Ppce Essay & Two Marks

8/11/2019 Ppce Essay & Two Marks

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RMK ENGINEERING COLLEGEDEPT. OF MECHANICAL ENGINEERING

ME 2027: PROCESS PLANNING AND COST ESTIMATION

2-Marks Ques !"# a#$ A#s%er

! ': ("rk s u$) a#$ Er*"#"+!,s'. ( a )"u +ea# ) %"rk s u$)/

Work study is the systematic examination of the methods of carrying onactivities so as to improve the e ective use of resources and to set upstandards of performance for the activities being carried out.

2. (r! e e e e+e# s "1 %"rk s u$). Two elements of work studies are method study and work measurements.

. De3#e e er+ +e "$ s u$).

Method study is the systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing andapplying easier and more e ective methods and reducing costs.

4. De3#e e er+ %"rk +easure+e# .Work measurement is the application of techniques, designed to establish

the time for a quali ed worker to carry out a speci ed !ob at a de ned level of performance.

5. L!s "u e s,"6e "1 %"rk s u$)."cope of work study is not only to manufacturing industries only it can

also use in service sectors. This can be applied in o#ces, hospitals, banks, andalso marketing, material handling, design, building construction, army,agriculture etc.

. S a e e +a!# " 8e, !9es "1 +e "$ s u$).$i% To improve the processes and procedures.$ii% To improve the design of plant and equipment.$iii% To improve the plant layout.$iv% To improve the use of men, materials and machines.$v% To improve the &ow of production and processes.$vi% To improve the safety and standards.

$vii%To develop a better physical working conditions.

7. L!s "u e as!, 6r",e$ure "1 +e "$ s u$). There are seven essential stages in the application of method studies are"election, 'ecording, (xamine, )evelop, )e ne, *nstall and Maintain

. ( a are e 1a, "rs " e ,"#s!$er e se e, !"# 1"r +e "$ s u$)/ Three factor should be consider such as

$i% (conomic consideration, $ii% Technical consideration and $iii% +umanreactions.


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;. L!s "u e ,"++"# ) use$ re,"r$!#* e, #!


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"tandard Time 9 0ormal time : /llowances

-bserved time x performance rating $;%0ormal Time 9 555555555555555555555555555555555555555555555555555555

6


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The two general5approaches to, process planning are*. Manual process planning, andB. omputer /ided rocess lanning $ / %.

$i% 'etrieval / system, and$ii% 1enerative / system.

5. De3#e +a#ua 6r",ess 6 a##!#*.*n traditional process planning systems the process plan is prepared

manually. The task involves examining and interpreting engineering drawings,making decisions on machining processes selection, equipment selection,operations sequence, and shop practices. Therefore, the manual process plan isvery much dependent on the skill, !udgement and experience of the processplanner. ThatCs why, if di erent planners were asked to develop a process planfor the same part, they would probably come up with di erent plans.

. (r! e A$9a# a*es a#$ D!sa$9a# a*es "1 Ma#ua Pr",ess P a##!#*.A$9a# a*es

Manual process planning is very much suitable for small scale companieswith few process plans to generate.

This method is highly &exible . This requires low investment, costs.

D!sa$9a# a*esManual process planning is a very complex and time consuming !obrequiring a large amount of data.

This method requires the skilled process planner.More possibilities for human error*t increases paper work

7. De3#e CAPP*n order to overcome the drawbacks of manual process planning, theomputer /ided rocess lanning $ / % is used. With the use of computers in

the process planning, one can reduce the routine clerical work of manufacturingengineers, /lso it provides the opportunity to generate rational, consistent andoptimal plants. *n addition / provides interface between /) and /M.

. ( a are e a66r"a, es "1 CAPP/ The two basic approaches or types of / system are D

6. 'etrieval $or variant% / system,, andB. 1enerative / system.

;. De3#e re r!e9a ?"r 9ar!a# @ CAPP s)s e+./ retrieval / system, also called a variant / system, has beenwidely used in machining applications.

The basic idea behind the retrieval / is that similar parts will havesimilar process plans.*n this system, a process plan for a new part is created by recalling,identifying and retrieving an existing plan for a similar part and makingthe necessary modi cations for the new part.


