thhe design A reveals higghest percen
nt of cost saaving whichh 12.5%, thiis follow
by design B which is 9.63. Besiddes that, thiis chapter allso enlighteens the deveelopment
of web appplication and
a the struucture of it. It is usedd to calculaate the cost of each
design in previous
p
secction.
68
CHAPTE R 6
CONCLUSION
There are total 4 stages in this project. In stage one; scope of design
improvement using Life cycle costing methodology was defined. Cost and time study
were chosen as criteria to select the important element in product design.
For the second stage, life cycle costing model by Hussein et al (2008) was
chosen. This model consists of research and development cost, production and
construction cost, operation and maintenance cost and retirement and disposal cost.
For the third stage, product developments, in this stage wheel spacer was
developed with generic product development process. The product development
process consists of six phases which include planning, concept development, system
level design, detail design testing and production ramp-up. The cost of each phases is
recorded and used for analyze in later part of this project.
For the fourth stage, concept development and system level design of the
drawing are included. Sketch of different wheel spacer design is provided in section
4.2. Wheel spacer fabrication flow chart was drawn to provide the overall idea of
manufacturing process. Besides that, section 4.3 described the detail design such as
computer drawing, production tooling, process plan for fabrication and assembly.
For this final stage, result show choosing the design A represent the lowest
cost compare to the design B and design C. Besides that, design C also show cost is
69
more expensive than current design because design C is outsourcing to the other
manufacturer to produce the product , design A reveals highest percent of cost saving
which 12.5%, this follow by design B which is 9.63. For design C, it show the
negative cost saving.
Design A show the highest percent cost saving because operation and
maintenance cost is low compare to other design. The design A requires initial cost
of mould but the production cost per piece of wheel spacer is low because less
machining and material is required.
70
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