sirris manufacturingday2011 automated-calculation-cetim

Manufacturing Day May 10th, 2011

Automated cost calculation of complex parts – L. Berteloot

TechniQuote

Automated cost calculation of complex parts

L. BertelootSoftware Department manager

Cetim - France


Automated cost calculation of complex parts – L. Berteloot 0706

-05-

GB



Governed by Articles L342.1 to L342.13of the Code of Research

Steered by mechanical industrialistsunder the State’s supervision

Founded in 1965

700 people with 56% engineers

The French Technological Institute for mechanics



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4 Technological

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More than 30 000technical calls/year

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30,000 visitors every month

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Catalogues: Training, Publishing, Software

Transfering of Technology to mechanical Small and Medium Companies



Automated cost calculation for complex parts



Introduction

TIME, COST and PRICE • 3 different terms for a single concept COSTING

Remark : Time will be also used for Delay



Costing of complex parts

A part is complex by: Geometry Precision Quantity of detailsManufacturing process Assembly (number of parts and their types)

Standards

Costing can become complex with informal aspects : Importance for company (stakes and risks)

Delay to cost



What is in Technical Cost ?

Technical Cost = Supply Cost + Manufacturing Cost• Cost = f(Quantity, Machine and Tools, Process, Labour Rate)

Supply Cost preparation (bar, forged, casted) Losses (cutting mark, clamping, off cut)

Manufacturing Cost : O&M department Prep. (machine / tools), Mounting Machining + Tool Cost Subcontracting (painting, treatment, …) Controlling, Assembling, Logistics



What is NOT in Technical Cost ?

Margins problem are complex and multiple :

• Real margins : price = cost (1+ margin) Manufacturing, Supplying, Subcontracting,

• Hided costs Commercial or organization costs, Machine occupation rate, return on invest Non estimated activities (logistics, transportation, controlling, …)

• Risk coverage percentage



Costing : a global concept for company

• Engineering : COST Design to cost Value engineering

• Manufacturing : TIME* and COST Process optimization Anticipation of working load Data Flow optimization Best practices

• Sales/Procurement : COST and PRICE Shorten delay for quotation Increase precision and reliability of tenders Argue a quotation

• Management : COST Decision making aids (delocalization, investment, politics and strategy)



Why using an automated cost calculation ?

What is the job of a Cost expert ? Analyse and consultation Optimize process Estimate Time and Cost

Remark : Delay and Risk

First reasons : Faster and more precise One solution Optimization by simulation The solution

Main reasons: Repetitiveness, Reliability, Simulation tool Customizable (Costing know-how capitalization) Integration in the numerical chain (CAD-Costing-ERP)



Costing : different approaches

• Qualitative Intuitive or empirical

From personal experience Analogical

Search tool

• Quantitative (calculation tool) Analytical

Exhaustive description of all the process operations Parametrical

Parameterization of analytical approach Statistical

“Black box” system with variables ex : pomp (flow rate, power, efficiency, rotation,…)



Intuitive Approach

• Unformal analogical approach

• No real tool aids (sometime : excel file) cross-multiplication extrapolation direct costing without feedback loops

• Implementation Based on personal experience and feeling



Analogical approach

• Concept Database of part references with specific description and cost Search engine or multicriteria request to find closest references Interpolation to estimate Cost

• Problem : how do you valorize differences ? dimension, material serie

• Implementation Collect data on part description with associated cost Formalize of part description Determinate cost drivers



Analytical Approach

• Description of the operational process “Exhaustive” list of all the required operations Calculation of TIME (Raw material, Machine) COST Estimation of TIME (technological data) COST Sum up to get global COST

• Implementation Customize cost database Add-on specific ops.



Parametrical approach (1)

• Plain parametrical formula :

Cost = Cost (material+drilling+machining+controlling) Raw Material = Vol (L*l*H) * C1 Drilling = (Nb of drills)*C2+(Nb of taps)*C3 Machining = (Vraw-Vfinish)*C4 Controlling = (50 ch) * C5

Implementation Quite close from intuitive approach



Parametrical approach (2)

• Parametrical based on analytical approach Identification of the

relevant process Change parameters Validate for

cost calculation

• Implementation Collect data on process Realize initial estimates

with analytical approach



Statistical approach

• No access to analytical approach / Few information / Complex project• Early phase in the Product Life Cycle

Parametrical approach based on statistical laws (Cost Estimation Relationship) extracted from large ERP database

• Implementation Collect input data on project Determine cost drivers Identify stat. laws :

Regression Main composant analyse Difference


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How to choose your approach ?

Projects

Parts

Process

Operations

X 10Analogical

X50 StatisticalFew information

Maxi of information

Analytical

X 1

Parametrical

Risk reduction

Setting-up

Change control

Parametrical

IntuitiveX 1

X50X 1

X 1

Analytical


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Advantages / disadvantages

Intuitive Analogical Analytical Parametrical Statistical

Precise evaluationReliability

SensitivenessRight price

Implementation

Set-up easiness

Automation

Technical Level

Budget and resources


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Challenges for a company implementing a costing solution

1. Correlation cost estimation and manufacturing cost(feedback loop)

2. Update data (technical and economical)

3. Training and customization

4. Integration with ERP system (input and/or output)

5. Implementation in a group with subsidiaries

6. Vulgarization of Costing tool

7. Education of “ordering party” and “sub/contractors” in exchanging 3D model files


Page 24


Study-case : automated cost calculation

from CAD file to Costing in few clicks !

• Cetim TechniQuote analytical automatic/interactive

Video


Page 25


Costing : perspectives

- Enlarge Costing to multi-technology :- Sheet metal- Tooling- Forging- Composites

- Mix performant approaches- Statistical and analytical

- Costing orientations- Introduce as a major phase in the Product Life Cycle- Feed back to engineering- Optimization of process for O&M department


Page 26


Thank you for your attention

Cetim52, Avenue Félix-Louat

France - 60 304 Senlis Cedex

Laurent BERTELOOTTel : (+33) 3 44 67 47 79

Mail : [email protected]

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