cost reduction project

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0617-240-70 Manufacturing Processing II Project Cost Reduction of a Light Switch Plate Executive Summary The original price of the light switch plate is $3.99. The 40% rule is used to find out what is costs to make the plate. To do the 40% rule by multiplying 0.40 to $3.99. By doing the 40% rule it came out to $1.60. It takes $1.60 to manufacture a light switch plate form this $3.99 plate. A cost reduction was done to determine a cheaper way to manufacture the plate. The prices of the three common ways to manufacture this part were calculated. The stamping, abrasive water jet, and laser are the manufacture processes that were calculated. When comparing prices the proper way to manufacture the plate is by comparing how much it cost to make it and the time to make it. According to the calculations the stamping is the quickest and the cheapest way to make a light switch plate. Abrasive water jet machining is the slowest way to manufacture it. Laser is between abrasive water jet and stamping. Cost wise laser is the most expensive to make per piece because of all the tooling/consumables involved with laser while abrasive water jet is in between laser and stamping for cost. Stamping is the cheapest and the fastest way to make the plate. Author: Stephanie Ulman For: Professor Slifka

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Page 1: Cost Reduction Project

0617-240-70 Manufacturing Processing II Project

Cost Reduction of a Light Switch Plate

Executive Summary The original price of the light switch plate is $3.99. The 40% rule is used to find out what is costs to make the plate. To do the 40% rule by multiplying 0.40 to $3.99. By doing the 40% rule it came out to $1.60. It takes $1.60 to manufacture a light switch plate form this $3.99 plate. A cost reduction was done to determine a cheaper way to manufacture the plate. The prices of the three common ways to manufacture this part were calculated. The stamping, abrasive water jet, and laser are the manufacture processes that were calculated. When comparing prices the proper way to manufacture the plate is by comparing how much it cost to make it and the time to make it. According to the calculations the stamping is the quickest and the cheapest way to make a light switch plate. Abrasive water jet machining is the slowest way to manufacture it. Laser is between abrasive water jet and stamping. Cost wise laser is the most expensive to make per piece because of all the tooling/consumables involved with laser while abrasive water jet is in between laser and stamping for cost. Stamping is the cheapest and the fastest way to make the plate.

Author: Stephanie Ulman For: Professor Slifka

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Material Selection

Carbon steel

Gauge 15: 18in x 18in (picture below of the nesting when stamping.

The plate has an antique textured antique pewter finish.

This finish will be the same for all the pieces.

Assume 8 lb = 50 lbs = 40 sheets

Figure 1 shows a sheet of the nesting when stamping.

18 in ×1 ft

12 in= 1.5ft

1.5ft × 15ft = 2.75 ft2

2.75ft2 × 40sheets = 90 ft2 for 40 sheets

15 parts × 40 sheets = 600 parts for 40 sheets

$50

600 pieces = $0.08 for each light switch plate

18 in

18 in

4.5 in

2.75 In

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Assembly Light Switch Plate

Table 1 shows the dimensions of the light switch plate. The thickness was assumed.

Light Switch Holes

(Assu

Table 2 shows the assumptions of the dimensions of the rectangle hole in the light switch plate.

Table 3 shows the dimensions two circle holes. This is an assumptions of the measurement of the holes.

Diagram 2 is a picture of the light switch plate that was used in this cost analysis. The part number is 9TAP101. Part Specific Tooling/Steps Traditional process Stamping First place a sheet of material into the punch press die set. Then active the punch press. When the ram returns the operator removes the finish parts from the die set and the removes the scrape material. Then the process repeats.

