Total cost of ownership analysis for modular final assembly systems

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

    Research output: Contribution to journalArticleScientificpeer-review

    42 Citations (Scopus)


    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
    Issue number18-19
    Publication statusPublished - 2006
    MoE publication typeA1 Journal article-refereed


    • assembly system design
    • cost and efficiency analysis


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