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An economic decision model for selective assembly

Author

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  • Caputo, Antonio C.
  • Di Salvo, Girolamo

Abstract

In case of assemblies requiring a close fit, strict tolerances must be specified resulting in high manufacturing costs. In such cases, selective assembly may be adopted as a cheaper alternative to traditional interchangeable parts assembly. In selective assembly wider tolerances can be specified, thus reducing processing cost, and manufactured parts are sorted into groups by dimensions so that only parts from matching groups are assembled. The choice between selective and traditional assembly, however, requires comparing the cost of the two options, but literature is lacking as far as selective assembly cost models are concerned. In this paper a managerial economic model is developed to quickly compare cost of traditional and selective assembly in order to identify the lower cost option. The model includes machining and materials cost, including scrapped parts, as well as gauging/sorting cost and work in process holding cost. A sensitivity analysis as well as a numerical case study exemplifies model application also showing trade-offs between the relevant parameters.

Suggested Citation

  • Caputo, Antonio C. & Di Salvo, Girolamo, 2019. "An economic decision model for selective assembly," International Journal of Production Economics, Elsevier, vol. 207(C), pages 56-69.
    • Handle: RePEc:eee:proeco:v:207:y:2019:i:c:p:56-69
    DOI: 10.1016/j.ijpe.2018.11.004
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    References listed on IDEAS

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    1. Hyuck‐Moo Kwon & Kwang‐Jae Kim & M. Jeya Chandra, 1999. "An economic selective assembly procedure for two mating components with equal variance," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(7), pages 809-821, October.
    2. C.R. Coullard & A.B. Gamble & P.C. Jones, 1998. "Matching problems in selective assembly operations," Annals of Operations Research, Springer, vol. 76(0), pages 95-107, January.
    3. Matthias Tan & C. Wu, 2012. "Generalized selective assembly," IISE Transactions, Taylor & Francis Journals, vol. 44(1), pages 27-42.
    4. Chen, Mu-Chen, 2001. "Tolerance synthesis by neural learning and nonlinear programming," International Journal of Production Economics, Elsevier, vol. 70(1), pages 55-65, March.
    5. Yang, Christopher C. & Naikan, V. N. Achutha, 2003. "Optimum design of component tolerances of assemblies using constraint networks," International Journal of Production Economics, Elsevier, vol. 84(2), pages 149-163, May.
    6. A. Sanz-Lobera & Emilio Gómez & Jesús Pérez & Lorenzo Sevilla, 2016. "A proposal of cost-tolerance models directly collected from the manufacturing process," International Journal of Production Research, Taylor & Francis Journals, vol. 54(15), pages 4584-4598, August.
    7. Irianto, Dradjad, 1996. "Inspection and correction policies in setting economic product tolerance," International Journal of Production Economics, Elsevier, vol. 46(1), pages 587-593, December.
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    Cited by:

    1. Toyin Clottey & W. C. Benton, 2021. "On Sharing Part Dimensions Information and Its Impact on Design Tolerances In Fixed‐Bin Selective Assembly," Production and Operations Management, Production and Operations Management Society, vol. 30(11), pages 4089-4104, November.
    2. Mencaroni, Andrea & Claeys, Dieter & De Vuyst, Stijn, 2023. "A novel hybrid assembly method to reduce operational costs of selective assembly," International Journal of Production Economics, Elsevier, vol. 264(C).

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