Height 4.5 in

Width 2.75 in

Thickness 0.06 in

Height 1 in

Width 0.5 in

Radius 0.125 in

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Non-Traditional processes Abrasive Water Jet The operator will put the material on the abrasive water jet bed. Then the operator pushes the start button. The machine would cut the interior holes. Then the machine would cut the outside shapes of the light switch cover. After the machine is finished it will go to the resting position. Then the operator will remove all the finished parts and then the scrap. Then the operator would repeat the process. Laser The operator will put the material on the laser bed/brick. Then operator will push the start button. Then the machine would cut all the interior holes. Then the machine will cut the outside shape. After the machine is finished it returns to the starting position. Then the operator would remove all the finished parts and the scrap. Then the operator repeats the process. Contacting Manufactures I could not get in contact with the manufacturer so I assumed the light switch cover was stamped. I also tried to contact the some manufactures for stamping, abrasive water jet and laser so I could get some costs. The only person I got an email back form Brad Copper from Klein Steel. Capital Equipment

Strength and Weaknesses The strength for stamping process will be the time rate it takes to make each part. The weakest for stamping would be the tooling/consumables cost. The tooling/consumables for stamping last a long time so it can be a benefit. Abrasive water jet weakest point is the length of time to make a light switch cover is really high compared to stamping and laser. Laser is the go between for time meaning it is faster than abrasive water jet but slower than punching. The only weakness about this method is that the tooling/consumables cost the most out of these methods. Equipment HP accu-Lock A HP accu-Lock machines ball holes and punch plates. Cutting lead times from several weeks to days reducing waste. On the right is a picture of a HP accu-Lock machine. This stamping machine costs $700.00.

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Figure 3 shows the HP accu-Lock machine which is a stamping machine.

Mach 2B Abrasive Water Jet The Mach 2B waterjet models have a 3 sided easy access to work piece. It has a large diameter ball screw drive system. Also the Mach 2B waterjet models have a unique autolube system. It also has a heavy duty material support. This machine has the accuracy of 0.005 inch per 3 feet. The speed range for the Mach 2B waterjet models is up to 400 rpm. An abrasive water jet machine is $49,950.00.

Figure 4 shows a Mach 2B Waterjet model. HIPPO Mid-Power Q-Switched Laser This laser has a high output power for fast throughout. The high peak power minimizes thermal damage to the parts. The thermo-beam has characteristics for a large depth of field. The modular design allows easy field replacement of key components. A laser machine costs $5,200.00.

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Figure 5 shows a HIPPO Mid-Power Q-Switched Laser. Process When comparing prices the proper way to do it is by comparing how much it cost to make it and the time to make it. Traditional Stamping/punching Overhead

Assume $50

hour

($50

600+

$100

600) = $0.25 for each light switch plate

Labor

Setup man $50

hour (assumed)

(Works for 2 hours assumed) $50

hour×

2hours

1 day= $100

Production Worker $18

hour (assumed)

Assume 40 sheets

hour=

600 pieces

hour

$118

600 𝑝𝑖𝑒𝑐𝑒𝑠= $0.20 𝑓𝑜𝑟 𝑒𝑎𝑐ℎ 𝑝𝑖𝑒𝑐𝑒

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Consumables/Tooling

Assume price of die = $40,000

Assume lifespan of die = 150,000 parts

Assume maintenance cost = $1000

$40000

$150000 = $0.27

Packaging for light switch plates

Assume $0.03 each

Non-traditional Abrasive Water Jet Overhead

Assume $50

hour

$50 × (30.5 hrs + 2 hrs) = $162.50 for 600pieces

$162.50

600𝑝𝑖𝑒𝑐𝑒𝑠= $0.27 𝑓𝑜𝑟 𝑒𝑎𝑐ℎ 𝑝𝑖𝑒𝑐𝑒

Labor

Setup man $50

hour (assumed)

(Works for 2 hours assumed) $50

hour×

2hours

1 day= $100

Production Worker $18

hour

Perimeter (4.5 in × 2) + (2.75 in × 2) + (1 in × 2) + (0.5 in × 2) + (π × 0.125 in × 2)

= 18.285 in

Cutting Speed 6 in

min (between

0.6 in

min and

18 in

min)

18.285 in

6in

min

= 3.05min × 600 pieces = 1830 min

60 min = 30.5 hrs

30.5hrs × $18 =$549

hrfor 600 pieces

($549

600 pieces+

$100

600 pieces ) = $1.08 for each piece

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Consumables/Tooling Abrasive

