Process Planning and

Product Costing

CHAPTER I PRODUCTION PLANNING AND CONTROL

 Course outline of Production Planning and Product Costing
Course No MEng 5313
Course Title Production Planning and Product Costing
Pre-requisites: MEng 4211 (Manufacturing Engineering II)
Instructor Dr B.K. Singh, Dr. G.M. Sayeed Ahmed, Mr. Solomon Dufera,
Email: balkeshwar.singh@astu.edu.et, gmsayeed.ahmed@astu.edu.et ,
Solomon.duf@gmail.com
Student work load Credit Lectures Tutorials Laborratory
Weekly basis 3 2 3 0
Course Objectives: The course enables students to:
 Understand the fundamental concepts in process planning and product costing;
 Plan process of manufactured products;
 Determine cost of manufactured products.
Course descriptions Process flow of products; Production process planning; Automated process planning
systems; Manufacturing cost items; Principles of cost accounting; Traditional product cost
accounting; Activity based product cost accounting
No of Weeks Course Outlines
WEEK 1-2 CHAPTER 1: Introduction to Process Planning
WEEK 3-4 CHAPTER 2: Process flow patterns
WEEK 4-5 CHAPTER 3: Automated process planning systems-CAPP
WEEK 6-7 CHAPTER 4: Manufacturing Cost elements:
WEEK-8 MID-EXAM
WEEK 9-11 CHAPTER 5: Cost Estimation for various process
WEEK-12-13 CHAPTER 6: Principle of accounting; Traditional product cost accounting; activity based
product cost accounting
WEEK 14-15 CHAPTER 7: Cost analysis and Break-even analysis
Week-16 Final Exam
Attendance  Minimum of 80% attendance during lecture hours;
Requirement:  100% attendance during practical work sessions, except for some unprecedented
mishaps; and
 Presence during industrial visit/visits.
Assessment/ evaluation & Grading system
 Assignments 15%
Assessment/ evaluation  Laboratory and Project 20%
 Mid-semester Examination 30%%, and
 What is Manufacturing?

Latin: manus(hand) + factus(make)

…the making of products from raw materials

using various processes, equipment,
operations and manpower according to a
detailed plan.
 Manufacturing VS Production
 When the raw material is used as input to produce goods with the
use of machinery is known as a Manufacturing. The process of
transforming resources into finished products is known as
Production.
 In manufacturing, the use of machinery is a must where as
production can be done with or without the use of machinery.
 In manufacturing ,the output generated will be tangible in
nature,i.e.goods only, but in the case of production it produces
both tangible and intangible outputs ,i.e. goods as well as services.
 Men machine setup should be there for manufacturing of goods
,which Is not in the case of production, the only man is sufficient
for producing output.
 Manufacturing/Production system

Decision Decision
Management

Feedback Feedback
Feedback
Supplier Decision Customer

Input Transform Output

Materials, Capital Manufacturing End products
Demand, Assembling services
Information, Storing,
Energy Service
Transportation

Resource: People, Plants, Parts, Process, PPC

Example: inputs-transformation -outputs of Production system

System Primary Resources Primary Desired

inputs transforma- outputs
tion

automobile steel, power facilities, manufacturin cars with

plant parts, other and workers g and high quality
materials assembling

wholesale goods storage tools distribution instant

center delivery
 Production system
 Production system is a collection of people, equipment, and
procedures organized to perform manufacturing
 Production system dived into two levels Manufacturing
systems
Facilities
Factory and plant
layout

Production system Business function

Product design
Manufacturing
support systems Manufacturing
planning

Manufacturing
9 control
 Facilities
 The Facilities in the production system include the factory,
production machines and tooling, material handling
equipment, inspection equipment, and computer systems that
control the manufacturing operations.
Manual Work

Systems

(Hand tools

employed)
Worker-Machine
Manufacturing
systems Systems (Power

Facilities tools
Automated
employed)Systems
Factory and plant (without direct
layout participation of

1
human)
0
 Manufacturing support systems
 Business functions - sales and marketing, order entry, cost
accounting, customer billing
 Product design - research and development, design engineering,
prototype shop
 Manufacturing planning - process planning, production planning,
MRP, capacity planning
 Manufacturing control - shop floor control, inventory control,
quality control
Types of Productions
Types of Productions
Automation
Specialization
Skills
Types of Productions
3S (Simplification, Standardization, Specialization)
 Product Design and Process Selection
 Product Design – the process of defining product characteristics

 Product design must support product manufacturability (the ease with

which a product can be made)

 Product design defines a product’s characteristics including appearance,

materials, dimensions, tolerances, performances, etc.

