ME2027- Process Planning and Cost Estimation

Department of Mechanical Engineering

Seventh Semester
ME2027 - Process Planning and Cost Estimation
UNIT I - WORKSTUDY AND ERGONOMICS

1. Define Work study

It is a generic term for those techniques, particularly method study and work measurement,
which are used in the examination of human work in all its contexts, and which leads
systematically to the investigation of all the factors which affect the efficiency and economy of
the situation being reviewed, in order to affect improvements.
2. Mention the important applications of work study
Industries
Marketing, sales and distribution
Transport
Building and other constructions etc..
3. Define method study
Method study is a part of work study which deals with systematic analysis and improvement of
work methods and systems through the application of innovative techniques to achieve better
utilization of resources.
4. Explain briefly the purpose of work measurement
To determine the time required to do a job.
To estimate the man and machine requirements and to assess the plant capacity accurately.
To provide information for effective production planning and maintenance.
To assist in estimation of reliable delivery dates.
5. What are the benefits of motion study?
Improved working processes and standardized procedures
Less fatigue to operators
Better product quality
Efficient and fast material handling
6. Mention any two objectives of method study
To find the most economical way of doing the work.
To standardize the methods, materials, tools and equipment.
To determine the time required to do a job by a qualified and properly trained person
working at normal pace.
To assist in training the workers for new methods.
7. Name important techniques used in method study
Operation process chart (or) Outline process chart.
Flow process chart.
Material type
Operator type
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ME2027- Process Planning and Cost Estimation

8.

9.

10.

11.

Equipment type
Two-handed process chart. (or) Left hand-Right hand chart
Multiple activity chart.
Flow diagram.
String diagram.
What are the general rules to be followed in breaking down a task into elements ?
Each element should be easily identifiable
Each element should be as short in duration as possible and can be timed accurately and
reliably
Machine elements should be separated from machine elements
Write down any two important applications of work measurement
In Stores, hospitals, warehousing, offices, machine shops etc..
In estimating the percentage utility of the inspectors and time standards for indirect
labor
What are therbligs?
Therbligs are the symbols used to denote the various activities and movements done for
different purposes. A workplace task is analyzed by recording each of the therblig units for a
process with the results used for optimization of manual labour by eliminating unneeded
movements
Draw the symbols representing (a) Inspection and (b) storage
(a) Inspection

(b) Storage

12. Define work measurement

Work measurement is a technique to establish the time required for a qualified worker to
carry out a specified job at a defined level of performance.
13. Define Standard data
Standard data is a work measurement technique for building up the time for a job or parts
of the job at a defined level of performance by totaling element times obtained previously
from time studies on other jobs containing the elements concerned from synthetic data.
14. What is Process Charts?
Graphical representation of the sequence of steps or tasks (workflow) constituting a
process, from raw materials through to the finished product. It serves as a tool for
examining the process in detail to identify areas of possible improvements.
15. Define SIMO chart
SIMO chart is used to record, simultaneously on a common time scale, the activities of two
hands or other parts of workers body during the performance of a single cycle of operation
being investigated. The SIMO chart is usually based on film analysis to record the Therbligs
or groups of Therbligs performed by different part of the body of one or more workers
16. What is meant by Ergonomics?
Ergonomics is a scientific study that deals with the interactions between the human beings,
the tools and the equipment (machinery) and the working environment.
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ME2027- Process Planning and Cost Estimation

17. Define Rating

Performance Rating is the process of adjusting the actual pace of working of an operator by
comparing it with the mental picture of pace of an operator working at normal speed.
UNIT II - PROCESS PLANNING

