Process Planning and cost estimating

Process Planning
Process planning involves determining the most appropriate
manufacturing processes and the order in which they should be
performed to produce a given part or product so that it fulfills all the
specification given by design engineering at a competitive cost.
Process planning can be briefly defined as the function of
scientifically and systematically determining the best possible
methods laying down an efficient sequence of operations , selecting
proper tools and equipment and take make or buy decisions, so that
the end product can be manufactured efficiently and economically ,
so that the end product can be manufactured efficiently and
economically ,yet conforming to the specifications laid in the
product design.

Process planning requirement

To plan the manufacturing process for a designed product, the
following information are required :
1. Job description and its end use
2. Specifications of the product
3. Assembly and sub-assembly drawing of the product.
4. Working drawings, with manufacturing specifications of the
parts.
5. Number of product required to be manufactured over a period
of time.
6. Quality specification for the product and its parts.
7. Quantity and specification of spare parts needed for each
product, both standard and non standard.

8. Available manpower, raw material

9. Data pertaining to conditions for setup time, handling time, use
of cutting fluid
10. Specification, capacities and layout of existing machinery and
equipment.
11. Specification of available tooling
12. Process parameter data
13. Standard time for each operation.

Procedure of process planning

STEPS of process planning:1.Faimlier to end user
2. To determine the required accuracy level and out put by
analyzing the production specifications and standards
3. To study the product specification and find out the quantity
of products to be manufactured annually.
4. To carefully study the part drawings , select feasible
manufacturing , If any mistakes in drawing get them rectified
it.
5. To take decision to buy required quantities.
6. To prepare a material list

7. Determine most appropriate and economical raw material

8. Determine the sizes of blank required if process like forging, stamping, and
pressing.
9. Specify the proportions and gross weights of raw material if casing
involved.
10. Determine the most economical and efficient manufacturing process.
11. Sequence of operation
12. Decide the machine tool
13. Special Aids and Accessories
14. Decide Stages of inspection ,methodology and equipment
15. Loading and unloading
16. Determine time standard for different operation and fix payment rate.
17. Specify the type and number of labor needed for particular operation
18. Estimate the cost of proposed product.

Process Planning sheet

Process plan is a very comprehensive document which
contains the complete concept about manufacturing a product.
It is also known by operation sheet, operation planning sheet,
Analysis sheet, Instruction sheet, Process sheet etc.
This sheet is the outcome of the effort put in by process
planners and it is used by many other sections and departments
of the firm.
The format of this sheet is not universal it may vary with
organization to organization.

Process planning sheet

Cost Estimating
Cost Represents the expenditure incurred on an object.
Cost estimating is the process of evaluating the expenditure in
advance of the actual manufacture.
In other words the process of making an advance assessment
of the likely expenditure in manufacturing of a product .
This assessment of cost takes in to account the entire
expenditure like
Cost of design
manufacturing cost
Service related to the process

Why cost estimates are required ?

1. To determine the cost of manufacturing a product or a part.
2. To determine the cost of manufacturing the required jigs, tools ,dies
etc
3. To determine the selling price of a product
4. Make or Buy decision
5. to select economical method
6. To find out the ways of cost reduction of a product

Elements of Cost

Capital cost: Non recurring cost , one time expenses only in the
initial stage of establishment of the plant. Also known as fixed cost.

Material cost

Labor cost

Expenses

Expenses conti

Structure of Cost
1.Prime Cost: Also known as direct cost
Prime cost = Direct material cost +
Direct labour cost
Direct expenses
2.Factory cost : Also known as Works cost
Factory cost = Prime cost + Factory expenses
3. Manufacturing cost: Also known as production cost
Manufacturing cost = Factory cost + Administrative
expenses
4. Total cost : Cost of product
Total cost = Manufacturing cost +Selling and
distribution expenses
5.Selling price :
Selling price = Total cost + profit

Cost structure of a product

Some useful costing terms

1. Fixed Cost: Tendency to remain constant
even if the quantity of production or sales
changes are called fixed costs. For eg: staff
salaries, rent of building, administrative
expenses, established Machinery cost etc
2. Variable cost: Tend to vary directly as the
variation in the quantity of production are
called variable cost. Eg: Direct material cost,
direct labour cost, direct expenses etc.
3. Predetermined cost : Cost which is worked
out before actual production and based on
product specification.