COSTING OF COMPONENT

COST OF COMPONENTS CONSTITUTES OF MAINLY 3 COST SEGMENT:

1. MATERIAL COST
2. PROCESS COST
3. OTHER COST
________________________________________________________________
1) MATERIAL COST
[Format CS-STD: 1&2 (segment A & A2) & WT-STD: 31]

Material cost is defined as product of input weight and landed cost of raw material. Input
weight is sum of finish product weight + machining allowance weight + wastages.
Input weight is calculated by studying the drawing & with the help of standard formulas /
auto CAD designing.
Detail of standard formulas is as under:
Weight = Volume * Density / 1000000

(Density of steel
= 7.85g/cm3)
(Density of Cast iron = 7.25g/cm3)

Where Volume is in mm3

S.no.

1.

Description

Circle

Diagram

Volume

/4*

D2 * height

Where D = Dia in mm

2.

Triangle

Length*Height*Width / 2

3.

Square

Length 2 *Thickness

4.

Rectangle

Length*Width*Thickness

5.

Bending length

The flat blank length can be calculated as follows:

L
a, b
R
q
s
@

= Flat blank length

= Length of legs
= Bend radius
= Correction factor
= Material thickness
= Bend angle

L= a + (R + q*s/ 2) *@/180+b+.....
Example:

Length of legs
Bend Radius

: a = 40 mm, b = 166 mm, c = 56 mm

: R1 = 6 , R2 = 20

Material thickness : s = 4 mm
Bend angle
: a1 = a2 = 900
Correction factor : q1 = 0.7, q2 = 1
L = a + (R1+q1*s/2) a1/180 + b+ (R2+q2*s/2)* *a2/180+c
= 40+11.618+166.0+34-54+56.0
= 308.15 mm straight unbent length

More commonly used tips for calculation of weight:SECTION

1. Hexagonal

2. Angle

REFERENCE
Width across flat 5
Width across flat 8
Width across flat 10
Width across flat 15
20*20*4
25*25*4
30*30*4
30*30*5
35*35*4
35*35*5
40*40*4
40*40*5
40*40*6
50*50*4
50*50*5
50*50*6
60*60*6
60*60*8
60*60*10

WEIGHT KG / METER
0.170
0.435
0.680
1.530
1.10
1.40
1.80
2.20
2.10
2.60
2.40
3.00
3.50
3.00
3.80
4.50
5.40
7.00
8.60

Dimensional measurement of physical raw component (If available) is compared with

drawing considering minimum required machining allowances and recorded in Weight
Analysis of Component Sheet (WTSTD: 31) copy attached.
Input weight is derived after calculation considering appropriate machining allowance.
In case of forged component cut weight is calculated as per format (WT-STD: 31(A)
31
Copy attached.
Recoverable scrap weight (95% in machined parts ,100% sheet metal parts, scrap weight
less by burning loss in gas cutting components) is deducted from input weight(raw material
weight) Burning losses calculated as 5mm average width multiplied by the peripheral length
in mm * thickness in mm * density (7.85g/ cm3 ) divided by 10,00,000 ).

2) PROCESS COST SEGMENT

[Format CT-STD: 16 & MR-STD: 201]

It is defined as product of cycle time & the respective machine hour rate.
2 (a) MACHINE HOUR RATE CALCULATION
[Format MR-STD: 201]

Machine hour rate is calculated after accessing the basic data like Cost of machine,
depreciation period, interests, consumable cost, labour cost, spares, electricity cost as
per the attached machine hour rate calculation format.
2 (b) PROCESS OPERATION SEQUENCE CYCLE TIME STUDY
[Format CT-STD: 16]