1. What is process planning?

Process planning can be defined as the systematic determination of the methods by which a
product is to be manufactured economically and competitively. It consists of devising,
selecting and specifying processes, machine tools and other equipment to convert raw
material into finished and assembled products.
2. What are the functions of process planning?
Part identification (numbers and names)
Description of the processing steps in each operation
Operation sequence and machines
Standard setup and cycle times.
3. What is sequencing?
Sequencing can be defined as the selection of an order for a series of jobs to be done on a
finite no. of service facilities
4. Brief about scope of process planning.
Process rationalization and standardization
Faster response to engineering changes
Standard plan leads to achieve six sigma level.
5. What are the documents used in process planning?
Process sheet
Operation sheet
Route sheet
6. Define the term route sheet
The Route Sheet is a listing of the sequence of operations which must be performed on the
work part. It is called Route Sheet, because it lists the machines (machine tools) through
which the part must be routed in order to accomplish the sequence of operations.
7. What are the types of production?
Job Production
Batch Production
Mass Production
8. What are the material selection parameters?
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ME2027- Process Planning and Cost Estimation

Functional requirements
Reliability
Service life durability
Aesthetics and appearance
Environmental Factors
9. What is manufacturing logic?
Manufacturing logic is a system to support a process planning system, the acquisition and
documentation of manufacturing knowledge.
10. What are the types of Process planning?
a. Manual Process planning
b. Computer Aided Process Planning (CAPP)
Retrieval CAPP system
Generative CAPP system
11. What is computer aided process planning?
CAPP (Computer Aided Process Planning) involves the use of an interactive computer
system to automate the works involved in preparing a process plan. There are
fundamentally two different approaches when computers are used in the process planning
task.
(1) Variant or Retrieval method of process planning.
(2) Generative method of process planning.
12. What are the benefits of CAPP?
Improved productivity
Lower production cost
Consistency and Time Savings
Rapid integration of new production capabilities
13. What do you understand by standardization
It can be defined as the establishing of desirable criteria with respect to size, shape,
material, quality etc. of product and if practical will lead to simplification of a companys
products.
14. List out the factors which influence the selection of machinery.
Economic considerations
Production rate and unit cost of production
Durability and dependability
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ME2027- Process Planning and Cost Estimation

Lower process rejection

15. List any four information required for process planning
Quantity of work to be done along with product specifications.
Availability of equipments, tools and personnels.
Sequence in which operations will be performed on the raw material.
Names of equipment on which the operations will be performed.
Standard time for each operation.
16. What are the advantages of manual process planning?
Very much suitable for small scale industries
Highly Flexible
Requires low investment cost
UNIT III - INTRODUCTION TO COST ESTIMATION

1. Explain briefly the objectives of cost estimation

It gives an indication to the manufacturer whether the project to be undertaken will be
economical or not.
It enables the manufacturer to choose from various methods of production the one which
is likely to be most economical
It helps in taking decisions to make or to buy.
2. Define costing or cost accounting.
Costing or cost accounting means classifying, recording and allocating the appropriate
expenditure for determining the cost of production and achieved by keeping a continuous
record of all the costs involved in manufacturing.
3. Distinguish between Costing and Cost Estimation
Costing
a. It gives an expected cost of the product

Cost Estimation
a. It gives actual cost of the product

b. It is generally carried out before actual b. It usually starts with the issue of order for
production of a product.

production of a product and ends after the

product is dispatched for sale.

4. What are the objectives of costing?

To determine the actual cost of each component and cost of the final product.
To form a basis for fixing the selling price.
To analyze the expenses incurred in production, so that control can be kept over them.
To check the accuracy of estimates.
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ME2027- Process Planning and Cost Estimation

5. What are the reasons for doing cost estimate?

The reasons for doing cost estimate are
Cost Control
Make-or-buy decision
Determine Selling Price
Check Vendor Quotes (Purchase analysis)
6. What are the methods of costing?
Methods of costing can be classified as follows:

a. Process costing.
b. Job costing.
c. Batch costing.
d. Departmental costing
e. Unit cost method
f.

