Indirect Impacts of Drastic Scrap Rate Reduction on Costs of Production Process in Precision Machining

Viktor Molnar

doi:10.4028/www.scientific.net/SSP.261.487

Paper Titles

Sensor Networks for Smart Manufacturing Processes
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A Generic Multi-Axis Post-Processor Engine for Optimal CNC Data Creation and Intelligent Surface Machining
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An Ontology Based Semantic Machine Tool Selection for Multi Scale Wire EDM Processes
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New Challenges for Quality Assurance of Manufacturing Processes in Industry 4.0
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Indirect Impacts of Drastic Scrap Rate Reduction on Costs of Production Process in Precision Machining
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Cost Reduction of Manufacturing and Assembly - Case Study
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Optimization of In-Plant Production Supply with Black Hole Algorithm
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Supply Chain Design of Manufacturing Processes with Blending Technologies
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Examining the Integration Possibilities for Lean Tools and Simulation Modeling
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HomeSolid State PhenomenaSolid State Phenomena Vol. 261Indirect Impacts of Drastic Scrap Rate Reduction...

Indirect Impacts of Drastic Scrap Rate Reduction on Costs of Production Process in Precision Machining

Abstract:

The Lean Six Sigma (LSS) conception and other solutions in modern manufacturing and management systems have rapidly spread in precision machining in the last decades. Cost components related to quality control of precision parts are analyzed in the paper on the basis of the cutting edge LSS approach. An optimization framework intended to increase the efficiency of production process planning is introduced. The model helps in calculating economic profit, which differs from accounting profit with the extent of opportunity costs. It is found that drastic reduction of the scrap rate, though increasing customer satisfaction, is not always a proper solution due to the extent of quality cost. The applicability of the elaborated framework was tested and some promising results gained during managerial interviews are also summarized in the paper.

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Periodical:

Solid State Phenomena (Volume 261)

Pages:

487-494

DOI:

https://doi.org/10.4028/www.scientific.net/SSP.261.487

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Online since:

August 2017

Authors:

Viktor Molnar*

Keywords:

Lean Six Sigma, Opportunity Cost, Precision Machining

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* - Corresponding Author

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