 Process selection - the development of the process necessary to produce

the designed product.
 Product Design and Process Selection
 Product Design Process
 Step 1 - Idea Development - Someone thinks of a need and a
product/service design to satisfy it: customers, marketing, engineering,
competitors, benchmarking, reverse engineering

 Step 2 - Product Screening - Every business needs a formal/structured

evaluation process: fit with facility and labor skills, size of market,
contribution margin, break-even analysis, return on sales
 Step 3 – Preliminary Design and Testing - Technical specifications are
developed, prototypes built, testing starts
 Step 4 – Final Design - Final design based on test results, facility, equipment,
material, & labor skills defined, suppliers identified
Product Design and Process Selection
Process planning, selection and analysis
 Product Design – it is the plan for the product and its components and
subassemblies.
 Manufacturing Plan – is needed to convert the product design into a physical
entity.
 Process Planning – the activity of developing such a manufacturing
plan. It is the bridge between product design and manufacturing.

 According to the American Society of Tool and Manufacturing Engineers,

“Process planning is the systematic determination of the methods
by which a product is to be manufactured, economically and
competitively.”
 Process Planning
• Comprise the selection and sequencing of processes and
operations to transform a chosen raw material into a
finished product
• It is the act of preparing detailed work instructions to
produce a component. This includes the selection of
manufacturing processes and operations, production
equipment, tooling and jigs and fixtures.
• It will also normally include determining manufacturing
parameters and specifying criteria for the selection of
quality Assurance (QA) methods to ensure product quality
 Purpose of Process Planning
 It is to determine and describe the best process for each job so that,

 Specific requirements are established for which machines, tools and

others equipment can be designed or selected.

 The efforts of all engaged in manufacturing the product are coordinated.

 A guide is furnished to show the best way to use the existing or the
providing facilities.
Over all development of Process Planning
 Objective of Process Planning

 The systematic determination of the engineering processes and

systems to manufacture a product competitively and economically
is called operations planning.
 It is the stage between design and production.
 The plan of manufacture considers functional requirements of the
product, quantity, tools and equipment, and eventually the costs for
manufacture
 Scope of Process Planning

 Operation planning is a responsibility of the manufacturing

organization. A number of functional staff arrangements are
possible. This process leads to the same output despite
organizational differences. The following are business objectives
for operations planning:
 New product manufacture
 Sales
 Quantity
 Effective use of facilities
 Cost reduction
 Information Required for Process Planning
• Quantity of work to be done along with product specifications.

• Quality of work to be completed.

• Availability of equipment's, tools and personnel's.

• Sequence in which operations will be performed on the raw

material.
• Names of equipment on which the operations will be performed.

• Standard time for each operation.

• When the operations will be performed?

 Process Planning Documentation / Operation
Sheet / Route Sheet
• The route sheet lists the production operations and associated machine tools for each
component and subassembly of the product.
Process Planning Documentation / Operation
Sheet / Route Sheet
 Process Planning Documentation / Operation
Sheet / Route Sheet
Part no. CMF PMF MTF MBF MSPF
HIBRET MANUFACTURING AND MACHINE BUILDING INDUSTRY
√ - Specify your factory in the above box
Job O. No. Ord. Qty Pro. No. Title of parts Cost Sheet No. Customer
4-5-481 1set Oprn -01806/04 Spline shaft with flange (Flange) OPRN-1/0759/06 Kenenia agro industry
Material Code Material type blank size Accessory Starting day Delivery date
12050 Ø140x55mm 3 jaw chuck 15/08/06 23/09/06
Planned time perfo Mea Inspect
S/ Depth No of Actual
N
OPN. Operation description Feed RPM
of cut pass Set up Mach. Total time
rmed Tools s. ed
Time Time Time by tool By
01 CNC  Face Ø135x38mm. 0.4 700 2 2 20min 30min 50min F.carbide V.c
L  Turn Ø134x38mm. cutter alip
0.3
 Step turn Ø78x11.9mm and chamfer 0.5x45°, 800 1.5 5 25min 35min 1hr T. per
carbide
0.2x45°. 0.2
600 2 6 20min 25min 45min cutter
 Drill Ø10 &bore Ø27 throughout, make the groove Drill bit
0.3
Ø68.4x2mm and bore Ø67.5x12mm. 800 1.5 2 25min 20min 45min Ø10,Ø27
 At the reverse side step turn Ø72x16mm,
>>
Ø38x8mm and chamfer1x45°, 0.5x45°.

02 CNC  Drill 8 holes Ø13 throughout. 0.4 700 1.5 5 15min 40min 55min End >>
M millØ13
03 Slot  Make the spines according to the given detail &its
counter pieces.

