Introduction
1. Definition of fixture allocation
2. Importance of fixture allocation in manufacturing industry
Body
3. Methods of fixture allocation
a. Direct allocation method
b. Indirect allocation method
4. Factors affecting fixture allocation
a. Production volume
b. Product complexity
c. Fixture cost
5. Advantages and disadvantages of fixture allocation
a. Advantages
i. Cost reduction
ii. Improved efficiency
iii. Better quality control
b. Disadvantages
i. Time-consuming process
ii. Requires expertise
6. Case study: Fixture allocation at XYZ Manufacturing Company
Conclusion
7. Summary of key points
8. Future implications of fixture allocation in manufacturing industry
Fixture allocation is the process of distributing the cost of fixtures used in the production process among the products produced. It is an important aspect of manufacturing as it helps to determine the true cost of producing each product. In this article, we will discuss the various methods of fixture allocation, the factors that affect it, and its advantages and disadvantages.
There are two main methods of fixture allocation: direct allocation and indirect allocation. Direct allocation involves assigning the entire cost of the fixture to a specific product or group of products. Indirect allocation, on the other hand, involves allocating the cost of the fixture based on the proportion of time it is used for each product.
Several factors can affect fixture allocation, including production volume, product complexity, and fixture cost. Production volume refers to the number of products produced, while product complexity refers to the level of difficulty involved in producing a particular product. Fixture cost includes the initial cost of the fixture as well as any maintenance and repair costs.
Fixture allocation has several advantages, including cost reduction, improved efficiency, and better quality control. By accurately allocating fixture costs, manufacturers can identify areas where they can reduce costs and improve efficiency. Better quality control can be achieved by ensuring that the fixtures used are appropriate for the product being produced.
However, fixture allocation also has its disadvantages. It is a time-consuming process that requires expertise to ensure accurate allocation. Additionally, indirect allocation can sometimes result in inaccurate cost allocation if not done correctly.
To illustrate the importance of fixture allocation, let us consider a case study of XYZ Manufacturing Company. The company produces two products, Product A and Product B, using the same fixture. Using direct allocation, the entire cost of the fixture is assigned to each product, resulting in a total cost of $100 for Product A and $150 for Product B. However, using indirect allocation based on the proportion of time the fixture is used for each product, the cost of the fixture is allocated as $75 for Product A and $125 for Product B. This more accurately reflects the true cost of producing each product.
Fixture allocation is an important aspect of manufacturing that helps to determine the true cost of producing each product. There are several methods of fixture allocation, including direct and indirect allocation, and several factors that affect it, including production volume, product complexity, and fixture cost. While fixture allocation has its advantages, it also has its disadvantages, including being a time-consuming process that requires expertise. Accurate fixture allocation can help manufacturers reduce costs, improve efficiency, and achieve better quality control.