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

Juhani Heilala, Jari Montonen, Otso Väätäinen

Research output: Contribution to journalArticleScientificpeer-review

15 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)1289-1299
Number of pages11
JournalProceedings of the Institution of Mechanical Engineers Part B: Journal of Engineering Manufacture
Volume222
Issue number10
DOIs
Publication statusPublished - 2008
MoE publication typeA1 Journal article-refereed

Fingerprint

Life cycle
Costs
Economic analysis
Industrial plants
Profitability
Sales
Visualization
Systems analysis
Specifications
Communication

Keywords

  • assembly systems design
  • decision support
  • economic analysis

Cite this

@article{406aa21883f54b37a9502c184bf1a018,
title = "Life cycle and unit-cost analysis for modular reconfigurable flexible light assembly systems",
abstract = "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.",
keywords = "assembly systems design, decision support, economic analysis",
author = "Juhani Heilala and Jari Montonen and Otso V{\"a}{\"a}t{\"a}inen",
note = "Project code: 803",
year = "2008",
doi = "10.1243/09544054JEM1034",
language = "English",
volume = "222",
pages = "1289--1299",
journal = "Proceedings of the Institution of Mechanical Engineers Part B: Journal of Engineering Manufacture",
issn = "0954-4054",
publisher = "SAGE Publications",
number = "10",

}

Life cycle and unit-cost analysis for modular reconfigurable flexible light assembly systems. / Heilala, Juhani; Montonen, Jari; Väätäinen, Otso.

In: Proceedings of the Institution of Mechanical Engineers Part B: Journal of Engineering Manufacture, Vol. 222, No. 10, 2008, p. 1289-1299.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Life cycle and unit-cost analysis for modular reconfigurable flexible light assembly systems

AU - Heilala, Juhani

AU - Montonen, Jari

AU - Väätäinen, Otso

N1 - Project code: 803

PY - 2008

Y1 - 2008

N2 - 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.

AB - 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.

KW - assembly systems design

KW - decision support

KW - economic analysis

U2 - 10.1243/09544054JEM1034

DO - 10.1243/09544054JEM1034

M3 - Article

VL - 222

SP - 1289

EP - 1299

JO - Proceedings of the Institution of Mechanical Engineers Part B: Journal of Engineering Manufacture

JF - Proceedings of the Institution of Mechanical Engineers Part B: Journal of Engineering Manufacture

SN - 0954-4054

IS - 10

ER -