Conventional versus NC production: The impact of tooling costs

There are many advantages to using NC machines over conventional machines including reduced throughput time, reduced work-in-process inventory, less scrap, better quality and much more flexibility. Because many operations are performed at one work center, there are fewer opportunities for delays, damage from material handling, improper set-ups and operator error. However, tooling often becomes a dominant cost of machining a part. In some cases it exceeds the sum of machine maintenance and energy costs. An Investment Index model is developed which can assist in understanding the significance of tooling and tooling cost with respect to piece part design, production, quality, production planning and control and the ultimate profitability of the manufacturing production organization. The index provides insight into the profitability of alternative methods of production.