Cost Reduction Project

0617-240-70 Manufacturing Processing II Project
Cost Reduction of a Light Switch
Plate
Executive Summary
The original price of the light switch plate is $3.99. The 40% rule is used to find out
what is costs to make the plate. To do the 40% rule by multiplying 0.40 to $3.99. By
doing the 40% rule it came out to $1.60. It takes $1.60 to manufacture a light switch
plate form this $3.99 plate. A cost reduction was done to determine a cheaper way to
manufacture the plate. The prices of the three common ways to manufacture this part
were calculated. The stamping, abrasive water jet, and laser are the manufacture
processes that were calculated. When comparing prices the proper way to
manufacture the plate is by comparing how much it cost to make it and the time to
make it. According to the calculations the stamping is the quickest and the cheapest
way to make a light switch plate. Abrasive water jet machining is the slowest way to
manufacture it. Laser is between abrasive water jet and stamping. Cost wise laser is
the most expensive to make per piece because of all the tooling/consumables
involved with laser while abrasive water jet is in between laser and stamping for cost.
Stamping is the cheapest and the fastest way to make the plate.
Author: Stephanie Ulman
For: Professor Slifka

1 Stephanie Uman
Cost Reduction Project 0617-240-70
Material Selection
 Carbon steel
 Gauge 15: 18in x 18in (picture below of the nesting when stamping.
 The plate has an antique textured antique pewter finish.
 This finish will be the same for all the pieces.
Assume 8 lb = 50 lbs = 40 sheets
Figure 1 shows a sheet of the nesting when stamping.
18 in ×
1 ft
12 in
= 1.5ft
1.5ft × 15ft = 2.75 ft2
2.75ft2
× 40sheets = 90 ft2
for 40 sheets
15 parts × 40 sheets = 600 parts for 40 sheets
$50
600 pieces
= $0.08 for each light switch plate
18 in
18 in
4.5
in
2.75 In

2 Stephanie Uman
Assembly
Light Switch Plate
Table 1 shows the dimensions of the light switch plate. The thickness was assumed.
Light Switch Holes
(Assu
Table 2 shows the assumptions of the dimensions of the rectangle hole in the light
switch plate.
Table 3 shows the dimensions two circle holes. This is an assumptions of the
measurement of the holes.
Diagram 2 is a picture of the light switch plate that was used in this cost analysis. The
part number is 9TAP101.
Part Specific Tooling/Steps
Traditional process
Stamping
First place a sheet of material into the punch press die set. Then active the punch
press. When the ram returns the operator removes the finish parts from the die set
and the removes the scrape material. Then the process repeats.
Height 4.5 in
Width 2.75 in
Thickness 0.06 in
Height 1 in
Width 0.5 in
Radius 0.125 in

3 Stephanie Uman
Non-Traditional processes
Abrasive Water Jet
The operator will put the material on the abrasive water jet bed. Then the operator
pushes the start button. The machine would cut the interior holes. Then the machine
would cut the outside shapes of the light switch cover. After the machine is finished it
will go to the resting position. Then the operator will remove all the finished parts and
then the scrap. Then the operator would repeat the process.
Laser
The operator will put the material on the laser bed/brick. Then operator will push the
start button. Then the machine would cut all the interior holes. Then the machine will
cut the outside shape. After the machine is finished it returns to the starting position.
Then the operator would remove all the finished parts and the scrap. Then the
operator repeats the process.
Contacting Manufactures
I could not get in contact with the manufacturer so I assumed the light switch cover
was stamped. I also tried to contact the some manufactures for stamping, abrasive
water jet and laser so I could get some costs. The only person I got an email back
form Brad Copper from Klein Steel.
Capital Equipment
Strength and Weaknesses
The strength for stamping process will be the time rate it takes to make each part.
The weakest for stamping would be the tooling/consumables cost. The
tooling/consumables for stamping last a long time so it can be a benefit.
Abrasive water jet weakest point is the length of time to make a light switch cover is
really high compared to stamping and laser.
Laser is the go between for time meaning it is faster than abrasive water jet but
slower than punching. The only weakness about this method is that the
tooling/consumables cost the most out of these methods.
Equipment
HP accu-Lock
A HP accu-Lock machines ball holes and punch plates. Cutting lead times from
several weeks to days reducing waste. On the right is a picture of a HP accu-Lock
machine. This stamping machine costs $700.00.