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'0. Dra% a,ks "1 Re r!e9a CAPP S)s e+ The components to be planned are limited to similar componentspreviously planned.(xperienced process planners are still required to modify the standardplan for the speci c component.

''. De3#e *e#era !9e CAPP s)s e+s.*n the generative approach, the computer is used to synthesiEe orgenerate each individual process plan automatically and withoutreference to any prior plan./ generative / system generates the process plan based on decisionlogics and pre5coded algorithms. The computer stores the rules of manufacturing and the equipment capabilities $not any group of processplans%.When using a system, a speci c process plan for a speci c part can begenerated without any involvement of a process planner.

The human role in running the system includesD $i% inputting the 1T codeof given part design. and $ii% monitoring the function.

'2. ( a are e C"+6"#e# s "1 a Ge#era !9e CAPP s)s e+/ The various components of a generative system areDA 6ar $es,r!6 !"# , which identi es a series of componentcharacteristics, including geometric features, dimensions, tolerances andsurface condition.A su s)s e+ " $e3#e e +a, !#!#* 6ara+e ers , for exampleusing look5up tables and analytical results for cutting parameters.A su s)s e+ " se e, a#$ se


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G. 2ower process re!ection.H. Minimum set5up time.I. 2onger productive life of machines or equipment.J. 4unctional versatility i.e. ability to perform more than one function.

'5. De3#e 6r",ess a#a )s!s1. Process analysis, also known as method study, enables theindustrial engineer to sub!ect each operation to systematic analysis.B. *t analyses each step of the manufacturing process and aims atimproving the industrial operations.7. rocess analysis helps in nding better methods of doing a !ob and thisis achieved by eliminating unproductive and unnecessary elements of theprocess.G. The process is analysed with the help of process charts and &owdiagrams.

' . ( a are e " 8e, !9es "1 6r",ess a#a )s!s/ The main ob!ectives of process analysis are6. To improve work methods and procedures.B. To determine the best sequence of doing work.7. To eliminate the waste and unproductive operations.G. To improve plant utilisation and material utilisation.H. To improve the working conditions and hence to improve laboure#ciency.I. To eliminate unnecessary fatigue and thereby e ect economy in humane ort.

'7. ( a are e s e6s !#9" 9e$ !# 6r",ess a#a )s!s/"teps involved in carrying out a complete a process analysis i.e., methodstudy are as follows6. "electionD "elect the process or !ob to be studied keeping in technicaland economical factors.2. Recording : 'ecord all facts regarding present and proposed to workmethods using appropriate recording techniques. The recording can bedone with the help of process charts and diagrams.7. (xaminingD /nalyse or examine the recorded facts carefully andcritically to see whether some elements can be eliminated combined orsimpli ed. This step will expose defects in the existing methods. Thepurpose place and sequence of every operation should examine.4. Developing new method: )evelop the new and improved method.)evelopment involves the analysis of the three phases of evaluationinvestigation and selection.5. De ning the new method: )e ne the new method and its requirements!. "nstalling the new method: *nstall the new method with the cooperationof supervisor and operator.*nstallation refers to the implementation of the proposed method. *t iscomposed of two phases recommendation implementation.


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#. $aintaining the new method: Maintain the new method as the standardpractice and verify with the help of proper control procedures that it isachieving the desired results.

! : I# r"$u, !"# " ,"s es !+a !"#

'. De3#e e er+ ,"s es !+a !#*.ost estimating may be de ned as the process of determining the

probable cost of the product before the start of its manufacture.

2. (r! e e !+6"r a#,e "1 ,"s es !+a !#*/ost estimating is very important for all organisations, before starting

actual production or lling up the tenders. Kecause only accurate estimatingcan enable the factory owner to make vital decisions such as manufacturingand selling policies. Koth, over estimating and under5estimating are dangerousfor a concern.

