Manufacturing Process Cost Reduction of Agricultural Machinery Part

Abstract

Company ABC is an agricultural machinery part manufacturer. Nowadays demand of such parts are substantially increasing. Cost reduction without affecting product quality become a proper way to raise organization profit. Prior study of manufacturing process of part A shows that the processing cost is too high as a result from short tool life, non-value-added movement of tools, high loading and unloading time, improper number of operator which effect the labour utilization and cost. This project mainly focuses on reducing processing cost by rectifying the problem mentioned above. The improvement includes experimenting to locate the appropriate cutting factors resulted in longer tool life. The shape of drill is changed in order to lengthen tool life. Loading and unloading time is decreased by using the new design of clamp. The movement of cutting tool in machining centre is redesigned and lastly man-machine chart is employed to enhance the labour utilization. As a result, the objective of this project is reached. The processing cost of Part A is decreased from 21.78 Baht to 19.55 Baht or 2.23 Baht which is 10.24% and cycle time also shortens. The proper number of operator is now decreased from 3 operators to 2 operators.