Manufacturing Process

Manufacturing Process
Names Waqas Chougle Anup Kulkarni Manish kumar Singh Akshay Patani Dhaval Shah Meenaaz Shaikh Arjun Singh Roll No. 1104 1121 1122 1134 1141 1144 1150

Definition
Manufacturing is a process which involves tools and

labour to produce goods for use or sale.

A Well organized method of converting raw material to end product

Requirements of a good manufacturing system

Product should meet design requirement Economical Process Quality should be built into the system Should be flexible and responsive to new technology

High productivity: Best utilization of man, material, machine, capital and available resources.

Estimate the Manufacturing Costs

Equipment Information Tooling

Raw Materials Labor Purchased Components

Manufacturing System

Finished Goods

Energy

Supplies

Services

Waste
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Manufacturing Costs Defined

Sum of all the expenditures for the inputs of the

system (i.e. purchased components, energy, raw materials, etc.) and for disposal of the wastes produced by the system

Elements of the Manufacturing Cost of a Product

Manufacturing Cost Components Assembly Overhead

Standard

Custom

Labor

Equipment and Tooling

Support

Indirect Allocation

Raw Material

Processing

Tooling

Manufacturing Cost of a Product

Component Costs (parts of the product)
Parts purchased from supplier Custom parts made in the manufacturers own plant or by

suppliers according to the manufacturers design specifications

Assembly Costs (labor, equipment, & tooling) Overhead Costs (all other costs)
Support Costs (material handling, quality assurance,

purchasing, shipping, receiving, facilities, etc.) Indirect Allocations (not directly linked to a particular product but must be paid for to be in business)
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cost of production as indicated in the chart below : Direct materials cost Direct wages Direct expenses PRIME COST Factory overhead FACTORY COST Administration overhead COST OF PRODUCTION Selling and distribution overhead COST OF SALES xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

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Determining cost per unit

Fixed cost(1)
Variable cost(2) Cost of production (3) (1+2) Cost per unit (4) (3/no. of units produced)

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Work-in-process inventories at each stage of process, quarrying, raw material crushing, stock hall, raw material mixing and grinding, clinker grinding cement in soils and packing and storage shall be maintained

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Format of process a/c

Particulars To Direct material To Direct Labour To Indirect material Unit Rate Rs. Particulars By Normal Loss By Units transferred to other process By Abnormal loss (B/F) Unit Rate Rs.

To Other Expenses To Abnormal gain(B/F) Total

Total

1 )To find the cost per unit for valuation of units to be trans. to next process and also for abnormal, loss or gain = Total process cost Salvage value of normal spoilage Total units introduced Normal loss in units

A. Quantitative data
Opening stock at quarry, quantity quarried Total Quantity transported to crusher Closing stock at quarry Raw material consumption B. Cost statement Cost :Royalty and duties Labour cost Salaries Employees other benefits Indirect materials Insurance Repair and maintenance Fuel Gas Depreciation Other overheads Power Other factory expenses Sub- total: Total cost of the period For the year xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Last year xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx For the year tonnes XXX XXX XXX Last year tones XXX XXX XXX Increase\Decrease Over last year ton. XXX XXX XXX

ExampleThe manufacturing cost per tonne of ACC Ltd, Indias largest cement manufacturer by capacity, is the highest in the Indian cement industry, say analysts. ACCs manufacturing cost is Rs1,529 per tonne against the industry average of Rs1,056 per tonne. Birla Corp. Ltd has the second highest manufacturing cost, Rs1,339 per tonne, followed by UltraTech Cement Ltd, at Rs1,240 per tonne.

THE CEMENT MANUFACTURING PROCESS

quarry raw grinding and burning grinding, storage, packing, dispatch

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CEMENT MANUFACTURING PROCESS

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RAW MATERIALS REQUIRED

Limestone
Sand Shale Clay Iron

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THE CEMENT MANUFACTURING PROCESS

quarry
dumper loader

Quarry face
1. BLASTING 2. TRANSPORT

crushing conveyor

storage at the plant

3. CRUSHING & TRANSPORTATION 1. BLASTING : The raw materials that are used to manufacture cement (mainly limestone and clay) are blasted from the quarry. 2. TRANSPORT : The raw materials are loaded into a dumper. 3. CRUSHING AND TRANSPORTATION : The raw materials, after crushing, are transported to the plant by conveyor. The plant stores the materials before they are homogenized.

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THE CEMENT MANUFACTURING PROCESS

Raw grinding and burning

storage at the plant conveyor

Raw mill Raw mix

preheating

1. RAW GRINDING

kiln cooling clinker

2. BURNING 1. RAW GRINDING : The raw materials are very finely ground in order to produce the raw mix. 2. BURNING : The raw mix is preheated before it goes into the kiln, which is heated by a flame that can be as hot as 2000 C. The raw mix burns at 1500 C producing clinker which, when it leaves the kiln, is rapidly cooled with air fans. So, the raw mix is burnt to produce clinker : the basic material needed to make cement.

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THE CEMENT MANUFACTURING PROCESS

Grinding, storage, packing, dispatch
Gypsum and the secondary additives are added to the clinker. clinker storage

Finish grinding

1. GRINDING

silos

dispatch bags

2. STORAGE, PACKING, DISPATCH 1.GRINDING : The clinker and the gypsum are very finely ground giving a pure cement. Other secondary additives and cementitious materials can also be added to make a blended cement. 2. STORAGE, PACKING, DISPATCH :The cement is stored in silos before being dispatched either in bulk or in bags to its final destination.

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