Life Cycle and Cost Analysis for Modular Re-Configurable Final Assembly Systems

Heilala, Juhani; Helin, Kaj; Montonen, Jari; Väätäinen, Otso

doi:10.1007/0-387-31277-3_26

Cited by 3 publications

(4 citation statements)

References 3 publications

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“…This paper was originally presented in Heilala et al (2005a). Later advances (Heilala et al 2005b(Heilala et al , 2006 are also summarized in this paper. The remainder of the paper is organized as follows.…”

Section: Introductionmentioning

confidence: 82%

Total cost of ownership analysis for modular final assembly systems

Heilala¹,

Helin²,

Montonen³

2006

International Journal of Production Research

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The objective of modern assembly processes is to produce high-quality and low-cost products. Understanding manufacturing costs in the system design phase is the first step to increasing profits. Throughput, utilization, and cycle time continue to be emphasized as key performance indicators for the planning of new assembly systems, but the cost issues need to be analysed as well. The authors are developing a novel analysis methodology that integrates component-based simulation, Overall Equipment Efficiency with Cost of Ownership, and other analysis methods to improve the design of flexible, modular reconfigurable assembly systems. The development of the Total Cost of Ownership (TCO) analysis tool is based on selected industrial standards and the authors' own experience of assembly system design and simulation. The TCO method is useful in system-supplier and end-user communication, and helps in trade-off analyses of system concepts. A fictitious case study illustrates the use of the TCO method.

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Section: Introductionmentioning

confidence: 82%

Total cost of ownership analysis for modular final assembly systems

Heilala¹,

Helin²,

Montonen³

2006

International Journal of Production Research

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“…See Figure 3. The earlier development of the E‐Race TCO methodology has been presented in Heilala et al (2005a, b, 2006a, b).…”

Section: Methods and Theories Of The E‐race Tco Methodologymentioning

confidence: 99%

“…The developed E‐Race TCO methodology is useful in system supplier and end‐user communication and helps in trade‐off analysis of the system concepts. The development history is partially documented in (Heilala et al , 2005a, b, 2006a, b).…”

Section: Introductionmentioning

confidence: 99%

Selecting the right system ‐ assembly system comparison with total cost of ownership methodology

Heilala

Montonen

Helin

2007

Assembly Automation

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PurposeTo present theories for total cost of ownership (TCO) methodology in assembly system trade‐off analysis and to show benefits of the methodology as a decision support in system selection.Design/methodology/approachThe developed TCO methodology is a combination of factory simulation, system performance and loss factor evaluation using overall equipment efficiency, system life cycle costing, and assembled unit cost analysis including cost of bad quality and rework.FindingsThe purchase price of equipment is just one cost element in the comparison. TCO shows how important it is to analyse all the cost, direct and indirect, incurred throughout the life cycle of an equipment, including acquisition and installation, operations and maintenance, and end‐of‐life management. TCO methodology pinpoints costs that could be easily underestimated, such as quality and rework as well as all the costs of running the system.Research limitations/implicationsThe methodology is partially based on semiconductor industry standards and other asset comparison methodology, which are now integrated and applied also for electromechanical final assembly. Development continues.Practical implicationsThe methodology is useful in system integrator and end‐user collaboration, where both can use similar formulae in system evaluation and trade‐off analysis. Integration to component‐based simulation adds system visualisation and simulation analysis and combines system configuration with cost analysis into a tool for the sales engineer.Originality/valueIntegration of different analysis methods improves the quality of decisions. The TCO methodology is a systematic way to analyse system cost and performance issues. With proper use of the TCO methodology it is possible to justify investments to automation and modular re‐configurable hardware.

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“…The novelty here is in the integration of methods. It has been an incremental development and earlier development steps have been presented elsewhere [1,[37][38][39][40][41]. The first version had only COO analysis as an Excel workbook; later OEE was also added as well as integration to the simulation model.…”

Section: Vtt Tco Analysis Toolkit Prototypementioning

confidence: 99%

Life cycle and unit-cost analysis for modular reconfigurable flexible light assembly systems

Heilala

Montonen²,

Väätäinen³

2008

Proceedings of the Institution of Mechanical Engineers, Part B:

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The article presents a decision support methodology for the selection of a modular reconfigurable assembly system using three-dimensional visualization, component-based simulation, efficiency, and economic analysis methodology. During the design and selection of an assembly system, measurement schemes should be established for determining and understanding design effectiveness. Measurements can be classed into two categories: cost and performance. Understanding assembly production costs is the first step towards increasing profits. The authors have developed an analysis method that integrates factory simulation, overall equipment efficiency (OEE), and economic analysis methods. Cost calculation includes life cycle cost (LCC), cost of ownership (COO), commonly used investment evaluation methods, discounted cash flow techniques, net present value (NPV), and internal rate of return (IRR). The idea is to use these integrated analysis methods in the selection and development of a light assembly system. The development is based on selected industrial standards and the authors’ own experience in assembly system design and simulation. The developed TCO (total cost of ownership) methodology is useful in system supplier and end-user communication; ideally, it is used in the assembly system sales process, it helps in trade-off analysis of the system concepts, and it improves system specification.

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Life Cycle and Cost Analysis for Modular Re-Configurable Final Assembly Systems

Cited by 3 publications

References 3 publications

Total cost of ownership analysis for modular final assembly systems

Total cost of ownership analysis for modular final assembly systems

Selecting the right system ‐ assembly system comparison with total cost of ownership methodology

Life cycle and unit-cost analysis for modular reconfigurable flexible light assembly systems

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