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