[ME 6005] Process Planning & Cost Estimation

SRI SAIRAM ENGINEERING COLLEGE

(NBA Accredited & ISO Certified Institution)
Sai Leo Nagar, West Tambaram, Chennai - 44

QUESTION BANK

ME6005 - PROCESS PLANNING & COST

ESTIMATION

(Mechanical Engineering – IV Year – VII Semester)

Prepared

By

Mr.E.Naveen

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 [ME 6005] Process Planning & Cost Estimation

PREFACE
“Practice is the hardest part of learning, and training is the essence of

transformation.”

“Practice doesn't make things perfect; but reduces the imperfection.”

The management and the faculty strongly believe in the quote “Tomorrow’s victory is

today’s practice.” The question bank is an initiative from the management which will be

highly beneficial to the student and will aid them to perform well in the examinations. The

enthusiastic and inspirational faculties of the Department of Mechanical Engineering have put in

their best efforts in preparing this question bank for the benefit of the students. I hope that the

students’ fraternity will derive the maximum benefit by this initiative. Such initiatives, in the

long run, will enhance the quality of the “TEACHING – LEARNING” process.

“Learning and teaching should not stand on opposite banks and just

watch the river flow by; instead, they should embark together on a

journey down the water. Through an active, reciprocal exchange,

teaching can strengthen learning how to learn.”

I whole heartedly congratulate all the faculties of the Department of Mechanical Engineering

for their dedicated and sincere effort in bringing out this Question bank.

Dr.A.Rajendra Prasad
Principal

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 [ME 6005] Process Planning & Cost Estimation

ME6005 PROCESS PLANNING AND COST ESTIMATION LTPC

3 00 3
OBJECTIVES:
To introduce the process planning concepts to make cost estimation for various products after
process planning

UNIT I INTRODUCTION TO PROCESS PLANNING 10

Introduction- methods of process planning-Drawing interpretation-Material evaluation – steps in
process selection-.Production equipment and tooling selection

UNIT II PROCESS PLANNING ACTIVITIES 10

Process parameters calculation for various production processes-Selection jigs and fixtures
election of quality assurance methods - Set of documents for process planning-Economics of
process planning- case studies

UNIT III INTRODUCTION TO COST ESTIMATION 8

Importance of costing and estimation –methods of costing-elements of cost estimation –Types of
estimates – Estimating procedure- Estimation labor cost, material cost- allocation of over head
charges- Calculation of depreciation cost

UNIT IV PRODUCTION COST ESTIMATION 8

Estimation of Different Types of Jobs - Estimation of Forging Shop, Estimation of Welding
Shop, Estimation of Foundry Shop

UNIT V MACHINING TIME CALCULATION 9

Estimation of Machining Time - Importance of Machine Time Calculation- Calculation of
Machining Time for Different Lathe Operations ,Drilling and Boring - Machining Time
Calculation for Milling, Shaping and Planning -Machining Time Calculation for Grinding

TOTAL: 45 PERIODS

OUTCOMES:
Upon completion of this course, the students can able to use the concepts of process planning
and cost estimation for various products.
TEXT BOOKS:
1. Peter scallon, “Process planning, Design/Manufacture Interface”, Elsevier science technology
Books, Dec 2002.
REFERENCES:
1. Ostwalal P.F. & Munez J., “Manufacturing Processes and systems”, 9th Edition, Wiley, ‘98.
2. Russell R.S and Tailor B.W, “Operations Management”, 4th Edition, PHI, 2003.
3. Chitale A.V. and Gupta R.C., “Product Design and Manufacturing”, 2nd Edition, PHI, 2002.

Reference Books
1. “Production & Costing” By Narang & Kumar,
2. “Mechanical Estimating & Costing” By Banga & Sharma,
3. “Mechanical Estimating & Costing” By O.P. Khanna,
4. “Mechanical Estimating & Costing” By Technical Teachers Training Institute,
5. “Process Planning & Cost Estimation” By Dr. R. Kesavan, Dr. C. Elanchezhian,
Dr.B. Vijaya Ramnath

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UNIT-I
INTRODUCTION TO PROCESS PLANNING
Part – A (2 Marks)
1. What is process planning?
“An act of preparing detailed work instructions for the manufacture and assembly of
components into a finished product in discrete part manufacturing environments”.
2. List the various activities of process planning.
i. Drawing interpretation
ii. Material evaluation and process selection
iii. Selection of machines, tools and fixtures
iv. Setting process parameters
v. Selection of quality assurance methods
vi. Cost estimating
vii. Preparing the process planning documentation
viii. Communicating the manufacturing knowledge to the shop floor
3. What is a Route sheet?
It lists the production operations and associated machine tools for each component and
sub-assembly of the product.
4. List the various approaches to process planning.
 Manual process planning
 Computer aided process planning (CAPP)
o (i). Retrieval (or Variant) CAPP System
o (ii). Generative CAPP system.
5. Differentiate Variant & Generative CAPP system
In Variant system, a process plan for a new part is created by recalling, identifying and
retrieving an existing plan for a similar part and making the necessary modifications for the
new part. But, in Generative approach, the computer is used to synthesize or generate each
individual process plan automatically and without reference to any prior plan.
6. What are the main areas focused during material evaluation?
 Shape or Geometry considerations
 Material property requirements
 Manufacturing considerations
7. List the factors to be considered while selecting the manufacturing processes.
 Material form

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 Component size and weight
 Economic considerations
 Dimensional and geometric accuracy
 Surface finish specifications
 Batch size
 Production rate.
8. What are the stages in machine selection process?
 Stage 1: First cut selection
 Stage 2: Power/force analysis
 Stage 3: Capability analysis
 Stage 4: Operational analysis
9. What are the constraints influencing tool selection decision?
o Manufacturing practice
o Manufacturing process
o Machine tool characteristics
o Capability
o Processing time
o Cutting tool availability.
10. List out the stages of tool selection process.
o Stage 1: Evaluation of process and machine selections
o Stage 2: Analysis of machining operations
o Stage 3: Analysis of workpiece characteristics
o Stage 4: Tooling analysis
o Stage 5: Selection of tooling.

Part – B (16 Marks)

1. Explain in detail of process planning activities.

2. List the info. that the process planner can obtain from the engineering drawing of a
component.
3. What are the three main areas focused upon the material evaluation. Explain.
4. What do you understand by CAPP? Explain in detail.
5. List out the factors that are common to both materials and process selection.
6. List and explain the various factors considered for tooling selection.

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UNIT-II
PROCESS PLANNING ACTIVITIES
Part – A (2 Marks)
1. What are the main process parameters that can influence the success of the machining?
 Cutting speed,
 Feed rate, and
 Depth of cut.

2. What is meant by Cutting speed?

The cutting speed also known as surface cutting speed or surface speed, can be
defined as the relative speed between the tool and the workpiece.

3. List any four factors that are to be considered during selection of cutting speed.
 Nature of cut
 Work material
 Cutting tool material
 Cutting fluid application
 Purpose of machining

4. What is meant by feed rate?

Feed rate is the speed at which the cutting tool penetrates the workpiece.

5. List the major factors that are to be considered during the selection of feed rate.
(i) Work material (type, strength, hardness, etc.)
(ii) Capacity of the machine tool (Power, rigidity, etc)
(iii) Cutting tool (material, geometry and configuration)
(iv) Cutting fluid application
(v) Surface finish desired
(vi) Type of operation
(vii) Nature of cut

6. Compare and contrast between jigs and fixtures.

S.No Characteristics Jig Fixture
Locate and holds the work and Only holds and positions the
1 Definition guides the cutting tool in true work, but doesn’t guide the
position of the work. work.
Work locating elements, tool guiding Work locating elements,
2 Elements elements and work clamping tool setting elements and
elements. work clamping elements.
3 Construction Light Heavy
Drilling, reaming, tapping, Milling, turning, grinding,
4
Applications counterboring, countersinking broaching, etc.

7. What are basic elements of jigs and fixtures?

o Locating elements
o Clamping elements
o Tool guiding and setting elements

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8. What are the types of jigs?
Jigs can be classified broadly into two types based on the manufacturing process involved
as:
1. Drill jigs, and
2. Boring jigs

9. List the most commonly used control charts for variables for quality control.
(i) X - or average charts
(ii) R - or range charts, and
(iii) s - or standard deviation charts

10. List the most commonly used control charts for attributes for quality control. When would
you use them?
o p-chart: The chart for fraction rejected as non-conforming to specifications.
o np-chart: The control chart for number of non-conforming items.
o c-chart: The control chart for number of non-conformities.
o u-chart: The control chart for number of non-conformities per unit.

11. What is meant by process capability?

Process capability may be defined as the “minimum spread of a specific measurement
variation which will include 99.7% of the measurements from the given process.

12. List any four factors to be considered for selection of measuring instruments.
o Accuracy (or Rule of Ten): The Rule of Ten, also known as the Gage Maker’s
Rule, states that the accuracy of the measuring instrument should be 10 times that
of the tolerance of the quality characteristic being measured.
o Linearity: It is the accuracy of the measurements of an instrument throughout its
operating range.
o Magnification: It is the amplification of the output reading on an instrument over
the actual input dimension.
o Repeatability: It is the ability of the instrument to achieve the same degree of
accuracy on repeated applications (often referred to as precision).

13. List any six documents that are required for process planning?
o Assembly and components drawings of the product and bill of materials.
o Specifications of various machine tools available in the catalogues of machine
tools.
o Machining / Machinability data handbook.
o Catalogues of various cutting tools and tool inserts.
o Sizes of standard materials commercially available in the market.
o Charts of limits, fits and tolerances.

14. What do you understand by break-even analysis?

Break-even analysis, also known as cost-volume-profit analysis, is the study of inter-
relationships among a firm’s sales, costs and operating profit at various levels of output.

15. What is meant by break-even point?

The break-even point may be defined as the level of sales at which total revenues and
total costs are equal. It is a point at which the profit is zero.

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Part – B (16 Marks)

1. List the various factors that influence the design and/or selection of a work holder.
2. What are the two basic quality strategies? Explain them.
3. What are the set of documents that are required for process planning?
4. List and explain the various factors to be considered for selecting the measuring instruments.

UNIT-III
INTRODUCTION TO COST ESTIMATION
Part – A (2 Marks)
1. Define Cost Estimation
Estimating is the calculation of the costs which are expected to be incurred in manufacturing a
component in advance before the component is actually manufactured. The expected cost of
material, labour and overheads are computed before the actual production work is undertaken.
2. What are the types of Estimation?
Two types of estimates are:
1. Preliminary estimate,
2. Final estimate
3. What are the methods of Estimation?
Three commonly used methods of estimating are:
1. Conference method;
2. Comparison method;
3. Detailed analysis method
4. State the importance of realistic estimates.
Both the over-estimation and under-estimation are dangerous because both will ultimately lead
the enterprise to failure. In over estimating, the firm will not be able to compete with its
competitors who estimated the price correctly and losses the order to its competitors. In case of
under estimating the firm will face huge financial loss which may utter failure or closure of the
firm. Therefore a realistic estimation is the need of the hour for any concern
5. What is design cost?
The wages and other expenditure required to be paid in designing a product are to be considered.
For this purpose, the cost can be estimated on the basis of similar products already designed in the
past or on the basis of good judgment of designer.
6. What is labour cost?
The cost of wages paid to workers during an accounting period on daily, weekly, monthly, or job
basis, plus payroll and related taxes and benefits.
7. What do you mean by overhead cost?
The ongoing administrative expenses of a business which cannot be attributed to any specific
business activity, but are still necessary for the business to function. Examples include rent,
utilities, and insurance.

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8. Define costing.
Costing may be defined as a system of accounts, which systematically and accurately records
every expense in order to determine the cost of a product after knowing the different expenses
incurred in various departments.
9. What are the methods of costing?
Unit Costing; Job Costing; Contract Costing; Batch Costing; Operating Costing, Process Costing;
Multiple Costing; Uniform Costing
10. What is direct cost?
Prime cost is also called as direct cost.
It consists of direct material cost, direct labour cost and direct expenses.
Prime cost = Direct material cost + Direct labour cost + Direct expenses.

Part – B (16 Marks)

1. What is cost estimating? State the objectives of cost estimating
2. List the functions of estimating.
3. Explain the type of cost estimates, that are used in estimating
4. List and discuss the different methods of cost estimating.
5. List the various data required to make a cost estimate.
6. List the various types and sources of data required by the cost estimator.
7. Describe the various constituents of estimation.
8. What shall be the effects of the following on an enterprise? (i) Under estimating, (ii) Over
estimating.
9. What do you mean by a realistic estimate? Describe its importance in production.
10. Explain the procedure followed for estimating the cost of an industrial product.
11. Define costing or cost accounting. Why costing is essential to industrial control?
12. What is the purpose of costing? Differentiate between estimating and costing.
13. Explain the various methods of costing.

UNIT-IV
PRODUCTION COST ESTIMATION
Part – A (2 Marks)
1. What are the elements of cost?
The total cost is made up of three main elements
Material (Direct & Indirect); Labour (Direct & Indirect) and Expenses (Direct & overhead)
2. What are the types of cost?
The different types of costs:
Opportunity cost; accounting cost or historical costs; transaction cost; sunk cost; marginal cost

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3. What is meant by direct material?
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.
4. What are the types of material?
Manufacturing a product needs input of raw materials. Raw materials are main component of the
product. There are two types of materials.
1. Direct Materials
The materials required for producing a product are called direct materials. Direct materials are
also known as raw materials or input materials. Direct raw materials constitute the main
component or part of a finished product. It is identified in terms of cost per unit of output. Wood
for furniture industry, sugarcane for sugar mills. textile for garment industry are some of the
examples of direct materials.
2. Indirect Materials
The materials that cannot be form as the main part of a finished product are called indirect
materials. Therefore, such materials cannot be easily identified with the product. Nails used in
furniture industry and threads used in garment industry are some example of indirect materials.
5. State some examples for direct material.
Mild steel bar used to manufacture spindles,
Cast iron used to manufacture pulleys,
Wood used for making a table,
Plastics used to make buckets.
6. Who are called direct labour?
They are the one who actually works & processes the materials to convert it into the final shape.
7. State some examples for direct labour?
Workers operating lathes, milling machines, Welders, Assemblers in assembly shop
8. Who are called indirect labour?
Indirect labourer is one who is not directly employed in the manufacturing of the product but his
services are used in some indirect manner.
Example: supervisors, foreman, storekeeper, gatekeeper, maintenance, staff, crane driver etc.
9. What is meant by factory on cost?
Total cost of making a product at the production location, and comprising of raw material, labor,
and overhead costs. (or) The expenses that cover all indirect expenditures incurred by the
undertaking from the receipt of the order until its completion ready for dispatch.
10. What is meant by selling expense?
The expenditures spent towards securing orders, and finding or retaining markets for the products
manufacture
11. What is total cost?
Total cost = Manufacturing cost + selling and distribution expenses.

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12. What is ladder of cost?
Ladder of cost shows the relation between the components of cost and the development of selling
price of a product. Ladder of cost also known as “Cost structure chart”
Part – B (16 Marks)
1. Name the various elements of cost. Explain each element in detail giving suitable
examples.
2. Contrast between direct materials and indirect materials.
3. What do you understand by the term 'overhead expenses? List few items of overhead
expenses in a factory.
4. What items of expenditure are included in administrative overheads?
5. Describe in brief: Selling Expenses & Distribution Expenses.
6. List various components of cost.
7. Explain the terms prime cost, factory cost, total cost and selling price. Show the
relationship between various components of cost with the help of a block diagram
8. Write down the step by step procedure for estimating the direct materials cost.
9. Briefly explain all the factors to be considered while calculating the time required for a
particular job.
10. Briefly explain Set up time, Handling Time, Machining Time & Tear down Time.
11. What are the various time allowances which should be considered for calculating labor
cost?
12. Write short notes on Personal allowance & Contingency allowance.
13. What do you understand by allocation of overhead expenses?

UNIT-V
MACHINING TIME CALCULATION
Part – A (2 Marks)
1. Define forging.
The process of plastic deformation of metals or alloys into required shape and size at significantly
high temperature by a compression force exerted by a hammer, a press or dies or by some
upsetting machines is called as forging.
2. Differentiate hot forging and cold forging.
Hot forging is defined as working a metal above its recrystallization temperature. The main
advantage of hot forging is that as the metal is deformed the strain-hardening effects are negated
by the recrystallization process.
Cold forging is defined as working a metal below its recrystallization temperature, but usually
around room temperature. If the temperature is above 0.3 times the melting temperature (on an
absolute scale) then it qualifies as warm forging.

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3. Contrast smith forging and drop forging.
Forging worked between flat or simple contour dies by repeated strokes and manipulation of the
workpiece. Also known as "hand" or "flat die” forging. Heavy workpieces could be processed
using a smith-forging hammer, and smaller forgings are die formed in drop hammers. Smith
forging hammers are typically steam or air-operated, consisting of a power actuated ram
supported by a heavy cast iron frame. The final product is a result of the ram being powered into
the dies containing the workpiece.
An operation in which a metal shape is formed by forcing hot metal into impressions formed in
solid blocks of hardened alloy steel, the forging dies. The dies are made in halves, one attached to
the rising and falling block of the drop forge and the other to the stationary anvil. Drop forgings
are widely used in the automotive industry for crankshafts, stub-axles, gears, etc.
4. In what ways, press forging and upset forging are different?
Press forging works by slowly applying a continuous pressure or force, which differs from the
near-instantaneous impact of drop-hammer forging. The amount of time the dies are in contact
with the workpiece is measured in seconds (as compared to the milliseconds of drop-hammer
forges). The press forging operation can be done either cold or hot.
Upset forging increases the diameter of the workpiece by compressing its length. Based on
number of pieces produced this is the most widely used forging process. A few examples of
common parts produced using the upset forging process are engine valves, couplings, bolts,
screws, and other fasteners.
5. Define man hour and machine hour rate.
The man-hour rate method is suitable only where work is done by hand, for example, in fitting
and assembly shops etc. Similarly, machine hour rate method is suitable where almost allthe work
is done by machines. Thus, in this way, both the methods can be applied in one factory.This
method is combination of man-hour and machine-hour rate method of allocation.
6. What is unit rate?
It is a method which gives a standard rate of overhead cost for all outputs.
Rate per unit manufactured = Total overhead cost/Number of units manufactured
Some common unit rates are miles (or kilometers) per hour, cost per item, earnings per week, etc
7. What is scale loss?
As the forging process is performed at very high temperature, the Oxygen from air forms iron
oxide by reacting with hot surface. This iron oxide forms a thin film called scale, and falls off
from surface at each stroke of hammer.
Scale loss is taken as 6 percent of net weight.
8. What are the types of welding?
1. Fusion welding, 2 Plastic welding, 3 Solid phase welding
9. What is the pattern?
Pattern is a model or replica of desired casting which is used to produce cavity into which molten
material is poured.
10. What is shrinkage allowance?
The reduction in the volume of the casting during solidification is called as shrinkage. The pattern
needs to incorporate suitable allowance for shrinkage and this allowance is called as shrinkage
allowance.

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Part – B (16 Marks)
1. Find the cost of drop forging a shaft figure from 20 mm diameter bar. The material cost is
Rs.10.00 per metre, cost of forging Rs.1200 per square metre of surface area to be forged
and overhead expenses 10% of the forging cost. Take scale loss 6%, shear loss 5%, sprue
loss 7% and other losses as usual.

2. Estimate the length of 20 mm diameter rod to be used for making a key of given
dimensions as in figure. Take scale loss as 5% of the total volume.

3. Estimate the total cost of 20 cast iron flanged pipe castings as in figure. Assume the
following data:
Cost of CI = 70 paise/kg
Cost of scrap = 25 paise/kg
Process scrap = 2% of net weight of casting
Moulding and pouring charges = Rs.1.00/piece
Casting removal and cleaning charges = Rs.0.20/piece

4. What is the material cost of welding two plates of size 300 mm length and 150 mm width
and 8 mm thickness to make a piece 300 × 300 approximately? Use right ward technique
with no edge preparation costs. Take overall cost of oxygen as Rs.0.70 per cu meter, cost
of acetylene at Rs.7.00 per cu meter, cost of filler metal Rs.2.50 per kg and 1 cu-cm of
filler metal weights 11.28 gms?
5. A plate 100 cm × 80 cm × 5 cm is to be cut by gas cutting into four pieces 50 cm × 40cm
× 5cm. Calculate the time taken and the cost of cutting assuming following data.
(i) Consumption of oxygen = 1.5 m3/hr
(ii) Consumption of acetylene = 0.15 m3/hr

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(iii) Cutting speed = 25 meters/hr.
6. The figure shows a finished gear blank. 2 mm machining allowance in the pattern is to be
added on each side. Find selling price with the help of following data:
Cost of CI = Rs.5/kg
Melting charges = 15% of material cost
Administrative overheads = 15% of material cost
Profit = 20% of total cost
Moulding charges = Rs.2 each mould.
7. Estimate the total time taken to turn a 3 cm diameter ms stock 15 cm long to 2.8 cm
diameter in a single cut. Assume the cutting speed to be 20 m per minute and the feed to
be 0.2 mm/revolution. The job is to be mounted in a self centering S jaw chuck. Neglect
the time taken for setting up of tools etc.
8. Find the time required to turn 2.5 cm diameter bar to the dimensions shown in figure
cutting speed shall be 13.5 m/minute and feed 16 cuts/cm. All cuts shall be 3.125 mm
deep.

9. A 9 cm thick laminated plate consists of a 7 cm thick brass and a 2 cm thick mild steel
plate. A 20 mm diameter hole is to be drilled through the plate. Estimate the total time
taken for drilling if
Cutting speed for brass = 44 m/min
Cutting speed for mild steel = 301 m/min
Feed of 20 mm drill for brass = 0.26 mm/rev
Feed of 20 mm drill for mild steel = 0.25 mm/rev.
10. Find the time required to drill 4 holes in a CI flange each of 2 cm depth. If the hole
diameter is 2 cm. Assume cutting speed as 21.9 m/min. and feed as 0.02 cm/rev.
11. A keyway has to be cut in a spindle whose dimensions are 46 cm length, 5 cm diameter
and 1 cm width. The cutter diameter is 13.25 cm. If the cutter revolves at 120 rpm. What
is the time required to cut an 1 cm deep key way at a feed of 0.05 cm/rev of cutter?
12. Calculate the time taken for shaping a cast iron block of 50 cm long and 30 cm wide in a
single cut. Feed is taken to be 0.8 mm per stroke and cutting speed 11 m/mm.

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13. Find the time required for planing a piece of mild steel 75 cm long and 30 cm wide on a
planing machine. The cutting speed of the tool is 12 m/min and feed 0.0782 cm/stroke.
14. Find the time required for doing rough grinding of a 16 cm long steel shaft to reduce its
diameter from 4.2 to 4 cm in a grinding wheel of 2 cm face width. Assume cutting speed
as 16.5 m/min and depth of cut as 0.25 mm.

ME 2027 PROCESS PLANNING AND COST ESTIMATION

NOVEMBER / DECEMBER 2013

PART A – (10 x 2 = 20 marks)

1. What are the objectives of method study?

2. What are the general rules to be followed in breaking down a task into elements?

3. Write the approaches to Process Planning.

4. List out the selection of machinery.

5. Give the Methods of costing.

6. How Standard Data are developed?

7. What you mean by Depreciation?

8. Define Multiple Cost Method.

9. Define Inadequacy.

10. Define Flash Loss.

PART B – (5 x 16 = 80 marks)
11. (a) Write the basic procedure for method study. Explain briefly.

(Or)
11. (b) (i) Give the various types of allowances used in process planning with examples.

(b) (ii) What are the benefits of simplification and standardization?

12. (a) (i) Explain the basic factors affecting process design.

(a) (ii) Explain the steps involved in process planning

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(Or)
12. (b) (i) What are the set of documents required for process planning.

(b) (ii) The fixed costs for a factory for the year 2009 – 10 are Rs. 1,50,000 and the
variable cost is Rs. 10 per unit produced. The selling price per unit is Rs. 25. Calculate
the break-even quantity.

13. (a) What is meant by analytical estimating? Write its procedure, advantages limitations
and applications.

(Or)
13. (b) What are the components of a cost estimate or job estimate? Explain briefly.

14. (a) From the following data for a sewing-machine manufacturer, prepare a statement
showing prime cost, Works/factory cost, production, cost, total cost and profit.

Value of stock of material as on 1.04.2010 Rs. 26,000

Material purchased Rs. 2,74,000
Wages to labour Rs. 1,20,000
Depreciation of plant and machinery Rs. 8,000
Depreciation of office equipment Rs. 2,000
Rent, taxes and insurance of factory Rs. 16,000
General administrative expenses Rs. 3,400
Water, power and telephone bills of factory Rs.9,600
Water, lighting and telephone bills of office Rs.2,500
Material transportation in factory Rs. 2,000
and Rent of office/building Rs. 2,000
Direct expenses Rs. 5,000
Commission and pay of salesman Rs. 10,500
Repair and maintenance of plant Rs 1, 000
Works Manager Salary Rs. 30,000
Salary of office staff Rs. 60,000
Value of stock of material as on 31.03.2011 Rs.36,000
Sale of products Rs. 6,36,000.
(Or)
14. (b) (i) Write the fixed cost and the variable cost of running a motor car for one year.

(b) (ii) Discuss the data requirements and sources of information for cost estimation.

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15. (a) Calculate the machining time required to produce one piece of the component shown
in figure starting from 25mm bar. The following data is available,

For turning:
Cutting speed = 40 m/min
Feed = 0.4 mm/rev.
Depth of cut = 2.5 mm/pass.
For thread cutting:
.Cutting speed = 8 m/min

(Or)
15. (b) Calculate the net weight and gross weight for the component shown in figure. Density
of material used is 7.86 gm/cc. Also calculate:

(i) Length of 14 mm diameter bar required to forge one component.

(ii) Cost of forging/piece if:

Material cost = Rs. 80 per kg

Labour cost = Rs. 5 per piece
Overheads = 150 percent of labour cost.

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PART A

1. What are the objectives of method study?

Improved working processes & standardized procedures
Better work place layout & working conditions
Less fatigue to operators & Better product quality
Effective utilization of men, material & machinery
Efficient & fast material handling
Reduced health hazards
Efficient planning of the section & Streamlined working procedures
2. What are the general rules to be followed in breaking down a task into elements?
Each element should be as short in duration as possible and can be timed accurately
and reliably.
Each element should be easily identifiable.
Manual element should be separated from machine elements.
Constant element should be separated from variable element.
Elements which do not occur in each work cycle should be separated and timed.
Handling time should be separated from machining time.
3. Write the approaches to Process Planning.
a) Manual Process planning
b) Computer Aided Process planning (CAPP)
i. Retrieval CAPP system
ii. Generative CAPP system
4. List out the selection of machinery.
Machine capacity
Range of the machine and Size & Shape of the workpiece
Machine availability
Cost consideration
5. Give the methods of costing.
Job or order costing
Batch costing
Process costing
Departmental costing
Operating cost method
Unit cost method & Multiple cost method
6. How are Standard data developed?
Standard data bank contains data in the form of
Tabulated standard time for constant elements, Charts and graphs, Formulae etc.

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7. What do you mean by Depreciation?
Depreciation represents the loss in value of the capital sunk in building plant, machinery and
other equipment due to usual deterioration taking place in the life of these assets.
8. Define multiple cost method.
Concerns manufacturing a variety of standardized products, having no relation to one another in
cost, quality and the types of process etc., use this method. (Ex. –cycles, cars, type-writer etc.,)
9. Define Inadequacy.
Even after complete repair and replacement of worn-out parts the efficiency of the equipment
falls down. Secondly, even if the plant is working satisfactorily but it falls short in serving the
increasing demand and ultimately it is to be replaced by a new one of higher capacity. This type
of depreciation where a machine is to be replaced while it is functioning is known as depreciation
by adequacy.
10. Define Flash Loss.
Flash Loss –surplus metal coming out between the two meeting surfaces of the dies.
Flash loss = Periphery x 20 x 3 mm3

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PART B

11. (a) Write the basic procedure for method study. Explain briefly.

Select & Define

Record

Examine

Develop

Install

Maintain
1. Select & Define
 Select the job worth studying and define the objectives
 Consider the following aspects
 Economics aspects
 Technical aspects
 Human reactions
 Objectives
 Reduce manufacturing cost, Avoid bottle necks
 Reduce fatigue, Avoid poor use of men, material & machinery
2. Record
 All the relevant information’s and procedure pertaining to the present or existing method
should be recorded in detail and in the form of chart to obtain a more clear picture.
 Provides the basis of both the critical examination & the development of the improved
method.
 Recording Techniques
 Charts
 Outline Process Chart
 Flow Process Chart ( Man Type, Material Type & Equipment Type)

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 Two Handed Process Chart
 Multiple Activity Chart
 Travel Chart
 Diagrams
 Flow Diagram
 String Diagram
 Cyclegraph & Chronocyclegraph
 Motion & Film Analysis  Simo Chart & P.M.T.S
 Layout Models  Two Dimensional & Three Dimensional
3. Examine
 Critically examine the recorded events in sequence
 Achieved by means of two sets of detailed questions
 Primary Questions – indicates facts & reasons
 Secondary Questions – indicates alternatives & means for improvement
Primary Questions Secondary Questions
What is done? What else might be done?
Purpose
Why is it done? What should be done?
Where is it done? Where else might it be done?
Place
Why is it done there? Where should it be done?
When is it done? When might it be done?
Sequence
Why is it done then? When should it be done?
Who does it? Who else might do it?
Person
Why does that person do it? Who should do it?
How is it done? How else might it be done?
Means
Why is it done that way? How should it be done?
4. Develop
 Record the method proposed through the critical examination
 Consult all levels of management & workers for their suggestions
 Test, thus modified proposed method for its advantages claimed over the original method
 Prepare and put up the report on proposed method to the management for its approval.
 Prepare a record of the new method on a flow process chart so that it can be compared.
 The developed method should be,
 Practical, Feasible, Safe & Effective
 Economical & Acceptable to Design, Production, Quality Control & Sales
Departments.
5. Install
 Proposed method is installed in two stages,
1. Preparation
 Planning

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 Arranging
 Rehearsing
2. Implementation
6. Maintain
 Ensure proper functioning of the installed method by periodic checks & verification
 Purpose of checks and reviews is to find if the method being practiced is the same or it
has deviated from the authorized one.
 Views of the workers, supervisors and other persons related with the installed method can
be of much help in exploring further improvements
11. (b) (i) Give the various types of allowances used in process planning with examples.
“Allowance is the additional time allowed to perform the work over and above the basic
time”.
 Depends on factors related (i) to individual worker, (ii) to the nature of work itself,
(iii) environment.
 Relaxation Allowance – addition to the basic time intended to provide the workers
an opportunity to recover from psychological effects of carrying out a specified task
under specified condition and to allow attention to personal needs.
 Personal Need Allowance – provided to the worker to fulfill his personal needs.
 Fatigue Allowance – for recovery from psychological & physiological effects of
fatigue
 Basic Fatigue Allowance – provided to the worker who performs a job
seated, who is engaged on light work in good conditions, 4% of basic time.
 Variable Fatigue Allowance – provided to worker who is engaged in
medium and heavy work, when working conditions for the elements are not
normal and cannot be improved. The following factors should be considered,
abnormal position, accident hazards of the job, use of force, illumination of
worksite, ventilation, temperature, noise, strain.
 Contingency Allowance – may occur frequently or irregularly, provided for small
unavoidable delays and extra work.
 Tool breakage
 Tool sharpening
 Obtaining necessary gauges, special tools from central stores
 Filling coolant reservoir from time to time
 Power failure of small duration
 Waiting for in process inventory from previous machine
 Special Allowance – provided for activities which are not normally a part of
operation cycle, but which are essential for satisfactory performance of work. Start
up allowance, shut down allowance, cleaning allowance, tool allowance, changeover
allowance, implementation allowance.
 Interference Allowance – provided when two or more work elements occur
simultaneously.

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 Policy Allowance – given according to the policy of the management, not included
for calculating standard time, extra benefit.

11. (b) (ii) What are the benefits of simplification and standardization?
Benefits of Simplification:

 Reduces manufacturing operations and risk of obsolescence

 Makes possible , the effective utilization of special purpose machines
 Simplifies production planning and supervision
 Leads to lower manufacturing cost and higher sales
 Provides quick delivery and better after sales service
 Reduces inventory
 Improves product quality
Benefits of Simplification:

 Reduces material waste and obsolescence

 Reduces manufacturing cost
 Uniform quality of product
 Reduces maintenance, servicing and replacements
 Reduces work-in process and finished product inventories
 Reduces documentation work
 Increased customer confidence
 Better and quicker product deliveries.

12. (a) (i) Explain the basic factors affecting process design.
There are three basic factors that affect the design of manufacturing process, namely;
 Volume or quantity of the product to be manufactured
 Required quality of the product
 Equipment that is available, or that can be procured for manufacturing the
product.
The volume to be manufactured must always be considered as the volume to be produced
within a given period or as the rate of production. In this manner it can be related to the
capacity of the manufacturing equipment under consideration and the best methods
selected accordingly.
The anticipated volume should be based also upon sales forecast. This is of particular
importance in the introduction of a new product. Generally the greater the volume of the
product to be produced, the greater is the opportunity to incorporate advanced methods of
manufacture into the design of manufacturing process.
The number of identical units to be produced vitally affects the selection of
manufacturing methods.
Methods of manufacture vary widely with the volume to be produced. The production of
heavy industrial equipment and machinery involves very few units of products, requires
skilled machinists. On the other hand mass production requires a minimum of skill.

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12. (a) (ii) Explain the steps involved in process planning

Analysis of part requirements

Selection of raw work piece

Selection of manufacturing operations and their sequences

Selection of machine tools

Selection of tools, tool holding devices, work holding devices and inspection equipments

Selection of manufacturing conditions (i.e. cutting speed, feed and depth of cut)

Determination of manufacturing times

Documentation of Process Plan

Communication of Process Plan

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12. (b) (i) What are the set of documents required for process planning?
Set of Documents Required For Process Planning

 Product design and the engineering drawings pertaining to all the components of
the Product
 Tables of Cutting Speeds, depth of cut, feeds for different process and for
different work materials
 Catalogues for various cutting tools and tool inserts
 Specifications of various machine tools available in the shop
 Sizes of standard materials commercially available in the market
 Machine hour cost of all the equipment available in the shop
 Tables showing tolerances and surface finish obtainable for different machining
processes
 Tables of standard cost
 Tables of Allowances
 Process plan of certain standard components such as shafts, flanges etc.

