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1 INTRODUCTION AND OVERVIEW OF MANUFACTURING

Review Questions
1.1 Define manufacturing.
Answer. The text defines manufacturing in two ways: technologically and economically.
Technologically, manufacturing is the application of physical and chemical processes to
alter the geometry, properties, and/or appearance of a given starting material to make parts
or products; manufacturing also includes assembly of multiple parts to make products.
Economically, manufacturing is the transformation of materials into items of greater value
by means of one or more processing and/or assembly operations. The key point is that
manufacturing adds value to the material by changing its shape or properties, or by
combining it with other materials.
1.2 What are the differences between primary, secondary, and tertiary industries? Give an
example of each category.
Answer. A primary industry is one that cultivates and exploits natural resources, such as
agriculture or mining. A secondary industry takes the outputs of primary industries and
converts them to consumer and capital goods. Examples of secondary industries are
textiles and electronics. A tertiary industry is in the service sector of the economy.
Examples of tertiary industries are banking and education.
1.3 What is the difference between consumer goods and capital goods? Give some examples in
each category.
Answer. Consumer goods are products purchased directly by consumers, such as cars,
personal computers, TVs, tires, and tennis rackets. Capital goods are those purchased by
companies to produce goods and/or provide services. Examples of capital goods include
aircraft, computers, communication equipment, medical apparatus, trucks and buses,
railroad locomotives, machine tools, and construction equipment.
1.4 What is the difference between soft product variety and hard product variety, as these
terms are defined in the text?
Answer. Soft product variety is when there are only small differences among products,
such as the differences among car models made on the same production line. In an
assembled product, soft variety is characterized by a high proportion of common parts
among the models. Hard product variety is when the products differ substantially, and
there are few common parts, if any. The difference between a car and a truck exemplifies
hard variety.
1.5 How are product variety and production quantity related when comparing typical factories?
Answer. In general, production quantity is inversely related to product variety. A factory
that produces a large variety of products will produce a smaller quantity of each. A
company that produces a single product will produce a large quantity.
1.6 One of the dimensions of manufacturing capability is technological processing capability.
Define technological processing capability.

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Answer. The technological processing capability of a plant (or company) is its available
set of manufacturing processes. Certain plants perform machining operations, others roll
steel billets into sheet stock, and others build automobiles. The underlying feature that
distinguishes these plants is the processes they can perform. Technological processing
capability includes not only the physical processes, but also the expertise possessed by
plant personnel in these processing technologies.
1.7 What are the four categories of engineering materials used in manufacturing?
Answer. The four categories of engineering materials are (1) metals, (2) ceramics, (3)
polymers, and (4) composite materials, which consist of non-homogeneous mixtures of the
other three types.
1.8 What is the definition of steel?
Answer. Steel can be defined as an iron–carbon alloy containing 0.02% to 2.11% carbon.
Its composition often includes other alloying elements as well, such as manganese,
chromium, nickel, and molybdenum, to enhance the properties of the metal.
1.9 What is the difference between a thermoplastic polymer and a thermosetting polymer?
Answer. Thermoplastic polymers can be subjected to multiple heating and cooling cycles
without substantially altering the molecular structure of the polymer. Thermosetting
polymers chemically transform (cure) into a rigid structure on cooling from a heated
plastic condition.
1.10 Manufacturing processes are usually accomplished as unit operations. Define unit
operation.
Answer. A unit operation is a single step in the sequence of steps required to transform the
starting material into a final product. A unit operation is generally performed on a single
piece of equipment that runs independently of other operations in the plant.
1.11 In manufacturing processes, what is the difference between a processing operation and an
assembly operation?
Answer. A processing operation transforms a work material from one state of completion
to a more advanced state that is closer to the final desired product. It changes the geometry,
properties, or appearance of the starting material. In general, processing operations are
performed on discrete work parts, but certain processing operations are also applicable to
assembled items (e.g., painting a spot-welded car body). An assembly operation joins two
or more components to create a new entity, called an assembly, subassembly, or some
other term that refers to the joining process (e.g., a welded assembly is called a weldment).
1.12 One of the three general types of processing operations is shaping operations. What are the
four categories of shaping operations?
Answer. The four categories of shaping operations are (1) solidification processes, in
which the starting material is a heated liquid or semifluid that cools and solidifies to form
the part geometry; (2) particulate processing, in which the starting material is a powder,
and the powders are formed and heated into the desired geometry; (3) deformation
processes, in which the starting material is a ductile solid (commonly metal) that is
deformed to shape the part; and (4) material removal processes, in which the starting

