COSTING & ESTIMATIONS

All estimating comes down to two things: how long does a job take (unit of time) and what does it cost per that unit of time.

The time is generally split into two parts, the set up time and the run time. The run time will not change regardless of how many units you are producing, the set up time is generally amortized over the number of units you are producing.

For example, if it takes a hour to set up a machine, ten minutes to run each part, there is a single part in the batch and the machine costs a dollar per minute to run the cost would be 70 dollars if you had a batch of 10 the cost would be 16 dollars.the real skill is not in the maths but knowing what your cost base is and how long a job takes to run.

The simple way is to do time and cost studies of representative parts. Then use those for estimating new operations.

Alternatively, hire a manufacturing engineer. They know how to do this.

dear,

for costing and estimation of any componentis calculated as;

split ur process as,

1. Material Cost:

Calculate the stock wieght of raw material and price with all transportation,

calculate the added materials used in the components (like washers, pipes etc..)

Calculate the swarf from machining

2. then split the machining operation, like centering n facing, rough turning, finish turning, gear teeth cutting

the for each operation calculate operation time its cost, tooling cost, depreciation, utilities, financial overheads etc..

then add up....

Regards