*f a !ob is over5estimated, i.e., the estimated cost is much more than theactual cost of the product, then the rm will not be able to compete with itscompetitors who estimated the price correctly and loses the order to itscompetitors. -n the contrary, if the !ob is underestimated, i-e., the estimatedcost is below the actual, cost@ of product, then the rm will face, huge nancialloss which may cause utter failure or closure Cof the rm. Therefore a realisticand accurate estimating should be done. +ence the sta preparing estimatesbe highly quali ed and experienced.

. (r! e e a!+s "1 ,"s es !+a !"#/ To establish the selling price of a product for a quotation or contract, so asto ensure reasonable pro t to the company.

To ascertain whether the proposed product can be manufactured andmarketed pro tably,

To take make or buy decisions, i.e., to determine whether the part orassembly can be manufactured economically, in the plant itself or to bepurchased from outside.

To determine the most economical method process, or material formanufacturing a product.

To establish the standard of performance that may be used to controlcosts.

To prepare production budget. To evaluate alternate designs of product.

To initiate means of cost reduction in existing production facilities by usingnew materials, new methods of tooling and processing.

4. ( a are e 1u#, !"#s "1 ,"s es !+a !"#/ost estimates are required to submit accurate tenders for getting the

contracts.ost estimates are required for the manufacturer to choose from various

methods of production the one which is likely to be most economical.ost estimates are required for xing the selling price of a product.


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ost estimate gives detailed information of all the operations and theircosts, thus setting a standard to be achieved in actual practice.

ost estimate enables the management to plan for procurement of rawmaterials, tools, etc., and to arrange the necessary capital, as it givesdetailed requirement.

5. G!9e e )6es "1 es !+a es/ The four groups of estimates generally used in a manufacturing enterprise

are D(stimates for xing the selling price of the product.(stimates to help the contractors to submit accurate tenders for enteringinto new contract.(stimates for setting various standards for the purpose of comparison.(stimates to forecast the progress of production and cost of the order tokeep control of any variation of the material costs.

. (r! e e !+6"r a#,e "1 rea !s !, es !+a es/

Three possible estimating are $i% -ver estimation, $ii% Lnder5estimation, and$iii% 'ealistic estimation.Koth the over5estimation and underestimation are dangerous because both willultimately lead the enterprise to failure. *n over estimating, the rm will not beable to compete with its competitors who estimated the price correctly andlosses the order to its competitors. *n case of under estimating, the rm willface huge nancial loss which may utter failure or closure of rm. Therefore arealistic estimation is the need of the hour for any concern.

7. ( a are e ,"+6"#e# s "1 a 8" es !+a e/Kefore doing the cost estimation of a product, one should know the constituents

of estimation. The total estimated cost of a product of the following costcomponents. )esign cost,i. ' ) cost,

ii. 2abour cost,iii. )rafting cost,iv. Materials cost,v. *nspection cost,

vi. ost of tools, !igs and xtures, andvii. -verhead cost.

. De3#e Des!*# C"s /

The cost of design of a. product is estimated by ascertaining the expectedtime for the design of that product.(stimated design cost 9 (stimated design time x "alary of designer per unittime.

'0. De3#e Dra1 !#* C"s/fter the completion of the design, the drawings have to be prepared by

draftsman.)rafting cost 9 (stimated time by draftsman in preparing drawings x "alary of the draftsman per unit time


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''. De3#e C"s "1 Resear, a#$ De9e "6+e# ("rk onsiderable time and money has to be spent on research and

development work. The research may be theoretical, experimental ordevelopmental research. The estimated time and the costs to be incurred on itare decided by !udgement or past experience.

'2. De3#e "9er ea$ ,"s-verhead expenses are those which cannot be charged directly to a

particular product manufactured./ll expenses other than the direct material cost, direct labour cost, and directexpenses are known, as overhead costs or indirect expenses. /dministrativeexpenses, selling and distribution expenses are added to the overhead costs.

The overhead costs may be estimated by referring to the records of overheadcosts in similar parts produced in past.

' . De3#e C"s !#*osting is the determination of an actual cost of a component after adding

di erent expenses incurred in various departments.osting or cost accounting may be de ned as a systematic procedure for

recording accurately every item, of expenditure incurred on the manufacture of a product by di erent sections of any manufacturing concern.