$140

1000 𝑚𝑒𝑡𝑟𝑖𝑐 𝑡𝑜𝑛𝑠= $0.14 × 30.5 ℎ𝑟𝑠 =

$4.27

ℎ𝑜𝑢𝑟

$140

$4.27 = 32.79 hrs (the abrasive lasts 32.79hrs)

$4.27 × 30.5 ℎ𝑟𝑠 = $130.24 (this is what the abrasive costs to make 600 pieces) Filter

$52 -assume it lasts for a month

10 in

0.45 Microns Jewel

$14.50 - assume it lasts every 2 years

D = 004 in

Ruby

Bed/Brick

$34 (assume it lasts up to 2 years)

4 in x 6 in x 48 in

$130.24 + $52 + $14.50 + $34

600 𝑝𝑖𝑒𝑐𝑒𝑠= $0.38 𝑝𝑒𝑟 𝑝𝑖𝑒𝑐𝑒

Water

Assume $5 Packaging for abrasive water jet will be the same.

Laser Overhead

Assume $50

hour

$50 × (3.7 hrs + 2 hrs) = $285 for 600pieces $285

600𝑝𝑖𝑒𝑐𝑒𝑠 = $0.48 𝑝𝑒𝑟 𝑝𝑖𝑒𝑐𝑒

Labor

Setup man $50

hour (assumed)

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(Works for 2 hours) $50

hour×

2hours

1 day= $100

Production Worker $18

hour (assumed)

Perimeter (4.5 in × 2) + (2.75 in × 2) + (1 in × 2) + (0.5 in × 2) + (π × 0.125 in × 2)

= 18.285 in

Cutting Speed 50 in

min (between

3 in

min and

100 in

min)

18.285 in

50in

min

= 0.37min × 600 pieces = 222 min

60 min = 3.7 hrs

3.7 hrs × $18 = $66.60 for 600 pieces

($66.60

600 𝑝𝑖𝑒𝑐𝑒𝑠+

$100

600 𝑝𝑖𝑒𝑐𝑒𝑠 ) = $0.28

Consumables/Tooling

Focus Lenses $610 (assume lasts every month)

Nozzle $6 (assume lasts every 2 weeks)

Vacuum Oil $50 (assume lasts every 2 months)

Vacuum Filter $200 (assume lasts every 4 months)

Primary Mirror $2,351 (assume lasts for a year)

Internal Bending Mirror $447 (assume lasts for a year)

Internal Polarizing Mirror $838 (assume lasts every year)

Output Coupler $2,198 (assume lasts every year)

Chiller Filter $300 (assume lasts every 2 months)

Polarizing mirror $1,860 (assume lasts every year)

Collimator Optics $829 (assume lasts every year)

External Bending Mirror $433 (assume last every year)

Adaptive Mirrors $2150 (assume last every year)

Gas

CO2 = Volume (0.42 ft32

hrs) =

$0.25

ft3

0.042 ft3

hrs ×

$0.25

ft3=

$0.01

hr ×

3.7 hrs

600 pieces= $0.00006 per piece

$(610 + 6 + 50 + 200 + 2351 + 447 + 828 + 2198 + 300 + 1860 + 829 + 433 + 2150)

600 𝑝𝑖𝑒𝑐𝑒𝑠

$20.45 + $0.01 = $20.46 𝑝𝑒𝑟 𝑝𝑖𝑒𝑐𝑒

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Packaging for laser will be the same. Secondary operations After the light switch goes through the non-traditional process the light switch plates need a secondary operation. The secondary operation needs to done to create a curve on the part. The secondary operation method will be a stamping method. Shaping tool assumed $700 $700

600 = 1.16 (lasts 100 years)

