Total cost of ownership analysis for modular final assembly systems

    Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

    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
    Title of host publicationICPR-18: 18th International Conference on Production Research
    Subtitle of host publicationConference proceedings
    PublisherUniversita degli Studi di Salerno
    Number of pages6
    Publication statusPublished - 2005
    MoE publication typeNot Eligible
    Event18th International Conference on Production Research, ICPR-18 - Salerno, Italy
    Duration: 31 Jul 20054 Aug 2005

    Conference

    Conference18th International Conference on Production Research, ICPR-18
    Abbreviated titleICPR-18
    CountryItaly
    CitySalerno
    Period31/07/054/08/05

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    Keywords

    • assembly system design
    • cost and efficiency analysis

    Cite this

    Heilala, J., Helin, K., & Montonen, J. (2005). Total cost of ownership analysis for modular final assembly systems. In ICPR-18: 18th International Conference on Production Research: Conference proceedings Universita degli Studi di Salerno.