Integrating cost of ownership analysis into component-based simulation

This article presents a case study in the design of a modular reconfigurable assembly system using component-based simulation and novel cost analysis methodology. The objective of modern assembly processes is to produce high-quality, low-cost products. To assure that an assembly system is appropriately designed, system measurement schemes should be established for determining and understanding design effectiveness. Measurements can be classed in two categories: cost and performance. Understanding manufacturing costs is the first step toward increasing profits. The authors are developing an analysis tool that integrates Overall Equipment Efficiency (OEE), Cost of Ownership (COO), and other analysis methods to improve the design of flexible, modular reconfigurable assembly systems. The Total Cost of Ownership (TCO) analysis tool development is based on industrial standards and the authors' own experience in modular assembly system design and simulation. The TCO methodology is useful in system supplier and end-user communication and helps in trade-off analysis of the system concepts.