4 Stephanie Uman
Figure 3 shows the HP accu-Lock machine which is a
stamping machine.
Mach 2B Abrasive Water Jet
The Mach 2B waterjet models have a 3 sided easy access to work piece. It has a
large diameter ball screw drive system. Also the Mach 2B waterjet models have a
unique autolube system. It also has a heavy duty material support. This machine has
the accuracy of 0.005 inch per 3 feet. The speed range for the Mach 2B waterjet
models is up to 400 rpm. An abrasive water jet machine is $49,950.00.
Figure 4 shows a
Mach 2B Waterjet model.
HIPPO Mid-Power Q-Switched Laser
This laser has a high output power for fast throughout. The high peak power
minimizes thermal damage to the parts. The thermo-beam has characteristics for a
large depth of field. The modular design allows easy field replacement of key
components. A laser machine costs $5,200.00.

5 Stephanie Uman
Figure 5 shows a HIPPO Mid-Power Q-
Switched Laser.
Process
When comparing prices the proper way to do it is by comparing how much it cost to
make it and the time to make it.
Traditional
Stamping/punching
Overhead
Assume
$50
hour
(
$50
600
+
$100
600
) = $0.25 for each light switch plate
Labor
Setup man
$50
hour
(assumed)
(Works for 2 hours assumed)
$50
hour
×
2hours
1 day
= $100
Production Worker
$18
hour
(assumed)
Assume
40 sheets
hour
=
600 pieces
hour
$118
600 𝑝𝑖𝑒𝑐𝑒𝑠
= $0.20 𝑓𝑜𝑟 𝑒𝑎𝑐ℎ 𝑝𝑖𝑒𝑐𝑒

6 Stephanie Uman
Consumables/Tooling
 Assume price of die = $40,000
 Assume lifespan of die = 150,000 parts
 Assume maintenance cost = $1000
$40000
$150000
= $0.27
Packaging for light switch plates
 Assume $0.03 each
Non-traditional
Abrasive Water Jet
Overhead
Assume
$50
hour
$50 × (30.5 hrs + 2 hrs) = $162.50 for 600pieces
$162.50
600𝑝𝑖𝑒𝑐𝑒𝑠
= $0.27 𝑓𝑜𝑟 𝑒𝑎𝑐ℎ 𝑝𝑖𝑒𝑐𝑒
Labor
Setup man
$50
hour
(assumed)
(Works for 2 hours assumed)
$50
hour
×
2hours
1 day
= $100
Production Worker
$18
hour
Perimeter
(4.5 in × 2) + (2.75 in × 2) + (1 in × 2) + (0.5 in × 2) + (π × 0.125 in × 2)
= 18.285 in
Cutting Speed
6 in
min
(between
0.6 in
min
and
18 in
min
)
18.285 in
6
in
min
= 3.05min × 600 pieces =
1830 min
60 min
= 30.5 hrs
30.5hrs × $18 =
$549
hr
for 600 pieces
(
$549
600 pieces
+
$100
600 pieces
) = $1.08 for each piece