'4. ( a are a!+s "1 ,"s !#*/ The main aims of costing are

'5. ( a are e !+6"r a#,es "1 ,"s !#*/osting is necessary because it provides information for D

$i% )etermining, classifying and analysing the cost and incoming to abusiness rm.

$ii% )etermining the prices to be quoted to customers.$iii% 4orming basis for managerial decisions that have to do with,

$a% Make or buy decisions,$b% To introduce a new product or to drop an existing one, and$c% To expand or contract the existing one.$d% ost control through accumulation and utilisation of cost data.$e% (stablishing standards for measuring e#ciency.

' . (r! e e ,"++"# +e "$s "1 ,"s !#*.6. Nob costing or order costing,B. Katch costing,7. rocess costing,G. )epartmental costing,H. -perating cost method,I. Lnit cost method, andJ. Multiple cost method.

'7. De3#e " C"s !#* "r Or$er C"s !#*


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This method is concerned with nding the cost of each individual !ob orcontract.

*n this method, the total cost for each order is obtained from the daily costsheet.

This method is adopted in !ob order industries such as ship building,machine manufacturing, fabrication, building contracts, etc.

' . De3#e Ba , C"s !#*Katch costing is a form of !ob costing. *n this method, instead of costing

each batch of components separately, each batch of components is takentogether and treated as a !ob.

';. ( a )"u +ea# ) Pr",ess C"s !#*/6. This method is employedC when a standard product is made which involves anumber of distinct processes performed in a de nite sequence.B. This method is adopted in industries such as oil re ning, chemical, papermaking, paint, cement manufacturing and other similar industries.7. This method indicates the cost of a product at di erent stages as it passesthrough various operations or processes or departments.4or example,, in the manufacture of cement, the operations of mixing, grindingthe raw material, burning, cooling and grinding the clinker are readily separableand cost of each of these stages can be accurately calculated.

20. De3#e De6ar +e# a C"s !#*6. This method is adopted in determining the cost of the output of eachdepartment separately for the manufacture of the standardised products.B. This method is applied in industries like steel industry, automobile industry,etc., where each department is producing independently one or morecomponents.7. *n this method, the actual expenditures of each department on variouscomponents is entered on a separate cost sheet and the costing for eachdepartment is separately undertaken.

2'. De3#e O6era !#* C"s Me "$ This method is used in rms providing utility services.(xampleD *n transport services, water works, electricity boards, railways, etc.,cost is determined on the basis of operating expenses. That is, charges aremade as passenger per km, per m7 volume, per kilowatt5hour, tonne, etc.

22. De3#e ! C"s Me "$ This method is adopted by the rms, which supply a uniform product ratherthan a variety of products such as mines, quarries, etc

2 . De3#e Mu !6 e C"s Me "$ This method is used in rms which manufacture variety of standardisedproducts, having no relation to one another in cost, quality and the type of process, etc.


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! 4 : COST ESTIMATION

'. ( a )"u +ea# ) +a er!a s ,"s /*t is the cost of materials required for the manufacturing of the product. *t

consists of $a% )irect material cost$b% *ndirect materials cost.D!re, Ma er!a s C"s*t is the cost of direct materials required for the manufacturing of the product.I#$!re, Ma er!a C"s*t is the cost of material which are essentially needed in various shops forhelping the direct materials to convert into nished product.

2. ( a !s +ea# ) $!re, +a er!a /)irect material is one which becomes a part of the product. *t is the

material which is consumed in the, manufacturing of product. *t can bemeasured and charged directly to the cost of the product.

)irect materials are also known as C roductive materialsC. C rocessmaterialsC. C"tore materialsC.C onstructional materialsC. and C rime cost materials, (xamples direct materialsare D Mild steel bar used to manufacture spindles, cast iron used to manufacturepulleys, wood used for making a table, plastics used to make buckets, etc.

. ( a !s +ea# ) I#$!re, Ma er!a s/*ndirect material is the one which cannot be traced as a part of the

product. *t is the material required for maintaining and operating the plant andequipment but cannot be a part of the product.(xamples of indirect materials areD 1rease, lubricating oil used to lubricate theequipments, coolants used to cool the !ob and the tool, cotton waste, kerosene,etc.