12. (b) (ii) The fixed costs for a factory for the year 2009 – 10 are Rs. 1,50,000 and the
variable cost is Rs. 10 per unit produced. The selling price per unit is Rs. 25.
Calculate the break – even quantity.
Let X  Break even quantity.
Total cost of producing ‘X’ units = 1,50,000 + 10X
Return from sales of ‘X’ units = 25X
At breakeven point,
Total Cost of Production = Sales Return
1,50,000 + 10X = 25X
X = 10,000 units.
13. (a) What is meant by analytical estimating? Write its procedure, advantages,
limitations and applications.
Analytical estimating technique determines the time values for long and non repetitive
jobs either by using the synthetic data or on the basis of past experience. In order to
produce accurate results the estimator must have sufficient experience of estimating,
motion study, time study and the use of synthesised time standards.
ESTIMATING PROCEDURE
 Select the estimator.
 Production planning department makes out the drawings; lays down the method and
sequence of operations, machines to be used, rates allowed to the labout in
consultation with the Time and Motion Study department and wages department.

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 Decide accuracy and finish required.
 Prepare a list of components of the product.
 Decide which component can be manufactured in the concern itself and which
should be procured from outside.
 Determine the material cost by calculating the quantities of various types of material
required.
 Determine the time required on various operations by using calculation methods or
by time and motion study and adding suitable allowances.
 Determine labour cost considering the wage rate allowed for various categories of
operators and other workers employed for manufacturing the product.
 Determine the prime cost after adding direct expenses in the direct material and
direct labour costs.
 Determine the factory overheads including depreciation and expenditure on
maintenance of the plant, insurance, power etc.
 Determine administrative overheads considering the policy of the concern for
calculating these expenses.
 Determine the packing and delivery charges etc.
 Then calculate the total cost.
 Decide the profit and add it to the total cost, in order to fix the sale price.
 Decide the discount allowed to the distributor.
 Decide the delivery time in consultation with the production department and sales
department.
Advantages
 Aids in planning and scheduling
 Provides the basis for rate fixing for non repetitive works
 Improves labor control
Limitation
 Estimate will not be accurate
Application
 Analytical estimating is used for non repetitive jobs involving long cycle times and
jobs having elements of variable nature.
Job production, inspection work, erection work, maintenance work etc.
13. (b) What are the components of a cost estimate or job estimate. Explain briefly.

Constituents of Estimation
 Design cost – The wages and other expenditure required to be paid in designing a product
are to be considered. For this purpose, the cost can be estimated on the basis of similar
products already designed in the past or on the basis of good judgment of designer.

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 Drafting cost – The drawing is split up in simple parts and drawings of individual
components, according to the requirement of production shops are prepared. The
estimated time to be consumed by draftsman in preparing such drawings is called
Drafting Time. For calculating drafting cost, the remuneration of draftsman is taken as
the basis.
 Time and Motion Studies, Planning and Production Control cost – Estimated time
and the costs to be incurred on these processes are decided by past experience or
judgment.
 Cost of Design and Arrangement of special items – The special items may be patterns,
core boxes, flasks, dies, jigs, fixtures, tools etc. The estimator must take into account their
cost, whenever used.
 Cost of Experimental work – The costs incurred in trial and error methods should be
considered.
 Materials cost – First rough drawings with all allowances are prepared and volume is
calculated. From volume, weight is obtained by multiplying density. Thus, the material
cost is obtained by knowing market rates of materials. Scrap cost must be deducted.
 Labour cost – To estimate the labour cost, an estimator must have a thorough knowledge
of all the operations carried out during the production. Different allowances should be
taken into considerations.
 Time Allowances
 Set up Time – Time required for setting and fixing the job and different tools on the
machine. It includes time to study drawings, to set machines, to inspect job, setting of
gauge etc.
 Operation Time – Time taken by the machines for actual operations on the job. It
includes Handling Time and Machining Time.
 Tear-down Time – It is the time taken to remove job, tools and other auxiliary
equipment from the machine after the last element of operation has been completed.
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue
Allowance (5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement &
Checking Allowance (2 – 3%) and Other Allowance (15 – 20%)
 Overheads
 Indirect Material Cost – Cost of grease, coolants oils, cotton waste etc.

 Indirect Labour Cost – Wages of supervisors, draftsman, designer, research worker,

helpers etc.
 Administrative Overheads – Salaries of high officials, salaries of person working
ingeneral office, telephone, insurance premium etc.
 Selling Overhead – Salaries of salesman, commission to salesman, advertising
expenditure etc.
 Repairs and Maintenance expenses

 Depreciation of building, furniture and equipment.

 Profit – The basis for calculating profits is on the capital employed in a business.

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 Well being of employees

 Satisfaction of the consumer

 Long term stability

 Profit should be adequate to cover – dividends to share holders, reserves for

expansion, return on asset.
14. (a)

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14. (b) (i) Write the fixed cost and the variable cost of running a motor car for one year.
Fixed Cost;
 Depreciation per year
 Interest cost per year
 Road tax and insurance per year
 Rent for garage (if applicable)
 Maintenance costs: the portion of maintenance cost would have been incurred even
if the car has not been used.
Variable Cost;
 Cost of petrol
 Cost of oil
 Maintenance costs: That proportion of total maintenance costs which would have
been incurred due to driving of car.

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14. (b) (ii) Discuss the data requirements and sources of information for cost estimation.
Data Requirements and Sources
 Man-hour cost (i.e.) hourly cost of skilled, semi-skilled and unskilled labours.
 Machine-hour cost for different types of equipments and machinery available in the
company.
 Material cost in respect of commercially available materials in the market.
 Scrap rates
 Set-up time for different operations.
 % allowances to be added for computing standard time, relaxation allowance, process
allowance, special allowance
 Overhead charges
 Life in years permitted for various types of equipment and machines available in the
plant for calculation of depreciation, machine-hour rate etc.
 Data base of cost calculations carried out by the company in respect of earlier
products(Historical cost data)
 Budget estimates prepared by the company for new products.
 Data sheet of Professional Associations dealing with Costs and Accounting.

15. (a)

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15. (b)

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ME 2027 PROCESS PLANNING AND COST ESTIMATION

MAY / JUNE 2013
PART A – (10 x 2 = 20 marks)
1. What is SIMO chart?
2. Define 'Rating'.
3. List the information requires for process 'planning.
4. What are the two approaches to process planning?
5. Define costing.
6. What is meant by direct material? Give an Example.
7. Mention any two functions of cost estimation.
8. What do you meant by a realistic estimate?
9. What is meant by direct labour cost?
10. What is fatigue allowance?
PART B – (5 x 16 = 80 marks)
11. (a) (i) Old Syllabus
11. (b) (i) What is the purpose of work measurement? Enumerate its uses.
(b) (ii) Discuss the tools and techniques of work measurement.

12. (a) Explain the technological frame work of process planning by using a block diagram.
(Or)
12. (b) (i) Write the process planning procedure.
(b) (ii)What are the factors to be considered in machine selection

13. (a) Discuss the various methods of costing.

(Or)
13. (b) Name the various elements of cost. Explain each in detail.

14. (a) What are the components of a job estimate? Explain.

(Or)
14. (b) (i) What are the types of estimates?
(b) (ii) Differentiate between estimating and costing.

15. (a) Explain the various time allowances for calculating labour cost.
(Or)
15. (b) Explain the procedure followed for estimating the cost of an industrial product.

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PART A

1. Old Syllabus

2. Define Rating.
Rating is a comparison of an operator’s rate of working to that of analyst’s concept of normal
performance for that operation.
3. List the information required for process planning.
i. Quantity of work to be done along with product specification.

ii. Quality of the work to be completed.

iii. Availability of tools, equipments and personnel

iv. Sequence of operation & Standard time of each operation.

v. Name of the equipment on which the operation will be performed.

vi. When the operation will be performed.

4. What are the two approaches of process planning
c) Manual Process planning
d) Computer Aided Process planning (CAPP)
i. Retrieval CAPP system
ii. Generative CAPP system
5. Define Costing
Costing may be defined as a system of accounts, which systematically and accurately records
every expense in order to determine the cost of a product after knowing the different expenses
incurred in various departments.
6. What is meant by direct material? Give an example.
i. It is that material which becomes a part of the product. It is the material which is
consumed in the manufacturing of a product and which can be measured and charged
directly to the cost of the product. It includes,

ii. All materials specially purchased for a particular job, order or process.

iii. All materials passing from one operation to another or one process to other which is
intended for further treatment or operation. All components that are purchased or
produced.
7. Mention any two functions of cost estimation.
i. To determine the material cost, taking into consideration different allowances to be given
for different manufacturing operations.

ii. To determine the labour cost considering labour time with the help of wage rates.

iii. To determine the cost of material to be purchased from outside.

iv. To determine the cost of tools, equipments to be purchased from outside

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8. 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. The cost estimate may prove to be
i. A realistic estimate,
ii. An over-estimate
iii. An under-estimate
9. What is meant by direct labour cost?
i. It is the one which is directly employed in the manufacturing operation.

ii. It is the labour which actually processes the material either manually or with the help of
machines.

iii. Worker or operators engaged in machine shop, welding shop, sheet metal shop, etc.,

iv. Also known as “Productive Labour”, “Operating cost”.

10. What is fatigue allowance?
Fatigue Allowance –for recovery from psychological & physiological effects of fatigue
Basic Fatigue Allowance –provided to the worker who performs a job seated, who is engaged on
light work in good conditions, 4% of basic time.
Variable Fatigue Allowance –provided to worker who is engaged in medium and heavy work,
when working conditions for the elements are not normal and cannot be improved. The following
factors should be considered, abnormal position, accident hazards of the job, use of force,
illumination of worksite, ventilation, temperature, noise, strain.

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PART B
11. (a) (i) What step are followed for doing a method study of job process?

Select & Define

Record

Examine

Develop

Install

Maintain
1. Select & Define
 Select the job worth studying and define the objectives
 Consider the following aspects
 Economics aspects
 Technical aspects
 Human reactions
 Objectives
 Reduce manufacturing cost, Avoid bottle necks
 Reduce fatigue, Avoid poor use of men, material & machinery
2. Record
 All the relevant information’s and procedure pertaining to the present or existing method
should be recorded in detail and in the form of chart to obtain a more clear picture.
 Provides the basis of both the critical examination & the development of the improved
method.
 Recording Techniques
 Charts
 Outline Process Chart
 Flow Process Chart ( Man Type, Material Type & Equipment Type)
 Two Handed Process Chart
 Multiple Activity Chart
 Travel Chart
 Diagrams
 Flow Diagram

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 String Diagram
 Cyclegraph & Chronocyclegraph
 Motion & Film Analysis  Simo Chart & P.M.T.S
 Layout Models  Two Dimensional & Three Dimensional
3. Examine
 Critically examine the recorded events in sequence
 Achieved by means of two sets of detailed questions
 Primary Questions – indicates facts & reasons
 Secondary Questions – indicates alternatives & means for improvement
Primary Questions Secondary Questions
What is done? What else might be done?
Purpose
Why is it done? What should be done?
Where is it done? Where else might it be done?
Place
Why is it done there? Where should it be done?
When is it done? When might it be done?
Sequence
Why is it done then? When should it be done?
Who does it? Who else might do it?
Person
Why does that person do it? Who should do it?
How is it done? How else might it be done?
Means
Why is it done that way? How should it be done?
4. Develop
 Record the method proposed through the critical examination
 Consult all levels of management & workers for their suggestions
 Test, thus modified proposed method for its advantages claimed over the original method
 Prepare and put up the report on proposed method to the management for its approval.
 Prepare a record of the new method on a flow process chart so that it can be compared.
 The developed method should be,
 Practical, Feasible, Safe & Effective
 Economical & Acceptable to Design, Production, Quality Control & Sales
Departments.
5. Install
 Proposed method is installed in two stages,
3. Preparation
 Planning
 Arranging
 Rehearsing
4. Implementation
6. Maintain
 Ensure proper functioning of the installed method by periodic checks & verification
 Purpose of checks and reviews is to find if the method being practiced is the same or it
has deviated from the authorized one.

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 Views of the workers, supervisors and other persons related with the installed method can
be of much help in exploring further improvements.
11. (a) (ii) Write procedure of time study.

Select

Record

Examine

Measure

Compile

Define

1. Select – The work to be studied and determine the objectives of the study.
 Selecting the job for Time Study
 Conducted for routine job where appreciable labour cost is involved.
 Carried out on the request of some department or to set the time standards.
 Possible reasons
 New job
 Change in method or material
 Complaint from worker
 Bottle neck operations
 Low output
 Alternative method
 Excessive cost
2. Record – All the relevant data relating to circumstances in which the work is being done, the
methods to be used.
 The following groups of information are often required to be recorded.
 Information to enable the study to be found and identified quickly.
 Identification details of process / method.
 Identification of workers.
 Work variation ( type of fit, hardness, shape and others which influence time of the
job)

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 Conditions surrounding the job heat, dust, smoke, vibrations, noise etc).
 Working conditions (weight handled, temperature, humidity, illumination etc).
 Duration of study.
3. Examine – The recorded data and the detailed breakdown critically to ensure that most
effective method and motion are being used and that unproductive elements are separated
from productive elements.
 Element is a distinct part of a specified job selected for convenience of observation,
measurement and analysis.
 Breaking the job into elements
 To ensure that the effective time is separated from ineffective time.
 To ensure better and accurate rating
 To identify and distinguish different types of elements.
 Repetitive Element – occurs in every work cycle of the job
 Occasional Element – does not occur in every work cycle but may occur in
regular or irregular interval (Clearing swarf from machine tool)
 Constant Element – basic time remains constant whenever it is performed.
(switch on m/c)
 Variable Element – basic time varies in relation to some characteristic of the
product, equipment or process.
 Manual Element – element performed by a worker (manual sweeping)
 Machine Element – automatically performed by a power driven machine.
 Governing Element – occupies a longer time than that of any other element
which is being performed concurrently. (turning diameter on lathe, while
gauging from time to time)
 Foreign Element – observed during a study which, after analysis, is not found to
be a necessary part. ( degreasing a part that has still to be machined further)
 To isolate elements involving high degree of fatigue (to allocate fatigue allowance)
 To enable detailed work specification to be produced.
 Rules concerning breaking down of the job into elements
1. Each element should be as short in duration as possible and can be timed
accurately and reliably.
2. Each element should be easily identifiable.
3. Manual element should be separated from machine elements.
4. Constant element should be separated from variable element.
5. Elements which do not occur in each work cycle should be separated and timed.
6. Handling time should be separated from machining time.

4. Measure – The time required to complete each element using the appropriate work
measurement techniques and calculate the time required to complete the work cycle which is
known as basic time.
 A work cycle is the sequence of elements which are required to perform a job or yield
aunit of production.

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 The time required to perform each element of an operation may expected to vary slightly
from cycle to cycle. The existence of this variation in time for repeated trials introduces
sampling error.
5. Compile – The standard time for the operation. Various allowances are added to the basic
time to estimate standard time.
 Rating cam be defined as “The assessment of the workers rate of working to observers
concept of the rate corresponding to standard rating.
Performance Rating = (Observed Performance / Normal Performance) x 100
Basic Time = (Observed time x Observed rating) / Standard rating
 “Allowance is the additional time allowed to perform the work over and above the basic
time”.
 Depends on factors related (i) to individual worker, (ii) to the nature of work itself,
(iii)environment.
 Relaxation Allowance – addition to the basic time intended to provide the workers
an opportunity to recover from psychological effects of carrying out a specified task
under specified condition and to allow attention to personal needs.
 Personal Need Allowance – provided to the worker to fulfill his personal needs.
 Fatigue Allowance – for recovery from psychological & physiological effects of
fatigue
 Basic Fatigue Allowance – provided to the worker who performs a job
seated, who is engaged on light work in good conditions, 4% of basic time.
 Variable Fatigue Allowance – provided to worker who is engaged in
medium and heavy work, when working conditions for the elements are not
normal and cannot be improved. The following factors should be considered,
abnormal position, accident hazards of the job, use of force, illumination of
worksite, ventilation, temperature, noise, strain.
 Contingency Allowance – may occur frequently or irregularly, provided for small
unavoidable delays and extra work.
 Tool breakage
 Tool sharpening
 Obtaining necessary gauges, special tools from central stores
 Filling coolant reservoir from time to time
 Power failure of small duration
 Waiting for in process inventory from previous machine
 Special Allowance – provided for activities which are not normally a part of
operation cycle, but which are essential for satisfactory performance of work. Start
up allowance, shut down allowance, cleaning allowance, tool allowance, changeover
allowance, implementation allowance.
 Interference Allowance – provided when two or more work elements occur
simultaneously.

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 Policy Allowance – given according to the policy of the management, not included
for calculating standard time, extra benefit.
6. Define – precisely the series of activities and method of operation for which the time has been
compiled and issue the time standards for the activities and methods specified.

11. (b) (i) What is the purpose of work measurement? Enumerate its uses.
 Objectives of Work Measurement
 Determines the time required to do a job.
 Decides man power required for a job.
 Decides equipment requirements.
 Provides information for effective production planning and maintenance procedures.
 Aids in calculating exact delivery dates.
 Decides realistic labour budgeting and provides a basis for standard costing system.
 Provides a basis for fair and sound incentive schemes.
 Effective labour control.
11. (b) (ii) Discuss the tools and techniques of work measurement.
 Tools & Techniques
1. Stop Watch Time Study
2. Predetermined Motion – Time Systems
3. Work Sampling
4. Analytical Estimating
5. Synthesis from Standard Data
1. Stop Watch Time Study
 Time study is a work measurement technique for recording the times and rate of
working for the elements of a specified job carried out under specified conditions
and for analyzing the data so as to obtain the time necessary for carrying out the
job at a defined level of performance.
 Equipments – Stop Watch, Time Study Board, Time Study Forms.
 Stop Watch
 One of the principle timing devices.
 Types – Non-fly back, Fly back & Split hand or split second type
 Non-fly back is preferred for continuous timing (Single element). Start –
Stop – Zero position.
 Fly back is preferred for continuous timing (Multi element). Start – Stop –
Zero position.
 Split hand type has two hands. Start – Stop (one hand stops) – Both moves.
(greater accuracy)
 Time Study Board

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 Flat board provided with fittings to hold stop watch.
 It should be rigid and larger than the largest form likely to be used.
 Time Study Form
 Ensures that, time studies are made in a standard manner and no essential
data are omitted.
 The time study form shows detailed information about the operation being
studied.
12. (a) Explain the technological frame work of process planning by using a block
diagram.

Sales Forecast: How

Design Specification & Requirements
many to make

Functional Design

Product Design
Production Design, Basic Decisions setting
minimum possible costs

Drawings and specifications of

what to make

Product analysis – Assembly

charts and flow charts

Process Planning
Buy Make – Buy Decision

Process decisions – Selection

from alternative processes

Route sheet and operation sheets: Work place and tool

Specifications of how to manufacture designs

Modifications of process plan due to layout,

Manufacturing
quality preference and machine availability

Overall Development of Processing Plan

PROCESS PLANNING
 It is the systematic determination of the methods by which a product is to be manufactured
economically and competitively within the limits of design specifications laid down.

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 It is defined as the subsystem responsible for the conversion of design data to work
instruction.
 It is defined as that function within a manufacturing facility which establishes the processes
and process parameters to be used in order to convert a piece part from its initial form to a
final form that is predetermined on a detailed engineering drawing.
 It is an intermediate stage between designing the product and manufacturing it.
 The process starts with the selection of raw material and ends with the completion of part.
PROCESS PLANNING COMPRISE MAINLY:
 An interpretation of the specifications contained in the definition drawing of a part, including
mainly dimensions and tolerances, geometric tolerances, surface roughness, material type, blank
size, number of parts in the batch etc;
 A selection of processes and tools which are candidates for processing a part and its feature by
respecting the constraints imposed in the definition drawing;
 A determination of production tolerances and setting dimensions which ensure execution of the
design tolerances, while choosing production dimensions for reasons of commodity and capability
of manufacturing machinery;
 A selection of starting surfaces and datum surfaces to ensure precise execution of processing
operations simultaneously with a selection of holding fixtures and checking of stability of a part by
appropriate clamping;
 A sequence of operation as a function of priorities imposed by accuracy and technological
constraints;
 A grouping of elementary operations on the same machine so that operation time will be reduced,
while respecting accuracy requirements;
 A selection of machines to execute the technological operations, taking into account the numberof
workpieces to be produced;
 A selection of inspection methods and inspection instruments to guarantee final conformity of
component with functional requirements;
 A determination of processing conditions for every elementary operation which enables the
computation of working times and costs in order to carry out an economic evaluation;

 Editing of process sheets to be assembled in a comprehensive process planning file which is

transferred to the manufacturing department for execution.

 Function of Process Planning

 To determine, what parts are to be manufactured and, what parts to be purchased from outside.
 To determine the most economical manufacturing process to be used.
 To determine the sequence of operation to be performed on each component.
 To prepare the bill of material for all the components to initiate the purchasing of raw materials.
 To determine the tooling and gauging needed.
 To determine the time standard of performance of the job.
 To provide estimates of the cost of tooling and equipment needed to manufacture new products.
 To determine part changes necessary to ease manufacturing or reduce cost.
 Information Required for Process Planning
 Quantity of work to be done along with product specification.
 Quality of the work to be completed.
 Availability of tools, equipments and personnel’s.
 Sequence of operation & Standard time of each operation.
 Name of the equipment on which the operation will be performed.

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 When the operation will be performed.
 Factors affecting Process Planning
 Size and form of raw material  Improper selection results in, Wastage of material, increased
material handling cost, increased too cost, increased process time
 Processing method & Quantity to be manufactured
 Choice of plant layout & Capacities of machine tool
 Tolerance and surface finish
12. (b) (i) Write the process planning procedure

Input Specifications and Drawing and

Interpretation Supplementary Data

Selection of Primary Decision

Process Data Files
Tables

Determination of
Production Tolerances

Selection of Holding Devices Jigs and Fixture File

and Datums Inspection Devices

Selection and Grouping of

Operations Precedence Relationship

Selection of Machine and Machine

Sequence of Operations File

Selection of Tools Tool File

Selection of Quality
assurance Method

Time
Time and Cost Module Standard

Editing of Process Sheet

Detailed Process Planning Activity

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12. (b) (ii) What are the factors to be considered in machine selection.
MACHINE SELECTION
 Initial requirement

 Part Print & Sequence of Operation

 Number of components to be produced
 Machine capacity data
 Machine availability chart & Machine load chart
 Factors to be considered

 Machine capacity
 Should give required accuracy and surface finish
 Capacity of the machine
 Should give required output
 Special purpose machine – Large Quantities, Single Varieties, Risk of
Obsolescence
 General Purpose Machine – Lower Production Capacity, Wide Range
 Range of the machine and Size & Shape of the workpiece
 Machine availability
 Cost consideration
 Investment cost
 Initial Cost
 Installation cost
 Transportation cost
 Tooling cost
 Operating cost
 Direct Labour Cost
 Direct Material Cost
 Indirect Labour Cost
 Indirect Material Cost

 Maintenance, Repair, Power

13. (a) Discuss various methods of costing.

METHODS OF COSTING
 Job Costing or Order Costing
 All items are charged to a specific order.

 Daily record of direct material, direct labour & estimated overhead cost for each order
is recorded in production order and thus the total cost of the job is obtained.

 Useful when products are purchased in distinguishable lots and it is also desirable to
keep a separate record of each lot.

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 Batch Costing
 This method is very much similar to job costing where in each batch of components
are taken together and treated as a job.

 Process Costing
 This method is applied to industries such as oil refining, chemical, paint and other
similar industries, where the raw material passes through a number of processes or
operations.

 By products should be taken into account while calculating the cost.

 Departmental Costing
 This method is adopted in determining the cost of the output of each department
separately for the manufacture of standardized products.

 Ex. – Steel mill (Blast Furnace, Open Hearth & Rolling Mill department)

 Operating Cost Method

 Applied in the firms providing utility services such as railways, transport services,
water works, electricity board, etc.,

 Cost is determined on the basis of operating expenses and the charges are made. (kW
– hr, per litres)

 Unit Cost Method

 Adopted by the firms which supply a uniform product rather than a variety of
products.

 Multiple Cost Method

 Concerns manufacturing a variety of standardized products, having no relation to one
another in cost, quality and the types of process etc., use this method. (Ex. – cycles,
cars, type-writer etc.,)

13. (b) Name the various elements of cost. Explain each element in detail.
Total Cost

Material Cost Labour Cost Expenses

Direct Overhead
Direct Indirect Direct Indirect
Expenses Expenses
Elements of Cost

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 Direct Material
 It is that material which becomes a part of the product. It is the material which is consumed in
the manufacturing of a product and which can be measured and charged directly to the cost of
the product. It includes,
 All materials specially purchased for a particular job, order or process.

 All materials passing from one operation to another or one process to other which is intended
for further treatment or operation.
 All components that are purchased or produced.

 Also known as “Process Material”, “Store Material”, “Constructional Material” etc.

 Indirect Material
 Material which cannot be traced as a part of the product.

 It is the material required for maintaining and operating the plant and equipment but cannot be
a part of the product.
 Various lubricants, cotton waste, grease, coolants and allied materials all are indirect material.

 Determination of Material Cost

 Study the drawing carefully and break up the component into simple geometric shapes.

 Add the necessary machining allowances on all sides which are to be machined.

 Determine the volume of each part by applying the formulae of mensuration.

 Add the volume of all simple components to get the total volume of the product.

 Multiply the total volume of the product by the density of the material to get the weight of the
material.
 Find out the cost of the material by multiplying the cost per unit weight to the total weight
ofthe material.
 Direct Labour
 It is the one which is directly employed in the manufacturing operation.

 It is the labour which actually processes the material either manually or with the help of
machines.
 Worker or operators engaged in machine shop, welding shop, sheet metal shop, etc.,

 Also known as “Productive Labour”, “Operating Labour”, “Process Labour” etc.

 Indirect Labour
 It is the non-productive staff engaged upon general services connected with the running of
afactory as a whole.
 It is the labour which helps the productive labour in performing their duties.

 “Foreman”, “Supervisors”, “Store Keepers”, “Gate-Keepers”, “Crane Drivers”, etc.,

 Determination of Labour Cost

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 To find labour cost one must have the knowledge of all the operations which are carried out
for production of the component or product, tools and machines to be used and departments in
which the product is to be manufactured.
 For calculating time required for a particular job following considerations should be taken into
account:
 Set up Time – It is the time required for setting and fixing the jobs and tools on the
machine. Time to study the drawings, blue prints, time to make adjustment for getting
the required size are all included in set up time.
 Operation Time – It includes all the time necessary to perform all the elements of an
operation. An operation is all the work done in a workpiece by a worker. An element
may be defined as the smallest component into which an operation is divided.
(Handling Elements & Machine Elements)
 Tear Down Time – It starts when the last part or element of operation has been
completed. So, it is the time taken to remove job, tools and other auxiliary equipment
from the machine after the last element of operation has been completed
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue
Allowance (5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement &
Checking Allowance (2 – 3%) and Other Allowance (15 – 20%)
 Direct Expenses
 It includes any expenditure other than direct material or direct labour incurred on a specific
cost unit.
 Hire of special tools or equipment, cost of special jigs and fixtures or some special patterns and
its maintenance cost, cost of layout, designs and drawings or experimental work on a particular
job, etc.,
 Indirect Expenses
 Known as overhead charges, burden or on cost.

 It is the sum of indirect labour, indirect materials and other expenses including service which
cannot be conveniently charged to specific cost unit.
 Factory Expenses – Also known as Factory oncost, Production overhead, factory overhead,
works oncost, works overhead. It includes,
 Rents, rates and insurance chargeable against the work.
 Indirect Labour.
 Consumable stores and all forms of indirect material.
 Depreciation, maintenance, and repair of buildings, plant, machine toll etc.,
 Power such as steam, gas, electricity, hydraulic or compressed air, internal transport.
 Administrative Expenses – Includes all the expenses incurred on managerial or
administrative staff for the planning and policy making work. Examples,
 Salaries of directors and managing directors
 Salaries of cost, finance and secretary office staff.

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 Expenses of direct amenities like telephone, coolers and other modern equipments.
 Travelling expenses for attending meetings.
 Stationery, auditing expenses.
 Insurance of building and employees.
 Selling Expenses – consists of expenditure spent towards securing orders and finding or
retaining markets for the products manufactured.
 Advertising and publicity expenses.
 Salaries of sales department staff.
 Travelling expenses of sales engineers.
 Cost of preparing tenders and estimates.
 Estimates of making blocks and posters.
 Distribution Expenses – Expenses which are paid for the distribution of the product.

 Finished stock, storage cost.

 Cost of packing.
 Loading and unloading charges.
 Expenses of transportation and vehicles.
 Salaries of dispatch clerks and labourers
14. (a) What are the components of job estimates? Explain.
CONSTITUENTS OF ESTIMATION
 Design cost – The wages and other expenditure required to be paid in designing a product
are to be considered. For this purpose, the cost can be estimated on the basis of similar
products already designed in the past or on the basis of good judgment of designer.
 Drafting cost – The drawing is split up in simple parts and drawings of individual
components, according to the requirement of production shops are prepared. The
estimated time to be consumed by draftsman in preparing such drawings is called Drafting
Time. For calculating drafting cost, the remuneration of draftsman is taken as the basis.
 Time and Motion Studies, Planning and Production Control cost – Estimated time and
the costs to be incurred on these processes are decided by past experience or judgment.
 Cost of Design and Arrangement of special items – The special items may be patterns,
core boxes, flasks, dies, jigs, fixtures, tools etc. The estimator must take into account their
cost, whenever used.
 Cost of Experimental work – The costs incurred in trial and error methods should be
considered.
 Materials cost – First rough drawings with all allowances are prepared and volume is
calculated. From volume, weight is obtained by multiplying density. Thus, the
material cost is obtained by knowing market rates of materials. Scrap cost must be
deducted.

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 Labour cost – To estimate the labour cost, an estimator must have a thorough knowledge
of all the operations carried out during the production. Different allowances should be
taken into considerations.

 Time Allowances
 Set up Time – Time required for setting and fixing the job and different tools on the
machine. It includes time to study drawings, to set machines, to inspect job, setting of
gauge etc.
 Operation Time – Time taken by the machines for actual operations on the job. It
includes Handling Time and Machining Time.
 Tear-down Time – It is the time taken to remove job, tools and other auxiliary
equipment from the machine after the last element of operation has been completed.
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue Allowance
(5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement & Checking
Allowance (2 – 3%) and Other Allowance (15 – 20%)
 Overheads
 Indirect Material Cost – Cost of grease, coolants oils, cotton waste etc.

 Indirect Labour Cost – Wages of supervisors, draftsman, designer, research worker,

helpers etc.
 Administrative Overheads – Salaries of high officials, salaries of person working in
general office, telephone, insurance premium etc.
 Selling Overhead – Salaries of salesman, commission to salesman, advertising
expenditure etc.
 Repairs and Maintenance expenses

 Depreciation of building, furniture and equipment.

 Profit – The basis for calculating profits is on the capital employed in a business.
 Well being of employees

 Satisfaction of the consumer

 Long term stability

 Profit should be adequate to cover – dividends to share holders, reserves for expansion,
return on asset.
14. (b) (i) What are the types of estimates.
Estimates can be developed in a variety of different ways depending upon the use of the estimates
and the amount of detail provided to the estimator.
Every estimator should understand every estimating method and when to apply each, because no
one estimating method will solve all estimating problems.
 Guesstimates

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Guesstimate is a slang term used to describe as estimate than lacks detail. This type of
estimate relies on the estimators experience and judgment.
Usually, the tool and die estimator is estimating tool cost without any tool or die
drawings. The estimator typically works from a piece part drawing and must visualize
what the tool or die looks like. Some estimators develop some level of detail in their
estimate.

Material cost, for example, is usually priced out in some detail, and this brings greater
accuracy to the estimator by reducing error. If the material part of the estimate has an
estimating error of plus or minus 5 per cent and the reminder of the estimate has an
estimating error of plus or minus 10 per cent, the overall error is reduced.

 Budgetary
The budgetary estimate can also be a guesstimate but is used for a different purpose. 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.
 Using Past History
Using past history is a very popular way of developing estimates for new work. Some
companies go to great lengths to ensure that estimates are developed in the same way
actual cost is conducted.
This provides a way past history in developing new estimates. New advancements in
group technology now provide a way for the microcomputer to assist in this effort.
 Estimating in Some Detail
Some estimators vary the amount of detail in an estimate depending on the risk and dollar
amount of the estimate. This is true in most contract shops. This level of detail might be
at the operation level where operation 10 might be a turning operation and the estimator
would estimate the setup time at 0.5 hours and the run time at 5.00 minutes. The material
part of the estimate is usually calculated out in detail to reduce estimating error.

 Estimating in Complete Detail

When the risk of being wrong is high or the dollar amount of the estimate is high, the
estimator will develop the estimate in as much detail as possible.
Detailed estimates for machinery operations, for example, would include calculations for
speeds, feeds, cutting times, load and unload times and even machine manipulations
factors. These time values are calculated as standard time and adjusted with an efficiency
factor to predict actual performance.

 Parametric Estimating
Parametric estimating is an estimating method developed and used by trade associations.
New housing constructions can be estimated on the basis of cost per square.
There would be different figures for wood construction as compared with brick and for
single strong construction as compared with multilevel construction.
Some heat-beating companies price work on a cost per pound basis and have different
cost curves for different heat-treating methods.

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 Project Estimating
Project estimating is by far the most complex of all estimating tasks. This is especially
true if the project is a lengthy one. A good example of project estimating is the time and
cost of developing a new missile.
The project might take 5 years and cost millions of dollars. The actual manufacturing cost
of the missile might be a fraction of the total cost. Major projects of this nature will have
a PERT network to keep track of the many complexities of the project. A team of people
with a project leader is usually required to develop a project estimate.
14. (b) (ii) Differentiate between estimating & costing

Point of
Estimating Costing/Cost Accounting
Comparison

It gives an expected cost of the

It gives actual cost of the product based on the
product based on calculations by
Type of Cost data collected from the different expenditures
means of standard formulae or
actually incurred for a product
certain established rules.