7 Stephanie Uman
Consumables/Tooling
Abrasive
$140
1000 𝑚𝑒𝑡𝑟𝑖𝑐 𝑡𝑜𝑛𝑠
= $0.14 × 30.5 ℎ𝑟𝑠 =
$4.27
ℎ𝑜𝑢𝑟
$140
$4.27
= 32.79 hrs (the abrasive lasts 32.79hrs)
$4.27 × 30.5 ℎ𝑟𝑠 = $130.24 (this is what the abrasive costs to make 600 pieces)
Filter
 $52 -assume it lasts for a month
 10 in
 0.45 Microns
Jewel
 $14.50 - assume it lasts every 2 years
 D = 004 in
 Ruby
Bed/Brick
 $34 (assume it lasts up to 2 years)
 4 in x 6 in x 48 in
$130.24 + $52 + $14.50 + $34
= $0.38 𝑝𝑒𝑟 𝑝𝑖𝑒𝑐𝑒
Water
 Assume $5
Packaging for abrasive water jet will be the same.
Laser
Overhead
Assume
$50
hour
$50 × (3.7 hrs + 2 hrs) = $285 for 600pieces
$285
600𝑝𝑖𝑒𝑐𝑒𝑠
= $0.48 𝑝𝑒𝑟 𝑝𝑖𝑒𝑐𝑒
Labor
Setup man
$50
hour
(assumed)

8 Stephanie Uman
(Works for 2 hours)
$50
hour
×
2hours
1 day
= $100
Production Worker
$18
hour
(assumed)
Perimeter
(4.5 in × 2) + (2.75 in × 2) + (1 in × 2) + (0.5 in × 2) + (π × 0.125 in × 2)
= 18.285 in
Cutting Speed
50 in
min
(between
3 in
min
and
100 in
min
)
18.285 in
50
in
min
= 0.37min × 600 pieces =
222 min
60 min
= 3.7 hrs
3.7 hrs × $18 = $66.60 for 600 pieces
(
$66.60
+
$100
) = $0.28
Consumables/Tooling
 Focus Lenses $610 (assume lasts every month)
 Nozzle $6 (assume lasts every 2 weeks)
 Vacuum Oil $50 (assume lasts every 2 months)
 Vacuum Filter $200 (assume lasts every 4 months)
 Primary Mirror $2,351 (assume lasts for a year)
 Internal Bending Mirror $447 (assume lasts for a year)
 Internal Polarizing Mirror $838 (assume lasts every year)
 Output Coupler $2,198 (assume lasts every year)
 Chiller Filter $300 (assume lasts every 2 months)
 Polarizing mirror $1,860 (assume lasts every year)
 Collimator Optics $829 (assume lasts every year)
 External Bending Mirror $433 (assume last every year)
 Adaptive Mirrors $2150 (assume last every year)
 Gas
CO2 = Volume (0.42
ft32
hrs
) =
$0.25
ft3
0.042 ft3
hrs
×
$0.25
ft3
=
$0.01
hr
×
3.7 hrs
600 pieces
= $0.00006 per piece
$(610 + 6 + 50 + 200 + 2351 + 447 + 828 + 2198 + 300 + 1860 + 829 + 433 + 2150)
$20.45 + $0.01 = $20.46 𝑝𝑒𝑟 𝑝𝑖𝑒𝑐𝑒

9 Stephanie Uman
Packaging for laser will be the same.
Secondary operations
After the light switch goes through the non-traditional process the light switch plates
need a secondary operation. The secondary operation needs to done to create a
curve on the part. The secondary operation method will be a stamping method.
Shaping tool assumed $700
$700
600
= 1.16 (lasts 100 years)
(Assume 2 seconds for each part)
2 𝑠𝑒𝑐
𝑝𝑖𝑒𝑐𝑒
× 600 𝑝𝑒𝑖𝑐𝑒𝑠 ×
1 𝑚𝑖𝑛
60 𝑠𝑒𝑐
×
1 ℎ𝑟
60 𝑚𝑖𝑛
= 0.3 ℎ𝑟𝑠
Abrasive Water Jet
Costs $1.84 +$1.16 = $3.00
Time 32.5 hrs + 0.3 hrs = 35.5 hrs
Laser
Costs $21.33 + $1.16 = $22.49
Time 5.7 hrs + 0.3 hrs = 6 hrs
Costs
Production Costs
Stamping Material $0.08
Overhead $0.25
Labor $0.20
Consumables/Tooling $0.27
Packaging $0.03
Total $0.83
Table 4 shows the total cost of the stamping process.