Multiple cost method

7. State the functions of estimating

To calculate the cost of new material needed to manufacture a product.
To find the cost of parts to be purchased from outside vendors.
To find the cost of equipment, machinery, tools, jigs and fixtures etc. required to be
purchased to make the product.
To calculate the direct and indirect labor cost associated with the manufacture of the
product, based upon work study.
8. What do you mean catalogue price?
It is the net price obtained after considering the discount in the selling price
Catalogue price = Selling price + Discount
9. What is meant by total cost?
Total cost = Prime cost +Factory overheads + Administrative expenses + Selling and
distribution expenses
10. Why is costing essential to industrial control?
Costing is essential because
It determines the price to be quoted to customers
It determines, classifies and analyses the cost & income to a business firm
It forms the basis for managerial decisions that have to do with :
a. Make or buy decisions
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ME2027- Process Planning and Cost Estimation

b. To introduce a new product or to drop an existing one;

c. To expand or contract the existing one.
11. What are the types of estimator?
The types of estimator are
Spares estimator
Detail estimator
Budgetary estimator
12. What is prime cost?
Prime cost = Direct material cost + Direct labor cost + Direct expenses
13. Name a few methods of cost estimates
The methods to prepare a cost estimates are
Group method
Detailed method
Comparison method
14. Mention any two functions of cost estimation.
Cost estimates are required to submit accurate tenders for getting the contracts
Cost estimates are required for the manufacturer to choose from various methods of
production the one which is likely to be most economical
15. What is direct material? Give an example.
Direct material is the one which is directly used for the manufacture of the product and
become a part of the finished product. Ex. : Mild steel bar used to manufacture spindles , C.I
used to manufacture pulleys etc.
16. What do you mean by multiple cost method?
Multiple cost method is used in firms which manufacture variety of standardized products
having no relation to one another in cost, quality and type of process etc..
17. Distinguish between direct labour cost and indirect labour cost
Direct labour cost
a. It is the cost of those materials which are
directly used for the manufacture of the
product and become a part of the finished
product
b. Ex. : Tools ,work pieces etc.

Indirect labour cost

a. It is the cost of those materials which are
necessary in the production process but it
is not directly used in the product
b. Ex.: Oils, greases, coolants, cotton wastes
etc..

UNIT IV - COST ESTIMATION

1. Enumerate the types of estimates

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ME2027- Process Planning and Cost Estimation

The types of estimates are

Preliminary estimate
Final cost estimate
2. Describe various allowances of time in estimating.
Relaxation allowance.

Fatigue allowance.
Personal needs allowance.
Process / unavoidable delay allowance.
Special allowances
3. Describe the sources of errors in estimating.
Avoidable errors
- Inexperienced estimator
- Omission of essential data
- Preparing estimates in hurry and carelessly
Unavoidable errors
- Equipment inaccuracies
- Power fluctuations
- Poor quality of raw materials etc..
4. What is fatigue allowance?
Fatigue allowance is intended to provide a workman an opportunity to recover from
physiological and psychological effects of fatigue caused by carrying out a specified task
under specified conditions.
5. Brief about indirect material cost.
It is the cost of the Consumables (such as cleaning chemicals, disposable tools, protective
devices) not used as raw materials, but which make the production of a good or service
possible, more efficient, or safer.
6. What do you understand by budgetary estimates?
The budgetary estimate is used for planning the cost of a piece part, assembly, or project.
This type of estimate is typically on the high side because the estimator understands that a
low estimate could create real problems.
7. Distinguish between over estimation and under estimation
Over estimation

Under estimation
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ME2027- Process Planning and Cost Estimation

a. The estimated cost is much more than

the actual cost of the product
b. In over estimating, the firm will not be
able to compete with its competitors who
estimated the price correctly and loses the
order to its competitors

a. The estimated cost is below the actual cost

of the product
b. In case of under estimating, the firm will
face huge financial loss which may utter
failure or closure of firm

8. What is meant by machining time?

It is the time for which the machine works on the component i.e, from the time when the
tool touches the work to when the tool leaves the component after completion of operation.
9. What do you mean by realistic estimate?
If the estimated cost of a product proves later on, to be almost same as the actual cost of
that product, it is a realistic estimate.
10. What are the elements of cost?
The elements of cost are
a. Material
-