It usually starts with the issue of order for

It is generally carried out before production of a product and ends after the
actual production of a product. product is dispatched for sale. For after sale
Duration of Due to certain unforeseen or commitment like free repair or replacement, the
Process unexpected expenses coming to process continues upto the expiry period of
light at a later stage, estimate guarantee or warranty because the overhead
may be modified or revised. expenses incurred in the above case will be
included in the production cost.

A qualified technical person or It can be done by a person qualified for account

engineer having thorough instead of a technical person. The cost
Nature or
knowledge of the drawing and accountant develops his knowledge of technical
Quality of
manufacturing process is terms and processes while working. Thus this
the Personnel
required. Thus it is a technical work instead of being of technical nature is more
work instead of clerical one. of a clerical nature.

1. To set standard for 1. To help in comparison of cost with estimates

comparison with actual cost to know if they are over, under or realistic as
well as to know where the actual cost
2. To help in setting up market
involve unnecessary wastage of men,
price for a proposed product
machine, materials and money.
to be manufactured
Main 2. To facilitate the budget preparation as well
3. To decide whether it is
Objective as to provide cost data for future estimates of
economical to buy or
new products of their pricing plans.
manufacture a product under
prevailing market conditions 3. To facilitate in deciding output targets from
time to time.
4. To facilitate in filling up of
tenders or quotations of 4. To facilitate in meeting certain legal
products for supply obligations or regulations.

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15. (a) Explain the various time allowances which should be considered for calculating labour
cost.
“Allowance is the additional time allowed to perform the work over and above the basic
time”.
 Depends on factors related (i) to individual worker, (ii) to the nature of work itself,
(iii) environment.
 Relaxation Allowance – addition to the basic time intended to provide the workers
an opportunity to recover from psychological effects of carrying out a specified task
under specified condition and to allow attention to personal needs.
 Personal Need Allowance – provided to the worker to fulfill his personal needs.
 Fatigue Allowance – for recovery from psychological & physiological effects of
fatigue
 Basic Fatigue Allowance – provided to the worker who performs a job
seated, who is engaged on light work in good conditions, 4% of basic time.
 Variable Fatigue Allowance – provided to worker who is engaged in
medium and heavy work, when working conditions for the elements are not
normal and cannot be improved. The following factors should be considered,
abnormal position, accident hazards of the job, use of force, illumination of
worksite, ventilation, temperature, noise, strain.
 Contingency Allowance – may occur frequently or irregularly, provided for small
unavoidable delays and extra work.
 Tool breakage
 Tool sharpening
 Obtaining necessary gauges, special tools from central stores
 Filling coolant reservoir from time to time
 Power failure of small duration
 Waiting for in process inventory from previous machine
 Special Allowance – provided for activities which are not normally a part of
operation cycle, but which are essential for satisfactory performance of work. Start
up allowance, shut down allowance, cleaning allowance, tool allowance, changeover
allowance, implementation allowance.
 Interference Allowance – provided when two or more work elements occur
simultaneously.
 Policy Allowance – given according to the policy of the management, not included
for calculating standard time, extra benefit.

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15. (b) Explain the procedure followed for estimating the cost of an industrial product.
ESTIMATING PROCEDURE
 Production planning department decides the requirements and specifications of the
product.
 Production planning department makes out the drawings; lays down the method and
sequence of operations, machines to be used, rates allowed to the labout in consultation
with the Time and Motion Study department and wages department.
 Decide accuracy and finish required.
 To prepare a list of components of the product.
 Decide which component can be manufactured in the concern itself and which should be
procured from outside.
 Determine the material cost by calculating the quantities of various types of material
required.
 Determine the time required on various operations by using calculation methods or by
time and motion study and adding suitable allowances.
 Determine labour cost considering the wage rate allowed for various categories of
operators and other workers employed for manufacturing the product.
 Determine the prime cost after adding direct expenses in the direct material and direct
labour costs.
 Determine the factory overheads including depreciation and expenditure on maintenance
of the plant, insurance, power etc.
 Determine administrative overheads considering the policy of the concern for calculating
these expenses.
 Determine the packing and delivery charges etc.
 Then calculate the total cost.
 Decide the profit and add it to the total cost, in order to fix the sale price.
 Decide the discount allowed to the distributor.
 Decide the delivery time in consultation with the production department and sales
department.

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ME 2027 PROCESS PLANNING AND COST ESTIMATION

NOVEMBER/DECEMBER 2012

PART A – (10 x 2 = 20 marks)

1. Mention few applications of work study.
2. Define SIMO chart.
3. List any four information required for process planning.
4. What are the advantages of manual process planning?
5. What do you mean by multiple cost method?
6. Define costing.
7. What do you mean by a realistic estimate?
8. Define parametric estimating.
9. What are the various elements considered while calculating the cost of a welded joint?
10. State any four pattern allowances.
PART B – (5 x 16 = 80 marks)
11. (a) (i) What are the objectives of work measurement? Explain.
(a) (i) Write the procedure of method study.
(Or)
11. (b) (i) What is the purpose of the study of ergonomics? Explain.
(b) (ii) What is multiple activity chart? State its purpose.

12. (a) (i) What are the factors that influence process planning? Discuss.
(ii) List out the benefits of CAFP systems.
(Or)
12. (b) Describe the various types of charts and diagrams used in process planning.

13. (a) Name the various elements of cost. Explain each element in detail giving suitable
examples.

(Or)
13. (b) A factory has 15 lathes of same make and capacity and 5 shapers of same make and
capacity. Lathes occupy 30m2 area while shapers occupy 15m2. During one calendar
year, factory expenses for this section area are as follows. Find out the machine hour rate,
lathes and shapers work for 25000 hrs and 8000 hrs respectively.

i. Building rent and depreciation Rs. 5000

ii. Indirect labour and material Rs 15000

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 [ME 6005] Process Planning & Cost Estimation
iii. Insurance Rs 2000

iv. Depreciation charges of lathes Rs 5000

v. Depreciation charges of shapers Rs 3000

vi. Power consumption for the lathes Rs 2000

vii. Power consumption for the shapers Rs 1000

14. (a) Discuss the various components of a job estimate.

(Or)
14. (b) Explain the procedure followed for estimating the cost of an industrial product.

15. (a) Describe and compare the various methods of allocation of overhead expenses.

(Or)
15. (b) What will be the machine time required to rough bore, to second bore and to finish
bore a soft cast iron cylinder whose diameter is 220 mm and the length of bore is 260mm.

i. Rough bore 39 rpm, 2.857 mm feed

ii. Second rough bore 45 rpm, 0.987 mm feed.
iii. Finish bore 25 rpm, 5.75 mm feed.

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Part A

1. <Old Syllabus>
2. <Old Syllabus>
3. List any four information required for process planning.
Quantity of work to be done along with product specification
Quality of the work to be completed.
Availability of tools, equipments and personnel’s
Sequence of operation & Standard time of each operation
4. What are the advantages of manual process planning?
Very much suitable for small scale companies
Highly flexible
Low investment costs
5. What do you mean by multiple cost method?
Concerns manufacturing a variety of standardized products, having no relation to one another in
cost, quality and the types of process etc., use this method. (Ex. –cycles, cars, type-writer etc.,)
6. Define costing.
Costing may be defined as a system of accounts, which systematically and accurately records
every expense in order to determine the cost of a product after knowing the different expenses
incurred in various departments.
7. What do you mean by a 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.
8. Define parametric estimating.
Parametric estimating is the act of estimating cost or time by the application of mathematical
formulas. These formulas can be as simple as multiplies or as complex as regression models.
9. What are the various elements considered while calculating the cost of a welded
joint?
Material Cost – cost of Electrodes, Labour Cost, Power Chargers
Finishing Cost, On – Cost
10. State any four pattern allowances.
Contraction or shrinkage Allowance
Machining or Finishing Allowance
Draft Allowance
Shake Allowance
Distortion Allowance

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PART B

11. (a) (i) What are the objectives of work measurement? Explain.
 Determines the time required to do a job.
 Decides man power required for a job.
 Decides equipment requirements.
 Provides information for effective production planning and maintenance procedures.
 Aids in calculating exact delivery dates.
 Decides realistic labour budgeting and provides a basis for standard costing system.
 Provides a basis for fair and sound incentive schemes.
 Effective labour control.
11. (a) (ii) Write the procedure for method study.

Select & Define

Record

Examine

Develop

Install

Maintain
1. Select & Define
 Select the job worth studying and define the objectives
 Consider the following aspects
 Economics aspects
 Technical aspects
 Human reactions
 Objectives
 Reduce manufacturing cost
 Avoid bottle necks
 Reduce fatigue

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 Avoid poor use of men, material & machinery
2. Record
 All the relevant information’s and procedure pertaining to the present or existing method
should be recorded in detail and in the form of chart to obtain a more clear picture.
 Provides the basis of both the critical examination & the development of the improved
method.
 Recording Techniques
 Charts
 Outline Process Chart
 Flow Process Chart ( Man Type, Material Type & Equipment Type)
 Two Handed Process Chart
 Multiple Activity Chart
 Travel Chart
 Diagrams
 Flow Diagram
 String Diagram
 Cyclegraph
 Chronocyclegraph
 Motion & Film Analysis  Simo Chart, P.M.T.S
 Layout Models  Two Dimensional, Three Dimensional
3. Examine
 Critically examine the recorded events in sequence
 Achieved by means of two sets of detailed questions
 Primary Questions – indicates facts & reasons
 Secondary Questions – indicates alternatives & means for improvement
 List of Primary & Secondary Questioning Technique

Primary Questions Secondary Questions

What is done? What else might be done?
Purpose
Why is it done? What should be done?
Where else might it be
Where is it done?
Place done?
Why is it done there? Where should it be done?
When is it done? When might it be done?
Sequence
Why is it done then? When should it be done?
Who does it? Who else might do it?
Person Why does that person do
Who should do it?
it?
How else might it be
How is it done?
Means done?
Why is it done that way? How should it be done?

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4. Develop
 Record the method proposed through the critical examination
 Consult all levels of management & workers for their suggestions
 Test, thus modified proposed method for its advantages claimed over the original method
 Prepare and put up the report on proposed method to the management for its approval.
 Prepare a record of the new method on a flow process chart so that it can be compared.
 The developed method should be,
 Practical & Feasible
 Safe & Effective
 Economical
 Acceptable to Design, Production, Quality Control & Sales Departments.
5. Install
 Proposed method is installed in two stages,
5. Preparation
 Planning
 Arranging
 Rehearsing
6. Implementation
6. Maintain
 Ensure proper functioning of the installed method by periodic checks & verification
 Purpose of checks and reviews is to find if the method being practiced is the same or it
has deviated from the authorized one.
 Views of the workers, supervisors and other persons related with the installed method can
be of much help in exploring further improvements.
11. b (i) What is the purpose of the study of ergonomics? Explain.
ERGONOMICS
 “Science which deals with the relationship between man and his working
environments”.
 “Ergon”  work, “Nomos”  natural laws
 “The application of human biological sciences in conjunction with engineering
sciences to the worker and his working environment, so as to obtain maximum
satisfaction for the worker which at the same time enhances productivity”.
 “The relation between man and his occupation, equipment and environment and
particularly, the application of anatomical, physiological and psychological knowledge
to the problems arising there from”.
 Objectives
 To enhance the efficiency and effectiveness with which the activities (work) is carried
out so as to increase the convenience of use, reduced errors and increase in
productivity.
 To enhance certain desirable human values including, safety, reduced stress and
fatigue and improved quality of life.
 Design of Equipment, machinery and controls in such a manner so as to minimize
mental and physical strain on the worker thereby increasing the efficiency.
 Design of conducive environment for executing the task most effectively.

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11. b (ii) What is multiple activity chart? State its purpose.
Multiple Activity Chart
Records simultaneously the activities of all the workers and machines on a common time
scale and thus shows inter – relations between them.
Purpose
 To detect idle times being enforced on machines & workers
 To optimize work distribution between workers & machines
 To decide number of workers in a group
 To examine the interdependency of activities
Types
 Man – Machine Chart
 Man – Multi-machine Chart
 Multi-man Chart
 Multi-man – Machine Chart

Operators Time Machines

Operator
Activity (min) 1 2

0
Operator
Setting m/c 1
5 Working
Setting m/c 2
10
Machine
15 being set
Idle

20
Machine
Setting m/c 2
25 Working
Idle
30
Setting m/c 1 Idle Time
35
Setting m/c 2
40
Idle
45
Summary

Working Time Idle Time

(min) (min)
Operator 25 20

m/c 1 45 Nil

m/c 2 40 05
Fig. 1 Multiple Activity Chart

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Construction
1. A separate vertical bar or column is there to represent each subject.
2. A common time scale is provided for all the subjects.
3. Activities of each subject in relation to those of the others are marked in the
respective columns.
4. Previously conducted time studies provide the time values for each activity.
5. A brief description of each activity is marked on the chart.
6. Working and idle times are marked differently on the chart.
7. Fig.1 Multiple Activity Chart (Man – Machine Chart)
Analysis – After constructing the chart, it is tried to,
 Rearrange the work cycle to minimize men or machine idle times
 Simplify the operations
 Combine or eliminate some of the elements.
Applications
 Plant repair & maintenance
 Construction jobs
 Planning team work
12. (a) (i) What are the factors that influence process planning? Discuss.
Size and form of raw material
Improper selection results in, Wastage of material, increased material handling cost,
increased too cost, increased process time
Processing method & Quantity to be manufactured
Choice of plant layout & Capacities of machine tool
Tolerance and surface finish
12. (a) (ii) List out benefits of CAPP systems.
Advantages of CAPP and future trends

CAPP has some important advantages over manual process planning which includes;
Reduced process planning and production lead-times
Faster response to engineering changes in the product
Greater process plan accuracy and consistency
Inclusion of up-to-date information in a central database
Improved cost estimating procedures and fewer calculation errors
More complete and detailed process plans
Improved production scheduling and capacity utilization
Improved ability to introduce new manufacturing technology and rapidly update process
plans to utilize the improved technology
 There are number of difficulties in achieving the goal of complete integration between various
functional areas such as design, manufacturing, process planning and inspection. For example, each

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functional area has its own stand-alone relational database and associated database management
system. The software and hardware capabilities among these systems pose difficulties in full
integration. There is a need to develop single database technology to address these difficulties. Other
challenges include automated translation of design dimensions and tolerances into manufacturing
dimensions and tolerances considering process capabilities and dimensional chains, automatic
recognition of features and making CAPP systems affordable to the small and medium scale
manufacturing companies.
12. (b) Describe the various types of charts and diagrams used in process planning.
1. Process Charts
 A chart may be a diagram, a picture or a graph which gives an overall view of the
situation. It helps visualizing various possibilities of alteration or improvement.
 A chart representing a process may be called a Process Chart.
 A process chart records graphically or diagrammatically, in sequence, the operations
connected with a process.
 Process Chart Symbols,

Event Symbol Description

Represents an action. It involves a change in location or condition of a

Operation
product. Ex. Cutting a bar on a power hacksaw

Represents a stage when a finished product or raw material awaits an

Storage
action. Ex. Milling cutters lying in tool stores

Delay or Temporary Occurs when something stops the process and a product waits for the
Storage next event. Ex. Power failure, Bottle neck

Indicates the movement of an item from one location to another.

Transport (material, equipment, an operator or his hands)
Ex. MS rods being sent from stores to M/C shop

Act of checking for correctness of the quantity or quality of the items.

Inspection
Ex. Checking the hardness of a carburized Ms piece.

Operation cum Ex. Articles being painted as they are transported by the chain
Transportation conveyor

Inspection cum
Ex. Powder milk tin is being weighed as it is filled.
Operation

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Outline Process Chart
Surveys & records an overall picture of the process & states only main events sequence
wise.
Considers only operations and inspections (uses only two symbols)
Actually an outline process chart is the first step for the beginning of a detailed analysis.
Ex. Task Bolt and Washer Assembly (Fig. 2)

Bolt (Part A) Washer (Part B) Nut (Part C)

1 Upset Forging 3 Punching 4 Drilling

2 5
Threading Threading

1 2
Inspection Inspection

6
Put washer on bolt

7
Put nut on the bolt Summary 7

3
Inspection 3

Fig. 2 Outline Process Chart

Two Handed Process Chart

Records the activities of the left hand and right hand of an operator as related to each
other.
Activities of the two hands can be synchronized by providing a time scale on the chart.
Used for analyzing repetitive jobs of short duration and assembly work.
Ex. Assembly of Nut & Bolt (Fig 3)

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Job : Assembling Nut & Bolt

Symbols
Left Hand Right Hand
LH RH

Pick up Bolt Idle

Hold Pick up Nut

Hold To Left Hand

Hold Assemble

Summary

LH RH

1 2

3 -

- 1

- 1

Fig. 3 Two – Handed Process Chart

Flow Process Chart
Detailed version of outline process chart and records all the events. It,
 Sets out sequence of flow
 Records all the events in sequence using process chart symbols.
 Marks distances travelled and time taken for completing an activity
 Mention other important points, if any
 Types of Flow Process Charts
 Man type,
 Material type,
 Equipment type
Ex. Man type flow process chart (Fig 4)

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10 Meters
Metallographic Lab Start Polishing M/C
1

Sprinkle the solution of polishing compound on the rotating table

2

1 Hold the specimen in hand

3
Place the specimen gently on the rotating table & polish it

2
Wait for a few seconds

2
Take away the specimen to wash basin
2 meters
4 Wash the specimen

5 Etch the specimen

6 Wash the specimen again

7
Dry it

Check under a microscope

1

Keep the specimen in the container

1
Fig. 4 Man Type Flow Process Chart

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Ex. Material type flow process chart (Fig 5)

Operations
Distance
Time Remarks
Activity Moved
(min) (if any)
(m)

Casting lying in foundry

1* – – –
store

Moved to gas cutting 1

10 3 By trolley
m/c *

Wait cutting m/c being 1

– 5 –
set *

Risers cut – 20 –
1*

Wait for trolley 2 – 10 –

*

2
Moved to m/c shop 20 6 By trolley
*

Inspected before
1* – 15 –
machining

Fig. 5 A Portion of the Flow Process Chart (Material Type) showing flow of Product

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Multiple Activity Chart
Records simultaneously the activities of all the workers and machines on a common time
scale and thus shows inter – relations between them.
Purpose
 To detect idle times being enforced on machines & workers
 To optimize work distribution between workers & machines
 To decide number of workers in a group
 To examine the interdependency of activities
Types
 Man – Machine Chart
 Man – Multi-machine Chart
 Multi-man Chart
 Multi-man – Machine Chart
Construction
8. A separate vertical bar or column is there to represent each subject.
9. A common time scale is provided for all the subjects.
10. Activities of each subject in relation to those of the others are marked in the
respective columns.
11. Previously conducted time studies provide the time values for each activity.
12.A brief description of each activity is marked on the chart.
13.Working and idle times are marked differently on the chart.
14.Fig. 6 Multiple Activity Chart (Man – Machine Chart)
Analysis – After constructing the chart, it is tried to,
 Rearrange the work cycle to minimize men or machine idle times
 Simplify the operations
 Combine or eliminate some of the elements.
Applications
 Plant repair & maintenance
 Construction jobs
 Planning team work

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Operators Time Machines

Operator
Activity (min) 1 2

0
Operator
Setting m/c 1
5 Working
Setting m/c 2
10
Machine
15 being set
Idle

20
Machine
Setting m/c 2
25 Working
Idle
30
Setting m/c 1 Idle Time
35
Setting m/c 2
40
Idle
45

Summary

Working Time Idle Time

(min) (min)
Operator 25 20

m/c 1 45 Nil

m/c 2 40 05

Fig. 6 Multiple Activity Chart

Travel Chart
It is tabular record for presenting quantitative data (weight, distance, frequency etc.,)
about the movements of materials, workers or equipment between any numbers of
places over a given period of time. (Fig. 7)
Construction,
 Draw a square grid and mark various departments in order to show to & fro
movements.
 Assume that raw material/worker travelled from department D to C, a mark ‘x’
placed at the junction of the columns.
 Similarly ‘x’ marks are placed at other appropriate junctions during the selected
period of time for study.
 The number of ‘x’ in each vertical and horizontal column is added up and bar chart
is plotted in order to have a glance of the frequency of movements.
Travel chart does not trace the actual path of movement.

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Helps improving the plant layout so that the total distance traveled can be minimized.
(knowing the existing layout & frequency of movements)

From
A B C D E F G H I J
A x x x 3
B x x x x 4
C x x x 3
D x x x x x 5
E x x x x 4
To
F x 1
G x x x x 4
H x x x x 4
I x x x 3
J x x x x 4

1
4 3 5 3 3 4 3 5 4 Bar Charts

Fig. 7 Travel Chart

1. Diagrams
 The path of movement (i.e. movement between two locations and the number of times
amovement is repeated) can be better visualized by drawing a diagram; it may be a
flow diagram of string diagram.
Flow diagram
 It’s a diagram which shows the relative position of production machinery, jigs, fixtures
etc., and marks the path followed by men & materials.
1. Draw to scale the plan of the work area. Mark the relative position of machine tools,
benches, store, racks, inspection booths etc.
2. From the different observations, draw the actual movements of the materials or the
worker on the diagram and indicate the direction of movement.

2A 1

1 C

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Fig. 8 Flow Diagram

String
Diagra
m
It is a model or a scale plan of the shop, in which every, machine or equipment is marked
and a pin is struck by or in the area representing a facility.
A continuous colored thread or string traces the path taken up by the materials or workers
while performing a particular operation.
1. Draw the scale layout of the shop area and mark various features such as machinery,
work benches stores etc.
2. Mount this scaled drawing on a soft board and strike pin at all the places which form
the path of the workers and materials.
3. A continuous colored un-stretchable string, taken from the first to the last pin, is
wound to mark the path followed by the workers or materials. Fig 9 shows a string
diagram.

Stock Room

*
String
M–2 M–4

M–1 * * * M–6

* M –*3 M –* 5

*
Stores

Fig. 9 String Diagram

Uses
 Useful in dealing with complex movements & plant layout & design problem.
 Indicates clearly, back tracking, bottle necks, & over and under, utilized paths.
 Points out whether a work station is suitable located.
 Preferred when movements are not regular as regard with frequency and distance
travelled.
 Helps in deciding the most economical routes to do a particular operation.

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 Advantageous in studying the movements of an individual operator handling a
number of machines,
Drawback – It is not possible to trace irregular or curvilinear path exactly.
13. (a) Name the various elements of cost. Explain each element in detail giving suitable
examples.
Total Cost

Material Cost Labour Cost Expenses

Direct Overhead
Direct Indirect Direct Indirect
Expenses Expenses
Elements of Cost

 Direct Material
 It is that material which becomes a part of the product. It is the material which is consumed in
the manufacturing of a product and which can be measured and charged directly to the cost of
the product. It includes,
 All materials specially purchased for a particular job, order or process.

 All materials passing from one operation to another or one process to other which is intended
for further treatment or operation.
 All components that are purchased or produced.

 Also known as “Process Material”, “Store Material”, “Constructional Material” etc.

 Indirect Material
 Material which cannot be traced as a part of the product.

 It is the material required for maintaining and operating the plant and equipment but cannot be
a part of the product.
 Various lubricants, cotton waste, grease, coolants and allied materials all are indirect material.

 Determination of Material Cost

 Study the drawing carefully and break up the component into simple geometric shapes.

 Add the necessary machining allowances on all sides which are to be machined.

 Determine the volume of each part by applying the formulae of mensuration.

 Add the volume of all simple components to get the total volume of the product.

 Multiply the total volume of the product by the density of the material to get the weight of the
material.

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 Find out the cost of the material by multiplying the cost per unit weight to the total weight of
the material.
 Direct Labour
 It is the one which is directly employed in the manufacturing operation.

 It is the labour which actually processes the material either manually or with the help of
machines.
 Worker or operators engaged in machine shop, welding shop, sheet metal shop, etc.,

 Also known as “Productive Labour”, “Operating Labour”, “Process Labour” etc.

 Indirect Labour
 It is the non-productive staff engaged upon general services connected with the running of
afactory as a whole.
 It is the labour which helps the productive labour in performing their duties.

 “Foreman”, “Supervisors”, “Store Keepers”, “Gate-Keepers”, “Crane Drivers”, etc.,

 Determination of Labour Cost

 To find labour cost one must have the knowledge of all the operations which are carried out
for production of the component or product, tools and machines to be used and departments in
which the product is to be manufactured.
 For calculating time required for a particular job following considerations should be taken into
account:
 Set up Time – It is the time required for setting and fixing the jobs and tools on the
machine. Time to study the drawings, blue prints, time to make adjustment for getting
the required size are all included in set up time.
 Operation Time – It includes all the time necessary to perform all the elements of an
operation. An operation is all the work done in a workpiece by a worker. An element
may be defined as the smallest component into which an operation is divided.
(Handling Elements & Machine Elements)
 Tear Down Time – It starts when the last part or element of operation has been
completed. So, it is the time taken to remove job, tools and other auxiliary equipment
from the machine after the last element of operation has been completed
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue
Allowance (5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement &
Checking Allowance (2 – 3%) and Other Allowance (15 – 20%)
 Direct Expenses
 It includes any expenditure other than direct material or direct labour incurred on a specific
cost unit.
 Hire of special tools or equipment, cost of special jigs and fixtures or some special patterns and
its maintenance cost, cost of layout, designs and drawings or experimental work on a
particular job, etc.,
 Indirect Expenses
 Known as overhead charges, burden or on cost.

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 It is the sum of indirect labour, indirect materials and other expenses including service which
cannot be conveniently charged to specific cost unit.
 Factory Expenses – Also known as Factory oncost, Production overhead, factory overhead,
works oncost, works overhead. It includes,
 Rents, rates and insurance chargeable against the work.
 Indirect Labour.
 Consumable stores and all forms of indirect material.
 Depreciation, maintenance, and repair of buildings, plant, machine toll etc.,
 Power such as steam, gas, electricity, hydraulic or compressed air, internal transport.
 Administrative Expenses – Includes all the expenses incurred on managerial or
administrative staff for the planning and policy making work. Examples,
 Salaries of directors and managing directors
 Salaries of cost, finance and secretary office staff.
 Expenses of direct amenities like telephone, coolers and other modern equipments.
 Travelling expenses for attending meetings.
 Stationery, auditing expenses.
 Insurance of building and employees.
 Selling Expenses – consists of expenditure spent towards securing orders and finding or
retaining markets for the products manufactured.
 Advertising and publicity expenses.
 Salaries of sales department staff.
 Travelling expenses of sales engineers.
 Cost of preparing tenders and estimates.
 Estimates of making blocks and posters.
 Distribution Expenses – Expenses which are paid for the distribution of the product.

 Finished stock, storage cost.

 Cost of packing.
 Loading and unloading charges.
 Expenses of transportation and vehicles.
 Salaries of dispatch clerks and labourers

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13. b)

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14. (a) Discuss the various components of a job estimate.

CONSTITUENTS OF ESTIMATION
 Design cost – The wages and other expenditure required to be paid in designing a product
are to be considered. For this purpose, the cost can be estimated on the basis of similar
products already designed in the past or on the basis of good judgment of designer.
 Drafting cost – The drawing is split up in simple parts and drawings of individual
components, according to the requirement of production shops are prepared. The
estimated time to be consumed by draftsman in preparing such drawings is called Drafting
Time. For calculating drafting cost, the remuneration of draftsman is taken as the basis.
 Time and Motion Studies, Planning and Production Control cost – Estimated time and
the costs to be incurred on these processes are decided by past experience or judgment.
 Cost of Design and Arrangement of special items – The special items may be patterns,
core boxes, flasks, dies, jigs, fixtures, tools etc. The estimator must take into account their
cost, whenever used.
 Cost of Experimental work – The costs incurred in trial and error methods should be
considered.
 Materials cost – First rough drawings with all allowances are prepared and volume is
calculated. From volume, weight is obtained by multiplying density. Thus, the
material cost is obtained by knowing market rates of materials. Scrap cost must be
deducted.
 Labour cost – To estimate the labour cost, an estimator must have a thorough knowledge
of all the operations carried out during the production. Different allowances should be
taken into considerations.
 Time Allowances
 Set up Time – Time required for setting and fixing the job and different tools on the
machine. It includes time to study drawings, to set machines, to inspect job, setting of
gauge etc.
 Operation Time – Time taken by the machines for actual operations on the job. It
includes Handling Time and Machining Time.
 Tear-down Time – It is the time taken to remove job, tools and other auxiliary
equipment from the machine after the last element of operation has been completed.
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue Allowance
(5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement & Checking
Allowance (2 – 3%) and Other Allowance (15 – 20%)
 Overheads
 Indirect Material Cost – Cost of grease, coolants oils, cotton waste etc.

 Indirect Labour Cost – Wages of supervisors, draftsman, designer, research worker,

helpers etc.

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 Administrative Overheads – Salaries of high officials, salaries of person working in
general office, telephone, insurance premium etc.
 Selling Overhead – Salaries of salesman, commission to salesman, advertising
expenditure etc.
 Repairs and Maintenance expenses

 Depreciation of building, furniture and equipment.

 Profit – The basis for calculating profits is on the capital employed in a business.
 Well being of employees

 Satisfaction of the consumer

 Long term stability

 Profit should be adequate to cover – dividends to share holders, reserves for expansion,
return on asset.
14. (b) Explain the procedure followed for estimating the cost of an individual product.
ESTIMATING PROCEDURE
 Select the estimator.
 Production planning department makes out the drawings; lays down the method and
sequence of operations, machines to be used, rates allowed to the labout in
consultation with the Time and Motion Study department and wages department.
 Decide accuracy and finish required.
 Prepare a list of components of the product.
 Decide which component can be manufactured in the concern itself and which
should be procured from outside.
 Determine the material cost by calculating the quantities of various types of material
required.
 Determine the time required on various operations by using calculation methods or
by time and motion study and adding suitable allowances.
 Determine labour cost considering the wage rate allowed for various categories of
operators and other workers employed for manufacturing the product.
 Determine the prime cost after adding direct expenses in the direct material and
direct labour costs.
 Determine the factory overheads including depreciation and expenditure on
maintenance of the plant, insurance, power etc.
 Determine administrative overheads considering the policy of the concern for
calculating these expenses.
 Determine the packing and delivery charges etc.
 Then calculate the total cost.
 Decide the profit and add it to the total cost, in order to fix the sale price.
 Decide the discount allowed to the distributor.

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 Decide the delivery time in consultation with the production department and sales
department.
15. (a) Describe the compare the various methods of allocation of overhead expenses.

Allocation of Overheads
 Percentage on Prime Cost
 In this method the total overhead or on cost of the factory is expressed as a % of the
combined total of direct labour and material which constitutes prime cost and then the %
rate is applied to each job.

Rate of Overhead = (Total Overhead Cost / Total Prime cost) x 100

 It does not take into account labour and material of different rates and machines of
different sizes used for different jobs.
 This method is suitable, where only one type of product is being manufactured and where
direct labour cost and direct material cost is nearly same.

 Percentage on Direct Labour Cost

Rate of Overhead = (Total Overhead Cost / Total Direct Labour cost) x 100
 This method is suitable, where practically all the work is done by hand and the wages paid
to direct labour are uniform.
 Percentage on Direct Material Cost
Rate of Overhead = (Total Overhead Cost / Total Direct Material cost) x 100

 Man Hour Rate

Rate of Overhead / hour = (Total Overhead Cost / Total Productive hours worked)
 This method is suitable, where the work is done by hand and not by machine, where
different categories of labour are employed whose wages are not uniform.
 Machine Hour Rate
Machine Hour Rate = (Overhead expenses for specific machine) / Estimated Machine Hours

 Total overhead in this system are distributed over the group of similar machines in the
following way,
 Power consumption is metered separately.
 Depreciation charges are calculated separately.
 Building rents, insurance, taxes, light charges and indirect labour and indirect material
are distributed on the basis of the floor areas occupied by the machines.
 The expenditure of wages paid for idle period of machines is not considered.
 Unit Rate

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 This method gives a standard rate of overhead cost for all outputs.
Rate per unit manufactured = (Total overhead charges) / (Number of Units Manufactured)
 Combination of Man Hour and Machine Hour Rate
 In industries having all types of shops, where some work is done by hand and the
remaining work is done by machines. Shops where work is done by hand, Man-Hour Rate
Method is applied and shops where work is done by machine Machine-Hour Rate Method
is applied.
15. (b)

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ME 2027 PROCESS PLANNING AND COST ESTIMATION

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MAY/JUNE 2012

PART A – (10 x 2 = 20 marks)

1. What is method study?
2. What is work measurement?
3. What does the term process planning mean.
4. What are all the documents necessary for process planning?
5. What is cost accounting?
6. What is prime cost?
7. Name a few methods of cost estimates.
8. What are allowances in estimation?
9. What is the basis on which overheads are allocated?
10. What are overheads?
PART B – (5 x 16 = 80 marks)
11. (a) Analyze the various objectives of method study. Discuss the procedure of method study?

(Or)
11. (b) Explain the procedure of work measurement. Discuss briefly the tools and techniques of
work measurement.
12. (a) List out the objectives of process planning. Explain the various approaches to process
planning.
(Or)
12. (b) Elaborately discuss the various process planning activities.
13. (a) Narrate the various objectives of cost estimation. What are all the elements of cost? Give
examples.
(Or)
13. (b) How costs are classified? Give the classifications of cost with suitable examples.
14. (a) Discuss briefly the methods of cost estimation and the data requirements.
(Or)
14. (b) How costs data are collected? What are the various allowances made in cost estimation?
15. (a) Explain the process of estimation of material cost, labor cost & overheads..
(Or)
15. (b) Discuss the various methods used for allocation of overheads.

