Cost Estimation Tool for Metallic Parts Made by Casting: A Case Study

Abstract

This work presents a mathematical tool to estimate the cost of fabricating pumps by traditional casting. The drivers that most affect the cost of the process are identified in each step of the procedure, i.e., material, labour, energy, tools and general expenses associated with any industrial activity. The mathematical expressions used for the calculation of the different cost drivers are presented and used to estimate the cost of fabricating the different parts composing a radial pump in a small Moroccan foundry. Therefore, the input data of the equations carefully consider the economic factors of this country. However, the developed tool is versatile and can be adapted to describe the casting process in other countries with different economies just by changing the input data accordingly. It is observed that the influence of the drivers in the final cost of the pump is very dependent on the number of pumps to be produced. In any case, the cost estimation tool presented in this work will allow for the optimization of the yield of the casting process rendering the involved company more reliable. The tool provides an idea of the implications of changing production factors, allowing the foundry to give accurate and fast responses without compromising its profits.