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CONTENTS
INTRODUCTION
BASIC CONCEPTS
COST ENGINEERING
VALUE ENGINEERING
YIELD FACTOR
STANDARDISATION
COMMONIZATION
EXERCISE
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ASSUMPTIONS
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INTRODUCTION
DEFINATION OF COST ENGINEERING
ROLE OF COST ENGINEERING IN PRESENT
SCENARIO
ADVANTAGES OF COST ENGINEERING
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ROLE OF COST
ENGINEERING
1.COST ENGINEERING WORKS AS BRIDGE BETWEEN NEW
DEVELOPMENTS & IMPLEMENTATIONS.
2. COST ENGINEERING ALSO WORKS AS MIRROR IN WHICH
REALSTICTOTAL COST OF THE JOB REFLECTS
3. COST ENGINEERING GIVES FORECAST TO ALL THE DEVELOPMENTS
CONDUCTEDBY DIFFERENT DEPARTMENTS OF THE ORGANIZATION
4. IT HELPS IN GETTING US REALSTIC COST PROPOSED DEVELOPED
JOB
5.COST ENGINEERING PATCHUPS BETWEEN THE REQUIREMENT OF
NEW DEVELOPMENTS & MARKET AVAILIABILITY.
6. COST ENGINEERING MAINTAINS RECORD OF MARKET PRICES OF
RAW MATERIAL
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BASIC CONCEPT
MATERIAL COST
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S.no.
Description
Volume
1.
Circle
/4* D2 * height
Where D = Dia in mm
2.
Triangle
Length*Height*Width / 2
3.
Square
Length2 *Thickness
4.
Rectangle
Length*Width*Thickness
5.
Bending length
L= a + (R + q*s/ 2) *@/180+b+.....
Example:
Length of legs
: a = 40 mm, b = 166 mm, c = 56 mm
Bend Radius
: 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
REFERENCE
WEIGHT KG / METER
1. Hexagonal
Width across flat 5
0.170
Width across flat 8
0.435
Width across flat 10
0.680
Width across flat 15
1.530
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2. Angle
20*20*4
1.10
25*25*4
1.40
30*30*4
1.80
30*30*5
2.20
35*35*4
2.10
35*35*5
2.60
40*40*4
2.40
40*40*5
3.00
40*40*6
3.50
50*50*4
3.00
50*50*5
3.80
50*50*6
4.50
60*60*6
5.40
60*60*8
7.00
60*60*10
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)
Copy attached.
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Recoverable scrap weight (95% in machined parts ,100% sheet metal parts, weight less
by burning loss in gas cutting components) is deducted from input weight(raw material
weight) Burning losses calculated as 3-5mm average width multiplied by the peripheral
length in mm * thickness in mm * density (7.85g/ cm3 ) divided by 10,00,000 ).
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.
&
12
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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)
No. of passes
= Depending upon the removal of material.
Maximum material removal in one cut is 3 mm
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
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13.00
13.42
13.10
0.25
12.19
(6 D1.1)
(6D3.1)
(6D2.1)
(6D5.1)
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Machining time multiplied with respective machine hour rate to derive respective
operation cost.
Sum up of all operation cost is total process cost.
Standard parameters used for calculate the manufacturing time
STANDARD PARAMETERS
Parameter UOM
Formula
Lathe
Milling
Drilling
RPM
-Standard
90To 835 100To1400
90To710
C.S
M / min
3.14* Dia *RPM 60To90
100To300
10To22
/1000
Feed
mm / rev. Standard
0.05To0.2
0.2To0.5
0.05To0.2
OTHERS COST SEGMENT
[Format CT-STD: 1&2 (segment C)]
ICC @2% on material cost
REJ @2% on material cost
OVERHEADS @10% on process cost
PROFIT @10% on process cost.
.
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