PART A

1. What is method study?

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Method Study may be defined as the systematic investigation (i.e., recording and critical
examination) of the existing method of doing a job in order to develop and install an easy, rapid,
efficient, effective and less fatiguing procedure for doing the same job and at lower cost.
2. What is work measurement?
Work Measurement may be defined as the application of different techniques to measure and
establish the time required to complete the job by a qualified worker at a defined level of
performance.
3. What does the term processing planning mean?
Process planning is the systematic determination of the methods by which a product is to be
manufactured economically and competitively within the limits of design specifications laid
down.
It is defined as the subsystem responsible for the conversion of design data to work instruction.
It is defined as that function within a manufacturing facility which establishes the processes and
process parameters to be used in order to convert a piece part from its initial form to a final form
that is predetermined on a detailed engineering drawing.
4. What are all the documents necessary for process planning?
Product design and the engineering drawings pertaining to all the components of the Product
Tables of Cutting Speeds, depth of cut, feeds for different process and for different work
materials
Catalogues for various cutting tools and tool inserts
Specifications of various machine tools available in the shop
Sizes of standard materials commercially available in the market
Machine hour cost of all the equipment available in the shop
5. What is cost accounting?
Cost accounting may be defined as a system of accounts, which systematically and accurately
records every expense in order to determine the cost of a product after knowing the different
expenses incurred in various departments.
6. What is prime cost?
Prime cost: It consists of direct material cost, direct labour cost and direct expenses. Prime cost is
also called as direct cost.
Prime cost = Direct material cost + Direct labour cost + Direct expenses.
7. Name a few methods of cost estimates.
Guesstimates
Budgetary
Using Past History
Estimating in Some Detail
Estimating in Complete Detail

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Parametric Estimating
Project Estimating
8. What are the allowances in estimation?
A worker cannot work continuously without rest. His efficiency decreases as time passes due to
fatigue etc. He also requires time for tool sharpening checking measurements and for personal
calls. All these allowance are called miscellaneous allowances.
The allowances amount to 15% of total time. Miscellaneous allowances are classified as personal
fatigue, tool changing of grinding, checking, oiling and cleaning allowances, filling coolant
reservoir and disposing off scraps and surplus, stock, etc.
9. What is the basis on which overheads are allocated?
Percentage on Prime Cost
Percentage on Direct Labour Cost
Percentage on Direct Material Cost
Man Hour Rate
Machine Hour Rate
Unit Rate
Combination of Man Hour and Machine Hour Rate
10. What are overheads?
These are known as overhead charges, burden or on cost. All the expenses over and above prime
cost are indirect expenses. Overhead is the sum of indirect labour cost, indirect material cost and
other expenses including service which cannot be conveniently charged to specific cost unit.

PART B

11. (a) Analyze the various objectives of method study. Discuss the procedure of method
study.
Objectives of Method Study
 Improved working processes & standardized procedures
 Better work place layout & working conditions
 Less fatigue to operators
 Better product quality
 Effective utilization of men, material & machinery
 Efficient & fast material handling
 Reduced health hazards

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 Efficient planning of the section
 Streamlined working procedures
Method Study Procedure

Select & Define

Record

Examine

Develop

Install

Maintain
1. Select & Define
 Select the job worth studying and define the objectives
 Consider the following aspects
 Economics aspects
 Technical aspects
 Human reactions
 Objectives
 Reduce manufacturing cost
 Avoid bottle necks, Reduce fatigue
 Avoid poor use of men, material & machinery

2. Record
 All the relevant information’s and procedure pertaining to the present or existing method
should be recorded in detail and in the form of chart to obtain a more clear picture.
 Provides the basis of both the critical examination & the development of the improved
method.
 Recording Techniques
 Charts
 Outline Process Chart
 Flow Process Chart ( Man Type, Material Type & Equipment Type)
 Two Handed Process Chart

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 Multiple Activity Chart
 Travel Chart
 Diagrams
 Flow Diagram
 String Diagram
 Cyclegraph
 Chronocyclegraph
 Motion & Film Analysis  Simo Chart, P.M.T.S
 Layout Models  Two Dimensional, Three Dimensional
3. Examine
 Critically examine the recorded events in sequence
 Achieved by means of two sets of detailed questions
 Primary Questions – indicates facts & reasons
 Secondary Questions – indicates alternatives & means for improvement
 List of Primary & Secondary Questioning Technique

Primary Questions Secondary Questions

What is done? What else might be done?
Purpose
Why is it done? What should be done?
Where else might it be
Where is it done?
Place done?
Why is it done there? Where should it be done?
When is it done? When might it be done?
Sequence
Why is it done then? When should it be done?
Who does it? Who else might do it?
Person
Why does that person do it? Who should do it?
How is it done? How else might it be done?
Means
Why is it done that way? How should it be done?

4. Develop
 Record the method proposed through the critical examination
 Consult all levels of management & workers for their suggestions
 Test, thus modified proposed method for its advantages claimed over the original method
 Prepare and put up the report on proposed method to the management for its approval.
 Prepare a record of the new method on a flow process chart so that it can be compared.
 The developed method should be,
 Practical & Feasible
 Safe & Effective
 Economical

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 Acceptable to Design, Production, Quality Control & Sales Departments.
5. Install
 Proposed method is installed in two stages,
7. Preparation
 Planning
 Arranging
 Rehearsing
8. Implementation
6. Maintain
 Ensure proper functioning of the installed method by periodic checks & verification
 Purpose of checks and reviews is to find if the method being practiced is the same or it
has deviated from the authorized one.
 Views of the workers, supervisors and other persons related with the installed method can
be of much help in exploring further improvements.
11. (b) Explain the procedure of work measurement. Discuss briefly the tools &
techniques.
“Work Measurement may be defined as the application of different techniques to measure and
establish the time required to complete the job by a qualified worker at a defined level of
performance”.
Objectives of Work Measurement
 Determines the time required to do a job.
 Decides man power required for a job.
 Decides equipment requirements.
 Provides information for effective production planning and maintenance
procedures.
 Aids in calculating exact delivery dates.
 Decides realistic labour budgeting and provides a basis for standard costing
system.
 Provides a basis for fair and sound incentive schemes.
 Effective labour control.

Work Measurement Procedure

Select

Record

Examine

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Measure

Compile

Define

1. Select – The work to be studied and determine the objectives of the study.
 Selecting the job for Time Study
 Conducted for routine job where appreciable labour cost is involved.
 Carried out on the request of some department or to set the time standards.
 Possible reasons
 New job
 Change in method or material
 Complaint from worker
 Bottle neck operations
 Low output
 Alternative method
 Excessive cost
2. Record – All the relevant data relating to circumstances in which the work is being done, the
methods to be used.
 The following groups of information are often required to be recorded.
 Information to enable the study to be found and identified quickly.
 Identification details of process / method.
 Identification of workers.
 Work variation ( type of fit, hardness, shape and others which influence time of the
job)
 Conditions surrounding the job heat, dust, smoke, vibrations, noise etc).
 Working conditions (weight handled, temperature, humidity, illumination etc).
 Duration of study.
3. Examine – The recorded data and the detailed breakdown critically to ensure that most
effective method and motion are being used and that unproductive elements are separated
from productive elements.
 Element is a distinct part of a specified job selected for convenience of observation,
measurement and analysis.
 Breaking the job into elements
 To ensure that the effective time is separated from ineffective time.

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 To ensure better and accurate rating
 To identify and distinguish different types of elements.
 Repetitive Element – occurs in every work cycle of the job
 Occasional Element – does not occur in every work cycle but may occur in
regular or irregular interval (Clearing swarf from machine tool)
 Constant Element – basic time remains constant whenever it is performed.
(switch on m/c)
 Variable Element – basic time varies in relation to some characteristic of the
product, equipment or process.
 Manual Element – element performed by a worker (manual sweeping)
 Machine Element – automatically performed by a power driven machine.
 Governing Element – occupies a longer time than that of any other element
which is being performed concurrently. (turning diameter on lathe, while
gauging from time to time)
 Foreign Element – observed during a study which, after analysis, is not found to
be a necessary part. ( degreasing a part that has still to be machined further)
 To isolate elements involving high degree of fatigue (to allocate fatigue allowance)
 To enable detailed work specification to be produced.
 Rules concerning breaking down of the job into elements
7. Each element should be as short in duration as possible and can be timed
accurately and reliably.
8. Each element should be easily identifiable.
9. Manual element should be separated from machine elements.
10. Constant element should be separated from variable element.
11. Elements which do not occur in each work cycle should be separated and timed.
12. Handling time should be separated from machining time.
4. Measure – The time required to complete each element using the appropriate work
measurement techniques and calculate the time required to complete the work cycle which is
known as basic time.
 A work cycle is the sequence of elements which are required to perform a job or yield
aunit of production.
 The time required to perform each element of an operation may expected to vary slightly
from cycle to cycle. The existence of this variation in time for repeated trials introduces
sampling error.
5. Compile – The standard time for the operation. Various allowances are added to the basic
time to estimate standard time.
 Rating cam be defined as “The assessment of the workers rate of working to observers
concept of the rate corresponding to standard rating.
Performance Rating = (Observed Performance / Normal Performance) x 100
Basic Time = (Observed time x Observed rating) / Standard rating
 “Allowance is the additional time allowed to perform the work over and above the basic
time”.

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 Depends on factors related (i) to individual worker, (ii) to the nature of work itself,
(iii)environment.
 Relaxation Allowance – addition to the basic time intended to provide the workers
an opportunity to recover from psychological effects of carrying out a specified task
under specified condition and to allow attention to personal needs.
 Personal Need Allowance – provided to the worker to fulfill his personal needs.
 Fatigue Allowance – for recovery from psychological & physiological effects of
fatigue
 Basic Fatigue Allowance – provided to the worker who performs a job
seated, who is engaged on light work in good conditions, 4% of basic time.
 Variable Fatigue Allowance – provided to worker who is engaged in
medium and heavy work, when working conditions for the elements are not
normal and cannot be improved. The following factors should be considered,
abnormal position, accident hazards of the job, use of force, illumination of
worksite, ventilation, temperature, noise, strain.
 Contingency Allowance – may occur frequently or irregularly, provided for small
unavoidable delays and extra work.
 Tool breakage
 Tool sharpening
 Obtaining necessary gauges, special tools from central stores
 Filling coolant reservoir from time to time
 Power failure of small duration
 Waiting for in process inventory from previous machine
 Special Allowance – provided for activities which are not normally a part of
operation cycle, but which are essential for satisfactory performance of work. Start
up allowance, shut down allowance, cleaning allowance, tool allowance, changeover
allowance, implementation allowance.
 Interference Allowance – provided when two or more work elements occur
simultaneously.
 Policy Allowance – given according to the policy of the management, not included
for calculating standard time, extra benefit.
6. Define – precisely the series of activities and method of operation for which the time has been
compiled and issue the time standards for the activities and methods specified.
Tools & Techniques
6. Stop Watch Time Study
7. Predetermined Motion – Time Systems
8. Work Sampling
9. Analytical Estimating
10. Synthesis from Standard Data

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2. Stop Watch Time Study
 Time study is a work measurement technique for recording the times and rate of working for
the elements of a specified job carried out under specified conditions and for analyzing the
data so as to obtain the time necessary for carrying out the job at a defined level of
performance.
 Equipments – Stop Watch, Time Study Board, Time Study Forms.
 Stop Watch
 One of the principle timing devices.
 Types – Non-fly back, Fly back & Split hand or split second type
 Non-fly back is preferred for continuous timing (Single element). Start – Stop – Zero
position.
 Fly back is preferred for continuous timing (Multi element). Start – Stop – Zero position.
 Split hand type has two hands. Start – Stop (one hand stops) – Both moves. (greater
accuracy)
 Time Study Board
 Flat board provided with fittings to hold stop watch.
 It should be rigid and larger than the largest form likely to be used.
 Time Study Form
 Ensures that, time studies are made in a standard manner and no essential data are
omitted.
 The time study form shows detailed information about the operation being studied.
12. (a) List out the objectives of process planning. Explain the various approaches to
process planning.
Objectives of Process Planning
 To determine, what parts are to be manufactured and, what parts to be purchased from
outside.
 To determine the most economical manufacturing process to be used.
 To determine the sequence of operation to be performed on each component.
 To prepare the bill of material for all the components to initiate the purchasing of raw
materials.
 To determine the tooling and gauging needed.
 To determine the time standard of performance of the job.
 To provide estimates of the cost of tooling and equipment needed to manufacture new
products. And To determine part changes necessary to ease manufacturing or reduce cost.
Computer Aided Process Planning
 The primary purpose of process planning is to translate the design requirements into
manufacturing process details. This suggests a system in which design information is
processed by the process planning system to generate manufacturing process details.

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 CAPP integrates and optimizes system performance into the inter-organizational flow. For
example, when one changes the design, it must be able to fall back on CAPP module to
generate manufacturing process and cost estimates for these design changes. Similarly, in
case of machine breakdown on the shop floor, CAPP must generate the alternative actions so
that most economical solution can be adopted in the given situation.
 When compared with manual experience-based process planning, CAPP offers following
advantages;
 Systematic development of accurate and consistent process plans
 Reduction of cost and lead time of process planning
 Reduced skill requirements of process planners
 Increased productivity of process planners
 Higher level application programs such as cost and manufacturing lead time
estimation and work standards can be interfaced
 Two major methods are used in computer aided process planning; the Variant or retrieval
CAPP method and the generative CAPP method
 Variant or Retrieval CAPP method
 The variant process planning approach can be realized as a four step process; (Fig. 5)

Fig. 5 General Procedure for Retrieval CAPP System

1. Definition of coding scheme
2. Grouping parts into part families
3. Development of a standard process plan
4. Retrieval and modification of standard process plan
 It is based on the principles of Group Technology (GT) and Parts Classification &
Coding. In this a standard process plan is stored in the computer files for each part code
number. These standard route sheets are based on current part routings or on an ideal
process plan that has been prepared for each part family. Development of the data base of
these process plans requires substantial effort. Before the system can be used for process

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planning a significant amount of information must be compiled and entered into the
CAPP data files. This is referred to as the “Preparatory Stage”.
 Preparatory Stage consists of following steps:
a) Selecting appropriate classification and coding scheme for company.
b) Forming part families for the parts produced by the company.
c) Preparing standard process plans for the part families.
 Step ‘b’ & ‘c’ are repeated as new parts are designed and added to the company’s design
database. After the preparatory phase is completed, the system is ready for use
 Now assume a new component for which the process plan is to be determined, the first
step is to derive the GT Code number for the part. With this code no., a search is made in
the part family file to determine if a standard route sheet exists for the given part code, if
a standard route sheet exists for the part, it is retrieved from the database. Hence the
word “Retrieval” for this CAPP System.
 The standard process plan is examined to determine whether any modifications are
necessary. Modifications to be made may be minor or major. The user edits the standard
plan accordingly. This ability to edit the standard plan is what gives the retrieval system
its alternative name: Variant CAPP System.
 A number of variant process planning schemes have been developed and are in use. One
of the most widely used CAPP system is CAM-I developed by McDonnell-Douglas
Automation Company. This system can be used to generate process plan for rotational,
prismatic and sheet-metal parts

Fig. 6 Symbolic Representation of Variant CAPP System

 The generative CAPP method

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 Process plans are generated by means of decision logic, formulas, technology algorithms
and geometry based data to perform uniquely many processing decisions for converting
part from raw material to finished state.
 There are two major components of generative CAPP;
1. A geometry based coding scheme and
2. Process knowledge in form of decision logic data.
 The geometry based coding scheme defines all geometric features for process related
surfaces together with feature dimensions, locations, tolerances and the surface finish
desired on the features. The level of detail is much greater in a generative system than a
variant system.
 For example, details such as rough and finished states of the parts and process capability
of machine tools to transform these parts to the desired states are provided. Process
knowledge in form of in the form of decision logic and data matches the part geometry
requirements with the manufacturing capabilities using knowledge base. It includes
selection of processes, machine tools, jigs or fixtures, tools, inspection equipments and
sequencing operations.
 Development of manufacturing knowledge base is backbone of generative CAPP. The
tools that are widely used in development of this database are flow-charts, decision tables,
decision trees, iterative algorithms, concept of unit machined surfaces, pattern recognition
techniques and artificial intelligence techniques such as expert system shells
 Advantages of CAPP and future trends
CAPP has some important advantages over manual process planning which
includes;
 Reduced process planning and production lead-times
 Faster response to engineering changes in the product
 Greater process plan accuracy and consistency
 Inclusion of up-to-date information in a central database
 Improved cost estimating procedures and fewer calculation errors
 More complete and detailed process plans
 Improved production scheduling and capacity utilization
 Improved ability to introduce new manufacturing technology and rapidly update process
plans to utilize the improved technology
 There are number of difficulties in achieving the goal of complete integration between
various functional areas such as design, manufacturing, process planning and inspection.
For example, each functional area has its own stand-alone relational database and
associated database management system. The software and hardware capabilities among
these systems pose difficulties in full integration. There is a need to develop single
database technology to address these difficulties. Other challenges include automated
translation of design dimensions and tolerances into manufacturing dimensions and
tolerances considering process capabilities and dimensional chains, automatic recognition

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of features and making CAPP systems affordable to the small and medium scale
manufacturing companies.

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General Procedure for Generative CAPP System

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12. (b) Elaborately discuss the various process planning activities.

Input Specifications and Drawing and

Interpretation Supplementary Data

Selection of Primary Decision

Process Data Files
Tables

Determination of
Production Tolerances

Selection of Holding Devices Jigs and Fixture File

and Datums Inspection Devices

Selection and Grouping of

Operations Precedence Relationship

Selection of Machine and Machine

Sequence of Operations File

Selection of Tools Tool File

Selection of Quality
assurance Method

Time
Time and Cost Module
Standard

Editing of Process Sheet

Detailed Process Planning Activity

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 FINISHED PART REQUIREMENT
 A working drawing is a document complete in itself to manufacture a component or product. It
show’s components geometrical shape, its dimensions with tolerances, surface finish required,
bill of material and any other information considered necessary so that the component can be
manufactured and inspected without any difficulty. 

 An assembly drawing shows the complete product with all its parts in proper relationship. Detail
drawing shows each part individually and indicates dimensions, materials specification and other
information. 

 Selection of primary manufacturing process depends on the quantity to be produced. 

 Consideration should be given to

 Geometric shape – to select process & Clamping devices

 Dimensions & their tolerances

 Geometric Tolerances

 Surface roughness, Material type and its hardness

 Size of the raw material, Number of parts to be produced

Category Characteristics Symbol Datum References

Flatness

Straightness
Never uses a Datum
Form
Reference
Circularity

Cylindricity

Perpendicularity

Orientation Angularity

Parallelism
Always uses a Datum
Position
Reference
Location
Concentricity

Circular Runout
Runout
Total Runout

Profile of a Line
Profile May use a Datum Reference
Profile of a Surface

 MAKE OR BUY DECISION

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 Recommendations should be made whether to make or buy.

 Quantitative Factors – Cost

 Qualitative Factors – Quality, Patents, Skill & Material, Long-Term Considerations 

 Other Factors – Seasonal Demands, Reliability

 OPERATION SEQUENCE
 Depends on

 Type of Product
 Equipment Available
 Volume of Production
 Factors to be considered in Selecting a Process
 Nature of part including materials, tolerances, desired surface finish and operation
required.
 Method of fabrication including machining or assembling of similar parts or components.
 Limitation of facilities including the plant and equipment available.
 Possibility of likely product design changes to facilitate manufacturability or cost
reduction.
 In-plant and outside material handling system.
 Inherent process to produce specified shape, surface finish to give desired mechanical
properties.
 Available skill level of operators.
 Steps in planning Operation Sequence

 Determine the primary areas for locating and gauging.

 Setup primary manufacturing operations.
 Setup secondary operations and arrange them in order.
 Setup and insert necessary allied operations..
 Fundamental Principles in planning Operation Sequence

 The operation in which largest layer of metal is removed should be performed first.
 Thick metal removal reveals casting defects
 Releases the internal stresses
 Finishing operation should be done at the end of the sequence.
 Roughing and finishing should be done on different machine tools.
 A surface which is to remain unmachined should be selected as first setting up datum
surface.
 Inspection stages should be introduced after, Roughing Operation, before operations
which are to be performed in other department, before important operations, after last
machining operation.
 Surface whose machining will not greatly affect the rigidity of the work should be
machined earlier in the sequence.
 Sequence should be coordinated with heat treatment.

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 MACHINE SELECTION
 Initial requirement

 Part Print & Sequence of Operation

 Number of components to be produced
 Machine capacity data
 Machine availability chart & Machine load chart
 Factors to be considered

 Machine capacity
 Should give required accuracy and surface finish
 Capacity of the machine
 Should give required output
 Special purpose machine – Large Quantities, Single Varieties, Risk of
Obsolescence
 General Purpose Machine – Lower Production Capacity, Wide Range
 Range of the machine and Size & Shape of the workpiece
 Machine availability
 Cost consideration
 Investment cost
 Initial Cost
 Installation cost
 Transportation cost
 Tooling cost
 Operating cost
 Direct Labour Cost
 Direct Material Cost
 Indirect Labour Cost
 Indirect Material Cost
 Maintenance, Repair, Power
 MATERIAL SELECTION
 Material selection parameters 
 Functional Requirement
 Fatigue Characteristics, Strength, Hardness, Electrical & Thermal properties
 Reliability
 Consistency with which the material will meet the entire product requirement
throughout its service life. Important for trouble-free maintenance.
 Service Life
 Aesthetics & Appearance
 Colour, Texture, Luster, smoothness & Finish
 Environmental Factors

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 Temperature, Humidity, Corrosive atmosphere
 Compatibility with other Materials
 Manufacturability
 Cost

13. (a) Narrate the various objectives of cost estimation. What are all the elements of
cost? Give examples.
Functions of Estimating

 To determine the material cost, taking into consideration different allowances to be given for
different manufacturing operations.

 To determine the labour cost considering labour time with the help of wage rates.

 To determine the cost of material to be purchased from outside.

 To determine the cost of tools, equipments to be purchased from outside.

 To determine different overhead charges including selling, packaging and transportation

charges.

 To determine the selling price after adding due profit to the total cost.

 To refresh one-self with modern methods and equipments used in manufacturing their
products.

 To keep control over selling expenses with the help of sales management.

 To find most economical procedure for the design and manufacture of products.

 To submit estimates to the sales department for selling the products.

Discount

Profit

Selling &
Distributio
n Expenses Market
Administrativ Price
Total Cost
e Expenses (or)
(or) Selling
Factory Price Catalogue
Expenses Ultimate Cost Price
Direct Factory Cost Production (or)
Expenses Cost
(or) Selling Cost
Direct Prime
Cost Works Cost
Labour
Direct
Material

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Cost Structure Chart (Ladder of Cost)

Elements of Cost
 Direct Material
 It is that material which becomes a part of the product. It is the material which is consumed in
the manufacturing of a product and which can be measured and charged directly to the cost of
the product. It includes,
 All materials specially purchased for a particular job, order or process.

 All materials passing from one operation to another or one process to other which is intended
for further treatment or operation.
 All components that are purchased or produced.

 Also known as “Process Material”, “Store Material”, “Constructional Material” etc.

 Indirect Material
 Material which cannot be traced as a part of the product.

 It is the material required for maintaining and operating the plant and equipment but cannot be
a part of the product.
 Various lubricants, cotton waste, grease, coolants and allied materials all are indirect material.

 Determination of Material Cost

 Study the drawing carefully and break up the component into simple geometric shapes.

 Add the necessary machining allowances on all sides which are to be machined.

 Determine the volume of each part by applying the formulae of mensuration.

 Add the volume of all simple components to get the total volume of the product.

 Multiply the total volume of the product by the density of the material to get the weight of the
material.
 Find out the cost of the material by multiplying the cost per unit weight to the total weight
ofthe material.
 Direct Labour
 It is the one which is directly employed in the manufacturing operation.

 It is the labour which actually processes the material either manually or with the help of
machines.
 Worker or operators engaged in machine shop, welding shop, sheet metal shop, etc.,

 Also known as “Productive Labour”, “Operating Labour”, “Process Labour” etc.

 Indirect Labour
 It is the non-productive staff engaged upon general services connected with the running of
afactory as a whole.
 It is the labour which helps the productive labour in performing their duties.

 “Foreman”, “Supervisors”, “Store Keepers”, “Gate-Keepers”, “Crane Drivers”, etc.,

 Determination of Labour Cost

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 To find labour cost one must have the knowledge of all the operations which are carried out
for production of the component or product, tools and machines to be used and departments in
which the product is to be manufactured.
 For calculating time required for a particular job following considerations should be taken into
account:
 Set up Time – It is the time required for setting and fixing the jobs and tools on the
machine. Time to study the drawings, blue prints, time to make adjustment for getting
the required size are all included in set up time.
 Operation Time – It includes all the time necessary to perform all the elements of an
operation. An operation is all the work done in a workpiece by a worker. An element
may be defined as the smallest component into which an operation is divided.
(Handling Elements & Machine Elements)
 Tear Down Time – It starts when the last part or element of operation has been
completed. So, it is the time taken to remove job, tools and other auxiliary equipment
from the machine after the last element of operation has been completed
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue
Allowance (5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement &
Checking Allowance (2 – 3%) and Other Allowance (15 – 20%)
 Direct Expenses
 It includes any expenditure other than direct material or direct labour incurred on a specific
cost unit.
 Hire of special tools or equipment, cost of special jigs and fixtures or some special patterns and
its maintenance cost, cost of layout, designs and drawings or experimental work on a
particular job, etc.,
 Indirect Expenses
 Known as overhead charges, burden or on cost.

 It is the sum of indirect labour, indirect materials and other expenses including service which
cannot be conveniently charged to specific cost unit.
 Factory Expenses – Also known as Factory oncost, Production overhead, factory overhead,
works oncost, works overhead. It includes,
 Rents, rates and insurance chargeable against the work.
 Indirect Labour.
 Consumable stores and all forms of indirect material.
 Depreciation, maintenance, and repair of buildings, plant, machine toll etc.,
 Power such as steam, gas, electricity, hydraulic or compressed air, internal transport.
 Administrative Expenses – Includes all the expenses incurred on managerial or
administrative staff for the planning and policy making work. Examples,
 Salaries of directors and managing directors
 Salaries of cost, finance and secretary office staff.

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 Expenses of direct amenities like telephone, coolers and other modern equipments.
 Travelling expenses for attending meetings.
 Stationery, auditing expenses.
 Insurance of building and employees.
 Selling Expenses – consists of expenditure spent towards securing orders and finding or
retaining markets for the products manufactured.
 Advertising and publicity expenses.
 Salaries of sales department staff.
 Travelling expenses of sales engineers.
 Cost of preparing tenders and estimates.
 Estimates of making blocks and posters.
 Distribution Expenses – Expenses which are paid for the distribution of the product.

 Finished stock, storage cost.

 Cost of packing.
 Loading and unloading charges.
 Expenses of transportation and vehicles.
 Salaries of dispatch clerks and labourers.
13. (b) How costs are classified? Give the classifications of cost with suitable examples.
Total Cost

Material Cost Labour Cost Expenses

Direct Overhead
Direct Indirect Direct Indirect
Expenses Expenses

Elements of Cost
 Direct Material
 It is that material which becomes a part of the product. It is the material which is consumed in
the manufacturing of a product and which can be measured and charged directly to the cost of
the product. It includes,
 All materials specially purchased for a particular job, order or process.

 All materials passing from one operation to another or one process to other which is intended
for further treatment or operation.
 All components that are purchased or produced.

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 Also known as “Process Material”, “Store Material”, “Constructional Material” etc.

 Indirect Material
 Material which cannot be traced as a part of the product.

 It is the material required for maintaining and operating the plant and equipment but cannot be
a part of the product.
 Various lubricants, cotton waste, grease, coolants and allied materials all are indirect material.

 Determination of Material Cost

 Study the drawing carefully and break up the component into simple geometric shapes.

 Add the necessary machining allowances on all sides which are to be machined.

 Determine the volume of each part by applying the formulae of mensuration.

 Add the volume of all simple components to get the total volume of the product.

 Multiply the total volume of the product by the density of the material to get the weight of the
material.
 Find out the cost of the material by multiplying the cost per unit weight to the total weight
ofthe material.
 Direct Labour
 It is the one which is directly employed in the manufacturing operation.

 It is the labour which actually processes the material either manually or with the help of
machines.
 Worker or operators engaged in machine shop, welding shop, sheet metal shop, etc.,

 Also known as “Productive Labour”, “Operating Labour”, “Process Labour” etc.

 Indirect Labour
 It is the non-productive staff engaged upon general services connected with the running of
afactory as a whole.
 It is the labour which helps the productive labour in performing their duties.

 “Foreman”, “Supervisors”, “Store Keepers”, “Gate-Keepers”, “Crane Drivers”, etc.,

 Determination of Labour Cost

 To find labour cost one must have the knowledge of all the operations which are carried out
for production of the component or product, tools and machines to be used and departments in
which the product is to be manufactured.
 For calculating time required for a particular job following considerations should be taken into
account:
 Set up Time – It is the time required for setting and fixing the jobs and tools on the
machine. Time to study the drawings, blue prints, time to make adjustment for getting
the required size are all included in set up time.
 Operation Time – It includes all the time necessary to perform all the elements of an
operation. An operation is all the work done in a workpiece by a worker. An element

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may be defined as the smallest component into which an operation is divided.
(Handling Elements & Machine Elements)
 Tear Down Time – It starts when the last part or element of operation has been
completed. So, it is the time taken to remove job, tools and other auxiliary equipment
from the machine after the last element of operation has been completed
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue
Allowance (5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement &
Checking Allowance (2 – 3%) and Other Allowance (15 – 20%)
 Direct Expenses
 It includes any expenditure other than direct material or direct labour incurred on a specific
cost unit.
 Hire of special tools or equipment, cost of special jigs and fixtures or some special patterns and
its maintenance cost, cost of layout, designs and drawings or experimental work on a
particular job, etc.,
 Indirect Expenses
 Known as overhead charges, burden or on cost.

 It is the sum of indirect labour, indirect materials and other expenses including service which
cannot be conveniently charged to specific cost unit.
 Factory Expenses – Also known as Factory oncost, Production overhead, factory overhead,
works oncost, works overhead. It includes,
 Rents, rates and insurance chargeable against the work.
 Indirect Labour.
 Consumable stores and all forms of indirect material.
 Depreciation, maintenance, and repair of buildings, plant, machine toll etc.,
 Power such as steam, gas, electricity, hydraulic or compressed air, internal transport.
 Administrative Expenses – Includes all the expenses incurred on managerial or
administrative staff for the planning and policy making work. Examples,
 Salaries of directors and managing directors
 Salaries of cost, finance and secretary office staff.
 Expenses of direct amenities like telephone, coolers and other modern equipments.
 Travelling expenses for attending meetings.
 Stationery, auditing expenses.
 Insurance of building and employees.
 Selling Expenses – consists of expenditure spent towards securing orders and finding or
retaining markets for the products manufactured.
 Advertising and publicity expenses.
 Salaries of sales department staff.

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 Travelling expenses of sales engineers.
 Cost of preparing tenders and estimates.
 Estimates of making blocks and posters.
 Distribution Expenses – Expenses which are paid for the distribution of the product.

 Finished stock, storage cost.

 Cost of packing.
 Loading and unloading charges.
 Expenses of transportation and vehicles.
 Salaries of dispatch clerks and labourers.
14. (a) Discuss briefly the methods of cost estimation and the data requirements.
Methods of Estimates
1. Computer Estimating
Computer estimating has become very popular in recent years primarily because of the advent of
the micro computer. Early efforts of computer estimating date back to the early 1970s but were
cumbersome to use because they were on a mainframe and were card-driven.
No less than 15 U.S. companies now offer estimating software for a microcomputer. Because the
computer estimating industry is new, there are no real standards for estimating programs. Some
programs are nothing more than a way to organize the calculations of an estimate, while others
calculate all the details of the estimate.
Advantages and disadvantages
Shown below are some of the major advantages of computer cost estimating.
Accuracy versus consistency
Computer estimates are very consistent, provided they calculate the detail of an estimate. Because
these estimates are consistent, they can be made to be accurate.
Through the use of consistent efficiency factors or leaving curves, estimates can be adjusted up or
down. This is one of the chief advantages of computer cost estimating.
Levels of details
Some computer estimating systems provide different levels of estimating cost. The level of detail
selected by the user depends on the dollar risk.
Many estimators produce an estimate in more detail because the computer can calculate speeds
and feeds, for example, much faster than an estimator can a hand-held calculators.
Refinements
Some computer estimating systems provide many refinements that would be impossible for the
estimator to do in any timely manner. One example is to adjust speeds and feeds for material hardness.
Typically, the harder the material the more slowly a part will be turned or bored. Another
refinement is the ability to calculate a feed state and adjust it based on the width of a form tool.
Source code
Some companies offer the source code uncompiled to their users. This is important because it
affords the user the opportunity to customize the software.

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In addition, many companies have written their own software to do something that is not
available on the market. If the source code is not compiled, the users can build upon a computer
estimating system.

Disadvantages
The chief disadvantage of computer estimating is that no one estimating system can suit
everyone‘s need. This is especially true if the source code is compiled and not customizable.
Another problem with computer estimating is that the estimator will, in all probability, have to
change some estimating methods. Computer software for estimating cost is seldom written around
one method of estimating.
2. Group Technology
Group technology is not new. It was invented by a Russian engineer over 30 years ago.
Unfortunately the subject is not taught in many of our colleges and universities.
Group technology (GT) is a coding system to describe something. Several proprietary systems are
on the market.
One such system, the MICAPP system, uses four code lengths, a 10-,15-,20-,25- digit code. The
code length selected is based on the complexity of the piece part or tool being described.
Use for group technology
Shown below are several uses for group technology along with several examples of use both
internally and externally.
Cost estimating
GT can be used very efficiently in estimating cost. Assume a company manufactures shaft-type
parts. Also arsum there is a computer data base named SHAFT that contains 10-digit code
followed by a part number, that is, code part number, and so on.
When an estimator must estimate the cost of a new shaft, the process starts by developing a code
that describes the characteristics of the part. The first digit in the code might be assigned the part
length, while the second digit is assigned the largest diameter and so on.
Next, the code is keyed in and the computer finds all the parts that meet the numeric descriptions
and points out the part numbers. The best fit is selected to be modified into a new part.
All the details of each description are retrieved. These include diameter, length of cut, number of
surfaces, and the like. The estimator can alter these features and make the old part into a new one.
Actual performance
As the part is being produced, the estimated information is updated with actual performance and
refined. This gives the estimator the ability to improve estimating accuracy, because the next
time, the computer finds that part as one to be modified into a new one, the estimator is working
with actual performance.
Other use for GT
There are many other uses for group technology one that is similar to estimating is variant process
planning, in which a standard process plan is on file for each operation and can be modified into a
new plan. One carbide tool manufacturer produced a line of carbide drills and reamers and in their
series 10 line and they had 758 different designs.