(Assume 2 seconds for each part) 2 𝑠𝑒𝑐

𝑝𝑖𝑒𝑐𝑒 × 600 𝑝𝑒𝑖𝑐𝑒𝑠 ×

1 𝑚𝑖𝑛

60 𝑠𝑒𝑐 ×

1 ℎ𝑟

60 𝑚𝑖𝑛= 0.3 ℎ𝑟𝑠

Abrasive Water Jet Costs $1.84 +$1.16 = $3.00 Time 32.5 hrs + 0.3 hrs = 35.5 hrs Laser Costs $21.33 + $1.16 = $22.49 Time 5.7 hrs + 0.3 hrs = 6 hrs Costs

Production Costs

Stamping Material $0.08

Overhead $0.25

Labor $0.20

Consumables/Tooling $0.27

Packaging $0.03

Total $0.83

Table 4 shows the total cost of the stamping process.

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Production Costs

Abrasive water jet Material $0.08

Overhead $0.27

Labor $1.08

Consumables/Tooling $0.38

Packaging $0.03

Shaping $1.16

Total $3.00

Table 5 shows the total cost of the abrasive water jet process.

Production Costs

Laser Material $0.08

Overhead $0.48

Labor $0.28

Consumables/Tooling $20.46

Packaging $0.03

Shaping $1.16

Total $22.49

Table 6 shows the total cost of the laser process. From the tables above stamping is the cheapest method to make a light switch plate. It is cheaper than using the process abrasive water jet and laser. Stamping tools and consumables are very expensive, but they last a long time. For the abrasive water jet the tooling and consumables are in between the laser and the stamping method. The material and the packing remain the same cost for all these processes. After the non-traditional processes (laser and abrasive water jet) there needs to a secondary operation in order to add a curve to the light switch plate. The labor costs vary between these three processes. Abrasive water jet is the highest labor because it takes the most time to make. The material and the packing remain the same cost form all these processes. From doing all of these calculations the stamping method is the cheapest way to make the plate.

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Time

Method Times

Times with

shaping Total

Stamping 3 hrs 0 hrs 3 hrs

Abrasive water jet 32.5 hrs 0.3 hrs 32.8 hrs

Laser 5.7 hrs 0.3 hrs 6 hrs

Table 7 shows the amount of time that it takes to make 600 light switch plates. The material and the packing remain the same cost form all these processes Conclusion: In conclusion the cheapest and quickest way to make a light switch plate is stamping. As you can see from the table below.

Stamping Abrasive water jet

Laser

Costs $0.83 $3.00 $22.49

Time 3 hrs 32.8 hrs 6 hrs

Table 8 shows the stamping process is the cheapest followed by abrasive water jet and laser. Also it shows that the stamping method is the quickest way to make the plate. In the table above the abrasive water jet is the slowest process. The laser is faster than the abrasive water jet but, the quickest way is stamping. Therefore, stamping will be the quickest way to make the light switch plate. From this project the materials, cost of the packing and the overhead remain the same. But, the total overhead remains close to the same it can vary because of the hours of labor to make the light switch plate. From the table above the cheapest way to make a light switch plate is stamping and the cost is $0.83. The original price of the light switch plate is $3.99. The 40% rule is used to find out what is costs to make the plate. The 40% rule was used and it came out to $1.60. So, the company that sells these plates are making money off of the consumer buys the light switch plate. The company is making $0.77 from the consumer if they manufacture it the cheapest way.

