Question

PM parts are mass produced in a conventional press-and-sinter operation in which the starting powder cost is $0.45/pc. The blending and mixing step is a batch process in which powders for 500 parts are processed in each batch. This step takes 30 min, and the associated equipment cost rate is $42/hr. The pressing cycle takes 7.5 sec/pc, and the equipment cost rate is $72/hr. Press setup time is negligible due to the large quantities. The punch and die must be refurbished every 10,000 parts at a cost of $1,200, which includes lost production time. In the sintering step, the flow-through furnace has a processing rate of 5.2 pc/min, and the furnace cost rate is $48/hr. Determine the total cost per completed PM part.

Answer 1

0.9158

Step-by-step explanation:

We have to find cost per part in each step.

Powder cost = $0.45/pc

Blending and mixing step:

Equipment cost rate = $42/hr

for 30 min = $21/hr

cost per piece = 21 ÷ 500

= 0.042/pc

Pressing cycle:

7.5 sec/pc = 480 pc/hr

equipment cost = $72/hr

Cost per piece = 72 ÷ 480

= 0.15/pc

Refurbishing cost = $1,200

cost per piece = 1,200 ÷ 10,000

= 0.12/pc

Sintering step:

5.2 pc/min = 312 pc/hr

furnace cost rate = $48/hr

cost per piece = 48 ÷ 312

= 0.1538/pc

Therefore,

Total cost per completed part:

= Powder cost + cost per piece of (Blending and mixing step + Pressing cycle + Refurbishing + Sintering)

= 0.45 + 0.042 + 0.15 + 0.12 + 0.1538

= 0.9158