1. Study of drawing w.r.t. tolerances of the component

2. Process sequence of component
2 (a) Process used in machining components are hacksaw cutting, centering &
facing, drilling, tapping, grooving, parting off, chamfering, milling, grinding etc.
2 (b) Process used in sheet metal components are shearing, blanking, bending,
piecering, deep-drawing, trimming, embossing etc.
2 (c) Process used in fabrication components are shearing / gas cutting / profile
gas cutting, bending / heating & bending, debburing, welding etc.
3. Selection of machine depending upon the operation i.e. for machining
components Hacksaw, Lathe , Milling , Drilling , Grinding m/c are used .For sheet
metal & fabrication components Presses ( ranges from 50 ton to 1000 ton ) , gas
cutting , welding are used.
4. Selection of tools depends upon the machine & surface finish required by the
drawing .Tools generally used for machining components are blade, brazed tool,
inserts, cutters, drills, hole mill, reamers, grinding wheel. Dies are used in sheet
metal & fabrication components.
5. Cycle time study i.e. clamping time in min., RPM, feed mm/min, cutting speed in
m/min , length of cut in mm, handling time in min,no. of pass, setting time in min
etc. All are summed up to calculate in total manufacturing time on different
machines.
Formulas for calculating the machining time:
Machining Time in min

= Length of cut / (Feed in mm/rev *RPM)

Length of cut

= Length travel by the tool on the component for

The particular operation & (In case of drilling
0.3D is added in the length of cut, where D=
Dia Of the drill)
= Depending upon the removal of material.
Maximum material removal in one cut is 3 mm

No. of passes

Feed in mm/min for Threading = Pitch * RPM

Machining time for milling

= Length of job +added table travel

Feed / tooth * no. of tooth of cutter * RPM

Formulas for calculating the Press component time:

The total stroke time of a mechanical press is 21 sec.( approx) including handling
time
Machining allowances consideration:
1. Casting components
1 (a) 3-4 mm per face
1 (b) 4-6 mm on diameter
1 (c) 5-7 mm on bore
2. Steel components
2(a) 3-5 mm on dia
2(b) 2-3 mm on face
Wastage:
Fabrication components = +5% on raw weight of the component.
Alter method to calculate the wastage is to calculate the total weight of the plate
& divided by the no. of pieces which can be sheared / gas cut.
In steel components 2% cutting wastage on raw weight.

6. Additional operations cost i.e. Tagging, welding ,assembly, finishing operation

are considered in sheet metal & fabrication category components as cost derived
by conducting practical trials . Detail as under

STANDARD ADDITIONAL OPERATION COST

S.NO.

OPERATION

UOM

RATE / UNIT

REFERENCE

Gas cutting

Rs. /
Meter

13

6D1.1

Mig welding

Rs. /
Meter

13.42

6D3.1

Arc welding

Rs. /
Meter

13.10

6D2.1

Tagging

Per Tag

0.25

Primer application

Rs. /
Meter2

12.19

6D5.1

7. Machining time multiplied with respective machine hour rate to derive respective
operation cost.

8. Sum up of all operation cost is total process cost.

9. Standard parameters used for calculate the manufacturing time

STANDARD PARAMETERS
Parameter

UOM

Range From

Formula
Lathe

RPM

--

Cutting Speed
Feed

M / min
mm /
rev.

Milling

Drilling

Standard

90

To

835

100

To

1400

90

To

710

3.14* Dia *RPM /

1000

60

To

90

100

To

300

10

To

22

0.05

To

0.2

0.2

To

0.5

0.05

To

0.2

Standard

3) OTHERS COST SEGMENT

[Format CT-STD: 1&2 (segment C)]

1. ICC @2% on material cost

2. REJ @2% on material cost
3. OVERHEADS @10% on process cost
4. PROFIT @10% on process cost.

TOTAL COST OF THE COMPONENT

All the 3 cost segments Material cost segment from format CS-STD: 1&2 segment A, Process cost
segment from format CT-STD: 16, others cost segment from format CS-STD: 1&2 segment C. are
updated in the sheet named COST BREAK UP (Format CS-STD: 1&2&3) to calculate the total cost of
the component.

_____________________________________________________________________________

ENCL: 1.
2.
3.
4.
5.
6.

FORMAT NO. CS-STD: 1

FORMAT NO. CS-STD:2
FROMAT NO. CT-STD:16
FROMAT NO. WT-STD:31
FROMAT NO. WT-STD:31 (A)
FROMAT NO. MR-STD:201