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Laser cutting machine: Justification of initial costs

Posted on:2002-03-19Degree:M.SType:Thesis
University:University of North TexasCandidate:Nagaraja, Dwarakish RudrapatnaFull Text:PDF
GTID:2461390011994158Subject:Business Administration
Abstract/Summary:
The Industrial Laser is no longer a "gee-whiz" technological wonder. It has firmly established in metalcutting as the tool of choice for many applications. In fact many fabrication shops are bringing back work they previously sent out to laser specialty houses for processing. Many familiar industry themes are driving this trend: shorter lead times, quality control and demanding customer delivery schedules. The Laser as a manufacturing tool, is a part of this trend. Consequently, industries are making the capital and personnel investments necessary to take control of their laser-cutting operations. The elevator division of Montgomery KONE Inc., in an effort to move towards quality, ontime-complete deliveries, and 100% customer satisfaction, decided to invest in new equipment to improve manufacturing processes. A huge investment is proposed for a laser-cutting machine. It is the responsibility of Manufacturing Engineering to direct the management by justifying its benefits, which includes payback time and financial gains. The Manufacturing Engineering department had to look into several aspects of a laser-cutting machine before making recommendations. Factors such as common line cutting, automated material handling system and cutting time should be involved in justification of the initial cost of a laser-cutting machine. Without the availability of comparative statistics on common line cutting and cutting time, it is impossible to accurately determine if our company can afford the initial cost of the laser-cutting machine with automated material handling system as the only criteria. Generating comparative statistics on appropriate factors will accurately determine and justify the initial cost of a laser-cutting machine.
Keywords/Search Tags:Cutting, Laser, Initial cost, Machine
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