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Two engineering designs are considered for an engine parts. The designer has a c

ID: 1107197 • Letter: T

Question

Two engineering designs are considered for an engine parts. The designer has a choice of specifying either an aluminium alloy casting or a steel casting. The both materials will provide the equal service. Every kilogram of excess weight for steel is associated with a penalty of RM 1,300 due to increased fuel consumption. The details are as summarized in Table 1. Dctcrmine the best alternative for considcring the design, and justify the economic advantage of the best decision. Table 1: Particulars of the two Design:s escription of items Materials cost per Kg Weight of making casting per unit Cost of machining per unit Aluminium 80 1.20 150 Steel 35 1.35 170 (20 Marks)

Explanation / Answer

Total Cost of engine part made of aluminium = Cost of making aluminum casting / unit + Cost of machining aluminium / unit

Here Cost of making aluminum casting / unit = Material cost per kg (RM) * Weight of making casting per unit (kg)

=RM 80 * 1.20 kg

= RM 96

Total Cost of engine part made of aluminium = RM 96 + RM 150

= RM 246

Total Cost of engine part made of steel =  Cost of making steel casting / unit + Cost of machining steel / unit + Penalty for excess weight of steel casting

Cost of making steel casting / unit = Material cost per kg (RM) * Weight of making casting per unit (kg)

= RM 35 * 1.35 Kg

= RM 47.25

Penalty for excess weight of steel casting = RM 1300 ( 1.35 - 1.20 )

= RM 195

Total Cost of engine part made of steel = RM 47.25 + RM 170 + RM 195

= RM 412.25

Therefore, aluminium should be considered for making engine parts as the total cost of aluminium is less than the total cost of steel

The economic advantage of the best decision = RM 412.25 - RM 246

= RM 166.25

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