10 Stephanie Uman
Production Costs
Abrasive
water jet Material $0.08
Overhead $0.27
Labor $1.08
Packaging $0.03
Shaping $1.16
Total $3.00
Table 5 shows the total cost of the abrasive water jet process.
Production Costs
Laser Material $0.08
Overhead $0.48
Labor $0.28
Packaging $0.03
Shaping $1.16
Total $22.49
Table 6 shows the total cost of the laser process.
From the tables above stamping is the cheapest method to make a light switch plate.
It is cheaper than using the process abrasive water jet and laser. Stamping tools and
consumables are very expensive, but they last a long time. For the abrasive water jet
the tooling and consumables are in between the laser and the stamping method. The
material and the packing remain the same cost for all these processes. After the non-
traditional processes (laser and abrasive water jet) there needs to a secondary
operation in order to add a curve to the light switch plate. The labor costs vary
between these three processes. Abrasive water jet is the highest labor because it
takes the most time to make. The material and the packing remain the same cost
form all these processes. From doing all of these calculations the stamping method is
the cheapest way to make the plate.

11 Stephanie Uman
Time
Method Times
Times
with
shaping Total
Stamping 3 hrs 0 hrs 3 hrs
Abrasive
water jet 32.5 hrs 0.3 hrs 32.8 hrs
Laser 5.7 hrs 0.3 hrs 6 hrs
Table 7 shows the amount of time that it takes to make 600 light switch plates.
The material and the packing remain the same cost form all these processes
Conclusion:
In conclusion the cheapest and quickest way to make a light switch plate is stamping.
As you can see from the table below.
Stamping
Abrasive
water jet
Laser
Costs $0.83 $3.00 $22.49
Time 3 hrs 32.8 hrs 6 hrs
Table 8 shows the stamping process is the cheapest followed by abrasive water jet
and laser. Also it shows that the stamping method is the quickest way to make the
plate.
In the table above the abrasive water jet is the slowest process. The laser is faster
than the abrasive water jet but, the quickest way is stamping. Therefore, stamping
will be the quickest way to make the light switch plate. From this project the
materials, cost of the packing and the overhead remain the same. But, the total
overhead remains close to the same it can vary because of the hours of labor to
make the light switch plate. From the table above the cheapest way to make a light
switch plate is stamping and the cost is $0.83. The original price of the light switch
plate is $3.99. The 40% rule is used to find out what is costs to make the plate. The
40% rule was used and it came out to $1.60. So, the company that sells these plates
are making money off of the consumer buys the light switch plate. The company is
making $0.77 from the consumer if they manufacture it the cheapest way.

12 Stephanie Uman
References
Material
http://www.custompartnet.com/sheet-metal-gauge
Stamping Equipment
http://kalamazoometalmuncher.com/hydraulicpunchpress.htm
http://www.fabequip.com/equipment/ironworkers/metal%20muncher/metal%20munch
er%20ironworker%20gb_series.htm
http://www.barton.com/inventory.asp?CatId={DD841E1C-EDD0-4FB3-AD72-
13AF8E4A53E5}
http://www.wilsontool.com/stamping/stamp_accuLock.html
http://www.ebay.com/itm/Metal-Stamping-Machine-Press-
/350561773159?pt=LH_DefaultDomain_0&hash=item519f1c2667
Part
http://www.wallplatewarehouse.com/9tap101.html
Kohser, Ronald. Materials and Processes in Manufacturing. Eleventh Edition. 2012.
Abrasive Water Jet consumables:
http://www.alibaba.com/product-
gs/282156151/garnet_abrasive_for_waterjet_cutting.html?s=p
http://www.barton.com/inventory.asp?catid={F86AEEAF-AD12-4C84-AD02-
34BECF05E705}
http://www.barton.com/inventory.asp?CatId={3F67B516-B955-4DE9-83D3-
B4D3FFE86508}
http://www.barton.com/inventory.asp?CatId={3F67B516-B955-4DE9-83D3-
B4D3FFE86508}
http://www.ebay.com/itm/Abrasive-Waterjet-Machine-
/230670729726?pt=LH_DefaultDomain_0&hash=item35b50c01fe
Laser
http://www.alibaba.com/product-gs/505531139/Nozzle_for_laser_machine.html
http://www.lom.cc/