04 HT  Hardened the material HRC 35-40.

05 GRI  Grind the internal Ø68 (+0.03, 0).

Prepared by:- yetnayet Checked by Approved by remark

Sign: - Sign sign
Date :- Date date
 Input and output of process planning

Part no. CMF PMF MTF MBF MSPF

HIBRET MANUFACTURING AND MACHINE BUILDING INDUSTRY
√ - Specify your factory in the above box
Job O. No. Ord. Qty Pro. No. Title of parts Cost Sheet No. Customer
4-5-481 1set Oprn -01806/04 Spline shaft with flange (Flange) OPRN-1/0759/06 Kenenia agro industry
Material Code Material type blank size Accessory Starting day Delivery date
12050 Ø140x55mm 3 jaw chuck 15/08/06 23/09/06
Planned time perfo Mea Inspect
S/ Depth No of Actual
N
OPN. Operation description Feed RPM
of cut pass Set up Mach. Total time
rmed Tools s. ed
Time Time Time by tool By
01 CNC  Face Ø135x38mm. 0.4 700 2 2 20min 30min 50min F.carbide V.c
L  Turn Ø134x38mm. cutter alip
0.3
 Step turn Ø78x11.9mm and chamfer 0.5x45°, 800 1.5 5 25min 35min 1hr T. per
carbide
0.2x45°. 0.2
600 2 6 20min 25min 45min cutter
 Drill Ø10 &bore Ø27 throughout, make the groove Drill bit
0.3
Ø68.4x2mm and bore Ø67.5x12mm. 800 1.5 2 25min 20min 45min Ø10,Ø27
 At the reverse side step turn Ø72x16mm,
>>
Ø38x8mm and chamfer1x45°, 0.5x45°.

02 CNC  Drill 8 holes Ø13 throughout. 0.4 700 1.5 5 15min 40min 55min End >>
M millØ13
03 Slot  Make the spines according to the given detail &its
counter pieces.

04 HT  Hardened the material HRC 35-40.

05 GRI  Grind the internal Ø68 (+0.03, 0).

Prepared by:- yetnayet Checked by Approved by remark

Sign: - Sign sign
Date :- Date date

Ref: Process planning and cost estimation, by Dr. V.Jayakumar

 Process planning Vs Production Planning

Process Planning: It is concerned with technical details such as the

engineering and technological issues of how to make the product,
what types of equipment and tooling are required to manufacture the
product, etc.

Production Planning : It is concerned with the logistics issues of

making the product such as ordering the materials and obtaining the
resources required to make the produce.
Process planning or Operation planning Activities
Analyse (Part ,dimension requirements) [DRAWING INTERPRETATION]

Determine (operation sequence) [MATERIAL EVALUATION AND PROCESS SELECTION]

Select (equipment ) [SELECTION OF MACHINES . TOOLING and WORK HOLDING DEVICE]

Calculate (processing times ) [SETTING PROCESS PARAMETERS]

Select (QA/Inspection methods) [SELECTING QUALITY ASSURANCE METHOD]

Estimate (manufacturing cost) [COST ESTIMATING]

Document (Process Plan ) [PREPARING PROCESS PLANNING DOCUMENTATION]

Communicate (manufacturing Engineer with shop floor)

 Drawing Interpretation
• Aim and Objectives
• Identify appropriate supplementary information from the
drawing to aid the process

• Identify and interpret dimensional information from the drawing

• Identify and interpret geometric information from the drawing

• Identify the critical processing factor for the component from

the dimensional and geometric information from drawing
 Drawing Interpretation cont..

• Types of Drawing
 Detail drawing
I. Single part drawing
II. Collective drawing
 Assembly drawing
a. Single assembly drawing
b. Collective assembly drawing
 Combined drawing
Part drawing
 Factors affecting Process Plan
selection
• Shape
• Tolerance
• Surface finish
• Size
• Material type
• Quantity
• Value of the product
• Urgency
• Manufacturing system itself
• etc.
 Material Evaluation
Important Factor
 Product design must meet the specified need
 Materials with appropriate properties must
be selected
 Suitable manufacturing process must be selected
 The response of the material during manufacture
and its service
 Material Evaluation (cont….)
Aim and Objectives
 Identify and specify common material used for
manufacture
 Identify and specify the main properties of the material
 Identify and specify the common material selection
process
 Identify and specify the common process used for
manufacture
 Carryout an overall evaluation of the selection of
materials for manufacture in terms of processes
 Select the suitable process for given product based on
critical processing factors identified during the drawing
interpretation
 Material Evaluation (cont….)
Type of material
Types of material Evaluation
Material properties
Types of material Evaluation
(Cont…)
Types of metals
 Material Selection Procedure
 Function : Material must perform in terms of
mechanical, physical, electrical and thermal
properties.
 Appearance : The aesthetic value of the material must
be considered.
 Reliability: Increasing consumer demands for trouble
free products
 Service Life : The length of the service life over which a
material retains its characteristics.
 Material selection Procedure (Cont….)
 Environment : The material should sustain the
environmental conditions whether it is beneficial or
harmful.
 Compatibility: When more than one material is used in
a product or assembly.
 Producibility : Material should be able to be used for
which it is intended to
 Cost : The cost of the material should be optimum.
 Analyse the finished Part requirement
 To analyse the finished part requirement as specified in
Engineering design

