Total cost of ownership analysis for modular final assembly systems

Juhani Heilala (Corresponding Author), Kaj Helin, Jari Montonen

Research output: Contribution to journalArticleScientificpeer-review

34 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)3967-3988
Number of pages22
JournalInternational Journal of Production Research
Volume44
Issue number18-19
DOIs
Publication statusPublished - 2006
MoE publication typeA1 Journal article-refereed

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Costs
Systems analysis
Total cost of ownership
Assembly systems
Profitability
Throughput
Planning
Communication
System design
Issue costs
Product cost
Methodology
System simulation
Cycle time
Ownership
Suppliers
Profit
End users
Manufacturing cost
Simulation

Keywords

  • assembly system design
  • cost and efficiency analysis

Cite this

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Total cost of ownership analysis for modular final assembly systems. / Heilala, Juhani (Corresponding Author); Helin, Kaj; Montonen, Jari.

In: International Journal of Production Research, Vol. 44, No. 18-19, 2006, p. 3967-3988.

Research output: Contribution to journalArticleScientificpeer-review

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