13 Stephanie Uman
http://www.newport.com/HIPPO-Mid-Power-Q-Switched-
Lasers/501221/1033/info.aspx
http://www.ebay.com/itm/CO2-LASER-ENGRAVING-CUTTING-MACHINE-
ENGRAVER-100W-N9060-
/251065336687?pt=LH_DefaultDomain_0&hash=item3a74a9036f
Cooper, Brad .Klein Steel.
Equipment
http://www.wilsontool.com/stamping/stamp_accuLock.html
http://www.flowwaterjet.com/en/waterjet-cutting/cutting-systems/mach-
2/cutting-systems/Mach%202b%20Models.aspx
http://www.newport.com/HIPPO-Mid-Power-Q-Switched-
Lasers/501221/1033/info.aspx

14 Stephanie Uman
Appendix 1
Special Retainers on Demand/Stamping
Create, modify and reuse special retainers on-site and on
demand with HP Accu-Lock® Retainer Inserts by Wilson
Tool. HP Accu-Lock simplifies the use of special retainers
by eliminating the need for complicated jigs, inspection
fixtures and specialized knowledge to machine ball holes
into the punch plate. In fact, HP Accu-Lock eliminates the
ball hole. Punches are held securely in place with a
straight-line machined hole that can easily be created in-
house.
Shorter Lead Times and Less Waste Means Lower Costs.
Purchasing custom retainers for a special request is
costly and can add weeks to a job. With HP Accu-Lock, you can not only create your
own special retainers in-house but also modify and reuse existing retainers. Cutting
lead times from several weeks to a day and significantly reducing waste.
HP Accu-Lock Retainer Inserts are fully compatible with all ball lock punches,
including HP Ball Lock punches from Wilson Tool International.

15 Stephanie Uman
Appendix 2
Mach 2b Waterjet Models
Flow Performance Made Affordable
The Mach 2 Series outperforms the standard waterjet offerings in the industry
and wins in VALUE.
Excellent Work Table Accessibility on a Machine Built for the Rigors of Waterjet
Cutting
With robust mechanical design, integrated machine systems, intuitive user control,
multiple table sizes, and several configurations available, the Mach 2b Series sets
you up for success.
The core components of our Mach 2b waterjets
series - including Paser abrasive cutting system,
pump technology, and FlowMaster software - are
the very same components found on our elite Mach
3 and Mach 4 waterjet series.
With a Mach 2b you won't sacrifice performance,
structural integrity, or the overall quality of your
system. In fact, its solid steel casting construction
and precision reciprocating ball screws are components often found in other
manufacturers premium machines.
Special Features:
 Core components include Flow's Paser abrasive
cutting system, pump technology, and FlowMaster
software
 3-sided easy access to your workpiece
 Large diameter ball screw drive system
 Unique autolube system
 Rigid construction for structural integrity
 Roll-around control
 Multiple pump configurations
 Heavy duty material support
 Solid steel casting construction

