Semi-automated process planning and cost estimation of turned components based on CATIA V5 Machining

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Introduction
This chapter describes the background, purpose and the scope of the thesis. It also
states the main tasks and the delimitations of this work.

1.1 Background
In an environment of increasing globalization, companies are facing greater
competition. This pushes them to constantly improve their competitiveness in order to
maintain their market position. Aside from product quality, price and lead-time are
key factors impacting companies’ ability to close a deal.
Price must be set at a level which can satisfy customers while guaranteeing profits.
Companies have been putting greater emphasis on cost reduction in product
development. As markets become more competitive, in order to be able to offer the
client a continuously competitive quotation, there is a need for a greater emphasis on
reliability and accuracy of the cost estimations in the quotation process. On the other
hand, decreasing lead-time is also a main focus of the companies in a competitive
market. It has become clear that, in particular from a subcontractor perspective there
is an emerging need for support in the quotation process.


1.2 Purpose and aims
The quotation process involves the calculation of the cost, overhead and profit. Cost
itself is mainly composed of material cost and production cost. In most industrial
products, the cost of material contributes the large part of the total cost and it is very
easy to estimate. However, production costs which are usually based on process
planning, are more difficult to estimate. With the use of CAM, the manufacturing
process can be simulated. Cost estimation with higher accuracy can be obtained by
using more detailed production information.


1.3 Delimitations
The scope of this thesis is quotation process within a manufacturing company, with
the focus on process planning and cost estimation. The information generation
between CAD/CAM system and the application program is the main focus of the body
of work.


2 Literature review
This chapter provides a literature overview on Cost estimation, Process planning,
Design automation and Visual Basic programming.
2.1 Cost estimation
Why cost estimation?
Because the costs are not known in advance, a cost estimation system is required to
generate the required cost information (ten Brinke, 2002).