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material is a solid (ductile or brittle), from which material is removed so that the resulting
part has the desired geometry.
1.13 What is the difference between net shape processes and near net shape processes?
Answer. Net shape processes are manufacturing processes that transform nearly all of the
starting material into product and require no subsequent machining to achieve final part
geometry. Near net shape processes are ones that require minimum machining to produce
the final shape.
1.14 Identify the four types of permanent joining processes used in assembly.
Answer. The four types are welding, brazing, soldering, and adhesive bonding.
1.15 What is the difference between special purpose and general purpose production
equipment?
Answer. General-purpose equipment is more flexible and adaptable to a variety of jobs. It
is commercially available for any manufacturing company to invest in. Special-purpose
equipment is usually designed to produce a specific part or product in very large quantities.
Another reason may be because the process is unique and commercial equipment is not
available. Some companies with unique processing requirements develop their own special
purpose equipment.
1.16 Define batch production and describe why it is often used for medium-quantity production.
Answer. Batch production is where groups, lots, or batches of materials or parts are
processed together through the manufacturing operations. All units in the batch are
processed at a given station before the group proceeds to the next station. In a medium or
low quantity production situation, the same machines are used to produce many types of
products. Whenever a machine switches from one product to another, a changeover occurs.
The changeover requires the machine setup to be torn down and set up for the new product.
Batch production allows the changeover time to be distributed across a larger number of
parts and hence reduce the average operation time per part.
1.17 What is the difference between a process layout and a product layout in a production
facility?
Answer. A process layout is one where the machinery in a plant is arranged based on the
type of process it performs. To produce a product it must visit the departments in the order
of the operations that must be performed. This often includes large travel distances within
the plant. A process layout is often used when the product variety is large and the operation
sequences of products are dissimilar. A product layout is one where the machinery is
arranged based on the general flow of the products that will be produced. Travel distance is
reduced because products will generally flow to the next machine in the sequence. A
product layout works well when all products tend to follow the same sequence of
production operations.
1.18 What are overhead costs in a manufacturing company?
Answer. Overhead costs consist of all of the expenses of operating the company other than
material, direct labor, and equipment.
1.19 Name and define the two categories of overhead costs in a manufacturing company.

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Answer. The two categories are (1) factory overhead and (2) corporate overhead. Factory
overhead consists of the costs of running the factory excluding materials, direct labor, and
equipment. This overhead category includes plant supervision, maintenance, insurance,
heat and light, and so forth. Corporate overhead consists of company expenses not related
to the factory, such as sales, marketing, accounting, legal, engineering, research and
development, office space, utilities, and health benefits.
1.20 What is the difference between fixed costs and variable costs?
Answer. A fixed cost remains constant for any level of production output, whereas
variable costs are paid for as they are used. The cost of the factory and equipment are fixed
costs. Direct labor and materials that are used to produce the product are variable costs.
Problems
Answers to problems labeled (A) are listed in an Appendix at the back of the book.
Manufacturing Economics
1.1 (A) A company invests $950,000 in a piece of production equipment. The anticipated life
of the machine = 10 yr. The cost to install the equipment = $50,000. The machine will be
used 8 hours per shift, five shifts per week, 50 weeks per year. Applicable overhead rate =
15%. Assume availability = 100%. Determine the equipment cost rate if (a) the plant
operates one shift per day and (b) the plant operates two shifts per day.
Solution: (a) For a one-shift operation, hours of operation per year H = 50(1)(5)(8) = 2000
hr/yr. Using Eq. (1.8),
Ceq = (950,000 + 50,000)(1.15)/(60  10  2000) = $0.9583/min = $57.50/hr
(b) For a two-shift operation, hours of operation per year H = 50(2)(5)(8) = 4000 hr/yr.
Ceq = (950,000 + 50,000)(1.15)/(60  10  4000) = $0.4792/min = $28.75/hr
Note the significant advantage the company has if it runs two shifts per day rather than one
shift. Operating three shifts would result in an even lower cost.
1.2 A production machine was purchased 7 years ago for a price of $600,000, including
installation. At that time it was anticipated that the machine would last 10 years and be
used 2000 hours per year. However, it is now in need of major repairs that will cost
$150,000. If these repairs are made, the machine will last 3 more years, operating 2000
hours per year. Applicable overhead rate = 20%. Assume availability = 100%. Determine
the equipment cost rate for this machine.
Solution: The cost rate under the original conditions was the following:
Ceq = 600,000(1.20)/(60  10  2000) = $0.60/min = $36.00/hr
The repairs will add to that cost rate as follows:
Ceq = 150,000(1.20)/(60  3  2000) = $0.50/min = $30.00/hr
The repaired machine has a cost rate Ceq = 0.60 + 0.50 = $1.10/min = $66.00/hr
1.3 A production machine is used to process parts in batches. In one batch of interest, the
starting piece is a casting that costs = $7.00 each. Batch quantity = 50. The actual
machining time in the operation = 8.50 min. Time to load and unload each workpiece = 3.0
min. Cost of the cutting tool = $4.00, and each tool must be changed every 15 pieces. Tool
change time = 1.5 min. Setup time for the batch = 1.75 hr. Hourly wage rate of the operator
= $14.00/hr, and the applicable labor overhead rate = 40%. Hourly equipment cost rate =

