Question

Use the cost model and common sense rules to discuss aspects of processes and production. Examples to consider are: • Scrap Rate – what happens as it goes up or down • Tooling Cost • Capital Equipment – is it a benefit to have longer or shorter capital depreciation periods • Standardization • Assembly Steps • Over specification • Cost of NDE inspection

Answer 1

Answer:

1. Scrap rate: Scrap rate measures the quality of the production output of the manufacturing function. Scrap rate can be reduced by increasing traianing for programers and operators, documenting product data throughout the process or utilization of scientific approaches, such as six sigma or multirative testing.

When there is higher demand of durable goods such as iron, coal or copper there is rise in their prices and this directly affect the price increase in scrap metal as well. It is an economic characteristics that when demand increases there is a relative increase in price as well.

2. Tooling cost: The tooling cost is a cost that is charged for the engineering / fabrication of the tool that will be used to make your product. Typically thsese tools are called dies. Dies are product based on your 2D and 3D files of your design and usually made from a number different types of metal.

3. Capital Equipment: Any equpment used by an organization to produce other commodities . ANy single asset which has an acquisition cost of $ 5000 or more and a useful life of more than one year, whether purchased outright acquired through capital lease or through donation.

When a company uses an accelerated depreciation method, it lowers the value of its totsal asset on its balance sheet earlier in the life ofthose assets. Accelerated deprecaiton helps shield income from taxes. After all the higher the depreciation expense the lower the net income.

4. Standardisation: Standardization in the process of implementing and developing technical standards based on the consensus of different parties that include firms users interset groups, standards organization and governments.

5. Assembly Steps: Assembly line is a manufacturing process in which parts are added as the semi-finished assembly moves from workstation to workstation where the parts are added in sequence untill the final assemobly is produced.

6. Over specification: Over specification can be understood to mean redundnat or incosistent specification; information more preicse than is reuired.