A production economics model for predictive cost assessment in manufacturing

Economic assessment of manufacturing processes evaluates the effects of engineering-economics factors on the current and expected future cost performances in manufacturing. The relationships between those factors are usually specified in production economics models. In this study, a production economics model has been developed to predictively assess the cost effectiveness of liquid forging process. The model consists of the economic relations and influences of engineering parameters, production properties, and economic conditions on manufacturing cost of liquid forged parts. Five critical cost drivers are identified from the liquid forging economics model. The effects of these cost drivers are analyzed through case studies. The proposed model provides a new way to gain insights into the cost behaviors for identifying cost reduction potentials of manufacturing processes.