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UltraLight Steel Auto Body - Final Report - American Iron & Steel ...

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44<br />

5.1 General inputs<br />

5.2 Production costs<br />

5.2.1 Fabrication<br />

5.2.2 Assembly<br />

The first step in economic analysis began with the formulation of<br />

general inputs that may vary for different locations. Inputs used<br />

for this project are as follows:<br />

General inputs<br />

Input<br />

Production volume 60 jobs per hour<br />

(225,000 vehicles per year)<br />

Working days per year 240 (2 shifts)<br />

Production location mid-west USA<br />

Wage including benefits $44.00 per hour<br />

Interest rate 12%<br />

Production life 5 years<br />

Equipment life 20 years<br />

Building life 25 years<br />

Production costs comprise fabrication and assembly of ULSAB’s<br />

158 parts, which include brackets and reinforcements.<br />

To calculate costs for part fabrication, the team established a<br />

press line time requirement based on the machine clean running<br />

rate, line downtimes, line side scrap and total annual production<br />

volume. They then used that press line time requirement to<br />

calculate the total number of each press line type needed to<br />

produce ULSAB. This calculation specified 15 press lines and five<br />

blanking lines to produce all necessary parts and blanks.<br />

Assembly costs include equipment and tooling investments,<br />

assembly plant area and labor force. Additional assembly inputs<br />

consider material, energy, overhead labor and maintenance. The<br />

assembly line was designed for a net line rate of 60 jobs per hour,<br />

as well as a specific number of spot and length of laser welds.<br />

Any change in practice of these two operations necessitates a<br />

change in the investment inputs for accurate estimates at other<br />

production volumes. Also, because the line was designed for one<br />

line speed, the model cannot adjust the investment based on<br />

different rates.<br />

ULSAB <strong>Final</strong> <strong>Report</strong>

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