A manufacturing company has a new forming process for thermoset polymer products. While they have done a great deal of process tryouts under full-scale manufactunring circumstances,they remain concerned about the economic viability of their process.

You have been contracted to construct a technical cost model of their production process. The attached data have been supplied to facilitate the analysis. (see starting_point.xls)

Your task is to construct a technical cost model that generates unit costs, broekn out by major cost element (variable costs, eequipment, tooling, etc.). The basic elements of the process are as follows:

  • Machine and tooling cost are a function of the component being produced. You have a dataset that can be used to examine the relationships between the given properties and the costs of these products.
  • Similarly, the time it takes for the process to take place is a function of component features, and you have a dataset that can be used to explore that.
  • Factor prices, that is the costs of labor, energy, etc. are supplied, and datasets are given as well.
  • Rates of capital recovery and amortization periods should be established according to your own strategic intent.

Please refer to the spreadsheet starting_point.xls for a concept of what the potential inputs to your model could look like, as well as a possible layout for the possible output.