Exercise Problems in Economics of Machining

1. A large batch of steel shafts are to be rough turned to 76 mm diameter for 300 mm length at
a feed of 0.25 mm/rev. A solid HSS type tool is to be used and appropriate constant in Taylor’s
tool life equation for the conditions employed are as follows: n = 0.25; measured tool life at
the cutting speed of 245 m/min is 60 sec. The initial cost of the machine was Rs. 1,50,000/-
and is to be amortized in 5 years. The operator’s wages are Rs. 20/hour and the operator and
machine overheads are 100%. Tool changing and resetting time on the machine is 300 sec
and the cost of regrinding the tool is Rs.10/-. The initial cost of the tool is Rs.50/- and it can
be ground 10 times. The nonproductive time for each component is 120 sec. Obtain optimum
speed for minimum cost of production and hence obtain the tool life; rate of production and
the cost of producing the component.

2. A 200 mm long and 300 mm diameter bar is turned on a lathe with feed = 0.25 mm/rev. The
operating cost is 5 paise/min while the tool cost is Rs. 1/edge. Tool changing time is 1 min.
The requirements are such that either of the two tool materials X or Y can be used. Compare
the machining cost per component whilst operating under most economical conditions for
the two materials.
Material ‘X’> VT 0.1= 67
Material ‘Y’>VT 0.1= 90 3.

3. A 100 mm long 35 mm diameter bar is to be turned at a feed of 0.26 mm/rev. The operating
cost is Rs. 10/min. and the tool cost is Rs. 75/edge. The tool changing time is 4 min. A carbide
tool is used with two cutting fluids. Compare the machining cost per component for each the
tool life equations are given below:
Cutting fluid ‘X’>VT 0.22= 67
Cutting fluid ‘Y’>VT 0.32= 67.

4. A tool used in a turning operation is of the brazed carbide tip type. Its cost is Rs. 450/- and
on the average, it can be reground 10 times. The cost of regrinding is Rs. 45/-. The lathe cost
is Rs.2 lakhs (200,000), used 8 hrs/day, 5 days/week and 50 weeks/year. Its cost is to be
amortized over 10 years. The machine overheads are 100%. The operator’s wages are Rs.
20/hr. and the operator’s overheads are 100%. Tool life equation is VT 0.25 = 7, where V is in
m/sec and T is the tool life in sec. the tool changing time is 4 min, and the handling time per
component is 5 min. The workpiece with 50 mm diameter and 400 mm length is machined
at the rate of 0.25 mm/rev. Calculate minimum production cost and hence obtain minimum
production time.
5. A 200 mm long and 65 mm diameter bar is to be turned at a feed of 0.15 mm/rev. The
operating cost is Rs. 0.50/min. and the tool cost is Rs. 10/edge. The tool changing time is 2
min. Assume weight of workpiece as 0.14 kg. The following two workpiece materials have
been used:
Material ‘X’ (cost Rs.100/kg) > VT 0.10= 67
Material ‘Y’ (cost Rs.120/kg)> VT 0.16= 90
Calculate tool life and optimum cutting velocities for min. cost with no consideration for
material cost; and maximum production rate criteria for both the w/p materials. State which
material should be chosen for total minimum cost.

6. A tool used in a turning operation is of brazed type. Cost of the tool is Rs. 100 and on average,
it can be reground 10 times. The cost of each regrinding is Rs.5/-. The lathe cost is to be
amortized over 10 years and the machine overheads are 100%. The lathe cost is Rs.2,00,000
and is used 8 hrs/day, 5 days/week and 50 weeks/yr. The tool life relationship is VT 0.25= 400.
Tool changing time is 4 min, handling time per component is 5 min, cutting distance per
component is 200 m. Calculate minimum production cost and time.

