1. BACKGROUND Air Technology Corporation manufactures several types of disks that are used in the construction of turbine engines. When the company built its Denver, Colorado, plant to manufacture the disk, two hydraulic presses were expected to meet all the forging requirements in the original design. The forging process required that each type of disk be processed through a preliminary shaping (or preform) die, a final forge-shaping die, and surface machining. As demand levels increased, the company's product-flexibility requirements and the need to change product mix to meet demand schedules induced down times for tooling (die) changes that were greater than anticipated. Increased demand also led to an increase in inventory levels, specifically work-in-process pieces in the preform stage, in order to meet all product-mix needs. Additionally, it was projected that increasing demand levels could cause the plant's forging capacity to be exceeded One alternative to the capacity problem was to subcontract part of the forging. Another alternative was to buy a third press, of a smaller and different design, that could forge the preforms faster than the current presses This press could not make final forgings, however. A comparison had to be made to determine if it was better to continue current operations with the addition of a subcontractor or to invest in a third forging press that would handle preforms and use the current forging presses for final forgings. 2. DESCRIPTION OF THE DISK-MANUFACTURING PROCESS The company receives nickel and titanium raw materials in specifically dimensioned cylindrical shapes. These pieces weigh from 40 to 450 pounds. Upon arrival, the materials are tested for quality, and each piece is issued a unique identity code and placed in storage For the first step in the manufacturing process, raw material is measured for proper size. If the cylinder is too tall, it is machined to specifications (area a in Fig.1). It is then cleaned with solvent and placed in an oven to be heated. Once the material has attained a prescribed temperature, it is sprayed with a boron nitride lubricant (area b). The lubricant enhances forgeability and prevents material from sticking to the forging dies. It then moves to one of the forging presses (area c) 1. BACKGROUND Air Technology Corporation manufactures several types of disks that are used in the construction of turbine engines. When the company built its Denver, Colorado, plant to manufacture the disk, two hydraulic presses were expected to meet all the forging requirements in the original design. The forging process required that each type of disk be processed through a preliminary shaping (or preform) die, a final forge-shaping die, and surface machining. As demand levels increased, the company's product-flexibility requirements and the need to change product mix to meet demand schedules induced down times for tooling (die) changes that were greater than anticipated. Increased demand also led to an increase in inventory levels, specifically work-in-process pieces in the preform stage, in order to meet all product-mix needs. Additionally, it was projected that increasing demand levels could cause the plant's forging capacity to be exceeded One alternative to the capacity problem was to subcontract part of the forging. Another alternative was to buy a third press, of a smaller and different design, that could forge the preforms faster than the current presses This press could not make final forgings, however. A comparison had to be made to determine if it was better to continue current operations with the addition of a subcontractor or to invest in a third forging press that would handle preforms and use the current forging presses for final forgings. 2. DESCRIPTION OF THE DISK-MANUFACTURING PROCESS The company receives nickel and titanium raw materials in specifically dimensioned cylindrical shapes. These pieces weigh from 40 to 450 pounds. Upon arrival, the materials are tested for quality, and each piece is issued a unique identity code and placed in storage For the first step in the manufacturing process, raw material is measured for proper size. If the cylinder is too tall, it is machined to specifications (area a in Fig.1). It is then cleaned with solvent and placed in an oven to be heated. Once the material has attained a prescribed temperature, it is sprayed with a boron nitride lubricant (area b). The lubricant enhances forgeability and prevents material from sticking to the forging dies. It then moves to one of the forging presses (area c)