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$20.00/hr, which includes overhead. Assume availability = 100% and scrap rate = 0.
Determine the (a) cycle time for the piece, (b) average hourly production rate when setup
time is figured in, and (c) cost per piece.
Solution: (a) Processing time To = 8.50 min, part handling time Th = 3.00 min, and tool
handling time Tt = 1.50 min/15 = 0.10 min. Tc = 8.50 + 3.00 + 0.10 = 11.6 min
(b) Average production time per piece including setup time Tp = 1.75(60)/50 + 11.6 = 13.7
min. Average hourly production rate Rp = 60/13.7 = 4.38 pc/hr
(c) Equipment cost rate Ceq = $20.00/60 = $0.333/min.
Labor cost rate CL = 14.00(1.40) = $19.60/hr = $0.327/min
Cost of tooling Ct = 4.00/15 = $0.267/pc
Finally, cost per piece Cpc = 7.00 + (0.333 + 0.327)(13.7) + 0.267 = $16.31/pc
1.4 (A) A stamping press produces sheet-metal stampings in batches. The press is operated by
a worker whose labor rate = $15.00/hr and applicable labor overhead rate = 28%. Cost rate
of the press = $20.50/hr and applicable equipment overhead rate = 22%. In a certain order,
batch size = 800 stampings, and the time to set up the die in the press = 55 min. The die
cost $40,000 and is expected to last for 160,000 stampings. Each cycle in the operation, the
starting blanks of sheet metal are manually loaded into the press, which takes 42 sec. The
actual press stroke takes only 8 sec. Unloading the stamping from the press takes 13 sec.
Cost of the starting blanks = $0.20/pc. The press operates 250 days per year, 7.5 hours per
day, but the operator is paid for 8 hours per day. Assume availability = 100% and scrap
rate = 0. Determine the (a) cycle time, (b) average production rate with setup time
included, and (c) cost per stamping produced.
Solution: (a) Cycle time Tc = 42 + 8 + 13 = 63 sec = 1.05 min
(b) Including setup time, Tp = 55/800 + 1.05 = 1.119 min
Rp = 60/1.119 = 53.63 pc/hr
(c) Equipment cost rate Ceq = 20.50(1.22)/60 = $0.417/min
Die cost per piece Ct = 40,000/160,000 = $0.25/pc
Labor cost rate CL = 15.00(1.28)/60 = $0.32/min
This labor cost should be adjusted for the fact that although the press operates 7.5 hr/day,
the operator is paid for 8 hr. CL = 0.32(8/7.5) = $0.3413
Finally, cost per stamping Cpc = 0.20 + (0.3413 + 0.417)(1.119) + 0.25 = $1.298/pc
1.5 A semi-automatic production machine must be tended by a worker 100% of the time to
load and unload parts. Cost of the starting parts = $0.25/pc. The job runs several months so
setup can be neglected. The equipment cost rate of the machine = $24.00/hr including
applicable overhead costs. The worker’s cost rate = $21/hr including applicable labor
overhead rate. Each cycle, the actual process time = 36 sec, and time to load and unload
the part = 14 sec. A proposal has been made to install an automatic parts-loading-and-
unloading device on the machine, which would cost $48,000 and would reduce the parts-
loading-and-unloading time to 5 sec each cycle. Its expected life = 4 yr. The device would
also relieve the worker from full-time attention to the machine. Instead, the worker could
tend four machines, effectively reducing the labor cost to 25% of its current rate for each
machine. The operation runs 250 days per year, 8 hours per day. Assume availability =
100% and scrap rate = 0. Determine the cost per part (a) without the parts loading device

