To make a given part interchangeable, it was necessary to reduce the tolerance on the outside diameter

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To make a given part interchangeable, it was necessary to reduce the tolerance on the outside diameter from ±0.010 to ±0.005 at a resulting cost increase of 50 percent of the turning operation. The turning operation represented 20 percent of the total cost. By making the part interchangeable, the volume of this part could be increased by 30 percent. The increase in volume would permit production at 90 percent of the former cost. Should the methods engineer proceed with the tolerance change? Explain.
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Niebels Methods, Standards and Work Design

ISBN: 978-0073376318

13th edition

Authors: Andris Freivalds, Benjamin Niebel

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