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After a matrix to describe these tools was developed, a code for each tool was developed and the
database was established. The company conducted a redundancy search and found that 9% of the
existing designs were either look-alikes or very similar. Now the company conducts a database
search first when confronted with a new design.

3. Parametric Estimating
Parametric estimating is the act of estimating cost or time by the application of mathematical
formulas.
These formulas can be as simple as multiplices or as complex as regression models. Parametric
estimating, sometimes refused as statistical modeling, was first documented by the Rard
Corporation in the early 1950‘s in an attempt to predict military hardware cost.
Use of parametric estimating
Many companies use some form of parametric estimating to develop sales forecasting. The four
examples cited below will give the reader a good feel of how parametric estimating is used in a
variety of different industries.
Construction industry
In developing a cost estimate for residential buildings, some cost estimators use a dollar value per
square foot. The estimator constitutes curves based on different construction such as wood on
brick buildings and single or multi-storey dwellings.
These numbers can then be multiplied by the number of square feet in the building. Some
construction companies have refined this process to provide additional detail carpeting, for
example, could have a separate multiplier.
Heat treating
Most commercial heat-treating companies price their work based on a cost per pound and
heattreating method.
Heat-treating costs are very difficult to define because many times more than one type of part is
in the heat-treating furnace at the same time.
It is difficult to think of a more effective way to estimate cost for this type of industry.
Tool and die industry
As pointed out earlier, estimating cost for a progressive die can be very difficult because the
estimator seldom has a die drawing to work from some tool and die shops have developed
parametric estimating methods that take out some of the guestimating.
This method is known as the ―unit value‖ method over a period of time, the estimator collects
actual time values about dies being produced. Once the estimator is satisfied that the data are
correct, they are over aged into usable hours.
As an example, this might include 4 hours for every inch of forming or 3 hours for every hole
under 2 inches in diameter. The unit value can stand for several meanings. For flowing it is a
number of inches being formed.
Helicopter transmission
A helicopter transmission is a large complicated assembly comprised of a planetary gear system,
bevel gears, shafting, and housings. Budgetary estimates for a transmission are usually developed

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using a variety of parametric methods.
The housing costs are based on weight. The bevel gear cost is based on number of teeth, and the
planetary gear cost is based on gear face width and number of teeth. If methods like these were
not employed, it would take hundred man-hour to produce an estimate.

14. (b) How costs data are collected? What are the various allowances made in cost
estimation.
Data Requirements and Sources
 Man-hour cost (i.e.) hourly cost of skilled, semi-skilled and unskilled labours.
 Machine-hour cost for different types of equipments and machinery available in the
company.
 Material cost in respect of commercially available materials in the market.
 Scrap rates
 Set-up time for different operations.
 % allowances to be added for computing standard time, relaxation allowance, process
allowance, special allowance
 Overhead charges
 Life in years permitted for various types of equipment and machines available in the plant
for calculation of depreciation, machine-hour rate etc.
 Data base of cost calculations carried out by the company in respect of earlier
products(Historical cost data)
 Budget estimates prepared by the company for new products.
 Data sheet of Professional Associations dealing with Costs and Accounting.
Various Allowances
“Allowance is the additional time allowed to perform the work over and above the basic
time”.
 Depends on factors related (i) to individual worker, (ii) to the nature of work itself,
(iii) environment.
 Relaxation Allowance – addition to the basic time intended to provide the workers
an opportunity to recover from psychological effects of carrying out a specified task
under specified condition and to allow attention to personal needs.
 Personal Need Allowance – provided to the worker to fulfill his personal needs.
 Fatigue Allowance – for recovery from psychological & physiological effects of
fatigue
 Basic Fatigue Allowance – provided to the worker who performs a job
seated, who is engaged on light work in good conditions, 4% of basic time.
 Variable Fatigue Allowance – provided to worker who is engaged in
medium and heavy work, when working conditions for the elements are not
normal and cannot be improved. The following factors should be considered,

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abnormal position, accident hazards of the job, use of force, illumination of
worksite, ventilation, temperature, noise, strain.
 Contingency Allowance – may occur frequently or irregularly, provided for small
unavoidable delays and extra work.
 Tool breakage
 Tool sharpening
 Obtaining necessary gauges, special tools from central stores
 Filling coolant reservoir from time to time
 Power failure of small duration
 Waiting for in process inventory from previous machine
 Special Allowance – provided for activities which are not normally a part of
operation cycle, but which are essential for satisfactory performance of work. Start
up allowance, shut down allowance, cleaning allowance, tool allowance, changeover
allowance, implementation allowance.
 Interference Allowance – provided when two or more work elements occur
simultaneously.
 Policy Allowance – given according to the policy of the management, not included
for calculating standard time, extra benefit.
15. (a) Explain the process of estimation of material cost, labour cost and over heads.
Determination of Material Cost
 Study the drawing carefully and break up the component into simple geometric shapes.

 Add the necessary machining allowances on all sides which are to be machined.

 Determine the volume of each part by applying the formulae of mensuration.

 Add the volume of all simple components to get the total volume of the product.

 Multiply the total volume of the product by the density of the material to get the weight of
the material.
 Find out the cost of the material by multiplying the cost per unit weight to the total weight
of the material.
Determination of Labour Cost
 To find labour cost one must have the knowledge of all the operations which are carried
out for production of the component or product, tools and machines to be used and
departments in which the product is to be manufactured.
 For calculating time required for a particular job following considerations should be taken
into account:
 Set up Time – It is the time required for setting and fixing the jobs and tools on the
machine. Time to study the drawings, blue prints, time to make adjustment for getting
the required size are all included in set up time.
 Operation Time – It includes all the time necessary to perform all the elements of an
operation. An operation is all the work done in a workpiece by a worker. An element

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may be defined as the smallest component into which an operation is divided.
(Handling Elements & Machine Elements)
 Tear Down Time – It starts when the last part or element of operation has been
completed. So, it is the time taken to remove job, tools and other auxiliary equipment
from the machine after the last element of operation has been completed
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue
Allowance (5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement &
Checking Allowance (2 – 3%) and Other Allowance (15 – 20%)
15. (b) Discuss the various methods of allocation of overheads.
Allocation of Overheads
 Percentage on Prime Cost
 In this method the total overhead or on cost of the factory is expressed as a % of the
combined total of direct labour and material which constitutes prime cost and then the %
rate is applied to each job.
Rate of Overhead = (Total Overhead Cost / Total Prime cost) x 100
 It does not take into account labour and material of different rates and machines of
different sizes used for different jobs.
 This method is suitable, where only one type of product is being manufactured and where
direct labour cost and direct material cost is nearly same.
 Percentage on Direct Labour Cost
Rate of Overhead = (Total Overhead Cost / Total Direct Labour cost) x 100
 This method is suitable, where practically all the work is done by hand and the wages paid
to direct labour are uniform.
 Percentage on Direct Material Cost
Rate of Overhead = (Total Overhead Cost / Total Direct Material cost) x 100
 Man Hour Rate
Rate of Overhead / hour = (Total Overhead Cost / Total Productive hours worked)
 This method is suitable, where the work is done by hand and not by machine, where
different categories of labour are employed whose wages are not uniform.
 Machine Hour Rate
Machine Hour Rate = (Overhead expenses for specific machine) / Estimated Machine Hours
 Total overhead in this system are distributed over the group of similar machines in the
following way,
 Power consumption is metered separately.
 Depreciation charges are calculated separately.
 Building rents, insurance, taxes, light charges and indirect labour and indirect material
are distributed on the basis of the floor areas occupied by the machines.
 The expenditure of wages paid for idle period of machines is not considered.

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 Unit Rate
 This method gives a standard rate of overhead cost for all outputs.
Rate per unit manufactured = (Total overhead charges) / (Number of Units Manufactured)
 Combination of Man Hour and Machine Hour Rate
 In industries having all types of shops, where some work is done by hand and the
remaining work is done by machines. Shops where work is done by hand, Man-Hour Rate
Method is applied and shops where work is done by machine Machine-Hour Rate Method
is applied.

ME 2027 PROCESS PLANNING AND COST ESTIMATION

NOVEMBER/DECEMBER 2011

PART A – (10 x 2 = 20 marks)

1. Mention – any two objectives of method study.
2. What do you understand by work measurement?
3. What is process planning?
4. What do you mean by standardization?
5. What is the purpose of costing?
6. What are the types of estimator?
7. What is meant by machining time?
8. What do you mean by direct labour cost?
9. Define the term cutting speed.
10. What is meant by overhead expense?
PART B – (5 x 16 = 80 marks)
11. (a) Explain in detail the various steps involved for conduct of method study.

(Or)
11. (b) Explain the application of ergonomics in working environments and workplace.

12. (a) (i) Explain the process planning procedure.

(a) (ii) List the information required for process planning

(Or)
12. (b) (i) What are the procedures to be followed for the machine selection?

(b) (ii) Discuss any one type of process planning activity.

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13. (a) Explain various methods of costing.

(Or)
13. (b) Estimate the sales price to be quoted for the product from the given data:

Direct material cost per piece = Rs. 14

Direct labour cost per piece = Rs. 18
Factory overhead = 100% of prime cost
General overhead = 25% of factory cost
Profit = 10% of total cost.
13. (a) (i) How estimates are developed?

14. (a) (ii) What are the functions of estimating?

(Or)
14. (b) (i) What are the various allowances which should be considered for estimation?
(b) (ii) Discuss elements of cost.

15. (a) A mild steel bar 120 mm long and 40 mm in diameter is turned to 38 mm diameter
and was again turned to a diameter of 35 mm over a length of 50 mm as shown in the
figure. The bar was chamfered at both the ends to give a chamfer of 45° x 4 mm after
facing. Calculate the machining time. Assume cutting speed of 50 m/min and feed 0.3
mm/per. The depth of cut is not to exceed 3 mm in any operation.

(Or)

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15. (b) Three hundred pieces of the bolt are to be made from 25 mm diameter rod. Find the
length of each bolt before upsetting. What length of the rod is required if 4% of the
length goes as scrap?

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PART A

1. Mention any two objectives of method study.

Improved working processes & standardized procedures
Better work place layout & working conditions
Less fatigue to operators
Better product quality
2. What do you understand by work measurement?
Work Measurement may be defined as the application of different techniques to measure and
establish the time required to complete the job by a qualified worker at a defined level of
performance.
3. What is process planning?
Process planning is the systematic determination of the methods by which a product is to be
manufactured economically and competitively within the limits of design specifications laid
down.
It is defined as the subsystem responsible for the conversion of design data to work instruction.
It is defined as that function within a manufacturing facility which establishes the processes and
process parameters to be used in order to convert a piece part from its initial form to a final form
that is predetermined on a detailed engineering drawing.
4. What do you mean by standardization?
5. What is the purpose of costing?
 Advance Cost Determination – To determine the cost of each article and operation in advance.

 Budget Preparation – To help the organization in preparing the estimates and its budget.

 Make or Buy Decisions – To decide which of the component to be manufactured and which parts
to be purchased from outside.

 Economy in Production – To achieve more economies in the production system.

6. What are the types of estimation?

Two types of estimates are:

1. Preliminary estimate, 2. Final estimate

7. What is meant by machining time?

This is the time during which machining is being performed to change the size and form of the work
piece.

8. What do you mean by direct labour cost?

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The cost of wages paid to direct workers during an accounting period on daily, weekly, monthly, or
job basis, plus payroll and related taxes and benefits.

9. Define the term cutting speed.

It is defined as the speed at which the cutting edge of the tool or cutter passes over the material.

S=πDN/100; D  Diameter (cm), N rpm

10. What is meant by overhead expenses?
The ongoing administrative expenses of a business which cannot be attributed to any specific
business activity, but are still necessary for the business to function. Examples include rent, utilities,
and insurance.

PART B

11. (a) Explain in detail the various steps involved for conduct of method study.

Select & Define

Record

Examine

Develop

Install

Maintain
1. Select & Define
 Select the job worth studying and define the objectives
 Consider the following aspects
 Economics aspects
 Technical aspects
 Human reactions
 Objectives
 Reduce manufacturing cost, Avoid bottle necks
 Reduce fatigue, Avoid poor use of men, material & machinery

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2. Record
 All the relevant information’s and procedure pertaining to the present or existing method
should be recorded in detail and in the form of chart to obtain a more clear picture.
 Provides the basis of both the critical examination & the development of the improved
method.
 Recording Techniques
 Charts
 Outline Process Chart
 Flow Process Chart ( Man Type, Material Type & Equipment Type)
 Two Handed Process Chart
 Multiple Activity Chart
 Travel Chart
 Diagrams
 Flow Diagram
 String Diagram
 Cyclegraph & Chronocyclegraph
 Motion & Film Analysis  Simo Chart & P.M.T.S
 Layout Models  Two Dimensional & Three Dimensional
3. Examine
 Critically examine the recorded events in sequence
 Achieved by means of two sets of detailed questions
 Primary Questions – indicates facts & reasons
 Secondary Questions – indicates alternatives & means for improvement
Primary Questions Secondary Questions
What is done? What else might be done?
Purpose
Why is it done? What should be done?
Where is it done? Where else might it be done?
Place
Why is it done there? Where should it be done?
When is it done? When might it be done?
Sequence
Why is it done then? When should it be done?
Who does it? Who else might do it?
Person
Why does that person do it? Who should do it?
How is it done? How else might it be done?
Means
Why is it done that way? How should it be done?
4. Develop
 Record the method proposed through the critical examination
 Consult all levels of management & workers for their suggestions
 Test, thus modified proposed method for its advantages claimed over the original method
 Prepare and put up the report on proposed method to the management for its approval.

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 Prepare a record of the new method on a flow process chart so that it can be compared.
 The developed method should be,
 Practical, Feasible, Safe & Effective
 Economical & Acceptable to Design, Production, Quality Control & Sales
Departments.
5. Install
 Proposed method is installed in two stages,
1. Preparation
 Planning
 Arranging
 Rehearsing
2. Implementation

6. Maintain
 Ensure proper functioning of the installed method by periodic checks & verification
 Purpose of checks and reviews is to find if the method being practiced is the same or it
has deviated from the authorized one.
 Views of the workers, supervisors and other persons related with the installed method can
be of much help in exploring further improvements
11. (b) Explain the application of ergonomics in working environment and workplace.
ERGONOMICS
 “Science which deals with the relationship between man and his working environments”.
 “Ergon”  work, “Nomos”  natural laws
 “The application of human biological sciences in conjunction with engineering sciences to the worker
and his working environment, so as to obtain maximum satisfaction for the worker which at the same
time enhances productivity”.
 “The relation between man and his occupation, equipment and environment and particularly, the
application of anatomical, physiological and psychological knowledge to the problems arising there
from”.
 Objectives
 To enhance the efficiency and effectiveness with which the activities (work) is carried out so as to
increase the convenience of use, reduced errors and increase in productivity.
 To enhance certain desirable human values including, safety, reduced stress and fatigue and
improved quality of life.
 Design of Equipment, machinery and controls in such a manner so as to minimize mental and
physical strain on the worker thereby increasing the efficiency.
 Design of conducive environment for executing the task most effectively.
 Applications
 Working Environment
 The environment in which a worker performs his job has a big influence on
 The strain the worker acquires while performing his task, and

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 The productivity.
 Even the most improved work methods are not going to help if the work place, where the
worker works, has
 Insufficient light,
 Smoke and fumes,
 Uncleanliness, and
 Unbearable noise, etc.
 Bad working environments markedly increase strain on the workers, reduce their efficiency
and the ultimate result is low productivity.
 Some of the important working conditions that are needs to be considered are as follows:
 Lighting
 Ventilation
 Temperature control and Air conditioning
 Noise and vibrations
 Good housekeeping
 Drinking water and hygiene
 Nutrition
 The workplace, Safety, Color
 considerations for improving working conditions
 Adequate lighting.
 Controlled temperature.
 Provision of adequate ventilation.
 No unwanted sound-noise.
 Orderliness, cleanliness and good house-keeping.
 Arrangement for the immediate disposal of irritating and harmful dusts, fumes,
gases, vapors and fogs.
 Providing guards at nip points and at points of power transmission.
 Providing personal protective equipment.
 Sponsoring and enforcing a well-formulated first aid program.
 Advantages of improving working conditions
 improve the safety record,
 reduce absenteeism’s and tardiness,
 improve worker's job performance,
 reduce fatigue (physical burden),
 reduce mental burden,
 improve productivity,
 raise employee morale, and
 Improve public relations, in addition to increasing production.
 Work Place Design
 Inadequate design of work place will inhibit the ability of the worker to perform his task and
may results in injuries, strain or fatigue, a reduction in quality or output.

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 Design Considerations
 Work place layout, design of seat, arrangement of different equipments, tools and
components should not cause discomfort to the worker.
 The seat (chair) should be such that the worker is able to adopt different postures,
if necessary, for carrying out different operations.
 The height and the back of the chair should be adjustable.
 A proper foot rest, arm rest and leg room should be provided. While working, an
operator should feel himself natural and comfortable.
 Design and layout of display panels and instrument dials should result in accurate
observations
 An instrument with a pointer should be employed for check readings whereas for
quantitative readings, digital type of instruments should be preferred.
 Design and location of various manual controls, knobs, wheels and levers should
not cause excessive physical and mental strain to the worker. Levers and controls
should be located close to the operator. Hand and foot controls, both, should be
employed to advantage.
 All controls should preferably move in one direction for one kind of action. For
example, upward movement of the levers should energize the subsystems and the
downward motion should de energize and vice versa.
 Materials and tools should be available at their predetermined places and close to
the worker.
 Tools and materials should preferably be located in the order in which they will
be used.
 Wherever possible gravity should be employed for, the raw material to reach the
operator, and finished product to be delivered at its destination.
 Worker should be able to operate levers and handles without changing bogy
positions.
 The work place should have enough illumination, proper conditions of heat, cold
and humidity, and reduced dust, noise etc.
 Suggested work place layout
 Actual Working Area  most convenient area for working (A – 1)
 Normal Working Area  within the reach of the operator (A – 2)
 Maximum Working Area  accessible with full arm stretch (A – 3)

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A–3 A–3
ORT

A–2 A–2
CET
P–3
P–2
PDA P–4
P–1

POA A – 1

POA  Place of Assemble; PDA  Place for dropping Assemblies; CET  Commonly employed
ToolsORT  Occasionally required tools; P1, P2, P3,P4  Bins;

Fig. Work place layout for an assembly job

 Man – Machine System
 A man – machine system is a system where one or more workmen work in relation with one
or more machines, devices or equipments.
 After starting the machine, the man will receive certain information from the machine, either
from dials, displays etc., designed for that purpose.
 Efficiency with which the man functions depends on environmental factors and his own
characteristics, as well as on the efficiency with which the machine provides the information
feedback and accepts control measures.

Training & Experience

Display Output
Sensory
Functions
Input
Man Machine
Data
Processing
Environment ( Light, He at, Noise, Humidity, Vibrations)

Decision
Making

Controls
Manipulative
Functions

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Fig. Simple Man – Machine System

 Classification of man – Machine System
 A Closed – Loop System requires continuous control and feedback to function
successfully.
 An Open – Loop System is one which once initiated needs no further control by
man.
 A Manual System is essentially a man directed system.
 A Mechanical System is more complex and inflexible. The machine component
is power driven and human activity is information processing, decision making
and controlling.
 An Automatic System is a still more complex system. Sensing, information
processing, decision making and action.
 Characteristics of Man – Machine System
 Consists of man, machine and environment.
 System is artificial.
 Has specific inputs and outputs which are appropriately balanced.
 More efficient when output result is fed-back to the system.
 Environmental factors influence the performance of the system.
 Sub-system interacts and affects each other.
 Man is better in his abilities to,
 Be creative
 Develop entirely new solutions
 Make subjective estimates and evaluations.
 Select alternative modes of operations, if certain modes fail.
 Sense unusual and unexpected events in the environment.
 Recognize pattern of complex stimuli which may vary from situation to situation.
 Machines are better in their abilities to,
 Can perform many different operations simultaneously.
 Can apply huge amount of force suddenly or smoothly.
 Extremely precise.
 Sense stimuli that are outside man’s normal range of sensitivity.
 Make rapid and consistent responses to data input.
 Perform repetitive activities reliably.
 Maintain efficient operations even in those environments under which man
cannot work.
 Aspects of Man – Machine System
 Design of information displays
 Design of controls
 Environmental factors

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12. (a) (i) Explain the process planning procedure.

Analysis of part requirements

Selection of raw work piece

Selection of manufacturing operations and their sequences

Selection of machine tools

Selection of tools, tool holding devices, work holding devices and inspection equipments

Selection of manufacturing conditions (i.e. cutting speed, feed and depth of cut)

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Determination of manufacturing times

Documentation of Process Plan

Communication of Process Plan

12. (a) (ii) List the information required for process planning.
Set of Documents Required For Process Planning

 Product design and the engineering drawings pertaining to all the components of the Product
 Tables of Cutting Speeds, depth of cut, feeds for different process and for different work materials
 Catalogues for various cutting tools and tool inserts
 Specifications of various machine tools available in the shop
 Sizes of standard materials commercially available in the market
 Machine hour cost of all the equipment available in the shop
 Tables showing tolerances and surface finish obtainable for different machining processes
 Tables of standard cost
 Tables of Allowances
 Process plan of certain standard components such as shafts, flanges etc.
12. (b) (i) what are the procedure to be followed for machine selection?
MACHINE SELECTION
 Initial requirement
 Part Print & Sequence of Operation
 Number of components to be produced
 Machine capacity data
 Machine availability chart & Machine load chart
 Factors to be considered
 Machine capacity
 Should give required accuracy and surface finish
 Capacity of the machine
 Should give required output
 Special purpose machine – Large Quantities, Single Varieties, Risk of Obsolescence
 General Purpose Machine – Lower Production Capacity, Wide Range
 Range of the machine and Size & Shape of the workpiece
 Machine availability
 Cost consideration
 Investment cost

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 Initial Cost
 Installation cost
 Transportation cost
 Tooling cost
 Operating cost
 Direct Labour Cost
 Direct Material Cost
 Indirect Labour Cost
12. (b) (ii) Discuss any one type of process planning activity.
Computer Aided Process Planning
 The primary purpose of process planning is to translate the design requirements into manufacturing
process details. This suggests a system in which design information is processed by the process
planning system to generate manufacturing process details.
 CAPP integrates and optimizes system performance into the inter-organizational flow. For example,
when one changes the design, it must be able to fall back on CAPP module to generate manufacturing
process and cost estimates for these design changes. Similarly, in case of machine breakdown on the
shop floor, CAPP must generate the alternative actions so that most economical solution can be
adopted in the given situation.
 When compared with manual experience-based process planning, CAPP offers following advantages;
 Systematic development of accurate and consistent process plans
 Reduction of cost and lead time of process planning
 Reduced skill requirements of process planners
 Increased productivity of process planners
 Higher level application programs such as cost and manufacturing lead time estimation and work
standards can be interfaced
 Two major methods are used in computer aided process planning; the Variant or retrieval CAPP
method and the generative CAPP method
 Variant or Retrieval CAPP method
 The variant process planning approach can be realized as a four step process; (Fig. 5)

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Fig. 5 General Procedure for Retrieval CAPP System
5. Definition of coding scheme
6. Grouping parts into part families
7. Development of a standard process plan
8. Retrieval and modification of standard process plan
 It is based on the principles of Group Technology (GT) and Parts Classification & Coding. In this a
standard process plan is stored in the computer files for each part code number. These standard route
sheets are based on current part routings or on an ideal process plan that has been prepared for each
part family. Development of the data base of these process plans requires substantial effort. Before
the system can be used for process planning a significant amount of information must be compiled
and entered into the CAPP data files. This is referred to as the “Preparatory Stage”.
 Preparatory Stage consists of following steps:
a) Selecting appropriate classification and coding scheme for company.
b) Forming part families for the parts produced by the company.
c) Preparing standard process plans for the part families.
 Step ‘b’ & ‘c’ are repeated as new parts are designed and added to the company’s design database.
After the preparatory phase is completed, the system is ready for use
 Now assume a new component for which the process plan is to be determined, the first step is to
derive the GT Code number for the part. With this code no., a search is made in the part family file to
determine if a standard route sheet exists for the given part code, if a standard route sheet exists for
the part, it is retrieved from the database. Hence the word “Retrieval” for this CAPP System.
 The standard process plan is examined to determine whether any modifications are
necessary. Modifications to be made may be minor or major. The user edits the standard
plan accordingly. This ability to edit the standard plan is what gives the retrieval system
its alternative name: Variant CAPP System.
 A number of variant process planning schemes have been developed and are in use. One
of the most widely used CAPP system is CAM-I developed by McDonnell-Douglas
Automation Company. This system can be used to generate process plan for rotational,
prismatic and sheet-metal parts

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Fig. 6 Symbolic Representation of Variant CAPP System

 The generative CAPP method
 Process plans are generated by means of decision logic, formulas, technology algorithms
and geometry based data to perform uniquely many processing decisions for converting
part from raw material to finished state.
 There are two major components of generative CAPP;
3. A geometry based coding scheme and
4. Process knowledge in form of decision logic data.
 The geometry based coding scheme defines all geometric features for process related
surfaces together with feature dimensions, locations, tolerances and the surface finish
desired on the features. The level of detail is much greater in a generative system than a
variant system.
 For example, details such as rough and finished states of the parts and process capability
of machine tools to transform these parts to the desired states are provided. Process
knowledge in form of in the form of decision logic and data matches the part geometry
requirements with the manufacturing capabilities using knowledge base. It includes
selection of processes, machine tools, jigs or fixtures, tools, inspection equipments and
sequencing operations.
 Development of manufacturing knowledge base is backbone of generative CAPP. The
tools that are widely used in development of this database are flow-charts, decision tables,
decision trees, iterative algorithms, concept of unit machined surfaces, pattern recognition
techniques and artificial intelligence techniques such as expert system shells
 Advantages of CAPP and future trends
CAPP has some important advantages over manual process planning which includes;
 Reduced process planning and production lead-times
 Faster response to engineering changes in the product
 Greater process plan accuracy and consistency
 Inclusion of up-to-date information in a central database
 Improved cost estimating procedures and fewer calculation errors
 More complete and detailed process plans
 Improved production scheduling and capacity utilization
 Improved ability to introduce new manufacturing technology and rapidly update process
plans to utilize the improved technology

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 There are number of difficulties in achieving the goal of complete integration between
various functional areas such as design, manufacturing, process planning and inspection.
For example, each functional area has its own stand-alone relational database and
associated database management system. The software and hardware capabilities among
these systems pose difficulties in full integration. There is a need to develop single
database technology to address these difficulties. Other challenges include automated
translation of design dimensions and tolerances into manufacturing dimensions and
tolerances considering process capabilities and dimensional chains, automatic recognition
of features and making CAPP systems affordable to the small and medium scale
manufacturing companies.

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General Procedure for Generative CAPP System

13. (a) Explain various methods of costing.
METHODS OF COSTING

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 Job Costing or Order Costing
 All items are charged to a specific order.

 Daily record of direct material, direct labour & estimated overhead cost for each order is recorded
in production order and thus the total cost of the job is obtained.

 Useful when products are purchased in distinguishable lots and it is also desirable to keep
aseparate record of each lot.

 Batch Costing
 This method is very much similar to job costing where in each batch of components are taken
together and treated as a job.

 Process Costing
 This method is applied to industries such as oil refining, chemical, paint and other similar
industries, where the raw material passes through a number of processes or operations.

 By products should be taken into account while calculating the cost.

 Departmental Costing
 This method is adopted in determining the cost of the output of each department separately for
the manufacture of standardized products.

 Ex. – Steel mill (Blast Furnace, Open Hearth & Rolling Mill department)

 Operating Cost Method

 Applied in the firms providing utility services such as railways, transport services, water works,
electricity board, etc.,

 Cost is determined on the basis of operating expenses and the charges are made. (kW – hr, per
litres)

 Unit Cost Method

 Adopted by the firms which supply a uniform product rather than a variety of products.

 Multiple Cost Method

 Concerns manufacturing a variety of standardized products, having no relation to one another in
cost, quality and the types of process etc., use this method. (Ex. – cycles, cars, type-writer etc.,)

13. (b)

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14 (a) (i) How are estimates developed?

Estimates can be developed in a variety of different ways depending upon the use of the estimates
and the amount of detail provided to the estimator.

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Every estimator should understand every estimating method and when to apply each, because no
one estimating method will solve all estimating problems.
 Guesstimates
Guesstimate is a slang term used to describe as estimate than lacks detail. This type of
estimate relies on the estimators experience and judgment.
Usually, the tool and die estimator is estimating tool cost without any tool or die
drawings. The estimator typically works from a piece part drawing and must visualize
what the tool or die looks like. Some estimators develop some level of detail in their
estimate.
Material cost, for example, is usually priced out in some detail, and this brings greater
accuracy to the estimator by reducing error. If the material part of the estimate has an
estimating error of plus or minus 5 per cent and the reminder of the estimate has an
estimating error of plus or minus 10 per cent, the overall error is reduced.

 Budgetary
The budgetary estimate can also be a guesstimate but is used for a different purpose. 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.
 Using Past History
Using past history is a very popular way of developing estimates for new work. Some
companies go to great lengths to ensure that estimates are developed in the same way
actual cost is conducted.
This provides a way past history in developing new estimates. New advancements in
group technology now provide a way for the microcomputer to assist in this effort.

 Estimating in Some Detail

Some estimators vary the amount of detail in an estimate depending on the risk and dollar
amount of the estimate. This is true in most contract shops. This level of detail might be
at the operation level where operation 10 might be a turning operation and the estimator
would estimate the setup time at 0.5 hours and the run time at 5.00 minutes. The material
part of the estimate is usually calculated out in detail to reduce estimating error.
 Estimating in Complete Detail
When the risk of being wrong is high or the dollar amount of the estimate is high, the
estimator will develop the estimate in as much detail as possible.
Detailed estimates for machinery operations, for example, would include calculations for
speeds, feeds, cutting times, load and unload times and even machine manipulations
factors. These time values are calculated as standard time and adjusted with an efficiency
factor to predict actual performance.
 Parametric Estimating
Parametric estimating is an estimating method developed and used by trade associations.
New housing constructions can be estimated on the basis of cost per square.
There would be different figures for wood construction as compared with brick and for
single strong construction as compared with multilevel construction.

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Some heat-beating companies price work on a cost per pound basis and have different
cost curves for different heat-treating methods.
 Project Estimating
Project estimating is by far the most complex of all estimating tasks. This is especially
true if the project is a lengthy one. A good example of project estimating is the time and
cost of developing a new missile.
The project might take 5 years and cost millions of dollars. The actual manufacturing cost
of the missile might be a fraction of the total cost. Major projects of this nature will have
a PERT network to keep track of the many complexities of the project. A team of people
with a project leader is usually required to develop a project estimate.
14. (a) (ii) What are the functions of estimating?
Functions of Estimating

 To determine the material cost, taking into consideration different allowances to be given for
different manufacturing operations.

 To determine the labour cost considering labour time with the help of wage rates.

 To determine the cost of material to be purchased from outside.

 To determine the cost of tools, equipments to be purchased from outside.

 To determine different overhead charges including selling, packaging and transportation

charges.

 To determine the selling price after adding due profit to the total cost.

 To refresh one-self with modern methods and equipments used in manufacturing their
products.

 To keep control over selling expenses with the help of sales management.

 To find most economical procedure for the design and manufacture of products.

 To submit estimates to the sales department for selling the products.

14. (b) (i) What are the various allowances which should be considered for estimation?
“Allowance is the additional time allowed to perform the work over and above the basic
time”.
 Depends on factors related (i) to individual worker, (ii) to the nature of work itself,
(iii) environment.
 Relaxation Allowance – addition to the basic time intended to provide the workers
an opportunity to recover from psychological effects of carrying out a specified task
under specified condition and to allow attention to personal needs.
 Personal Need Allowance – provided to the worker to fulfill his personal needs.
 Fatigue Allowance – for recovery from psychological & physiological effects of
fatigue

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 Basic Fatigue Allowance – provided to the worker who performs a job
seated, who is engaged on light work in good conditions, 4% of basic time.
 Variable Fatigue Allowance – provided to worker who is engaged in
medium and heavy work, when working conditions for the elements are not
normal and cannot be improved. The following factors should be considered,
abnormal position, accident hazards of the job, use of force, illumination of
worksite, ventilation, temperature, noise, strain.
 Contingency Allowance – may occur frequently or irregularly, provided for small
unavoidable delays and extra work.
 Tool breakage
 Tool sharpening
 Obtaining necessary gauges, special tools from central stores
 Filling coolant reservoir from time to time
 Power failure of small duration
 Waiting for in process inventory from previous machine
 Special Allowance – provided for activities which are not normally a part of
operation cycle, but which are essential for satisfactory performance of work. Start
up allowance, shut down allowance, cleaning allowance, tool allowance, changeover
allowance, implementation allowance.
 Interference Allowance – provided when two or more work elements occur
simultaneously.
 Policy Allowance – given according to the policy of the management, not included
for calculating standard time, extra benefit.

14. (b) (ii) Discuss elements of cost.
Total Cost

Material Cost Labour Cost Expenses

Direct Overhead
Direct Indirect Direct Indirect
Expenses Expenses
Elements of Cost

 Direct Material
 It is that material which becomes a part of the product. It is the material which is consumed
ni the manufacturing of a product and which can be measured and charged directly to the cost
of the product. It includes,
 All materials specially purchased for a particular job, order or process.

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 All materials passing from one operation to another or one process to other which is intended
for further treatment or operation.
 All components that are purchased or produced.

 Also known as “Process Material”, “Store Material”, “Constructional Material” etc.