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References Material http://www.custompartnet.com/sheet-metal-gauge Stamping Equipment http://kalamazoometalmuncher.com/hydraulicpunchpress.htm http://www.fabequip.com/equipment/ironworkers/metal%20muncher/metal%20muncher%20ironworker%20gb_series.htm http://www.barton.com/inventory.asp?CatId={DD841E1C-EDD0-4FB3-AD72-13AF8E4A53E5} http://www.wilsontool.com/stamping/stamp_accuLock.html http://www.ebay.com/itm/Metal-Stamping-Machine-Press-/350561773159?pt=LH_DefaultDomain_0&hash=item519f1c2667 Part http://www.wallplatewarehouse.com/9tap101.html Kohser, Ronald. Materials and Processes in Manufacturing. Eleventh Edition. 2012. Abrasive Water Jet consumables: http://www.alibaba.com/product-gs/282156151/garnet_abrasive_for_waterjet_cutting.html?s=p http://www.barton.com/inventory.asp?catid={F86AEEAF-AD12-4C84-AD02-34BECF05E705} http://www.barton.com/inventory.asp?CatId={3F67B516-B955-4DE9-83D3-B4D3FFE86508} http://www.barton.com/inventory.asp?CatId={3F67B516-B955-4DE9-83D3-B4D3FFE86508} http://www.ebay.com/itm/Abrasive-Waterjet-Machine-/230670729726?pt=LH_DefaultDomain_0&hash=item35b50c01fe Laser http://www.alibaba.com/product-gs/505531139/Nozzle_for_laser_machine.html http://www.lom.cc/

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http://www.newport.com/HIPPO-Mid-Power-Q-Switched-Lasers/501221/1033/info.aspx http://www.ebay.com/itm/CO2-LASER-ENGRAVING-CUTTING-MACHINE-ENGRAVER-100W-N9060-/251065336687?pt=LH_DefaultDomain_0&hash=item3a74a9036f Cooper, Brad .Klein Steel.

Equipment

http://www.wilsontool.com/stamping/stamp_accuLock.html

http://www.flowwaterjet.com/en/waterjet-cutting/cutting-systems/mach-2/cutting-systems/Mach%202b%20Models.aspx http://www.newport.com/HIPPO-Mid-Power-Q-Switched-Lasers/501221/1033/info.aspx

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Appendix 1 Special Retainers on Demand/Stamping Create, modify and reuse special retainers on-site and on demand with HP Accu-Lock® Retainer Inserts by Wilson Tool. HP Accu-Lock simplifies the use of special retainers by eliminating the need for complicated jigs, inspection fixtures and specialized knowledge to machine ball holes into the punch plate. In fact, HP Accu-Lock eliminates the ball hole. Punches are held securely in place with a straight-line machined hole that can easily be created in-house. Shorter Lead Times and Less Waste Means Lower Costs. Purchasing custom retainers for a special request is costly and can add weeks to a job. With HP Accu-Lock, you can not only create your own special retainers in-house but also modify and reuse existing retainers. Cutting lead times from several weeks to a day and significantly reducing waste. HP Accu-Lock Retainer Inserts are fully compatible with all ball lock punches, including HP Ball Lock punches from Wilson Tool International.

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Appendix 2 Mach 2b Waterjet Models Flow Performance Made Affordable The Mach 2 Series outperforms the standard waterjet offerings in the industry and wins in VALUE.

Excellent Work Table Accessibility on a Machine Built for the Rigors of Waterjet Cutting With robust mechanical design, integrated machine systems, intuitive user control, multiple table sizes, and several configurations available, the Mach 2b Series sets you up for success. The core components of our Mach 2b waterjets series - including Paser abrasive cutting system, pump technology, and FlowMaster software - are the very same components found on our elite Mach 3 and Mach 4 waterjet series. With a Mach 2b you won't sacrifice performance, structural integrity, or the overall quality of your system. In fact, its solid steel casting construction and precision reciprocating ball screws are components often found in other manufacturers premium machines. Special Features:

Core components include Flow's Paser abrasive cutting system, pump technology, and FlowMaster software

3-sided easy access to your workpiece Large diameter ball screw drive system Unique autolube system Rigid construction for structural integrity Roll-around control Multiple pump configurations Heavy duty material support Solid steel casting construction

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World class Flow service available 24/7 365 days per year

Options and Accessories:

UltraPierce™ cutting system - for optimal piercing performance on stone, glass, and laminated materials

Multiple head option, including patented Paser abrasive cutting system for peak performance

Cuts higher precision parts with a variety of software packages available, including FlowMaster easy to use software

FlowNest software - with full geometric software with scrap remenant control (small parts are automatically nested within larger parts)