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and (b) with the parts loading device installed. (c) How many days of production are
required to pay for the automatic loading device? In other words find the breakeven point.
Solution: (a) Equipment cost rate Ceq = 24/60 = $0.40/min
Labor cost rate CL = 21/60 = $0.35/min
Without the loading device, Cpc = 0.25 + (0.40 + 0.35)(36 + 14)/60 = $0.875/pc
(b) Cost rate of the device = 48,000/(6042000) = $0.10/min = $6.00/hr
With the loading device, Cpc = 0.25 + (0.35/4 + 0.40 + 0.10)(36 + 5)/60 = $0.6515/pc
(c) Without the device, Tc = 36 + 14 = 50 sec = 0.833 min and Cpc = $0.875/pc
Rp = Rc = 60/0.833 = 72.0 pc/hr = 576 pc/day
With the device, Tc = 36 + 5 = 41 sec = 0.683 min and Cpc = $0.6515/pc
At 100% reliability and no setup time, Rp = Rc = 60/0.683 = 87.8 pc/hr = 702.4 pc/day
Let D = number of days of production at which the two alternatives are equivalent.
576(0.875)D = 48,000 + 702.4(0.6515)D
504D = 48,000 + 457.6D
(504 – 457.8)D = 46.2D = 48,000 D = 1039 days
1.6 In an automated production operation, the starting work part cost = $0.50 each, and cycle
time = 1.0 min. Equipment cost rate = $30.00/hr, and labor cost rate = $25.00/hr. Both
rates include overhead costs. Tooling cost = $0.08/pc. Availability of the production
machine = 96%, and the scrap rate = 3%. Determine the (a) production rate and (b)
finished part cost.
Solution: (a) Production rate, including effect of availability (60/1.0)(0.96) = 57.6 pc/hr
However, because of the 3% scrap rate, the production rate of acceptable parts is
Rp = 57.6(1  0.03) = 55.87 pc/hr
(b) Factoring in availability and scrap rate, part cost is
Cpc = 0.50/0.97 + ((30 + 25)/60)(1.0/(0.97  0.96)) + 0.08 = $1.58/pc
1.7 A production process consists of two operations. The scrap rate in the first operation =
4.2%, and scrap rate in the second operation = 2.8%. The total number of acceptable parts
in a certain production order = 9000 units. How many starting work units are required to
satisfy this order?
Solution: Let Qo = the quantity of starting work units, and Qf = the final quantity of 9000
units. Then Qf = Qo(1  0.042)(1 = 0.028) = Qo(0.958)(0.972) = Qo(0.9312)
Qo = 9000/(0.9312) = 9665 starting units
1.8 (A) In 40 hours of an automated production operation, 456 acceptable (non-defective) parts
and 16 defective parts were produced. The operation cycle consists of a processing time of
4.35 min, and a part handling time of 0.35 min. Every 60 parts, a tool change is performed,
and this takes 9.0 min. The machine experienced several breakdowns during the week.
Determine the (a) hourly production rate of acceptable parts, (b) scrap rate, and (c)
availability (proportion uptime) of the machine during this week.
Solution: (a) Production rate of acceptable parts Rp = 456/40 = 11.40 pc/hr
(b) Total parts processed during the week Qo = 456 + 16 = 472 pc
Scrap rate q = 16/472 = 0.0339 = 3.39%

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(c) Cycle time of the unit operation Tc = 4.35 + 0.35 + 9/60 = 4.85 min
Total uptime during the week = 472(4.85) = 2289.2 min = 38.15 hr
Proportion uptime A = 38.15/40 = 0.954 = 95.4%
1.9 A high-production operation was studied during an 80-hour period, during which a total of
11 equipment breakdowns occurred for a total lost production time of 4.2 hr, and the
operation produced 31 defective products. No setups were performed during the period.
The operation cycle time (processing and part handling) = 3.27 min, and a tool change is
required every 25 parts, which takes 2.0 min. Determine the (a) hourly production rate of
acceptable parts, (b) proportion uptime, and (c) scrap rate during the period.
Solution: (a) Cycle time of the unit operation Tc = 3.27 + 2.0/25 = 3.35 min
Hours of production during 80 hours = 80 – 4.2 = 75.8 hr
Total number of parts produced = 75.8(60)/3.35 = 1358 pc
Number of acceptable parts produced = 1358 – 31 = 1327 pc
Production rate of acceptable parts Rp = 1327/80 = 16.59 pc/hr
(b) Proportion uptime = (80 – 4.2)/80 = 0.9475 = 94.75%
(c) Scrap rate q = 38/1566 = 0.0243 = 2.43%

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