Reducing total costs of machined parts through green manufacturing

By mapping the activities required during implementing green manufacturing, it is possible to identify operational improvements that will lead to reduction of lead times and subsequent total costs reduction. Thus, a costing approach is necessary to provide information on the behaviour of total costs over time under different cutting conditions on the shop floor. In this work, a costing approach that integrates systems dynamics and improved process-based cost modelling is introduced. The model is applied to a multi-stage machining process for cost estimation of machined parts and illustration that variation in cutting parameters is tied to the individual process cost structure and can achieve green manufacturing objective. The results show total costs of machined parts is dependent mainly on manpower cost, equipment cost and material cost, and a simultaneous increase in cutting parameters yields a 25% reduction in total costs per part in the multi-stage machining system.