Direct

Indirect

b. Labour
-

Direct

Indirect

c. Expenses
-

Direct

Indirect

11. What do you mean by depreciation?

It is the process of allocating the acquisition cost of the tangible asset less salvage value if
any in a systematic and a rational manner over the estimated life of the asset.
12. Define parametric estimating
Parametric estimating refers to an estimation technique which utilizes the statistical
relationship that exists between a series of historical data and other variables to calculate
an estimate for activity parameters such as scope, cost, budget and duration.
UNIT V - PRODUCTION COST ESTIMATION

1. Brief about the allocation of overheads

There are several methods of allocation of overhead costs. But the choice of particular
method depends upon the nature of work, type of organization and type of machines used.
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ME2027- Process Planning and Cost Estimation

The different methods of allocation of expenses are:

By percentage

By hourly rate

By unit rate

2. Derive an expression for estimating time for plain turning in lathe

T

Where T = Estimating Time in minutes

A = Approach length in mm
L = Length of the job in mm
f = Feed per revolution in mm
N = Revolution of the job in r.p.m
3. A machine is costing Rs. 25,000 and is expected to run for 10 years, at the end of which its
scrap value is likely to be Rs. 2500. Machine is expected to run 2000 hours/year on an
average. Estimate the depreciation charges per hour of the machine.

Rate of Depreciation per hour =

= Rs. 1.125
Annual Depreciation = Rs. 1.125 x 2000
= Rs. 2250
4. What is administrative overhead?
Administrative overhead include all the expenses on managerial or administerial staff for
the planning and policy making work. Some examples of administrative expenses are:
(i) Salaries of directors and managing directors.
(ii) Salaries of cost, finance and secretary office staff including clerks and peons.
(iii) Expenses of direct amenities like telephone, coolers and other modern equipments.
(iv) Travelling expenses for attending meetings etc.
5. Find the weight of steel sphere of diameter 140mm taking steel density as 7150 Kg/m3.
Weight = Density x Volume
= 7150 x

r3 = 82.18 kg
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ME2027- Process Planning and Cost Estimation

6. A manufacturing sector produces 5000 machines per year. If the total on costs during that
year are Rs.2,00,000 /- calculate the overhead cost for each machine.
No. of units produced =

5000

Total on-costs

2,00,000

= 2,00,000 / 5000 = Rs. 40 /7. What are the methods for allocation of overhead expenses? Or What are all the basics on
which overheads are allocated?.
There are several methods of allocation of overhead costs. But the choice of particular
method depends upon the nature of work, type of organization and type of machines used.
The different methods of allocation of expenses are:

By percentage

By hourly rate

By unit rate

8. What are the various elements considered while calculating the cost of welded joint?
The total cost of welding consists of the following elements:
a. Direct material cost.
b. Direct labour cost.
c. Direct other expenses.
d. Overheads.
9. What are the various losses considered while calculating direct material cost for a casting?
The various losses to be considered while calculating direct material cost for a casting are
Losses occur mainly during melting because of oxidation or volatilization of alloying
elements
Furnace type and design also affect melting losses.
Losses in the melting of cast iron in cupola are lesser than obtained in air furnace
etc..
10. Define the term cutting speed.
The cutting speed can be defined as the relative surface speed between the tool and the job.
It is expressed in metres per minute (mpm).

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ME2027- Process Planning and Cost Estimation

For example, if a job of diameter D mm is revolving at a speed of N rpm, then

Cutting speed, V =

m/min

11. Define flash loss.

When dies are used for forging certain quantity of material comes out of the die at the
parting line of the top and bottom halves of the die. This surplus wastage material is called
flash loss.
12. Define inadequacy
Inadequacy is a type of depreciation where a

machine is to be replaced while it is

functioning is known as depreciation by inadequacy.

13. What is meant by overhead expenses?
Overhead expenses are those costs which are incurred by the manufacturer but cannot be
indentified and charged directly to any order product. Overhead expenses include all
expenditure incurred by the manufacturer on the product except the direct material cost,
direct labour cost and direct chargeable expenses.
14. State any four pattern allowances
Distortion allowance
Draft or taper allowance
Machining allowance
Shrinkage allowance
Shake allowance

M.K.Vijaya Prabhu, AP/Mechanical