FlowShift Vectorization software - converts images, sketches, and line drawings to vector formats in minutes

Smart Stream technology Interchangeable pure waterjet and abrasive

waterjet cutting head systems available to cut a wide variety of materials

Final filtration system Variety of pump configurations up to 60,000 psi Professional classroom training; as well as on-site familiarization with every

machine Widest variety of Sapphire, Ruby or Diamond orifices to match every

application

Mach 2b Models:

1005b Work envelope: 1.0m x 0.5m (3.3ft x 1.6ft)

1313b Work envelope: 1.30m x 1.30m (4.3ft x 4.3ft)

2031b Work envelope: 2.00m x 3.10m (6.6ft x 10.1ft)

4020b Work envelope: 4.00m x 2.00m (13.1ft x 6.6ft)

Specifications

Accuracy (+/-)

0.005" inch per 3' feet at 68° ± 3°F (± 0.127 mm per 1M at 20° ± 3°C)

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Repeatability (+/-)

0.0025" inch at 68° ± 3°F (0.0635 mm at 20° ± 3°C)

Speed Range

Up to 400 ipm

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Appendix 3 HIPPO Mid-Power Q-Switched Lasers

OEM/Industrial design for 24/7 operation Single platform for 4 output wavelengths: 1064 nm, 532 nm, 355 nm, 266 nm High output power for fast throughput High peak power minimizes thermal damage to your parts Superior pulse-to-pulse stability for clean, consistent processing TEM00 beam characteristics for large depth of field Long life diodes mean low cost of operation and high uptime Modular design allows easy field replacement of key components Contact Us Feedback Overview Applications Features Reliability Specifications Literature & Downloads

Highlights

The Spectra-Physics HIPPO lasers are a family of high power diode-pumped solid state (DPSS) Q-switched lasers with available outputs of 1064, 532, 355 and 266 nm wavelengths. They are used primarily in 24/7 industrial applications such as solar cell manufacturing, LED scribing and other microelectronics applications. The HIPPO Q-switched laser is among the most popular industrial DPSS lasers available. It has a strong track record and large installed base around the world. Our diodes last double the industry average. The laser’s modular design allows easy field replacement of key components including diodes and fibers, laser output window, and the harmonic module without costly tool realignment. Rugged and proven, the HIPPO is the tool of choice in applications where uptime is critical.

Model Wavelength Peak Power

Average Power

Pulse Width

Repetition Rate (nominal)

HIPPO 1064-17 DPSS Laser

1064 nm ~22.7 kW

>17 W <15 ns at 50 kHz

50 kHz

HIPPO 1064-27 DPSS Laser

1064 nm ~9 kW >27 W <30 ns at 100 kHz

100 kHz

HIPPO 532-11 DPSS Laser

532 nm ~16.9 kW

>11 W <13 ns at 90 kHz

50 kHz

HIPPO 532-15 DPSS Laser

532 nm ~6 kW >15 W <25 ns at 100 kHz

100 kHz

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Model Wavelength Peak Power

Average Power

Pulse Width

Repetition Rate (nominal)

HIPPO 355-5 DPSS Laser

355 nm ~8.3 kW >5 W <12 ns at 50 kHz

50 kHz

HIPPO Prime 266-2 DPSS Laser

266 nm ~3.3 kW >2 W <12 ns at 50 kHz

50 kHz

Excellent Performance

HIPPO Q-switched lasers are characterized by extremely short pulse width (as low as <11 ns). High peak power and short pulse widths minimize undesirable thermal damage, such as heat affected zones, recast material, kerfs, and micro-cracking of the substrate. All HIPPO Q-switched lasers have excellent beam quality, which ensure a large depth of field and guarantee consistent and reliable scribing results over a wider range of material flatness, thickness, and surface variations. HIPPO lasers have stable power, low pulse-to-pulse energy variation, and stable beam pointing over a wide range of operating conditions, including time, temperature, and pulse repetition rate.