How does one evaluate the transfer of a process from batch to continuous manufacturing when considering cost economics?
How does one evaluate the transfer of a process from batch to continuous manufacturing when considering cost economics?
There is a step-by-step approach which can be useful to understand which is the bottleneck operation and where to gain the most cost savings while increasing productivity.
The suggestion would be:
1.) Analytics of Operational Equipment Effectiveness OEE of each unit operation involved.
2.) Discover inefficient process units in the current process train and test whether CM can provide a higher Cpk (Process Capability Index).
3.) Calculate the NPV (or NPC - which is sometimes easier) of the Batch versus the Continuous process to discover the optimum batch sizes and capacity of the necessary equipment.
4.) Check QA/QC costs as part of the NPV assessment.
5.) This calculation can be performed with different locations if required (e.g. for on & off shoring decisions).
This is just a high-level approach to consider whether it would make sense to switch from a batch to continuous process. It always highly depends on the GM gain which can be achieved with the investment in a new equipment.
I trust this answer will be beneficial already. Otherwise please feel free to come back to me.
Regards
Richard