📋 Case Study

Aerospace Structural Component Forging Modernization

Inaccurate TCO model led to underestimation of energy, maintenance, and scrap cost shifts

🏗️ Project Overview

Transition from legacy hydraulic press to servo-electric forging press in Ohio

🎯 Challenge

Inaccurate TCO model led to underestimation of energy, maintenance, and scrap cost shifts

🔧 Design Approach

Life Cycle Cost (LCC) model integrating capital, energy, tooling wear, and NDT rework rates

📐 Design Diagram

Aerospace Structural Component Forging Modernization Inaccurate TCO Model → Underestimated energy, maintenance & scrap shifts LCC Model Capital • Energy • Tooling Wear • NDT Rework Energy: $14.67/part Energy: $8.21/part ↓ 44% 3.2× Tool Life Extension Legacy → New Tool Cycles Integrated Life Cycle Cost Framework | Engineering Validation Verified

AI-generated project design illustration

📐 Key Calculations

Energy Cost per Forged Part

(kWh/part × $/kWh)
Result: $8.21 (new) vs $14.67 (legacy)
37% reduction offsetting higher CapEx

Tool Life Extension Factor

New Tool Cycles / Legacy Tool Cycles
Result: 3.2×
Reduced amortized tooling cost by $11.40/unit

📊 Results

Payback period revised from 7.2 to 4.1 years; scrap rate dropped from 8.7% to 2.3%; validated IRR of 18.6%

💡 Lessons Learned

  • Energy efficiency gains compound with yield improvements
  • Tool life modeling must include thermal fatigue cycles
  • NDT pass rate is a stronger cost predictor than scrap weight

Key Takeaways

  • 1Energy efficiency gains compound with yield improvements
  • 2Tool life modeling must include thermal fatigue cycles
  • 3NDT pass rate is a stronger cost predictor than scrap weight