16 Stephanie Uman
 World class Flow service available 24/7 365 days per year
Options and Accessories:
 UltraPierce™ cutting system - for optimal piercing performance on stone,
glass, and laminated materials
 Multiple head option, including patented Paser abrasive cutting system for
peak performance
 Cuts higher precision parts with a variety of software
packages available, including FlowMaster easy to
use software
 FlowNest software - with full geometric software with
scrap remenant control (small parts are
automatically nested within larger parts)
 FlowShift Vectorization software - converts images,
sketches, and line drawings to vector formats in
minutes
 Smart Stream technology
 Interchangeable pure waterjet and abrasive
waterjet cutting head systems available to cut a wide
variety of materials
 Final filtration system
 Variety of pump configurations up to 60,000 psi
 Professional classroom training; as well as on-site familiarization with every
machine
 Widest variety of Sapphire, Ruby or Diamond orifices to match every
application
Mach 2b Models:
 1005b
Work envelope: 1.0m x 0.5m (3.3ft x 1.6ft)
 1313b
 2031b
 4020b
Specifications
Accuracy (+/-) 0.005" inch per 3' feet at 68° ± 3°F
(± 0.127 mm per 1M at 20° ± 3°C)

17 Stephanie Uman
Repeatability (+/-) 0.0025" inch at 68° ± 3°F
(0.0635 mm at 20° ± 3°C)
Speed Range Up to 400 ipm

18 Stephanie Uman
Appendix 3
HIPPO Mid-Power Q-Switched Lasers
 OEM/Industrial design for 24/7 operation
 Single platform for 4 output wavelengths: 1064 nm, 532 nm, 355 nm, 266 nm
 High output power for fast throughput
 High peak power minimizes thermal damage to your parts
 Superior pulse-to-pulse stability for clean, consistent processing
 TEM00 beam characteristics for large depth of field
 Long life diodes mean low cost of operation and high uptime
 Modular design allows easy field replacement of key components
 Contact Us
 Feedback
 Overview
 Applications
 Features
 Reliability
 Specifications
 Literature & Downloads
Highlights
The Spectra-Physics HIPPO lasers are a family of high power diode-pumped solid
state (DPSS) Q-switched lasers with available outputs of 1064, 532, 355 and 266 nm
wavelengths. They are used primarily in 24/7 industrial applications such as solar cell
manufacturing, LED scribing and other microelectronics applications.
The HIPPO Q-switched laser is among the most popular industrial DPSS lasers
available. It has a strong track record and large installed base around the world. Our
diodes last double the industry average. The laser’s modular design allows easy field
replacement of key components including diodes and fibers, laser output window,
and the harmonic module without costly tool realignment. Rugged and proven, the
HIPPO is the tool of choice in applications where uptime is critical.
Model Wavelength
Peak
Power
Average
Power
Pulse
Width
Repetition Rate
(nominal)
HIPPO 1064-17
DPSS Laser
1064 nm
~22.7
kW
>17 W
<15 ns at
50 kHz
50 kHz
HIPPO 1064-27
DPSS Laser
1064 nm ~9 kW >27 W
<30 ns at
100 kHz
100 kHz
HIPPO 532-11
DPSS Laser
532 nm
~16.9
kW
>11 W
<13 ns at
90 kHz
50 kHz
HIPPO 532-15
DPSS Laser
532 nm ~6 kW >15 W
<25 ns at
100 kHz
100 kHz

19 Stephanie Uman
Model Wavelength
Peak
Power
Average
Power
Pulse
Width
Repetition Rate
(nominal)
HIPPO 355-5
DPSS Laser
355 nm ~8.3 kW >5 W
<12 ns at
50 kHz
50 kHz
HIPPO Prime 266-
2 DPSS Laser
266 nm ~3.3 kW >2 W
<12 ns at
50 kHz
50 kHz
Excellent Performance
HIPPO Q-switched lasers are characterized by extremely short pulse width (as low
as <11 ns). High peak power and short pulse widths minimize undesirable thermal
damage, such as heat affected zones, recast material, kerfs, and micro-cracking of
the substrate.
All HIPPO Q-switched lasers have excellent beam quality, which ensure a large
depth of field and guarantee consistent and reliable scribing results over a wider
range of material flatness, thickness, and surface variations.
HIPPO lasers have stable power, low pulse-to-pulse energy variation, and stable
beam pointing over a wide range of operating conditions, including time, temperature,
and pulse repetition rate.

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