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| Entire process is completed in my small scale unit.i want to compare costs vis-a-vis vendors..note following details:- Material-M2(HSS) Operations overview------- ----Cutoff,rough centreless grinding,flute grinding,clearance grinding,taper grinding,point grinding,heat treatment and finish grinding... Please help me out here if any one can.. | |
Saturday, August 30, 2008
How do i estimate the production cost of a drill that i manufacture in my own factory?
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labor cost per hour divided by number produced in each operation
Plus the cost of material handing time moving products from one operation to the next.
Plus cost of orginal piece plus the waste from cutting, grinding and all metal lost in the process by wieght.
The number of bad parts produced and their cost.
I do suppose you have some supervision, quality control, and the estimated cost of the eolectric power for the tools and equipment, repair and replacement allowances for each hour the tools or equipment is used.
The estimnated cost of Insurance for your unit, the estimeated cost of lighting for your unit, the estimated cost of record keeping for your unit.
You say the whole operation is preformed in you unit. Is the raw materail ordered from there ? Are shipping and handling cost paid by your unit ? Is there a recieving warsehouse where the raw materail is stored before you use it in your unit ?
All those cost are part of the overall cost of production.
If you want an accurate comparision in price.
Or you could go ask the CFO of the Company for a PER UNIT COST BREAKDOWN.
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