 Indirect Material
 Material which cannot be traced as a part of the product.

 It is the material required for maintaining and operating the plant and equipment but cannot be
a part of the product.
 Various lubricants, cotton waste, grease, coolants and allied materials all are indirect material.

 Determination of Material Cost

 Study the drawing carefully and break up the component into simple geometric shapes.

 Add the necessary machining allowances on all sides which are to be machined.

 Determine the volume of each part by applying the formulae of mensuration.

 Add the volume of all simple components to get the total volume of the product.

 Multiply the total volume of the product by the density of the material to get the weight of the
material.
 Find out the cost of the material by multiplying the cost per unit weight to the total weight
ofthe material.
 Direct Labour
 It is the one which is directly employed in the manufacturing operation.

 It is the labour which actually processes the material either manually or with the help of
machines.
 Worker or operators engaged in machine shop, welding shop, sheet metal shop, etc.,

 Also known as “Productive Labour”, “Operating Labour”, “Process Labour” etc.

 Indirect Labour
 It is the non-productive staff engaged upon general services connected with the running of
afactory as a whole.
 It is the labour which helps the productive labour in performing their duties.

 “Foreman”, “Supervisors”, “Store Keepers”, “Gate-Keepers”, “Crane Drivers”, etc.,

 Determination of Labour Cost

 To find labour cost one must have the knowledge of all the operations which are carried out
for production of the component or product, tools and machines to be used and departments in
which the product is to be manufactured.
 For calculating time required for a particular job following considerations should be taken into
account:
 Set up Time – It is the time required for setting and fixing the jobs and tools on the
machine. Time to study the drawings, blue prints, time to make adjustment for getting
the required size are all included in set up time.

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 Operation Time – It includes all the time necessary to perform all the elements of an
operation. An operation is all the work done in a workpiece by a worker. An element
may be defined as the smallest component into which an operation is divided.
(Handling Elements & Machine Elements)
 Tear Down Time – It starts when the last part or element of operation has been
completed. So, it is the time taken to remove job, tools and other auxiliary equipment
from the machine after the last element of operation has been completed
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue
Allowance (5%), Tool Changing & Grinding Allowance (5 – 10%), Measurement &
Checking Allowance (2 – 3%) and Other Allowance (15 – 20%)
 Direct Expenses
 It includes any expenditure other than direct material or direct labour incurred on a specific
cost unit.
 Hire of special tools or equipment, cost of special jigs and fixtures or some special patterns and
its maintenance cost, cost of layout, designs and drawings or experimental work on a
particular job, etc.,
 Indirect Expenses
 Known as overhead charges, burden or on cost.

 It is the sum of indirect labour, indirect materials and other expenses including service which
cannot be conveniently charged to specific cost unit.
 Factory Expenses – Also known as Factory oncost, Production overhead, factory overhead,
works oncost, works overhead. It includes,
 Rents, rates and insurance chargeable against the work.
 Indirect Labour.
 Consumable stores and all forms of indirect material.
 Depreciation, maintenance, and repair of buildings, plant, machine toll etc.,
 Power such as steam, gas, electricity, hydraulic or compressed air, internal transport.
 Administrative Expenses – Includes all the expenses incurred on managerial or
administrative staff for the planning and policy making work. Examples,
 Salaries of directors and managing directors
 Salaries of cost, finance and secretary office staff.
 Expenses of direct amenities like telephone, coolers and other modern equipments.
 Travelling expenses for attending meetings.
 Stationery, auditing expenses.
 Insurance of building and employees.
 Selling Expenses – consists of expenditure spent towards securing orders and finding or
retaining markets for the products manufactured.
 Advertising and publicity expenses.

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 Salaries of sales department staff.
 Travelling expenses of sales engineers.
 Cost of preparing tenders and estimates.
 Estimates of making blocks and posters.
 Distribution Expenses – Expenses which are paid for the distribution of the product.

 Finished stock, storage cost.

 Cost of packing.
 Loading and unloading charges.
 Expenses of transportation and vehicles.
 Salaries of dispatch clerks and labourers

15. (a)

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15. (b)

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B.E/BE. Tech Degree Examination, November/December 2014

ME-2027 PROCESS PLANNING AND COST ESTIMATION
Regulation 2008/2010

Part - A
(2x10=20 marks)
1. Write the objectives of method study?
2. What is ergonomics?
3. State the parameters involved in material selection?
4. Define: Break even point.
5. Define: under estimate.
6. What is meant by target cost?
7. What is meant by conceptual cost estimating?
8. Define: contingency allowance.
9. List out the material losses in forging?
10. What do you meant by overhead expenditure?

PART B – (5×16=80 MARKS)

11. (a) Write the recording techniques used in method study. Explain with a neat sketch of material type
flow process chart. (16)
(or)
(b) what do you understand by analytical estimating? Give the procedure for conducting work
measurement study by analytical estimating. (16)
12. (a) Explain the use of computers in process planning and cost estimation and listing out the advantages
of CAPP. (16) (or)
(b)What are factors influencing process selection and write down the process selection parameters.
(16)

13. (a) (1)Write the difference between cost accounting and cost estimation. (8)
(2) Write basic steps in cost estimation. (8) (or)
(b) Calculate prime cost, factor cost, production cost, total cost and selling price per item from the data
given below for the year 2012-13.
Cost of raw material in stock as on 01.04.2012 -Rs.25,000
Raw material purchased -Rs.40,000
Direct labour cost -Rs. 14,000
Direct expenses -Rs. 1,000
Factory/ work over heads -Rs. 9,750
Administrative expenditure -Rs. 6,500
Selling and distribution expenses -Rs. 3,250
Number of items produced - 650
Cost of raw material in stock as on 31.03.2013 -Rs. 15,000
Net profit of the items is 10 percent of the total cost of the product.

14. (a) (1) What are the three methods used in conceptual cost estimation? explain any two methods
briefly. (8)
(2) Write the data requirements and source of information for cost estimation. (8)
(or)

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(b) (1) In a manual operation, observed time for a cycle of operation is 0.5 minutes and the rating factor
as observed by the time study engineer is 125% . All allowance put together is 15% of normal
time. Estimate the standard time.
(2) In a manufacturing process the observed time for one cycle of operation is 0.75 minutes. The
rating factor is 110%. The following are the various allowances as the percentage of normal
time.
Personal allowance =3%
Relaxation allowance =10%
Delay allowance =2%
Estimate the standard time.

15. (a) A T-slot is to be cut on a C.I slab as shown in fig. give below. Estimate the machining time.
Take cutting speed 25m/min, feed is 0.25mm/rev, dia of cutter for channel milling is 80mm.

(b) Calculate the machining time required to produce one piece of the component shown in the fig.
given below starting from f 25 mm bar. The following data is available.
For turning: Cutting speed =40m/min
Feed =0.4mm/rev
Depth of cut =2.5 mm/ per pass
For thread cutting: Cutting speed =8m/min.

Answer All Questions

Part A - (10×2=20 Marks)
1. Write the objectives of method study?
 Improved working processes & standardized procedures

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 Better work place layout & working conditions
 Less fatigue to operators & Better product quality
 Effective utilization of men, material & machinery Efficient & fast material handling
 Reduced health hazards
 Efficient planning of the section & Streamlined working procedures

2. What is ergonomics?

ERGONOMICS

“Science which deals with the relationship between man and his working environments”.
“Ergon”  work, “Nomos”  natural laws
“The application of human biological sciences in conjunction with engineering sciences to
the worker and his working environment, so as to obtain maximum satisfaction for the
worker which at the same time enhances productivity”.

“The relation between man and his occupation, equipment and environment and particularly, the
application of anatomical, physiological and psychological knowledge to the problems arising
there from”.

3. State the parameters involved in material selection?

Material selection parameters
 Functional Requirement
 Service Life,
 Aesthetics & Appearance
 Environmental Factors
 Temperature, Humidity, Corrosive atmosphere
 Compatibility with other Materials
 Manufacturability
 Cost

4. Define: Breakeven point.

In economics & business, specifically cost accounting, the break-even point (BEP) is the point at
which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken
even."

5. Define: under estimate.

Under estimation is the predicted cost/value of an product/ process less than the actual.
“In case of under estimating the firm will face huge financial loss which may utter failure or closure of the
firm.”
6. What is meant by target cost?
A target cost is the maximum amount of cost that can be incurred on a product and with it the
firm can still earn the required profit margin from that product at a particular selling price.

7. What is meant by conceptual cost estimating?

Project owner's reasonably accurate estimate of the total project cost on the basis of which
contract bids are invited and evaluated are meant to be conceptual cost estimating.
8. Define: contingency allowance.

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Contingency Allowance – may occur frequently or irregularly, provided for small unavoidable
delays and extra work.
Examples:
Tool breakage, Tool sharpening, Obtaining necessary gauges, special tools from central stores,
Filling coolant reservoir from time to time, Power failure of small duration, Waiting for in
process inventory from previous machine.

9. List out the material losses in forging?

1. Shear loss, 2. Tong hold loss, 3. Scale loss, 4. Flash loss, 5. Sprue loss.

10. What do you meant by overhead expenditure?

Overhead expenditures are those which cannot be charged directly to a particular product
manufactured.
All expenses other than the direct material cost, direct labour cost and direct expenses are
overhead expenditures.

PART B – (5×16=80 MARKS)

11. (a) Write the recording techniques used in method study. Explain with a neat sketch of
material type flow process chart. (16)

Recording Techniques:
Charts:
Outline Process Chart
Flow Process Chart ( Man Type, Material Type & Equipment Type)
Two Handed Process Chart
Multiple Activity Chart
Travel Chart
Diagrams:

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Flow Diagram
String Diagram
Cyclegraph
Chronocyclegraph
Motion & Film Analysis : Simo Chart, P.M.T.S
Layout Models : Two Dimensional, Three Dimensional

A Portion of the Flow Process Chart (Material Type) showing flow of Product
(or)

(b) what do you understand by analytical estimating? Give the procedure for conducting work
measurement study by analytical estimating. (16)

“Work Measurement may be defined as the application of different techniques to measure and
establish the time required to complete the job by a qualified worker at a defined level of
performance”.
The analytical estimating technique of work measurement is used to determine the time values
for jobs, having long and non-repetitive operations. The time values are determined by using
synthetic data or on the basis of the past experience of the work study engineer, when no
synthetic or standard data is available. It is essential, that the estimator must have adequate
experience of estimating, motion study, time study and the use of standard data(or synthesized
time standards).

Procedure of Analytical Estimating

The various steps involved are :

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1. Find out the job details such as job dimension, standard procedure to do the job, and the job
conditions, such as poor illuminated, high temperature, hazardous environments, availability of
jigs, fixture or tools, etc.

2. Break the job into its elements.

3. Select time values from the standard data catalogue for as many elements as possible.(i.e. use
synthetic data wherever available)

4. Estimate the time values for the remaining elements (for which synthetic data is not available)
from past knowledge and experience.

5. Add the time values obtained by steps 3 and 4 to get the total Basic or Normal time(for 100%
rating).

6. Add the appropriate blanket relaxation allowance (say 10% to 20% of total normal or basic
time)Note that in analytical estimating, the relaxation allowance is not added to time values of
individual elements. The blanket relaxation allowances depends on the type of the job and the
job conditions.

7. Add any other allowances if applicable, to arrive at the standard time for the given job.

Advantages of Analytical Estimating Technique

(i) Offers the same advantages enjoyed by synthesis method.

(ii) Helps in planning and scheduling the production
(iii) Provides a basis for fixing the labor rate for non-repetitive jobs.
(iv) Steps to improve labor control.

Disadvantages

Since analytical estimating technique relies upon the judgment of the estimator, the time values
obtained may not be as accurate and reliable as that estimated by the stop-watch time study.

Applications of Analytical Estimating Technique

(i) For non-repetitive jobs, jobs having long cycle times and jobs having elements of
variable nature. For such jobs the stop-watch time study proves to be uneconomical.
(ii) For repair and maintenance work, job production, one time large projects, office routines,
tool room jobs and engineering construction works.

12. (a) Explain the use of computers in process planning and cost estimation and listing out the
advantages of CAPP. (16)

Computer Aided Process Planning


The primary purpose of process planning is to translate the design requirements into
manufacturing process details. This suggests a system in which design information is
processed by the process planning system to generate manufacturing process details. 

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
CAPP integrates and optimizes system performance into the inter-organizational flow. For
example, when one changes the design, it must be able to fall back on CAPP module to
generate manufacturing process and cost estimates for these design changes. Similarly, in
case of machine breakdown on the shop floor, CAPP must generate the alternative actions
so that most economical solution can be adopted in the given situation.


When compared with manual experience-based process planning, CAPP offers following advantages;

 Systematic development of accurate and consistent process plans

 Reduction of cost and lead time of process planning
 Reduced skill requirements of process planners
 Increased productivity of process planners
 Higher level application programs such as cost and manufacturing lead time
estimation and work standards can be interfaced

Two major methods are used in computer aided process planning; the Variant or retrieval CAPP method and
the generative CAPP method


Advantages of CAPP and future trends

CAPP has some important advantages over manual process planning which includes;

 Reduced process planning and production lead-times

 Faster response to engineering changes in the product

 Greater process plan accuracy and consistency

 Inclusion of up-to-date information in a central database

 Improved cost estimating procedures and fewer calculation errors

 More complete and detailed process plans

 Improved production scheduling and capacity utilization

 Improved ability to introduce new manufacturing technology and rapidly update process plans
to utilize the improved technology

There are number of difficulties in achieving the goal of complete integration between various
functional areas such as design, manufacturing, process planning and inspection. For example, each
functional area has its own stand-alone relational database and associated database management system.
The software and hardware capabilities among these systems pose difficulties in full integration. There

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is a need to develop single database technology to address these difficulties. Other challenges include
automated translation of design dimensions and tolerances into manufacturing dimensions and
tolerances considering process capabilities and dimensional chains, automatic recognition of features
and making CAPP systems affordable to the small and medium scale manufacturing companies.

General Procedure for Generative CAPP System

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(b)What are factors influencing process selection and write down the process selection
parameters. (16)

Factors to be considered in Selecting a Process

Nature of part including materials, tolerances, desired surface finish and operation
required.
Method of fabrication including machining or assembling of similar parts or components.
Limitation of facilities including the plant and equipment available.
Possibility of likely product design changes to facilitate manufacturability or cost
reduction.
In-plant and outside material handling system.
Inherent process to produce specified shape, surface finish to give desired mechanical
properties.
Available skill level of operators.
Steps in planning Operation Sequence
Determine the primary areas for locating and gauging.
Setup primary manufacturing operations.
Setup secondary operations and arrange them in order.
Setup and insert necessary allied operations..
Fundamental Principles in planning Operation Sequence
The operation in which largest layer of metal is removed should be performed first.
Thick metal removal reveals casting defects
Releases the internal stresses
Finishing operation should be done at the end of the sequence.
Roughing and finishing should be done on different machine tools.
A surface which is to remain unmachined should be selected as first setting up datum
surface.
Inspection stages should be introduced after, Roughing Operation, before operations
which are to be performed in other department, before important operations, after last
machining operation.
Surface whose machining will not greatly affect the rigidity of the work should be
machined earlier in the sequence.
Sequence should be coordinated with heat treatment.

13. (a) (1)Write the difference between cost accounting and cost estimation. (8)
Cost estimation is the process of pre-determining the cost of a certain product job or order. Such
pre-determination may be required for several purposes. Some of the purposes are as follows:
Budgeting
Measurement of performance efficiency
Preparation of financial statements (valuation of stocks etc.)
Make or buy decisions
Fixation of the sale prices of products
Cost ascertainment( or cost accounting) is the process of determining costs on the basis of
actual data. Hence, the computation of historical cost is cost ascertainment while the
computation of future costs is cost estimation.

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Both cost estimation and cost ascertainment are interrelated and are of immense use to the
management. In case a concern has a sound costing system, the ascertained costs will greatly
help the management in the process of estimation of rational accurate costs which are necessary
for a variety of purposes stated above. Moreover, the ascertained cost may be compared with the
pre-determined costs on a continuing basis and proper and timely steps be taken for controlling
costs and maximizing profits.

(2) Write basic steps in cost estimation. (8)

Functions of Estimating

To determine the material cost, taking into consideration different allowances to be given
for different manufacturing operations.
To determine the labour cost considering labour time with the help of wage rates.
To determine the cost of material to be purchased from outside.
To determine the cost of tools, equipments to be purchased from outside.

To determine different overhead charges including selling, packaging and transportation

charges.
To determine the selling price after adding due profit to the total cost.

To refresh one-self with modern methods and equipments used in manufacturing their
products.
To keep control over selling expenses with the help of sales management.
To find most economical procedure for the design and manufacture of products.

To submit estimates to the sales department for selling the products.

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(or)

(b) Calculate prime cost, factory cost, production cost, total cost and selling price per item from
the data given below for the year 2012-13.
Cost of raw material in stock as on 01.04.2012 -Rs.25,000
Raw material purchased -Rs.40,000
Direct labour cost -Rs. 14,000
Direct expenses -Rs. 1,000
Factory/ work over heads -Rs. 9,750
Administrative expenditure -Rs. 6,500
Selling and distribution expenses -Rs. 3,250
Number of items produced - 650
Cost of raw material in stock as on 31.03.2013 -Rs. 15,000
Net profit of the items is 10 percent of the total cost of the product.
Solution:
Prime cost = Direct material cost + Direct labour cost + Direct expanses cost
Direct material cost = (Cost of raw material in stock as on 01.04.2012: Rs.25,000 + Raw
material purchased: Rs.40,000) – (Cost of raw material in stock as on
31.03.2013 :Rs. 15,000)

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= Rs.50,000
Direct labour cost = Rs. 14,000
Direct expenses = Rs. 1,000
So, Prime cost = Rs. (50,000+14,000+1,000) = Rs. 65,000
Factory/ work over heads : Rs. 9,750
Factory cost = Prime cost + Factory on cost
= Rs. 65,000 + Rs. 9,750 = Rs. 74,750
Office cost/Production cost = Administrative expenses + Factory cost
= Rs.6,500 + Rs. 74,750 = Rs. 81,250
Total cost = office cost + selling and distribution expenses
= Rs. 81,250 + Rs. 3,250 = Rs. 84,500
Selling price = Total cost + profit
As Net profit of the items is 10 percent of the total cost of the product,
Profit = Rs 84,500 * (10/100) = Rs. 8,450
Then selling price = Rs. 84,500 + Rs 8,450 = Rs 92,950
Number of items produced = 650
So, Selling price per item = Rs 92,950/650 = Rs.143.

14. (a) (1) What are the three methods used in conceptual cost estimation? explain any two
methods briefly. (8)

Conceptual Estimating Techniques

1.Interpolation, 2. Unit method, and 3. Superficial method

Unit method
The unit method is a single price rate method based upon the cost per functional unit of the
building, a functional unit being, for example, a hotel bedroom. This method is often regarded as
a way of making a comparison between buildings in order to satisfy the design team that the
costs are reasonable in relation to other buildings of a similar nature. It is not possible to adjust
the single rate price and therefore is very much a ball park approach. It is suitable for clients who
specialize in one type of project; for example, hotel or supermarket chains, where it can be
surprisingly accurate. Other examples where unit costs may apply are: • Schools – cost per pupil
• Hospitals – cost per bed space.
Example:
Assume that the current cost for a 120-pupil school constructed of wood frame for a city is
LE1,200,000. We are asked to develop an estimate for a 90-pupil school.
Solution:
The first step is to separate the per-pupil cost = LE1,200,000/120 = LE10,000/pupil Apply the
unit cost to the new school = LE10,000/pupil X 90 pupils = LE900,000
The superficial method
The superficial method is a single price rate method based on the cost per square meter of the
building. The use of this method should be restricted to the early stages of the design sequence
and is probably the most frequently used method of approximate estimating. Its major advantage
is that most published cost data is expressed in this form. The method is quick and simple to use
though, as in the case of the unit method, it is imperative to use data from similarly designed
projects. Another advantage of the superficial method is that the unit of measurement is
meaningful to both the client and the design team. Although the area for this method is relatively
easy to calculate, it does require skill in assessing the price rate. The rules for calculating the
area are: - All measurements are taken from the face of external walls. No deduction is made for

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internal walls, lift shafts, stairwells, etc. – gross internal floor area. - Where different parts of the
building vary in function, then the areas are calculated separately. - External works and non-
standard items such as piling are calculated separately and then added into the estimate. Figures
for specialist works may be available from sub-contractors and specialist contractors.
Example:
Gross floor area for office block shown in Figure = 10.0 x 25.0 = 250.0 m2 - 2 x 3.0 x 7.50 =
205.0 m2 Area of 5 floors 205.0 x 5 = 1025.0 m2 x LE1100 /m 2 = LE1,127,500.0 Basement
7.00 x 25.0 = 175.0 m 2 x LE1300 /m 2 = LE227,500.0 Estimate for block LE1,355,000.0

(2) Write the data requirements and source of information for cost estimation. (8)
Data Requirements and Sources

Man-hour cost (i.e.) hourly cost of skilled, semi-skilled and unskilled labours.

Machine-hour cost for different types of equipments and machinery available in the
company.

Material cost in respect of commercially available materials in the market.

Scrap rates

Set-up time for different operations.

% allowances to be added for computing standard time, relaxation allowance, process
allowance, special allowance

Overhead charges

Life in years permitted for various types of equipment and machines available in the plant
for calculation of depreciation, machine-hour rate etc.

Data base of cost calculations carried out by the company in respect of earlier
products(Historical cost data)

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
Budget estimates prepared by the company for new products.
Data sheet of Professional Associations dealing with Costs and Accounting.
(or)

(b) (1) In a manual operation, observed time for a cycle of operation is 0.5 minutes and the rating
factor as observed by the time study engineer is 125% . All allowance put together is 15% of
normal time. Estimate the standard time.
Solution:
Wkt., Normal time = Observed Time * Rating
It is given that, Observed time (OT) = 0.5 min.
and
Rating factor = 125%
Normal time = Observed Time * Rating
= 0.5 min. * 1.25 = 0.625 min.
All allowances = 15% of normal time = 0.625 *(15/100) = 0.09375 min.
Standard time = Normal time + allowance time
= ( 0.625 + 0.09375 ) min. = 0.71875 min.

(2) In a manufacturing process the observed time for one cycle of operation is 0.75 minutes. The
rating factor is 110%. The following are the various allowances as the percentage of normal
time.
Personal allowance =3%
Relaxation allowance =10%
Delay allowance =2%
Estimate the standard time.

Wkt., Normal time = Observed Time * Rating

It is given that, Observed time (OT) = 0.75 min.
and
Rating factor = 110%
Normal time = Observed Time * Rating
= 0.75 min. * 1.1 = 0.825 min.
Personal allowances = 3% of normal time = 0.825 *(3/100) = 0.02475 min.
Relaxation allowances = 10% of normal time = 0.825 *(10/100) = 0.0825 min.
delay allowances = 2% of normal time = 0.825 *(2/100) = 0.0165 min.
Standard time = Normal time + allowance time
= 0.825+0.02475+0.0825+0.0165 = 0.94875 min.

15. (a) A T-slot is to be cut on a C.I slab as shown in fig. given below. Estimate the machining
time. Take cutting speed 25m/min, feed is 0.25mm/rev, dia of cutter for channel milling is
80mm.

Given Data: cutting speed (S) = 25 m/min; feed(f) = 0.25 mm/rev.; Diameter of cutter (D) = 80
mm. Length of job = 260 mm

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STEP-I: Cutting a channel of 20 mm wide and 40 mm deep along the 260 mm length:
For slot milling, Added table travel = (Dd-d2)1/2
D = 80 mm; d = depth of cut = 20 + 20 = 40 mm
So added table travel , (3200 – 1600)1/2 = 40 mm
Total tool / table travel = {length of job} + { added tool/table travel}
= 260 + 40 = 300 mm
r.p.m. of cutter N1 = (1000*S) / (π *D) = (1000*25) / (π *80) = 100 r.p.m.
Time for cutting slot, T1 = (Total table travel) / ((Feed/rev.)*r.p.m.)
= 300 / (0.25*100) = 12 min.

STEP-II: Cutting a channel of 60 x 20 mm with T-slot cutter:

Diameter of cutter D = 60 mm;
r.p.m. of cutter N2 = (1000*S) / (π *D) = (1000*25) / (π *60) = 132.69 r.p.m.
Since diameter of cutter = width of slab,
Therfore, Over travel of tool = 0.5 * diameter of cutter
= 0.5 * 60 = 30 mm
So, Total tool/table travel = 260 + 30 = 290 mm 33.17409766454352

Time for cutting slot, T2 = (Total table travel) / ((Feed/rev.)*r.p.m.)

= 290 / (0.25*132.69) = 8.74 min.

Total time to cut T-slot = 12 min + 8.74 min = 20.74 min.

(b) Calculate the machining time required to produce one piece of the component shown in the
fig. given below starting from f 25 mm bar. The following data is available.
For turning:
Cutting speed =40m/min
Feed =0.4mm/rev
Depth of cut =2.5 mm/ per pass
For thread cutting:
Cutting speed =8m/min.

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B.E./B.Tech. DEGREE EXAMINATION, APRIL/MAY 2015.

Seventh Semester
Mechanical Engineering
ME 2027/ME 701/GE 1452/10122 MEE 21 – PROCESS PLANNING AND
COST ESTIMATION
(Regulation 2008/2010)
PART - A – ( 10 X 2 = 20 marks)
1. What is meant by method study?
2. Define standard time.
3. What are the types of process planning?
4. List the information required for process planning.
5. Define cost accounting.
6. Write any two objectives of cost estimation.
7. What is batch costing?
8. Define standard data.
9. What is meant by ‘Overhead expenses’?
10. Define cutting speed.

PART - B – (5 X 16 = 80 marks)
11. (a) With examples explain the objectives of work study

Or
(b) Discuss the various tools and techniques used for work measurement.
12. (a) Explain the process planning procedure.
Or
(b) Discuss the various types of charts and diagrams used in process planning.
13. (a) Name the various elements of cost. Explain each element in detail giving suitable
Examples.
Or
(b) Write down the step by step procedure for estimation the direct material cost.

14. (a) What are the types of estimates? Explain with examples.
Or
(b) Explain various allowances to be considered is estimation of direct labour cost.

15. (a) A 60 mm rod of aluminium to be machined on a lathe, the finished size is shown in
figure. The length of rod is 175 mm. Determine the total machining time and material cost, if
the material is purchased at a rate of Rs. 12 per Kg. Assuming cutting speed 30m/min and
feed 0.2 mm/rev. Take density of aluminium as 2.7gm/cc. Depth of cut not to exceed 2.5
mm.

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(b) Describe the procedure of estimating the machining time required during shaping
operation on a shaper.

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Part – A
(10x2=20 Marks)

1. Not in Syllabus

2. Define standard time.

The standard time is the time required by an average skilled operator, working at a
normal pace, to perform a specified task using a prescribed method. It includes
appropriate allowances to allow the person to recover from fatigue and, where necessary,
an additional allowance to cover contingent elements which may occur but have not been
observed.
3. What are the types of process planning?

1. Manual Process planning

2. Computer Aided Process planning (CAPP)
i. Retrieval CAPP system
ii. Generative CAPP system
4. List the information required for process planning.

a. Catalogues for various cutting tools and tool inserts

b. Specifications of various machine tools available in the shop
c. Sizes of standard materials commercially available in the market
d. Machine hour cost of all the equipment available in the shop
e. Tables of standard cost and Allowances
f. Process plan of certain standard components such as shafts, flanges etc.

5. Define cost accounting.

Cost accounting may be defined as a system of accounts, which systematically and
accurately records every expense in order to determine the cost of a product after
knowing the different expenses incurred in various departments.

6. Write any two objectives of cost estimation.

To determine the material cost, taking into consideration different allowances to be given
for different manufacturing operations.
To determine the labour cost considering labour time with the help of wage rates.
To determine the cost of material to be purchased from outside.
To determine the cost of tools, equipments to be purchased from outside

7. What is batch costing?

This method is very much similar to job costing where in each batch of components are
taken together and treated as a job.

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8. Define standard data.

(1) Constant elements which do not vary from job to job.

(2) Elements, similar in nature, but varying due to difficulty, size, pressure and weight
etc. involved.

(3) Elements, which vary in the time of performance because of the variation in the
technical characteristics of materials or processes such as speed, depth, feed of cut etc.

For the first type of elements, the standard data can be compiled by doing many studies
on the same element or same job. In the very similar manner, the standard data for third
type of elements can be calculated from the physical characteristics of the equipment
used such as the length of the job, its diameter, speed of spindle feed, depth of cut etc.
But, the difficulty comes while dealing with the second type. In this condition, a series of
the times studies on the job will have to be conducted.

9. What is meant by ‘Overhead expenses’?

The ongoing administrative expenses of a business which cannot be attributed to any
specific business activity, but are still necessary for the business to function. Examples
include rent, utilities, and insurance.

10. Define cutting speed.

It is defined as the speed at which the cutting edge of the tool or cutter passes over the
material.

1. D - Diameter,
2. N- rpm

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Part – B
(16x5=80 marks)

11. (a) With examples explain the objectives of work study.

Work Study is the systematic examination of the methods of carrying out activities such
as to improve the effective use of resources and to set up standards of performance for the
activities carried out.
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 lead
systematically to the investigation of all the factors which affect the efficiency and economy of
the situation being reviewed, in order to effect improvement.

It helps in the optimum use of plant, equipment, manpower and material.

(2) It helps in establishing the standard of performance.
(3) It helps in developing efficient work methods.
(4) It helps in establishing the most efficient and effective utilization of human effort.
(5) It helps in synchronizing various resources like men and machine.
(6) It helps in the evaluation of human work.
(7) It helps in efforts towards productivity improvement.
(8) It helps in the elimination of wasteful efforts, useless material handling, etc.
(9) It helps in job-simplification and work standardization.
(10) It is helpful in developing plant safety schemes, equipment utilization, plant layout,
and conducive work environment.
Work study, as the name suggests, is the study of work. Study of work includes human
work as well as dignity of work. In general, it is not restricted to shop-floor; but it may be
applicable anywhere: for example, kitchen, writing desk, gardening, etc. Work-study is used to
associate two sets of techniques: (i) method study, and (ii) work measurement. These two are
distinct approaches, yet they are interdependent.
Method-study concerned with “the way in which work is done (i.e., method)”. It is used
to simplify the way to accomplish a work and to improve the method of production. Method-
study results in a more effective use of material, plant, equipment and manpower. It employs a
systematic approach involving: Select-Record-Examine-Develop-Install-Maintain. We will
discuss this in more detail in a later section.
Work-measurement is concerned with the value or work-content of the task itself (i.e.,
measurement). It is used to determine how long ti should take to carry out the job. It also
provides a yardstick for human effort. Work-measurement results in making possible an
improved planning and control (manning), and providing a basis for sound incentive scheme. It
employs a systematic approach involving: Select-Define-Break jobs into elements-Measure-
Establish work unit value. The outcome of both, method-study and work-measurement, thus
results in higher productivity.

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(b) Discuss the various tools and techniques used for work measurement.

Work Measurement may be defined as the application of different techniques to measure

and establish the time required to complete the job by a qualified worker at a defined level of
performance”.
Objectives of Work Measurement
Determines the time required to do a job.
Decides man power required for a job.
Decides equipment requirements.
Provides information for effective production planning and maintenance procedures.
Aids in calculating exact delivery dates.
Decides realistic labour budgeting and provides a basis for standard costing system.
Provides a basis for fair and sound incentive schemes.
Effective labour control.

Work Measurement Procedure

Select

Record

Examine

Measure

Compile

Define

Select – The work to be studied and determine the objectives of the study.
 Selecting the job for Time Study
 Conducted for routine job where appreciable labour cost is involved.
 Carried out on the request of some department or to set the time standards.
 Possible reasons

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 New job
 Change in method or material
 Complaint from worker
 Bottle neck operations
 Low output
 Alternative method
 Excessive cost
Record – All the relevant data relating to circumstances in which the work is being
done, the methods to be used.
 The following groups of information are often required to be recorded.
 Information to enable the study to be found and identified quickly.
 Identification details of process / method.
 Identification of workers.
 Work variation ( type of fit, hardness, shape and others which influence time
of the job)
 Conditions surrounding the job heat, dust, smoke, vibrations, noise etc).
 Working conditions (weight handled, temperature, humidity, illumination
etc).
 Duration of study.
Examine – The recorded data and the detailed breakdown critically to ensure that
most effective method and motion are being used and that unproductive elements are
separated from productive elements.
 Element is a distinct part of a specified job selected for convenience
ofobservation, measurement and analysis.
 Breaking the job into elements
 To ensure that the effective time is separated from ineffective time.
 To ensure better and accurate rating
 To identify and distinguish different types of elements.
 Repetitive Element – occurs in every work cycle of the job
 Occasional Element – does not occur in every work cycle but may occur
in regular or irregular interval (Clearing swarf from machine tool)
 Constant Element – basic time remains constant whenever it is
performed. (switch on m/c)
 Variable Element – basic time varies in relation to some characteristic of
the product, equipment or process.
 Manual Element – element performed by a worker (manual sweeping)
 Machine Element – automatically performed by a power driven machine.