7. Illustrate in a sketch graph the economic factors involved in metal cutting and show that
cutting speed has an optimum value. When finish turning a 50 mm diameter, 130 mm long
bore in a high-tensile steel at a feed of 0.13 mm/rev. The tool life equation was VT 0.12= 146.
The cost of regrinding the tool was Rs. 8 and the tool changing time was 10 min. If the
inclusive cost of operating the machine is Rs. 13.5/hr, determine:
a. the economic machining time per component,
b. the number of components to be produced between tool changes.

8. An automatic lathe is to be used to machine brass components 75 mm long X 50 mm

diameter using a depth of cut 1.25 mm. Select the speed that minimizes the machining cost
and calculate the corresponding tool life. Also estimate the cutting speed for minimum tool
life of production. Assume: Labor + overhead rate Cm = Rs. 5/hr. Reconditioning cost of the
tool edge = Rs 0.25/edge Loading and unloading time of the work = 15 Sec. Tool change time
= 5 min. Tool life relationship: VT 0.25= 300.

9. A 1.0 m long cut is to be given on a 100 mm diameter steel bars on an engine lathe. The
depth of cut is 6 mm and the feed rate is 0.5 mm/rev. the following cost data are available
for this operation: machine labor: Rs.20/hr; machine burden rate: 400% of labor; tool cost:
Rs. 180;tool changing time: 2 min.; regrinds available: 5/tool; grinding time: 6 min/edge; tool
grinding labor: Rs.30/hr; tool grinding burden: 500% of labor; loading time: 5
min/component; Tool life equation: VT 0.25= 200. Obtain optimum speed for minimum cost of
production and hence obtain the tool life, rate of production and the cost producing a
component.
10. A 200mm long and 30 mm diameter bar is to be turned on a lathe with a feed rate of 0.25
mm/rev. The rpm is 200. The operating cost is 5 paise/min while the tool cost is Rs. 1/edge.
The design provisions indicate that either of the following two materials may be used. State
which material should be chosen for minimum cost.

Material cost/kg tool life eqn.

X Rs. 2.00 VT 0.10= 67
Y Rs. 3.00 VT 0.16= 90.

11. A 600 mm long cut is to be made on a 150 mm dia bar on a lathe with a depth of cut of 1.5
mm and feed of 0.25 mm/rev. The tool life equation is VT0.25= 475. For the above operation,
two types of tools may be used:
(i) brazed tool and
(ii) throw away carbide inserts.
The following cost data have been collected:
a. Machine costs:
machining cost = Rs 1/hr; machine overhead = 100%; grinding cost = Rs.1.5/hr;
grinding machine overhead = 200%; idle time = 5 min
b. Tool costs:
➢ brazed tools – initial cost = Rs.80/-; grinding time – 5 min/edge; tool
changing time = 2 min; 9 grinds/tool before salvage.
➢ Throw-away inserts: cost – Rs.300; tool change time = 1.5 min; cutting
edges = 8
• Plot the cost/piece as a function of cutting speed and hence find
the cutting speed for minimum cost for each case.
• Compute and compare the tool life for minimum cost/piece for
maximum production rate both for brazed and inserted type cutting
tools.

12. A Steel bar of 400 mm length and 150 mm diameter was turned with an HSS tool at a feed of 0.20
mm/rev, knowing that: the Taylor tool life parameter is 0.135, the machining constant is 75 m/min,
Handling time is 5 min/ piece, tool change time is 2 min, cost of machine and operator is 25 $/hr and
the tooling cost 4 $/cutting edge. Determine:
a. cutting speed for maximum production rate?
b. cutting speed for minimum cost.
c. Hourly production rate for the previous cutting speeds?
d. Cost per piece for the previous cutting speeds?
e. Compare the determined production rates and costs per piece.
Note:
What does overhead rate percentage mean?
The overhead rate or the overhead percentage is the amount your business spends on
making a product or providing services to its customers.
To calculate the overhead rate, divide the indirect costs by the direct costs and multiply
by 100.
To compute the overhead rate, divide your monthly overhead costs by your total monthly
sales and multiply it by 100. For example, if your company has $80,000 in monthly
manufacturing overhead and $500,000 in monthly sales, the overhead percentage would
be about 16%.