4. H"% " $e er+!#e "1 +a er!a s ,"s /6. "tudy the given drawing carefully. Then breakup the product intosimple geometrical shapes such as cubes, prisms, cylinders, etc., so thattheir volume can be easily calculated.B. alculate the volume of each part by applying the formulae of menstruation.7. /dd volumes of all the parts to get the total volume of the roduct.G. alculate the weight of material by multiplying the volume,, by itsdensity.H. 4inally, calculate the material cost by multiplying the cost per unitweight to the weight of the material

5. De3#e D!re, La "ur C"s*t is the wages paid to the direct labour.)irect labour are the workers who actually work or process di erent

materials either manually or with the help of machines.)irect labour cost can be charged directly to, the !ob under preparation.)irect labour is also called as %&roductive la'our%, %(perating la'our and

C rocess la'our%.


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(xamples of direct la'our are : )or*ers or operators working on variesmachines in di erent shops like machine shop, welding shop, foundry shop,carpentry shop, sheet metal shop, etc.

7. De3#e I#$!re, La "ur C"s*t is the wages paid to the indirect labour.*ndirect labours are the non productive sta who helps the productive labour inperforming their duties. *ndirect labour cost cannot be charged directly to aparticular !ob, but are charged on the number of products produced in the plantduring a particular period.(xamples of indirect la'our are: +upervisors, inspectors, foreman, storekeepers, time keepers, watchmen, drivers, etc.

. H"% " $e er+!#e "1 $!re, a "ur ,"s /"ince the labour cost contributes a signi cant amount of total cost of producttherefore the e ective and e#cient determination of labour cost is essential. *norder to calculate the labour cost, an estimator must have the knowledge of

i% all the operations involved,ii% the tools, andiii% the machines used for production.

Some important defnitions:

1 Cost determination: To determine the actual cost of each component andcost of the nal product.2 For fxing selling price : To provide information to ascertain the selling priceof the product.3. Cost control: o analyse the expenses incurred in production, so thatcontrol can be kept over them.4. Comparison %! estimate : o compare the actual cost with the estimatedcost to know whether the estimate had been realistic or not.5. a!e or "uy decisions: o decide wGich of the components to bemanufactured and which parts to be purchased from outside.#. $astage reduction: o help in detecting the undesirable wastages andexpenses, so that corrective measures can be taken.%. &o suggest changes !# design: o suggest changes in design, if the cost of production is higher as compared to the competing product.'. Proft and loss: o locate the reasons for the increase or decrease in pro tsor loss of a company.(. Fixing the discount: o help in determining the discount on catalogue ormarket price of the product.1). Pricing policy: o help in formulating the policies for changing or prices of the product.11. *udget preparation: o help the enterprise to prepare its budget.12 For preparing +uotations tenders: o facilitate preparation of estimatefor submitting in quotations or tenders.' . Ou 6u ar*e s: To help in regulating, from time to time, the production of a !ob so that the enterprise can earn more pro ts.1-. egal pro/isions: o meet certain legal and government regulations, costdata is necessary.


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6. "tart up allowance, B. / shut down allowance,7. / cleaning allowance, G. Tool allowance $for ad!ustment and maintenance of tools%, andH. hange over allowance.

. De3#e D!re, E 6e#ses)irect expenses are those which can be charged directly to a particular

!ob and are done for that speci c !ob only. )irect expenses are also known as%chargea'le e penses%.E amples o direct e penses are

ost of preparing designs, drawings for the manufacture of a particular product.ost of experimental work done speci cally for a particular product.ost of procuring or manufacturing special types of !igs and xtures for the

manufacture of a particular product.ost of hiring special types of patterns, moulding &asks, dies, etc.ost of consultancy charges for design and manufacture of a speci c product.

;. De3#e I#$!re, E 6e#ses ?O9er ea$ E 6e#ses@*ndirect expenses are those which cannot be charged directly to a

particular product manufactured. /ll expenses other than the direct materialcost direct labour cost and direct expenses are indirect expenses. *ndirectexpenses are also known as %(verhead charges/ C-n cost and %0urden%.