 The engineering design may be shown as a drawing or CAD

model format

 Based on the feature, dimensions and tolerance specification, the

corresponding processing requirement are identified
Determination of operational sequence
 To determine the type of processing operation that has
the capability to generate the various types of
features based on the tolerance.
 Two alternative ways of viewing the decision
(a)As a conventional production shop, material is removed or
modified on the rough part in stages in order to convert it to
the finished part
(b)The reverse of the first case
Finished part Rough part
Here the material is added onto the part.
 Select the Machine
 Economic considerations
 Production rate and unit cost of
production
 Durability and dependability
 Lower process rejection
 Minimum set up times
 Longer productive life of machines.
 Functional versatility
Calculate the Processing time
 Calculate the set up times and cycle times.
 Set up time is calculated based on the
available tooling and sequence of steps.
 The processing time based on the
sequence of operations is calculated
 Part loading and part unloading time is
calculated.
 Standard cost calculated for the given part
Standard cycle time = Set up time + Processing
time +Part loading and
unloading + allowances
 Route Sheet
 Part identification
 Description of the processing steps in each
operation.
 Operation sequence and machines
 Standard set up time and cycle times
 Tooling requirements
 Production control information showing
the planning, lead time at each
operation.
 Reason for Documentation
• To have a record on how a part is processed
in order to plan future parts with similar
design requirements
• To provide a record for future job
quoting, cost estimating and standard
costing systems
• To act as a means for communication
 Communication
 Communicate the manufacturing
knowledge to the shop floor.
 To ensure that the route sheet is
followed properly.
 To maintain quality in manufacturing.
Approaches in Process Planning
 Manual Process Planning
 Computer Aided Process Planning (CAPP)
(a) Retrieval / Varient type
 GT based(Group Technology)
 Computer aids for editing
 Parameters selection
(a) Generative type
 Some kind of decision logic
 Decision tree/table Artificial Intelligence
 Objective-Oriented Still experience based
 Manual Process Planning
• Examining and interpreting the
drawings
• Making decisions on machining
process selection.
• Equipment selection, tools etc.
• Dependent on the skill and judgment of the
process planner.
• Different planners may produce
different process plans.
 Advantages and Disadvantages
Advantages :
 Used for small scale industries where there only few
processes involved.
 Highly flexible
 Low investment costs
Disadvantages :
 Time consuming involving large amount of data.
 Skilled process planner
 Human error
 Increases paper work
 Inconsistent process plans result in lower
productivity
 Computer Aided process Planning
(CAPP)
• Reduces routine clerical work
• Generates rational, consistent and
optimal plans
• Interfaces CAD and CAM.
Retrieval CAPP
 Retrieval CAPP
 Idea behind retrieval CAPP is that similar parts
have similar process plans.
 Based on the principle of group technology.
 Parts classified and coding.
 For each part family a standard process plan (route
sheet) is prepared and stored in computer
 Code number is generated for each part family.
 When needed for a new part the standard plans are
retrieved and edited for a new part.
Advantages and Disadvantages Retrieval CAPP
Advantages :
• Using a standard plan a variety of new parts can be
planned.
• Simple programming
• Easy to understand and implement.
• User friendly.
Disadvantages :
• Experienced process planners are required to
modify the standard plan. (Multi CAPP, MIPLAN)
• The components to be planned are limited in
number
 Generative CAPP
 Generates the process plans based on the decision
logic and pre coded algorithms.
 The computer stores the rules of manufacturing
and equipment capability.
 A Specific process plan for a specific part can be
generated without the involvement of a process
planner.
 The human role includes
Input the GT codes for the part
Generative CAPP (Cont…..)
Decision making logic and algorithms
Decision trees
Expert Systems:
Artificial Intelligent (AI) based approaches
Components of a Generative CAPP
 A part description : identifies series of component
characteristics, including geometric features.
 Machining Parameters : To decide the cutting
parameters.

 Select and Sequence individual operations : Decision

logic and Decision trees, algorithms are used to
calculate the sequence and operation times
 Data base : Available machines and tooling
 Report Generator : Prepares the process
plan reports
 Advantages and Disadvantages Generative
CAPP
Advantages :
 Consistent process plans
 New components can be planned easily.
 Automation is easy because it gives a detailed
control information.
Disadvantages :
 Complex and very difficult to develop
 Software's used : CMPP, EXCAP XPLAN
Thank you