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 Governing Element – occupies a longer time than that of any other
element which is being performed concurrently. (turning diameter on
lathe, while gauging from time to time)
 Foreign Element – observed during a study which, after analysis, is not
found to be a necessary part. ( degreasing a part that has still to be
machined further)
 To isolate elements involving high degree of fatigue (to allocate fatigue
allowance)
 To enable detailed work specification to be produced.
 Rules concerning breaking down of the job into elements
13. Each element should be as short in duration as possible and can be timed
accurately and reliably.
14. Each element should be easily identifiable.
15. Manual element should be separated from machine elements.
16. Constant element should be separated from variable element.
17. Elements which do not occur in each work cycle should be separated and
timed.
18. Handling time should be separated from machining time.
Measure – The time required to complete each element using the appropriate work
measurement techniques and calculate the time required to complete the work cycle
which is known as basic time.
 A work cycle is the sequence of elements which are required to perform a jobor
yield a unit of production.
 The time required to perform each element of an operation may expected to vary
slightly from cycle to cycle. The existence of this variation in time for repeated
trials introduces sampling error.
Compile – The standard time for the operation. Various allowances are added to the
basic time to estimate standard time.
 Rating cam be defined as “The assessment of the workers rate of working to
observers concept of the rate corresponding to standard rating.
Performance Rating = (Observed Performance / Normal Performance) x 100
Basic Time = (Observed time x Observed rating) / Standard rating
 “Allowance is the additional time allowed to perform the work over and above
the basic time”.
 Depends on factors related (i) to individual worker, (ii) to the nature of work
itself, (iii)environment.
 Relaxation Allowance – addition to the basic time intended to provide the
workers an opportunity to recover from psychological effects of carrying out

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a specified task under specified condition and to allow attention to personal
needs.
 Personal Need Allowance – provided to the worker to fulfill his personal
needs.
 Fatigue Allowance – for recovery from psychological & physiological
effects of fatigue
 Basic Fatigue Allowance – provided to the worker who performs a job
seated, who is engaged on light work in good conditions, 4% of basic
time.
 Variable Fatigue Allowance – provided to worker who is engaged in
medium and heavy work, when working conditions for the elements
are not normal and cannot be improved. The following factors should
be considered, abnormal position, accident hazards of the job, use of
force, illumination of worksite, ventilation, temperature, noise, strain.
 Contingency Allowance – may occur frequently or irregularly, provided for
small unavoidable delays and extra work.
 Tool breakage
 Tool sharpening
 Obtaining necessary gauges, special tools from central stores
 Filling coolant reservoir from time to time
 Power failure of small duration
 Waiting for in process inventory from previous machine
 Special Allowance – provided for activities which are not normally a part of
operation cycle, but which are essential for satisfactory performance of work.
Start up allowance, shut down allowance, cleaning allowance, tool allowance,
changeover allowance, implementation allowance.
 Interference Allowance – provided when two or more work elements occur
simultaneously.
 Policy Allowance – given according to the policy of the management, not
included for calculating standard time, extra benefit.
Define – precisely the series of activities and method of operation for which the time
has been compiled and issue the time standards for the activities and methods
specified.
Tools & Techniques
Stop Watch Time Study
Predetermined Motion – Time Systems
Work Sampling

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Analytical Estimating
Synthesis from Standard Data

Stop Watch Time Study

 Time study is a work measurement technique for recording the times and rate of
working for the elements of a specified job carried out under specified conditions and
for analyzing the data so as to obtain the time necessary for carrying out the job at a
defined level of performance.
 Equipments – Stop Watch, Time Study Board, Time Study Forms.
 Stop Watch
 One of the principle timing devices.
 Types – Non-fly back, Fly back & Split hand or split second type
 Non-fly back is preferred for continuous timing (Single element). Start – Stop –
Zero position.
 Fly back is preferred for continuous timing (Multi element). Start – Stop – Zero
position.
 Split hand type has two hands. Start – Stop (one hand stops) – Both moves.
(greater accuracy)
 Time Study Board
 Flat board provided with fittings to hold stop watch.
 It should be rigid and larger than the largest form likely to be used.
 Time Study Form
 Ensures that, time studies are made in a standard manner and no essential data are
omitted.
 The time study form shows detailed information about the operation being
studied.

12. (a) Explain the process planning procedure.

PROCESS PLANNING
 It is the systematic determination of the methods by which a product is to be
manufactured economically and competitively within the limits of design
specifications laid down.
 It is defined as the subsystem responsible for the conversion of design data to
work instruction.
 It is defined as that function within a manufacturing facility which establishes the
processes and process parameters to be used in order to convert a piece part from

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its initial form to a final form that is predetermined on a detailed engineering
drawing.
 It is an intermediate stage between designing the product and manufacturing it.
 The process starts with the selection of raw material and ends with the completion
of part.

Input Specifications and Drawing and

Selection of Primary Decision

Data Files

Determination of

Selection of Holding Devices Jigs and Fixture File

Selection and Grouping of

Precedence Relationship

Selection of Machine and Machine

Selection of Tools Tool File

Selection of Quality

Time
Time and Cost Module

Editing of Process Sheet

Detailed Process Planning Activity

PROCESS PLANNING COMPRISE MAINLY:

 An interpretation of the specifications contained in the definition drawing of a
part, including mainly dimensions and tolerances, geometric tolerances,
surface roughness, material type, blank size, number of parts in the batch etc;
 A selection of processes and tools which are candidates for processing a part and
its feature by respecting the constraints imposed in the definition drawing;

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 A determination of production tolerances and setting dimensions which ensure
execution of the design tolerances, while choosing production dimensions for
reasons of commodity and capability of manufacturing machinery;
 A selection of starting surfaces and datum surfaces to ensure precise execution of
processing operations simultaneously with a selection of holding fixtures and
checking of stability of a part by appropriate clamping;
 A sequence of operation as a function of priorities imposed by accuracy and
technological constraints;
 A grouping of elementary operations on the same machine so that operation time
will be reduced, while respecting accuracy requirements;
 A selection of machines to execute the technological operations, taking into
account the number of workpieces to be produced;
 A selection of inspection methods and inspection instruments to guarantee final
conformity of component with functional requirements;
 A determination of processing conditions for every elementary operation which

enables the computation of working times and costs in order to carry out an
economic evaluation;
 Editing of process sheets to be assembled in a comprehensive process planning

file which is transferred to the manufacturing department for execution.

 Function of Process Planning

 To determine, what parts are to be manufactured and, what parts to be purchased

from outside.
 To determine the most economical manufacturing process to be used.
 To determine the sequence of operation to be performed on each component.
 To prepare the bill of material for all the components to initiate the purchasing
ofraw materials.
 To determine the tooling and gauging needed.
 To determine the time standard of performance of the job.
 To provide estimates of the cost of tooling and equipment needed to manufacture
new products.
 To determine part changes necessary to ease manufacturing or reduce cost.
 Information Required for Process Planning

 Quantity of work to be done along with product specification.

 Quality of the work to be completed.
 Availability of tools, equipments and personnel’s.
 Sequence of operation & Standard time of each operation.
 Name of the equipment on which the operation will be performed.
 When the operation will be performed.
 Factors affecting Process Planning

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 Size and form of raw material  Improper selection results in, Wastage of
material, increased material handling cost, increased too cost, increased
process time
 Processing method & Quantity to be manufactured
 Choice of plant layout & Capacities of machine tool
 Tolerance and surface finish

(b) Discuss the various types of charts and diagrams used in process planning.

Set of Documents Required For Process Planning

 Product design and the engineering drawings pertaining to all the components of the
Product

 Tables of Cutting Speeds, depth of cut, feeds for different process and for different work
materials

 Catalogues for various cutting tools and tool inserts

 Specifications of various machine tools available in the shop

 Sizes of standard materials commercially available in the market

 Machine hour cost of all the equipment available in the shop

 Tables showing tolerances and surface finish obtainable for different machining
processes

 Tables of standard cost

 Tables of Allowances

 Process plan of certain standard components such as shafts, flanges etc.

Process Charts
 A chart may be a diagram, a picture or a graph which gives an overall viewof
the situation. It helps visualizing various possibilities of alteration or
improvement.
 A chart representing a process may be called a Process Chart.
 A process chart records graphically or diagrammatically, in sequence, the
operations connected with a process.
 Process Chart Symbols,

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Event Symbol Description

Represents an action. It involves a
change in location or condition of a
Operation
product.
Ex. Cutting a bar on a power hacksaw
Represents a stage when a finished
Storage product or raw material awaits an action.
Ex. Milling cutters lying in tool stores
Occurs when something stops the
Delay or Temporary process and a product waits for the next
Storage event.
Ex. Power failure, Bottle neck
Indicates the movement of an item from
one location to another. (material,
Transport equipment, an operator or his hands)
Ex. MS rods being sent from stores to
M/C shop
Act of checking for correctness of the
quantity or quality of the items.
Inspection
Ex. Checking the hardness of a
carburized Ms piece.

Operation cum Ex. Articles being painted as they are

Transportation transported by the chain conveyor

Ex. Powder milk tin is being weighed

Inspection cum Operation
as it is filled.

Outline Process Chart

Surveys & records an overall picture of the process & states only main events
sequence wise.
Considers only operations and inspections (uses only two symbols)
Actually an outline process chart is the first step for the beginning of a detailed
analysis.
Ex. Task Bolt and Washer Assembly (Fig. 2)

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Bolt (Part A) Washer (Part B) Nut (Part C)

1 Upset Forging 3 Punching 4 Drilling

2 5
Threading Threading

1 2
Inspection Inspection

6
Put washer on bolt

7
Put nut on the bolt Summary 7

3
Inspection 3
Fig. 2 Outline Process Chart

Two Handed Process Chart

Records the activities of the left hand and right hand of an operator as related ot
each other.
Activities of the two hands can be synchronized by providing a time scale on the
chart.
Used for analyzing repetitive jobs of short duration and assembly work.
Ex. Assembly of Nut & Bolt (Fig 3)

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Job : Assembling Nut & Bolt

Symbols
Left Hand Right Hand
LH RH

Pick up Bolt Idle

Hold Pick up Nut

Hold To Left Hand

Hold Assemble

Summary

LH RH

1 2

3 -

- 1

- 1

Fig. 3 Two – Handed Process Chart

Flow Process Chart
Detailed version of outline process chart and records all the events. It,
 Sets out sequence of flow
 Records all the events in sequence using process chart symbols.
 Marks distances travelled and time taken for completing an activity
 Mention other important points, if any
 Types of Flow Process Charts
 Man type,
 Material type,
 Equipment type
Ex. Man type flow process chart (Fig 4)

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Operations
Distance
Time Remarks
Activity Moved
(min) (if any)
(m)

Casting lying in
1* – – –
foundry store

Moved to gas 1
10 3 By trolley
cutting m/c *

Wait cutting m/c 1

– 5 –
being set *

Risers cut – 20 –
1*

Wait for trolley 2 – 10 –

*
2
Moved to m/c shop 20 6 By trolley
*

Inspected before
1* – 15 –
machining

Fig. 5 A Portion of the Flow Process Chart (Material Type) showing flow of Product
Multiple Activity Chart
Records simultaneously the activities of all the workers and machines on a
common time scale and thus shows inter – relations between them.
Purpose
 To detect idle times being enforced on machines & workers
 To optimize work distribution between workers & machines
 To decide number of workers in a group
 To examine the interdependency of activities
Types
 Man – Machine Chart
 Man – Multi-machine Chart
 Multi-man Chart
 Multi-man – Machine Chart

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Construction
15. A separate vertical bar or column is there to represent each subject.
16. A common time scale is provided for all the subjects.
17. Activities of each subject in relation to those of the others are marked in
the respective columns.
18. Previously conducted time studies provide the time values for each
activity.
19. A brief description of each activity is marked on the chart.
20. Working and idle times are marked differently on the chart.
21. Fig. 6 Multiple Activity Chart (Man – Machine Chart)
Analysis – After constructing the chart, it is tried to,
 Rearrange the work cycle to minimize men or machine idle times
 Simplify the operations
 Combine or eliminate some of the elements.
Applications
 Plant repair & maintenance
 Construction jobs
 Planning team work





Working Time Idle Time

(min) (min)

Operator 25 20

m/c 1 45 Nil

m/c 2 40 05

Multiple Activity Chart

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Operators Time Machines

Operator
Activity (min) 1 2

0
Operator
Setting m/c 1
5 Working

Setting m/c 2 10
Machine
being
Idle 15 set

20
Machine
Setting m/c 2
25 Working

Idle 30
Idle
Setting m/c 1
35 Time

Setting m/c 2 40
Idle 45

Summary

Travel Chart
It is tabular record for presenting quantitative data (weight, distance, frequency
etc.,) about the movements of materials, workers or equipment between any
numbers of places over a given period of time. (Fig. 7)
Construction,
 Draw a square grid and mark various departments in order to show to & fro
movements.
 Assume that raw material/worker travelled from department D to C, a mark
‘x’ placed at the junction of the columns.
 Similarly ‘x’ marks are placed at other appropriate junctions during the
selected period of time for study.
 The number of ‘x’ in each vertical and horizontal column is added up and bar
chart is plotted in order to have a glance of the frequency of movements.
Travel chart does not trace the actual path of movement.

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Helps improving the plant layout so that the total distance traveled can be
minimized. (knowing the existing layout & frequency of movements)

From
ABCDEFGHI J
A x x x 3
B x x x x 4
C x x x 3
D x x x x x 5
E x x x x 4
To
F x 1
G x x x x 4
H x x x x 4
I x x x 3
J x x x x 4

1
4 3 5 3 3 4 3 5 4 Bar Charts

Fig. 7 Travel Chart

Diagrams
 The path of movement (i.e. movement between two locations and the number
oftimes a movement is repeated) can be better visualized by drawing a diagram; it
may be a flow diagram of string diagram.
Flow diagram
It’s a diagram which shows the relative position of production machinery, jigs, fixtures etc., and
marks the path followed by men & materials.
Draw to scale the plan of the work area. Mark the relative position of machine tools, benches,
store, racks, inspection booths etc.
From the different observations, draw the actual movements of the materials or the worker on the
diagram and indicate the direction of movement.
B

2A 1

C
1

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Fig. 8 Flow Diagram

String Diagram
It is a model or a scale plan of the shop, in which every, machine or equipment is
marked and a pin is struck by or in the area representing a facility.
A continuous colored thread or string traces the path taken up by the materials or
workers while performing a particular operation.
Draw the scale layout of the shop area and mark various features such as
machinery, work benches stores etc.
Mount this scaled drawing on a soft board and strike pin at all the places which
form the path of the workers and materials.
A continuous colored un-stretchable string, taken from the first to the last pin, is
wound to mark the path followed by the workers or materials. Fig 9 shows a
string diagram.

Stock Room

*
String

M–2 M–4

* * *
M–1 M–6

* * *
M–3 M–5

Stores

Fig. 9 String Diagram

Uses
 Useful in dealing with complex movements & plant layout & design problem.

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 Indicates clearly, back tracking, bottle necks, & over and under, utilized
paths.
 Points out whether a work station is suitable located.
 Preferred when movements are not regular as regard with frequency and
distance travelled.
 Helps in deciding the most economical routes to do a particular operation.
 Advantageous in studying the movements of an individual operator handling
a number of machines,
Drawback – It is not possible to trace irregular or curvilinear path exactly.

13. (a) Name the various elements of cost. Explain each element in detail giving suitable
Examples.

Total Cost

Material Cost Labour Cost Expenses

Direct Overhead
Direct Indirect Direct Indirect
Expenses Expenses
Elements of Cost

 Direct Material
 It is that material which becomes a part of the product. It is the material whichsi
consumed in the manufacturing of a product and which can be measured and charged
directly to the cost of the product. It includes,
 All materials specially purchased for a particular job, order or process.

 All materials passing from one operation to another or one process to other which is
intended for further treatment or operation.
 All components that are purchased or produced.

 Also known as “Process Material”, “Store Material”, “Constructional Material” etc.

 Indirect Material
 Material which cannot be traced as a part of the product.

 It is the material required for maintaining and operating the plant and equipment but
cannot be a part of the product.

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 Various lubricants, cotton waste, grease, coolants and allied materials all are indirect
material.
 Determination of Material Cost
 Study the drawing carefully and break up the component into simple geometric
shapes.
 Add the necessary machining allowances on all sides which are to be machined.

 Determine the volume of each part by applying the formulae of mensuration.

 Add the volume of all simple components to get the total volume of the product.

 Multiply the total volume of the product by the density of the material to get the
weight of the material.
 Find out the cost of the material by multiplying the cost per unit weight to the total
weight of the material.
 Direct Labour
 It is the one which is directly employed in the manufacturing operation.

 It is the labour which actually processes the material either manually or with the help
of machines.
 Worker or operators engaged in machine shop, welding shop, sheet metal shop, etc.,

 Also known as “Productive Labour”, “Operating Labour”, “Process Labour” etc.

 Indirect Labour
 It is the non-productive staff engaged upon general services connected with the
running of a factory as a whole.
 It is the labour which helps the productive labour in performing their duties.

 “Foreman”, “Supervisors”, “Store Keepers”, “Gate-Keepers”, “Crane Drivers”, etc.,

 Determination of Labour Cost

 To find labour cost one must have the knowledge of all the operations which are
carried out for production of the component or product, tools and machines to be used
and departments in which the product is to be manufactured.
 For calculating time required for a particular job following considerations should b
e
taken into account:
 Set up Time – It is the time required for setting and fixing the jobs and tools
on the machine. Time to study the drawings, blue prints, time to make
adjustment for getting the required size are all included in set up time.
 Operation Time – It includes all the time necessary to perform all the
elements of an operation. An operation is all the work done in a workpiece by a
worker. An element may be defined as the smallest component into which an
operation is divided. (Handling Elements & Machine Elements)

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 Tear Down Time – It starts when the last part or element of operation has
been completed. So, it is the time taken to remove job, tools and other auxiliary
equipment from the machine after the last element of operation has been
completed
 Miscellaneous Allowances – It includes Personal Allowance (5%), Fatigue
Allowance (5%), Tool Changing & Grinding Allowance (5 – 10%),
Measurement & Checking Allowance (2 – 3%) and Other Allowance (15 –
20%)
 Direct Expenses
 It includes any expenditure other than direct material or direct labour incurred on a
specific cost unit.
 Hire of special tools or equipment, cost of special jigs and fixtures or some special
patterns and its maintenance cost, cost of layout, designs and drawings or experimental
work on a particular job, etc.,
 Indirect Expenses
 Known as overhead charges, burden or on cost.

 It is the sum of indirect labour, indirect materials and other expenses including service
which cannot be conveniently charged to specific cost unit.
 Factory Expenses – Also known as Factory oncost, Production overhead, factory
overhead, works oncost, works overhead. It includes,
 Rents, rates and insurance chargeable against the work.
 Indirect Labour.
 Consumable stores and all forms of indirect material.
 Depreciation, maintenance, and repair of buildings, plant, machine toll etc.,
 Power such as steam, gas, electricity, hydraulic or compressed air, internal
transport.
 Administrative Expenses – Includes all the expenses incurred on managerial or
administrative staff for the planning and policy making work. Examples,
 Salaries of directors and managing directors
 Salaries of cost, finance and secretary office staff.
 Expenses of direct amenities like telephone, coolers and other modern
equipments.
 Travelling expenses for attending meetings.
 Stationery, auditing expenses.
 Insurance of building and employees.

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 Selling Expenses – consists of expenditure spent towards securing orders and finding
or retaining markets for the products manufactured.
 Advertising and publicity expenses.
 Salaries of sales department staff.
 Travelling expenses of sales engineers.
 Cost of preparing tenders and estimates.
 Estimates of making blocks and posters.
 Distribution Expenses – Expenses which are paid for the distribution of the product.

 Finished stock, storage cost.

 Cost of packing.
 Loading and unloading charges.
 Expenses of transportation and vehicles.
 Salaries of dispatch clerks and labourers

Or
(b) Write down the step by step procedure for estimation the direct material cost.

 Direct Material
 It is that material which becomes a part of the product. It is the material which
si
consumed in the manufacturing of a product and which can be measured and charged
directly to the cost of the product. It includes,
 All materials specially purchased for a particular job, order or process.

 All materials passing from one operation to another or one process to other which is
intended for further treatment or operation.
 All components that are purchased or produced.

 Also known as “Process Material”, “Store Material”, “Constructional Material” etc.

14. (a) What are the types of estimates? Explain with examples.

Functions of Estimating

 To determine the material cost, taking into consideration different allowances to be

given for different manufacturing operations.

 To determine the labour cost considering labour time with the help of wage rates.

 To determine the cost of material to be purchased from outside.

 To determine the cost of tools, equipments to be purchased from outside.

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 To determine different overhead charges including selling, packaging and
transportation charges.

 To determine the selling price after adding due profit to the total cost.

 To refresh one-self with modern methods and equipments used in manufacturing

their products.

 To keep control over selling expenses with the help of sales management.

 To find most economical procedure for the design and manufacture of products.

 To submit estimates to the sales department for selling the products.

METHODS OF ESTIMATES

Computer Estimating
Computer estimating has become very popular in recent years primarily because of the
advent of the micro computer. Early efforts of computer estimating date back to the early
1970s but were cumbersome to use because they were on a mainframe and were card-
driven.
No less than 15 U.S. companies now offer estimating software for a microcomputer.
Because the computer estimating industry is new, there are no real standards for
estimating programs. Some programs are nothing more than a way to organize the
calculations of an estimate, while others calculate all the details of the estimate.
Advantages and disadvantages
Shown below are some of the major advantages of computer cost estimating.
Accuracy versus consistency
Computer estimates are very consistent, provided they calculate the detail of an estimate.
Because these estimates are consistent, they can be made to be accurate.
Through the use of consistent efficiency factors or leaving curves, estimates can be
adjusted up or down. This is one of the chief advantages of computer cost estimating.
Levels of details
Some computer estimating systems provide different levels of estimating cost. The level
of detail selected by the user depends on the dollar risk.
Many estimators produce an estimate in more detail because the computer can calculate
speeds and feeds, for example, much faster than an estimator can a hand-held calculators.
Refinements
Some computer estimating systems provide many refinements that would be impossible
for the estimator to do in any timely manner. One example is to adjust speeds and feeds
for material hardness.
Typically, the harder the material the more slowly a part will be turned or bored. Another
refinement is the ability to calculate a feed state and adjust it based on the width of a
form tool.
Source code

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Some companies offer the source code uncompiled to their users. This is important
because it affords the user the opportunity to customize the software.
In addition, many companies have written their own software to do something that is not
available on the market. If the source code is not compiled, the users can build upon a
computer estimating system.

Disadvantages
The chief disadvantage of computer estimating is that no one estimating system can suit
everyone‘s need. This is especially true if the source code is compiled and not
customizable.
Another problem with computer estimating is that the estimator will, in all probability,
have to change some estimating methods. Computer software for estimating cost is
seldom written around one method of estimating.
Group Technology
Group technology is not new. It was invented by a Russian engineer over 30 years ago.
Unfortunately the subject is not taught in many of our colleges and universities.
Group technology (GT) is a coding system to describe something. Several proprietary
systems are on the market.
One such system, the MICAPP system, uses four code lengths, a 10-,15-,20-,25- digit
code. The code length selected is based on the complexity of the piece part or tool being
described.
Use for group technology
Shown below are several uses for group technology along with several examples of use
both internally and externally.
Cost estimating
GT can be used very efficiently in estimating cost. Assume a company manufactures
shaft-type parts. Also arsum there is a computer data base named SHAFT that contains
10-digit code followed by a part number, that is, code part number, and so on.
When an estimator must estimate the cost of a new shaft, the process starts by developing
a code that describes the characteristics of the part. The first digit in the code might be
assigned the part length, while the second digit is assigned the largest diameter and so on.
Next, the code is keyed in and the computer finds all the parts that meet the numeric
descriptions and points out the part numbers. The best fit is selected to be modified into a
new part.
All the details of each description are retrieved. These include diameter, length of cut,
number of surfaces, and the like. The estimator can alter these features and make the old
part into a new one.
Actual performance
As the part is being produced, the estimated information is updated with actual
performance and refined. This gives the estimator the ability to improve estimating
accuracy, because the next time, the computer finds that part as one to be modified into a
new one, the estimator is working with actual performance.

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Other use for GT
There are many other uses for group technology one that is similar to estimating is variant
process planning, in which a standard process plan is on file for each operation and can
be modified into a new plan. One carbide tool manufacturer produced a line of carbide
drills and reamers and in their series 10 line and they had 758 different designs.
After a matrix to describe these tools was developed, a code for each tool was developed
and the database was established. The company conducted a redundancy search and
found that 9% of the existing designs were either look-alikes or very similar. Now the
company conducts a database search first when confronted with a new design.

Parametric Estimating
Parametric estimating is the act of estimating cost or time by the application of
mathematical formulas.
These formulas can be as simple as multiplices or as complex as regression models.
Parametric estimating, sometimes refused as statistical modeling, was first documented
by the Rard Corporation in the early 1950‘s in an attempt to predict military hardware
cost.
Use of parametric estimating
Many companies use some form of parametric estimating to develop sales forecasting.
The four examples cited below will give the reader a good feel of how parametric
estimating is used in a variety of different industries.
Construction industry
In developing a cost estimate for residential buildings, some cost estimators use a dollar
value per square foot. The estimator constitutes curves based on different construction
such as wood on brick buildings and single or multi-storey dwellings.
These numbers can then be multiplied by the number of square feet in the building. Some
construction companies have refined this process to provide additional detail carpeting,
for example, could have a separate multiplier.
Heat treating
Most commercial heat-treating companies price their work based on a cost per pound and
heat treating method.
Heat-treating costs are very difficult to define because many times more than one type of
part is in the heat-treating furnace at the same time.
It is difficult to think of a more effective way to estimate cost for this type of industry.
Tool and die industry
As pointed out earlier, estimating cost for a progressive die can be very difficult because
the estimator seldom has a die drawing to work from some tool and die shops have
developed parametric estimating methods that take out some of the guestimating.
This method is known as the ―unit value‖ method over a period of time, the estimator
collects actual time values about dies being produced. Once the estimator is satisfied that
the data are correct, they are over aged into usable hours.
As an example, this might include 4 hours for every inch of forming or 3 hours for every
hole under 2 inches in diameter. The unit value can stand for several meanings. For

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flowing it is a number of inches being formed.
Helicopter transmission
A helicopter transmission is a large complicated assembly comprised of a planetary gear
system, bevel gears, shafting, and housings. Budgetary estimates for a transmission are
usually developed using a variety of parametric methods.
The housing costs are based on weight. The bevel gear cost is based on number of teeth,
and the planetary gear cost is based on gear face width and number of teeth. If methods
like these were not employed, it would take hundred man-hour to produce an estimate.
Or
(b) Explain various allowances to be considered in estimation of direct labour cost.
“Allowance is the additional time allowed to perform the work over and above the basic time”.
 Depends on factors related (i) to individual worker, (ii) to the nature of work itself,
(iii) environment.
 Relaxation Allowance – addition to the basic time intended to provide the workers
an opportunity to recover from psychological effects of carrying out a specified task
under specified condition and to allow attention to personal needs.
 Personal Need Allowance – provided to the worker to fulfill his personal needs.
 Fatigue Allowance – for recovery from psychological & physiological effects of
fatigue
 Basic Fatigue Allowance – provided to the worker who performs a job
seated, who is engaged on light work in good conditions, 4% of basic time.
 Variable Fatigue Allowance – provided to worker who is engaged in
medium and heavy work, when working conditions for the elements are not
normal and cannot be improved. The following factors should be considered,
abnormal position, accident hazards of the job, use of force, illumination of
worksite, ventilation, temperature, noise, strain.
 Contingency Allowance – may occur frequently or irregularly, provided for small
unavoidable delays and extra work.
 Tool breakage
 Tool sharpening
 Obtaining necessary gauges, special tools from central stores
 Filling coolant reservoir from time to time
 Power failure of small duration
 Waiting for in process inventory from previous machine
 Special Allowance – provided for activities which are not normally a part of
operation cycle, but which are essential for satisfactory performance of work. Start
up allowance, shut down allowance, cleaning allowance, tool allowance, changeover
allowance, implementation allowance.
 Interference Allowance – provided when two or more work elements occur
simultaneously.Policy Allowance – given according to the policy of the
management, not included for calculating standard time, extra benefit.

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15. (a) A 60 mm rod of aluminium to be machined on a lathe, the finished size is shown in
figure. The length of rod is 175 mm. Determine the total machining time and material cost,
if the material is purchased at a rate of Rs. 12 per Kg. Assuming cutting speed 30m/min
and feed 0.2 mm/rev. Take density of aluminium as 2.7gm/cc. Depth of cut not to exceed 2.5
mm.

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(b) Describe the procedure of estimating the machining time required during shaping operation on
a shaper.

Machining time in shaping:

Machining time in shaping can be estimated using the scheme given in Fig. which shows
the length of tool – work travels required to remove a layer of material from the top flat surface
of a block in a shaping machine.

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B.E./B.Tech. DEGREE EXAMINATION, Nov/Dec 2015.
Mechanical Engineering
ME 2027 – PROCESS PLANNING AND COST ESTIMATION
(Regulation 2008/2010)

PART - A – (10 X 2 = 20 marks)

1, 2. <Old portion. Deleted>

3. Define process planning

4. Enumerate the documents required for process planning.

5. Define cost accounting.

6. Distinguish between cost estimation and cost acccounting

7. List the types of estimates.

8. What are the sources for cost estimation?

9. Brief about the procedure to calculate material cost.

10. A production shop had its production overheads of Rs.12,000/- and the production for the
period in terms of direct labour was 24,000 hours. Find the over head for a job requiring 20
labour hours.

PART B – (5 x 16 = 80 marks)
13. (a) (i) Discuss the objectives of cost estimation (10)

(ii) Explain the advantages of cost accounting (6)

(Or)
(b) (i) Describe the classification and elements of cost.

14. (a) (i) Discuss various types of estimates. (10)

(ii) Explain the data requirements for cost estimation and their sources. (6)

(Or)
(b) (i) Describe different methods of estimates. (10)

(ii) Explain the allowances in estimation. (6)

15. (a) (i) A manufacture is making 100 units of an item per hour and incurs the following
expenses:
Direct material cost = Rs.35
Direct labour cost = Rs.200

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Direct expenses = Rs.75
Factory on cost =150% of labour cost
Office on cost t = 30% of factory cost

Find out the selling price for a profit of 15% on the selling price. (10)

(ii) A square bar of 3 cm side and 25 cm length is to be hand forged into a hexagonal bar of side
of 1.5 cm. Find length of the hexagonal bar ignoring metal losses. Density remains same. (6)

(Or)
(b) (i) A 25 cm x10 cm C.I surface is to be faced o a milling machine with a cutter of diameter of
15 cm and 16 teeth. If the cutting speed and feed are 55m/min and 6cm/min. respectively,
determine the rpm of the cutter, feed/ tooth and the milling time. (8)

(ii) Find the time required for finish grinding a 20 cm long steel shaft to reduce its diameter
from 4.5cm to 4.3 cm with a grinding wheel of 2.5 cm face width. Cutting speed is 16 m/min.
and depth of cut is 0.2mm. (6)

(iii) Calculate the cutting speed on a job of 50 mm diameter rotating at 200 rpm. (2)

(Answers) Part – A
3. Define process planning
Refer question: 1, in page 2

4. Enumerate the documents required for process planning.

Refer question: 2, in page 2

5. Define cost accounting.

Refer question: 5, in page 92

6. Distinguish between cost estimation and cost accounting.

Refer question: 14 (b) (ii), in page 57

7. List the types of estimates.

 Preliminary estimate
 Final estimate

8. What are the sources for cost estimation?

Data Sources
General design specifications Production engineering
Quantity and rate of production Sales dept
Assembly or layout drawings Product engineering
General tooling plans and list of products Manufacturing engineering

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9. Brief about the procedure to calculate material cost.
Material cost = {Weight of the material} * {Cost/unit weight}

10. A production shop had its production overheads of Rs.12, 000/- and the production for the
period in terms of direct labour was 24,000 hours. Find the over head for a job requiring 20
labour hours.

Part - B
13. (a) (i) Discuss the objectives of cost estimation

 To establish the selling price of a product for a quotation, to ensure reasonable profit to the
company;

 To verify quotations submitted by vendors;

 To ascertain whether products can be manufactured and marketed profitably;

 To take make or buy decisions;

 To prepare production budget;

 To evaluate alternate designs of product;

 To determine the most economical method process for manufacturing a product.

(Or)
(b) (i) Describe the classification and elements of cost.

 Classification according to elements

o Materials cost
o Labour cost
o Overheads
 Classification according to function
o Production cost
o Administrative cost
o Selling cost
o Overhead cost
 Classification according to variability
o Fixed cost
o Variable cost
o Semi-variable cost
 Classification according to direct and indirect costs
o Direct cost
o Indirect cost

14. (a) (i) Discuss various types of estimates. (10)

Refer 14 b (i), page: 55

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(ii) Explain the data requirements for cost estimation and their sources. (6)

(Or)

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(b) (i) Describe different methods of estimates.
 Conference method
 Comparison method and
 Detailed analysis method

(ii) Explain the allowances in estimation. Refer Q. 11 (b). (i). Page: 20

15.(a)(i). A manufacturer is making 100 units of an item/hr and incurs the following expenses:
Direct material cost = Rs.35
Direct labour cost = Rs.200
Direct expenses = Rs.75
Factory on cost =150% of labour cost
Office on cost = 30% of factory cost. Find the selling price for profit of 15% on selling price.

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(ii) A square bar of 3 cm side and 25 cm length is to be hand forged into a hexagonal bar of side
of 1.5 cm. Find length of the hexagonal bar ignoring metal losses. Density remains same.

(b) (i) A 25 cm x10 cm C.I surface is to be faced o a milling machine with a cutter of diameter of
15 cm and 16 teeth. If the cutting speed and feed are 55m/min and 6cm/min. respectively,
determine the rpm of the cutter, feed/ tooth and the milling time.

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(ii) Find the time required for finish grinding a 20 cm long steel shaft to reduce its diameter
from 4.5cm to 4.3 cm with a grinding wheel of 2.5 cm face width. Cutting speed is 16 m/min.
and depth of cut is 0.2mm.

(iii) Calculate the cutting speed on a job of 50 mm diameter rotating at 200 rpm. (2)

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ME 2027 PROCESS PLANNING AND COST ESTIMATION

MAY / JUNE 2016

PART A – (10 x 2 = 20 marks)

1, 2, 3 ---Old syllabus, deleted.

4. State the parameters considered for material selection.

5. List the various elements of cost.

6. What shall be the effect of overestimate?

7. Mention any two functions of estimating

8. What can be the sources of error in estimating?

9. Differentiate between direct and indirect overheads.

10. List the losses to be considered in estimating the gross weight of a forging component.

PART B – (5 x 16 = 80 marks)
13. (a) Data collected at a certain period show that for the manufacture of a product, the labour
cost is Rs.400, the ratio of direct material cost, direct labiur cost and direct expenses are 1 : 3 : 2.
If the factory overheads are Rs.200, administrative overheads are 20 % of factory cost selling
and distribution overheads are 10 % factory cost and profit required is 30 % of the factory cost,
what should be the selling price?

