Economical Justification of Fms and Case Studies

ECONOMICAL JUSTIFICATION OF
FMS AND CASE STUDIES

INTRODUCTION
● A flexible manufacturing system (FMS) is an arrangement of machines interconnected
by a transport system. The transporter carries work to the machines on pallets or other
interface units so that work-machine registration is accurate, rapid and automatic. A
central computer controls both machines and transport system.
● BASIC COMPONENTS OF FMS
The basic components of FMS are:

1. Workstations
2. Automated Material Handling and Storage system.
3. Computer Control System
Economical/Financial Justification
● Economic justification of FMS is basically a calculation of the return on investment
over time against the cost of implementing an FMS.
● One approach would be a comparison of the cost of the machine and software versus
labor, floor space, sales, lead time, production, automation.
● Economic justification can be calculated by comparing the data from before and after
implementing the system. Factors include the process cycle time which the
conventional system or job shops would take in comparison to the FMS, the
efficiency of the production as compared to the original systems.
● We should also factor in the time it takes to resolve technical glitches and reach a
smoothly functioning system. Thus the question becomes “does the cost of buying
implementing such an expensive system justify the production and profit which the
company can make?”.
JUSTIFICATION METHODS
(1) The payback method- the time needed to recover the investment from the incremental
profits generated.
(2) The return on investment method - the percentage of the investment represented by
the profit generated in a 'normal' year of operation.
(3) The net present value method - which takes into account the cash flows generated
throughout the whole life of the project.
(4) The internal rate of return method- which is similar to (3) but is used to find the
percentage interest rate which will result in a zero net present value.
(5) The MAPI method- which is used primarily for replacement investments, is also
based on the net present value approach, adjusted for capital utilisation.
Case Studies
POLMAN T-100 Vise Casting
● For a case study in the development of this FMS used POLMAN T-100 vise through
comparing process method between conventional and FMS for casting components
only, namely fixed jaws and moving jaws.
● Conventional Method: Milling machine and drilling machine are used for
conventional method with special Jig and Fixture (JF) as a guiding tool in producing
casting component of POLMAN T-100 vice which the processing type is always in
batches.
● FMS Operation Plan: The operation plan is a sequence of activities in producing
POLMAN T-100 vise which is starting from mounting/clamping workpieces on the
tower block and the end is the finished product un-clamping. The total operation time
of FMS method through sequence of events in the operation plan to produce 4 pairs of
POLMAN T-100 vise is 228.52 minutes.
Conclusion
􀁸 More than 22 time faster for producing 200 pairs of POLMAN T-100 vice casting
product.
􀁸 Material handling time is 5.14 times faster within 1-cycle of production.
􀁸 Reduced contact with the operator, even after the material are ready, the FMS can run
automatically
Case 2: The Rover LM-500
● FMS system and Host at rover cars Ltd. Birmingham, UK has been developed for the
manufacture of 16-valve cylinder heads.
● The object of the host development is to ensure optimum machine capacity
* To achieve high product quality
* To Ensure the optimum Machine Capacity utilization.
* To enable Flexible Responses to changes in Production and Market Requirements.

The FMS is used for mixed batch and series production; the FMS host controller
coordinate 3 production areas.
1. The first production area is for machining piece parts
2. The second production area is for finishing including assembly of piece parts.
3. Third production area is for supplying raw materials, removal of finished parts and
organization of a quarantine buffer.
● nterconnection of these three production areas is provided by two fully automatic
robot-clamping areas,
● which clamp piece parts, supplied to the FMS on transport containers, on to pallets,
which then carry the work into the FMS under host control,
● the robots also unload the completed work from the pallets for removal of the work
from the FMS.
● With in these three production areas the host computer supplies the processing station
with necessary tooling and part-program information and also provides The inductive
transport system with transport orders to supply the machines with pieces parts.
● Quality control is in the form of random part measurement organized by the host. The
host blocks any m/c responsible for exceeding tolerance and identified to the operator
the piece parts which have been in the quarantine store since the last random sample
inspection.
● There the operator then inspects quarantined piece parts.

Economical Justification of Fms and Case Studies

Uploaded by

Copyright:

Available Formats

Economical Justification of Fms and Case Studies

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Economical Justification of Fms and Case Studies

Uploaded by

Copyright:

Available Formats

ECONOMICAL JUSTIFICATION OF

FMS AND CASE STUDIES

● BASIC COMPONENTS OF FMS

The basic components of FMS are:

􀁸 Material handling time is 5.14 times faster within 1-cycle of production.

* To achieve high product quality

* To Ensure the optimum Machine Capacity utilization.

* To enable Flexible Responses to changes in Production and Market Requirements.

1. The first production area is for machining piece parts

You might also like