ABSTRACT
In view of the central role played by materials in product functionality, structural rigidity, usability, manufacturability, assembly, disassembly, and end of life disposal, it is obvious that material costing should be studied as an important element of product cost. This chapter presents the two methods used to compute materials costs. They are material cost selection system based on performance and material selection based on optimization of operation sequence through minimization of scrap. The chapter considers the problem of material selection from the point of view of scrap rates. Two main approaches to materials costing were discussed, namely: costing based on functionality and costing based on process yield. In the case of the former, different conditions of loading were examined in terms of material density, cross sectional area, and type of structure. In the case of the latter, the inverse correlation between process yield and unit scrap costs was clearly established.
