Light Duty Technology Cost Analysis, Power - US Environmental ...

consistently create and organize the abundant number of detailed P-flows becomes a
considerable advantage. For this cost analysis Design Profit® software is utilized for
producing and managing the process flows and integrating key costing information.
Simply explained, the symbols which make up the process map each contain essential
pieces of information required to develop a cost for a particular operation or process. For
example, in a metal stamping process, the basic geometry of the part, quantity and
complexity of part features, material gauge thickness, material selection, etc., are
examples of the input parameters used in the calculation of the output process parameters
(e.g. press size, press cycle time, stamping blank size). From the calculated press size an
overhead rate, corresponding to the recommend press size, would be selected from the
manufacturing overhead database. Dividing the equipment rate ($/hour) by the cycle time
(pieces/hour) yields a manufacturing overhead cost contribution per part. In a similar
fashion a labor contribution cost would be generated. The loaded labor rate for a press
operator would be pulled from the labor database. An estimate is made on how many
presses the operator is overseeing during any given hour of operation. Dividing the labor
rate by number of presses the operator is overseeing, and then by number of pieces per
hour, a labor cost contribution per part is derived.
Lastly, using the calculated blank size, material type, and material cost (i.e., price per
pound) pulled from the materials database, a material contribution cost per part can be
calculated. Adding all three cost contributors together (e.g., Manufacturing Overhead,
Labor, Material) a Total Manufacturing Cost (TMC) is derived. The TMC is then
multiplied by a mark-up factor to arrive at a final manufacturing cost. As explained
briefly below and in more detail in Section C.6, key data from the process flows and
databases are pulled together in the costing worksheets to calculate the TMC, mark-up
contribution, and final manufacturing cost.
There are three (3) basic levels of process parameter models used to convert input
parameters into output process parameters that can then be used to calculate operation or
processing costs: simple serial, generic moderate, and custom complex. Simple serial are
simple process models which can be created directly in Design Profit®. These process
models are single input models (e.g., weld time/linear millimeter of weld, cutting
time/square millimeter of cross-sectional area, drill time/millimeter of hole depth).
Generic moderate process models are more complex than simple serial, requiring multiple
input parameters. The models have been developed for more generic types of operations
and processes (e.g., injection molding, stamping, diecasting). The process models,
developed in Microsoft Excel, are flexible enough to calculate the output parameters for a
wide range of parts. Key output parameters, generated from these external process
models, are then entered into the process maps. Custom complex parameter models are
similar to generic moderate models except in that they are traditionally more complex in
nature and have limited usage for work outside of what they were originally developed.
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