'0. ( a are e a#a )ses use$ 1"r "9er ea$ e 6e#ses/$a% 4actory expenses,$b% /dministrative expenses,$c% "elling expenses, and$d% )istribution expenses.

''. De3#e Fa, "r) E 6e#ses*t includes all indirect expenses which are incurred in connection with

manufacture of the products, right from the receipt of the work order till it iscompleted and ready for despatch.4actory expenses are also known as % actory on-cost, )or*s (n-cost, % actory overhead%, %)or*s overhead/ %&roduction overhead/ etc.

'2. De3#e A$+!#!s ra !9e E 6e#ses*t includes the expenses which are incurred for general administration and

management for e#cient and proper functioning of the enterprise./dministrative expenses are also known as %( ce e penses% and%Esta'lishment on-cost 3

' . De3#e Se !#* E 6e#ses. These are the expenses which are incurred for creating and enhancing the

demand for the products. *t includes the expenditures spent towards securingorders, creating and retaining markets for the products manufactured.E amples o selling e penses are:$i% (xpenses incurred on salaries of sales manager, clerks and attendants in thesales department.


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ii "alaries, commissions and travelling expenses of sales, representatives oragents.$iii% ost of advertisement and publicity.

'4. ( a )"u +ea# ) $!s r! u !"# E 6e#ses/ These are the expenses which are spent for the distribution of the

product. ,*t includes the expenditure made on holding nished stock, packing cost anddispatching them to thecustomer.E amples o distri'ution e penses are:

$i% (xpenses incurred on packing and forwarding.ii "alaries of workers employed for packing the products.

$iii% "alaries of stores o#cer, store keeper and their assistants, etc.$iv% (xpenses incurred on loading and unloading, freight, welfare andtransportation.

'5. ( a are e ,"+6"#e# s "1 ,"s /6. rime cost,B. 4actory or works cost,7. Manufacturing or production cost,G. Total or ultimate cost, andH. "elling price.

' . De3#e Pr!+e C"srime cost is also called as %Direct cost. " t consists of direct material cost,

direct labour cost and direct expenses.

'7. De3#e Fa, "r) "r ("rks C"s*t consists of prime cost and factory expenses.

4actory cost 9 rime cost : 4actory expenses

' . De3#e Pr"$u, !"# "r Ma#u1a, ur!#* "r O ,e C"s*t is the cost of manufacturing a product. *t includes the cost of each item

incurred in manufacturing the nished product, right from purchasing the rawmaterial to the point when the nished product is ready for sale. *t consists of factory cost and administrative expenses.

Manufacturing cost 9 4actory cost : /dministrative expenses

Essay Questions :Unit 1

1. Explain briefly the various steps involved in work study procedure and how work studyleads to higher productivity in manufacturing sectors.

2. State and explain in brief the steps involved in method study procedure.. Explain with suitable examples of method study symbols.

!. "riefly explain three types of flow charts in method study.#. Explain S$%& charts with suitable example.'. (ist the &b)ectives* purpose and scope of work measurement.


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+. "riefly explain time study procedure.,. -ow to classified allowances and briefly explain.

. /alculate the Standard time.10. hat is meant by ergonomics 3escribe the ob)ectives of the study of ergonomics.

U4$5 $$1. Explain the different steps involved in process planning2. Explain in detail the process planning activities.

. rite short notes on 6tools for developing manufacturing logic and knowledge7.!. hat are the factors that influence process planning#. "riefly explain material selection and machine selection.'. Explain the manual approach to process planning. hat are its advantages and limitation.+. hat are expert system shells,. hat factor should be considered while selecting the best process planning system

U4$5 $$$1. (ist out the functions of cost estimating.

2. hat is cost estimating State the ob)ectives of cost estimating.. -ow to classified cost and explain briefly.!. (ist out the various types and sources of data re8uired by the cost estimator.#. Explain the procedure followed for estimating the cost of an industrial product.'. (ist out the various elements of cost. Explain each element in detail giving suitable examples.+. 3escribe with a block diagram how the selling price of a product is arrived at

Important Questions form 3 rd , 4 th and 5 th units.


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Ppce Essay & Two Marks

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