(Or)
(b) (i) Discuss the various methods of costing with an example.

14. (a) Discuss in detail the various methods of estimates with an example.
(Or)
(b) Write notes on (i) data requirements for estimation (ii) allowances in estimation

15. (a) Explain the various methods used in an industry for allocation of overheads with an
example.
(Or)
(b) (i) Explain the different items involved in the estimation of arc welding cost of a job. (6)
(ii) Estimate the size of the stock to forge a M.S. hexagonal headed bolt blank. The diameter
of the bolt is 20 mm and length of stem is 100mm. Assume necessary dimensions for the
head. (10)

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Answers (Part – A)

4. State the parameters considered for material selection.

 Appearance
 Function
 Reliability
 Service life
 Environment
 Compatibility

5. List the various elements of cost.

Materials Cost (Direct & Indirect)

Total cost Labour cost (Direct & Indirect)

Expenses (Direct & Indirect)

6. What shall be the effect of overestimate?

The firm can’t compete with its competitors who have estimated the price correctly and
loses the order to its competitors. Therefore, always a Realistic estimate should be done.

7. Mention any two functions of estimating.

 To submit accurate tenders for getting the contracts;
 For fixing the selling price of the product;
 To take make or buy decisions.

8. What can be the sources of error in estimating?

 Avoidable errors: (mainly occurs due to carelessness, less experience)
 Unavoidable errors: (machinery breakdown, power failure, accidents, strikes)

9. Differentiate between direct and indirect overheads.

Direct Overhead expenses are the one which becomes the part of the product. It can be
measured and charged directly to the cost of the product. Indirect overhead expenses are the
one which cannot be traced as a part of the product.

10. List the losses to be considered in estimating the gross weight of a forging component.
 Shear loss
 Tonghold loss
 Scale loss
 Flash loss &
 Sprue loss.

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Part – B
13. (a) Data collected at a certain period show that for the manufacture of a product, the labour cost is Rs.400, the
ratio of direct material cost, direct labiur cost and direct expenses are 1 : 3 : 2. If the factory overheads are Rs.200,
administrative overheads are 20 % of factory cost selling and distribution overheads are 10 % factory cost and profit
required is 30 % of the factory cost, what should be the selling price?

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(b) (i) Discuss the various methods of costing with an example.
Refer Q 13. (a). Page: 51

14. (a) Discuss in detail the various methods of estimates with an example
 Conference method
 Comparison method and
 Detailed analysis method

(b) Write notes on (i) data requirements for estimation (ii) allowances in estimation
(i). Refer Q. 14 (a). (ii). Page: 219
(ii). Refer Q. 11 (b). (i). Page: 20

15. (a) Explain the various methods used in an industry for allocation of overheads with an
example.

(i). By Percentage
 Percentage on Prime cost
 Percentage on Direct Labour cost
 Percentage on Direct Material cost
(ii). By Hourly rate
 Man hour rate
 Machine hour rate
 Combination of both
(iii). By Unit rate
 Unit rate method
(Or)
(b) (i) Explain the different items involved in the estimation of arc welding cost of a job.

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(ii) Estimate the size of the stock to forge a M.S. hexagonal headed bolt blank. The diameter of
the bolt is 20 mm and length of stem is 100mm. Assume necessary dimensions for the head.

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ME 6005 PROCESS PLANNING AND COST ESTIMATION

Nov/Dec 2016

PART A – (10 x 2 = 20 marks)

1. Define Process planning.

It’s defined as an act of preparing a detailed work instruction for the manufacture and
assembly of components into a finished product in discrete part manufacturing environments.

2. What are the factors to be considered during the selection of a process?

Component size and weight; Material form; Batch size; Production rate etc

3. List the factors to be considered while selecting process parameters.

Nature of cut; Work material; Tool material; Cutting fluid applications etc

4. Classify the three basic functions of Jigs and fixtures.

Jigs are used for drilling, reaming, tapping, chamfering etc
Fixtures are used for boring.

5. What do you mean by Cost accounting?

It’s the determination of an actual cost of a component after adding different expenses
incurred in various departments.

6. Define Overhead cost.

It’s also called as indirect expenses. These are those which can’t be charged directly to a
particular product manufactured.

7. Name the various losses in forging process.

Shear loss, Tonghold loss, Scale loss, Flash loss and Sprue loss.

8. Differentiate leftward and rightward welding.

In Leftward welding, the weld is started from right hand of the seam to left hand. In
rightward welding, it’s done from left hand of the seam to the right hand.

9. Define cutting speed. List the factors that affect cutting speed.
Cutting speed is defined as the relative speed between the tool and the job. The factors are
cutting tool material, work piece material and the operation.

10. What is machining time?

It’s 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.

Part – B
11. (a). Refer 12 (a) in page 100.

b. (i). Constraints in tool selection are

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(a) Manufacturing practice; (b). Manufacturing process; (c). Machine tool characteristics;
(d). Capability; (e). Processing time; (f). Cutting tool availability.

b. (ii).

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12.a.

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12. b.(i).

12. b. (ii).

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13. a. (i).

(a). Job costing; (b). Batch costing; (c). Process costing; (d). Departmental costing

(e). Operating cost method; (f). Unit cost method and (g). Multiple cost method.

13. a. (ii)

13. b. (i).

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b. (ii). (A). Factory expenses; (B). Administrative expenses

(C). Selling expenses and (D). Distribution expenses.

14. a. (i).

a. (ii).

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b. (i).

b. (ii).

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15. a.

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b. (i).

b. (ii).

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ME 6005 PROCESS PLANNING AND COST ESTIMATION

May/June 2017

PART A – (10 x 2 = 20 marks)

1. Define Process planning.

It’s defined as an act of preparing a detailed work instruction for the manufacture and
assembly of components into a finished product in discrete part manufacturing environments.
2. Write 4 cutting fluid materials (in increasing order of hardness)
(i). HSS; (ii). WC; (iii). Ceramics; (iv). Diamond
3. What is the difference between routing sheet and operations list?
The route sheet lists the production operations and associated machine tools for each
component and subassembly of the product. Operations list provides the details of operations to
be performed on the work piece in order of machining.
4. What is the relationship between tolerance and surface finish.
Tolerance is the permissible limit or limits of variation in: a physical dimension, a
measured value or physical property of a material manufactured object. Surface finish is the
depth of irregularities of a surface, resulting from the manufacturing process used to produce it.
5. Differentiate costing from estimation.
Costing gives the actual cost of the product after adding different expenses incurred in
various departments. Estimating gives the probable cost the product before the start of it’s
manufacture.
6. What are overhead costs?
It’s also called as indirect expenses. These are those which can’t be charged directly to a
particular product manufactured.
7. Define Production cost.
Production cost refers to the cost incurred when manufacturing a good or product. Production
costs include a variety of expenses including, labor, raw materials, consumable manufacturing
supplies and general overheads.
8. What are the losses occur in a forging shop?
Shear loss, Tonghold loss, Scale loss, Flash loss and Sprue loss.
9. Define tool approach and tool over travel.

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Tool approach is the distance a tool travels, from the time it touches the work piece until it is
cutting to full depth. Tool Over travel is the distance over which the tool idles before it enters
and after it leaves the cut.
10. Define cutting speed.
Cutting speed is defined as the relative speed between the tool and the job

Part – B

11. a.

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11. b.
(i). Drawing Interpretation
(ii). Identification of critical processing factors
(iii). Comparison of potential manufacturing processes
(iv). Identification of suitable processes.

12.(a) Given Data:

Conventional milling machine

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Set-up time = 55 min
Machining time = 29 min
Machining cost per unit = Rs.200
Batch size = 1200
Machinist’s hourly rate = Rs.100
CNC milling machine
Set-up time = 2 h 15 min
Machining time = 18 min
Machining cost per unit = Rs.200
Batch size = 1200
Machinist’s hourly rate = Rs.150
Solution:
(i)Component cost:
Conventional milling machine
Material cost =200 x 1200 = Rs.240000
Total machining time = 55 +(29x1200) = 34855 min
Machining cost = 34855x100=Rs.3485500
Total cost = Material cost + Machining cost = 240000+3485500 = Rs.3725500

CNC milling machine

Material cost =200 x 1200 = Rs.240000
Total machining time = 135 +(18x1200) = 21735 min
Machining cost = 21735x150=Rs.3260250
Total cost = Material cost + Machining cost = 240000+3260250 = Rs.3500250
(iI)Break even quantity:
For 73 components:
Total cost in conventional milling machine : Rs. 231800 ------ economical
Total cost in CNC milling machine : Rs. 231950
For 74 components:
Total cost in conventional milling machine : Rs. 234900
Total cost in CNC milling machine : Rs. 234850 ------ economical
Up to 73 components conventional milling machine is economical. After that CNC milling machine is economical.

12. b. Refer Nov/Dec’16; Q. 12 b (ii).

13. a.
A). Conference method
B). Comparison method
C). Detailed analysis method.

13. b.

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14. a.

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14. b.

15. a.

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15. b.

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Reg. No.:

Question Paper Code : 50820

B.E/B.Tech. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017

Seventh Semester
Mechanical Engineering
ME6005 – PROCESS PLANNING AND COST ESTIMATION
(Common to Mechanical, Automobile Engineering and Automation Engineering)
(Regulation 2013)
Time: Three hours Maximum: 100 marks
Answer ALL questions.
PART – A (10 x 2= 20 marks)
1. List the objectives of Process Planning

2. What is bilateral tolerance? Give examples.

3. What are the more influential factors in terms of tool performance?

4. What are the main reasons for using jigs and fixtures?

5. Distinguish between cost estimation and cost accounting.

6. Classify the allowances considered in cost estimation

7. Define roll forging

8. Give the formula for calculating the cost of power consumed in arc welding.

9. Write short notes on tear down time

10. Give the formula for estimation of machining time for drilling

PART – B Marks

11 a) Describe the Set of documents required for process planning?

(OR)

b) Explain the steps in process selection with suitable example

12 a) Explain the steps or procedure involved in process planning.

(OR)

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b) Describe the basic method employed for the selection of cutting tools
13 a) Calculate the selling price per unit from the following data :
Direct material cost = Rs. 8,000
Direct labour cost = 60 percent of direct material cost
Direct expenses = 5 percent of direct labour cost
Factory expenses = 120 percent of direct labour cost
Administrative expenses = 80 percent direct labour cost
Sales & distribution expenses = 10 percent of direct labour cost
Profit = 8 percent of total cost
No. of pieces produced = 200

(OR)

b) Describe the various components of job estimate.

14 a) Work out the welding cost for a cylindrical boiler drum 2 ½ × 1 m diameter which
is to be made from 15 mm thick m.s plates. Both the ends are closed by arc welding
of circular plates to the drum. Cylindrical portion is welded along the longitudinal
seam and welding is done both in inner and outer sides. Assume the following data:
(i) Rate of welding = 2 meters per hour on inner side and 2.5 meters per
hour on outer side
(ii) Length of electrodes required = 1.5 m/ meter of weld length
(iii) Cost of electrode = Rs. 0.60 per meter
(iv) Power consumption = 4 kWh/meter of weld
(v) Power charges = Rs. 3/kWh
(vi) Labour charges = Rs. 40/hour
(vii) Other overheads = 200 percent of prime cost
(viii) Discarded electrodes = 5 percent
(ix) Fatigue and setting up time = 6 percent of welding time.

(OR)

b) (i) What are the various losses which are to be considered in a forging shop?
Explain (12)
(ii) List the various sections that will be normally found in a foundry shop. (4)

15 a) Consider the component as shown in the figure. The component is to be made from
mild steel with carbide tooling at a constant surface speed of 100 m/min. on a lathe
with a maximum spindle speed of 1500 rev/min. the machining allowance is 2mm.
determine:
i. If the lathe is capable of turning the component at the required surface
speed
ii. The total machining time for the component if the lathe is capable.

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(OR)

b) (i) Find the time required on a shaper to machine a plate 600 mm × 1,200 mm,
if the cutting speed is 15 meters/min. The ratio of return stroke time to
cutting time is 2 : 3. The clearance at each end is 25 mm along the length
and 15 mm on width. Two cuts are required, one roughing cut with cross
feed of 2 mm per stroke and one finishing cut with feed of 1 mm per stroke.
(ii) A T-slot is to be cut in a C.I. slab as shown in Fig. Estimate the machining
time. Take cutting speed 25 m/min, feed is 0.25 mm/rev. Dia of cutter for
channel milling is 80 mm.

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B.E/B.Tech. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017
Seventh Semester
Mechanical Engineering
ME6005 – PROCESS PLANNING AND COST ESTIMATION
(Common to Mechanical, Automobile Engineering and Automation Engineering)
(Regulation 2013)
Time: Three hours Maximum: 100 marks
Answer ALL questions.
PART – A (10 x 2= 20 marks)
1. List the objectives of Process Planning
 Identify the functions involved in product design and manufacture
 Define the process planning activity
 Identify and describe the main tasks undertaken during process
planning
 Identify and describe the various data used in process planning
 Identify and describe the main process planning documentation
 Identify and describe the relationship between process planning and
other manufacturing functions
2. What is bilateral tolerance? Give examples.
The amount that the size of a machine part is allowed to vary above or below
a basic dimension; for example, 3.650 ±0.003 centimeters indicates a tolerance of ±
0.003 centimetres.
3. What are the more influential factors in terms of tool performance?
The three basic factors that determine tool performance are
 the tool material
 the tool geometry
 the use of cutting fluids
4. What are the main reasons for using jigs and fixtures?
 Components can be produced quicker
 Greater interchangeability is obtained due to repeatability of manufacture
which subsequently reduces assembly time;
 Accuracy can be easily obtained and maintained
 Unskilled or semi-skilled labour may be used on a machine, resulting in
reduced manufacturing costs.
5. Distinguish between cost estimation and cost accounting.
Point of Cost Estimating Cost Accounting
Type of cost Expected cost Actual cost
Duration of Before production of a Starts with the issue
process product of order for
production of product
Nature of A qualified Qualified Accounts
quality of technical person

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Main Objectives Set standard for actual Comparison of cost
cost, set up market with estimates, to
price, to decide on to know wastes if any,
make or buy, to budget preparation,

6. Classify the allowances considered in cost estimation

 Relaxation allowance
 Contingency allowances
 Process allowances
 Interference allowances
 Special allowances
7. Define roll forging
Roll forging is used to draw out sections of bar stock, i.e., reducing the cross-
section and increasing the length. Special roll forging machines, with dies of
decreasing cross-section are used for roll forging.
8. Give the formula for calculating the cost of power consumed in arc welding.
power cost =
where V = Voltage in volts
A = Current in amperes
t = Welding time in minutes
= Efficiency of the welding machine
r = Ratio of operating time to connecting time taken by the operator
C = Rate of electricity per kWhr in rupees
9. Write short notes on tear down time
It is the time taken to remove the tools, jigs and fixtures from the machine
and to clean the machine and tools after the operation has been done on the last
component of batch. The tear down time is usually small. The tear down time occurs
only once for a complete lot or batch taken for machining.
10. Give the formula for estimation of machining time for drilling
T=Time for drilling
L= length of the drill hole
N= drilling speed
F=feed
Time
PART – B Marks
Describe the Set of documents required for process planning?
 Product design and the engineering drawings pertaining to all the components of
the product. (i.e., components drawings, specifications and a bill of materials that
defines how many of each component go into the product).
 Machining/Machinability Data Handbook (Tables of cutting speeds, depth of cut,
feeds for different processes and for different work materials).
 Catalogues of various cutting tools and tool inserts.

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 Specifications of various machine tools available in the shop/catalogues of machine
tools in the shop (speeds, feeds, capacity/power rating of motors, spindle size, table
sizes etc.).
 Sizes of standard materials commercially available in the market.
 Machine Hr. cost of all equipment available in the shop.
 Design Data Handbook.
 Charts of Limits, Fits & Tolerances.
 Tables showing tolerances and surface finish obtainable for different machining
processes.
 Tables of standard cost.
 Table of allowances (such as Personal Allowance, Fatigue Allowance etc. in % of
standard time followed by the company).
 Process plans of certain standard components such as shafts, bushings, flanges etc.
Handbooks (such as Tool Engineers Handbook, Design Data Handbook).
(OR)
Explain the steps in process selection with suitable example
 Process is a method of shaping, joining or finishing a material.
 The right manufacturing process should be chosen in the design stage itself.
 The factors to be considered in the selection of manufacturing processes include
material form, component size & weight, economic consideration, dimensional and
geometric accuracy, surface finish specification, batch size and production rate.
 Identify the manufacturing process which can provide the required
dimensional/geometric accuracy and surface finish.
 For more choice on manufacturing process specify the maximum possible
tolerances and surface finish.
 Employ prototypes to verify and validate the potential manufacturing process under
consideration.
 Perform a comparison analysis of the potential manufacturing processes under
consideration, taking into account the variation in assembly costs for different
processes.
Classification of manufacturing processes:
Primary process
 Casting Secondary process
 Moulding  Machining
Shaping  Deformation  Heat treatment
 Powder method
 Rapid prototyping

Polish
Adhesives
Joining Shaping
process Welding process Coating

Fastener Paint/print

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Steps in process selection:
1. Drawing interpretation:
 From the drawing the design requirements are expressed as constrains on
material, shape, size, tolerance, roughness and other process related
parameters.
 The drawing interpretation can be presented under three different analysis
and outputs.
1. Geometry analysis :The selection of manufacturing processes depend on
the geometry and shape of the component.
2. Manufacturing information : The manufacturing information derived
from drawing interpretation are dimensional and geometric tolerances,
limits and fits, surface finish requirements, tolerances specification, tool
references, gauge reference and special material treatment.
3. Material Evaluation : the final information interpreted form the drawing
is the material of the product.
2. Identification of critical processing factor:
 The combined output from the first stage of drawing interpretation should
be analysed and correlated to identify the critical processing factors.
 The correlation of the potential manufacturing processes from the geometry
analysis and the material evaluation will provide the opportunity to reduce
the number of potential manufacturing processes under consideration.
3. Comparison of potential manufacturing processes:
 In this stage the identified potential manufacturing processes are compared
using the correlated data from the second stage.
 The process selection tables will help in the decision making of selection of
appropriate manufacturing processes using all the information gathered in
previous stages.
 When more than one process satisfies all the requirements, then economic
data can be used for decision making. If required, a detailed cost comparison
can be carried out between manufacturing processes to help the decision
making.
4. Identification of suitable processes:
 In this stage using the data from the second stage and a detailed economic
analysis, most appropriate manufacturing process should be selected.
 If the manufacture of part involves only one process, then the process
selection is complete.
Usually the component requires many processes that is primary and secondary
processes. In such case the critical processing factor should be reconsidered and stage 3
should be repeated until all the required processes are selected.
12. a) Explain the steps or procedure involved in process planning.

i. The finished product is analyzed so that its sub-assemblies and individual

components are identified from manufacturing point of view.

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ii. Prepare a Bill Of Materials (BOM) for all components of the product which forms a
basis of purchase of raw materials
iii. Decide which parts are to be manufactured in the plant and which parts are to be
purchased from the market depending upon the facilities available in the plant i.e.,
decision with regard to 'make' or 'buy' to be taken.
iv. Choose the appropriate blank size i.e., raw material size and select the most
economical process to be followed to manufacture components of the product. This
is done by comparing the various possible methods of obtaining the final product.
The basic factors of volume to be produced, i.e., production quality, required quality
of the product and the capabilities of the equipment available are carefully
considered in this step.
v. Decide the sequence of operations to be performed on each component in this
process selected.
vi. Each operations is assigned to the type and size of material or work station that will
perform the job most economically.
vii. Depending upon the accuracies called for by the drawings, determine the machine
tools to do the operations.
viii. Determine the need for any special equipment like jigs, fixtures, cutting tools etc.,
ix. Determine the inspection stages and instruments required and the need for
designing any inspection devices (say gauges, etc.,)
x. Estimate the standard time for performing the job.
xi. Determine the type of labour (skilled, semi-skilled or unskilled) required to do the
job.

(OR)
12. b) Describe the basic method employed for the selection of cutting tools.
A method for tool selection will be outlined which incorporates the selection factors.
This is a five-stage process as follows:
1. Evaluation of process and machine selection:
Provided the selection of processes and machine is satisfactory, the range of tools
that can be used should be limited to those suitable for the processes and machines
selected. Therefore, this limits the initial list of possible suitable tooling.
2. Analysis of machining operations:
A Specific machine will carry out every operation required. Each machine tool to be
used will have specific tool types to carry out certain operations. Therefore, this analysis
should enable the identification of specific tool types for specific operations.
3. Analysis of work piece characteristics:
The focus of the workpiece analysis is on the workpiece material and geometry and
the capability in terms of dimensional and geometric accuracy and surface finish. The
analysis of the first two characteristics enables suitable tool materials and geometry (in
terms of size and shape) to be identified. The third characteristics allows the tool type and
geometry to be refined further to suit the operations.
4. Tooling analysis
Using the tooling data available, the general tooling specifications generated at the
third stage can be translated into a statement of tooling requirements for the job, that is, a
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tooling list. This will obviously reflect whatever tooling is actually available for the
operations required.
5. Selection of tooling
There are two routes that the tool selection can take at this point. If single piece
tooling is being used, then a suitable tool holder should be selected before fully defining the
tool geometry and material. However, if insert tooling is being used then the following
steps should be followed:
a. select clamping system
b. select tool holder type and size
c. select insert shape
d. select insert size
e. select insert type
f. select tool material

Calculate the selling price per unit from the

following data : Direct material cost = Rs.
8,000
Direct labour cost = 60 percent of direct material cost
Direct expenses = 5 percent of direct labour cost
Factory expenses = 120 percent of direct labour cost
Administrative expenses = 80 percent direct labour cost
Sales & distribution expenses = 10 percent of direct labour cost
Profit = 8 percent of total cost
No. of pieces produced = 200

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(OR)
Describe the various components of job estimate.
The total estimated cost of a product consists of the following cost components :
1. Cost of design.
2. Cost of drafting.
3. Cost of research and development.
4. Cost of raw materials.
5. Cost of labour.
6. Cost of inspection.
7. Cost of tools, jigs and fixtures.
8. Overhead cost.
1. Cost of Design
The cost of design of a component or product is estimated by ascertaining the
expected time for the design of that component. This may be done on the basis of similar
job previously manufactured but for new and complicated jobs the estimator has to consult
the designer who gives the estimated time of design. The estimate design time multiplied
by the salary of designer per unit time gives the estimated cost of design. If the design of
the component is done by some outside agency, the total amount paid to outside agency
gives the cost of design.
2. Cost of Drafting
Once the design of the component is complete, its drawings have to be prepared by
draftsman. The expected time to be spent in drawing or drafting is estimated and is then
multiplied by the standard drafting rate or by the salary of the draftsman per unit time to
get estimated cost of drafting.
3. Cost of Research and Development Work
Before taking up the manufacturing of actual components/parts considerable time
and money has to be spent on research and development. The research may be theoretical,
experimental or developmental research. The cost of R and D can be estimated by
considering various items of expenditure incurred during R and D work which include :
(i) Cost of labour involved.
(ii) Cost of material used.
(iii) Cost of special equipment used or fabricated for the prototype.
(iv) Depreciation, repair and maintenance cost of experimental set-up.

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(v) Cost of services of highly qualified and trained personnel needed for
experimentation.
(vi) Cost of preparing Test Reports, if any.
In some cases the cost of R and D may be estimated on the basis of research
involved in similar products produced in the past.
4. Cost of Raw Material
The estimation of cost of materials used in production of a component/product
consists of following steps :
(i) A list of all the materials used in the manufacture of the product is made which
includes the direct as well as indirect materials.
(ii) The quantity (weight or volume) of all the material expected to be used in the
manufacture of the product is estimated. The allowance for material wastage,
spoilage and scarp are also added for each component/part.
(iii) Cost of each material is estimated by multiplying the estimated quantity of each
material with its estimated future price. The estimate of future price of a material is
made keeping in view of present prices and general trends and variations.
(iv) Estimated cost of all the materials is added to get the overall estimated material
cost.
5. Cost of Labour
The cost of labour involved in the manufacture of a product is estimated by
estimating the labour time needed to manufacture the product and multiplying it by cost of
labour per hour. In order to estimate the labour time expected to be spent on a job, one
must have thorough knowledge of the various operations to be performed, machines to be
used, sequence of operations, tools to be used and labour rates. For this purpose, the
estimator may consult engineers, supervisors or foremen from production or industrial
engineering departments.
6. Cost of Inspection
A product being manufactured is inspected at various stages during its manufacture.
It may be inspection of raw material or in-process inspection or inspection of finished
goods. The cost of inspection equipment, gauges and consumable involved in the inspection
and testing are taken into account while estimating the cost of the product.
7. Cost and Maintenance Charges of Tools, Jigs and Fixtures
Estimated cost of a product includes the estimated cost and maintenance charges
for the tools, jigs, fixtures and dies required in the production. The cost of tools, jigs,
fixtures etc., is estimated considering their present prices, market trend and the number of
times a particular tool can be used during its life-time. The estimated cost divided by the
number of jobs, it can make, gives the tool cost per unit produced.
8. Overhead Costs
Overhead or indirect costs are those which are not incurred specifically for any one
order or product and these cannot be charged directly to a specific order or product. The
overhead costs may be estimated by referring to the records of overhead costs in similar
items produced in past. The overhead cost per unit varies considerably with the volume of
production i.e. number of components produced.

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Work out the welding cost for a cylindrical boiler drum 2 ½ × 1 m
diameter which is to be made from 15 mm thick m.s plates. Both the
ends are closed by arc welding of circular plates to the drum.
Cylindrical portion is welded along the longitudinal seam and
welding is done both in inner and outer sides. Assume the following
data:
(i) Rate of welding = 2 meters per hour on inner side and 2.5 meters per hour
on outer side
(ii) Length of electrodes required = 1.5 m/ meter of weld length
(iii) Cost of electrode = Rs. 0.60 per meter
(iv) Power consumption = 4 kWh/meter of weld
(v) Power charges = Rs. 3/kWh
(vi) Labour charges = Rs. 40/hour
(vii) Other overheads = 200 percent of prime cost
(viii) Discarded electrodes = 5 percent
(ix) Fatigue and setting up time = 6 percent of welding time.

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(OR)

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(i) What are the various losses which are to be considered in a forging shop?
Explain (12)
While calculating the volume of material to be used for a component an allowance is
made for wastage of metal due to various factors. Various allowances to be taken into
account are discussed below :
(i) Shear loss : The blank required for forging a component is cut from billets or
long bars. The material equal to the product of thickness of sawing blade and cross-section
of bar is,lost for each cut. Similarly, if the small pieces left at the end are not of full length,
these also go as waste. Shear loss is generally taken as 5 percent of net weight.
(ii) Tonghold loss : Drop forging operations are performed by holding the stock at
one end with the help of tongs. A small length, about 2.0 – 2.5 cm and equal to diameter of
stock is added to the stock for holding.
Tong hold loss = Area of X-section of bar × Length of tong hold
(iii) Scale loss : As the forging process is performed at very high temperature, the
Oxygen from air forms iron oxide by reacting with hot surface. This iron oxide forms a thin
film called scale, and falls off from surface at each stroke of hammer. Scale loss is taken as 6
percent of net weight.
(iv) Flash loss : When dies are used for forging, some metal comes out of the die at
the parting line of the top and bottom halves of the die. This extra metal is called flash.
Flash is generally taken as 20 mm wide and 3 mm thick. The circumference of component
at parting line multiplied by cross-sectional area of flash gives the volume of flash. The
flash loss in weight is then calculated by multiplying the volume of flash by density of the
material.
(v) Sprue loss : When the component is forged by holding the stock with tongs, the
tonghold and metal in the die are connected by a portion of metal called the sprue or
runner. This is cut off when product is completed. Sprue loss is taken as 7 percent of net
weight.

(ii) List the various sections that will be normally found in a foundry shop.(4)
1. Pattern Making Section
2. Sand-mixing Section
3. Core-making Section
4. Mould Making Section
5. Melting Section
6. Fetting Section
7. Inspection Section

15. a) Consider the component as shown in the figure. The component is to be made
from mild steel with carbide tooling at a constant surface speed of 100 m/min.
on a lathe with a maximum spindle speed of 1500 rev/min. the machining
allowance is 2mm. determine:
i. If the lathe is capable of turning the component at the required surface
speed
ii. The total machining time for the component if the lathe is capable.

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15 b)(i) Find the time required on a shaper to machine a plate 600 mm × 1,200 mm,
if the cutting speed is 15 meters/min. The ratio of return stroke time to
cutting time is 2 : 3. The clearance at each end is 25 mm along the length and
15 mm on width. Two cuts are required, one roughing cut with cross feed of 2
mm per stroke and one finishing cut with feed of 1 mm per stroke.

b) (ii) A T-slot is to be cut in a C.I. slab as shown in Fig. Estimate the machining
time. Take cutting speed 25 m/min, feed is 0.25 mm/rev. Dia of cutter
for channel milling is 80 mm.

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Key

Part - A

1. What are the details required for process planning?

Assembly and part drawings; Specifications of various machine tools; Size of the
materials; Table of allowances

2. Geometric Tolerance symbol.

A, B – Datum Reference

- Position (Geometry Control tool)

M – More Tolerance

3. What is activity based costing?

Activity-based costing (ABC) is an accounting method that identifies and assigns
costs to overhead activities and then assigns those costs to products. An activity-
based costing (ABC) system recognizes the relationship between costs,
overhead activities, and manufactured products, and through this relationship, it
assigns indirect costs to products less arbitrarily than traditional methods.

4. What are the elements of costing?

(i). Material cost (ii). Labour Cost (iii). Expenses

5. Power Cost = [((V*A)/100) * (t/60) * (1/η) * (1/r) * C]

6. What are the causes of depreciation?

Due to Physical Conditions Due to Functional conditions

Wear and Tear Inadequacy

Accident Obsolescence

Poor Maintenance

7.

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8. What is Right and Left hand welding?

In Right hand welding, the weld is done from left hand of the seam to right hand
whereas in left hand welding, the weld is done from right hand of the seam to left
hand.

9. Typical data required for cutting time calculation in shaping.

Cutting speed; Time taken for one cut; Total time required.

10. Steps involved in cutting time calculation.

S = [(π * d * N)/1000]

Part – B

11. a. (i).

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12. a.

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13 a.

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14. b.

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15 a.

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16. a,

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16. b.

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 ME 6005 Process Planning & Cost Estimation 2019-20
ANNA UNIVERSITY NOV/DEC-2019 EXAMINATIONS

Question Paper Code: 20785

Date of Examination: 24th November, 2019/ Forenoon Session

PART-A (10 x 2 = 20 Marks)

1. List the objectives of Process planning

 Identify the functions involved in product design and manufacture

 Define the process planning activity
 Identify and describe the main tasks undertaken during process planning
 Identify and describe the various data used in process planning
 Identify and describe the main process planning documentation
 Identify and describe the relationship between process planning and other manufacturing functions

2. Interpret the symbol given below:

This is a Milled Component having a Surface Roughness of 12.5 µm; The lay of machining is perpendicular.
Machining Allowance is 5 µm. It is finished by Chrome Plating. The Sampling length during Surface Roughness
measurement is 2.5 mm.

3. Differentiate between Process Sheet and Route Sheet

A process sheet is a very important document which forms a basis for all planning, scheduling and despatching
functions. Also it helps in advance planning and for purchase of raw materials design and manufacture of special
tools, jigs, fixtures and inspection devices. It helps in estimating the cost of the product before it is a actually
manufactured. It also helps in planning for man power required for doing the job.

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.

4. What are the main reasons for using Jigs and fixtures?
 To reduce the cost of production, By using them, they eliminate the laying out of work and setting up of
the tools.
 To increase the production rate.
 To ensure high accuracy of parts produced without any manufacturing defects.
 To provide for interchangeability.

5. Distinguish between Cost Estimating and Cost Accounting

Costing or cost accounting gives the actual expenditure incurred on the production of the component based on
the records of expenditure on various activities involved, when the product has already been manufactured
whereas estimating is a type of forecasting and gives the expected expenditure to be incurred on the manufacture

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of the product before the actual manufacturing is taken up. Also, cost estimating is done by qualified engineers,
whereas costing is done by accountants or cost accountants.

6. List out the various methods of allocation of overheads

Allocation by Cost proportion, Allocation by Hourly Rate and Allocation by Unit Rate.

7. Name the various sections in a Foundry Shop

Pattern Making Section, Sand-mixing Section, Core-making Section, Mould Making Section, Melting Section,
Fettling Section and Inspection Section.

8. Give the formula for calculating the Cost of Power consumed in Arc welding.
Power cost = [(VxA)/1000] * (t/60) * (1/E)* (1/r)*C
V = Voltage
A = Current in Amperes
t = Welding time in minutes
E = Efficiency of the welding machine
= 0.6 for welding transformer
= 0.25 for welding generator
r = Ratio of operating time to connecting time taken by the operator
C = Cost of electricity per kWh i.e., Unit.

9. Write Short notes on Tear Down Time

It is the time taken to remove the tools, jigs and fixtures from the machine and to clean the machine and
tools after the operation has been done on the last component of batch. The tear down time is usually
small. The tear down time occurs only once for a complete lot or batch taken for machining. Standard data
are available for tear down time for various machines.

10. Find the time required to shape a slot 300 mm long, 10 mm wide and 5 mm deep in a CI Block. Cutting
Speed= 10 m/min; Feed= 1mm/ stroke; Maximum Depth of cut=2.5 mm; Assume K=0.25

Solution:
Number of cuts required = (Total depth of cut required/ Maximum depth per cut)= (5/2)=2.5
Ts =[(L+50)*(B+25)*(1+K)] / (1000*V*f)= [(300+50)*(10+25)*(1+0.25)]/(100*1*10)= 1.53 Min for 1
cut. Therefore for 2 cuts it will be 3.06 Min.

PART-B (5 x 13 = 65 Marks)

11 a) Describe the basic method employed for the selection of cutting tools.
A method for tool selection will be outlined which incorporates the selection factors. This is a five-stage
process as follows:
1. Evaluation of process and machine selection:
Provided the selection of processes and machine is satisfactory, the range of tools that can be used should
be limited to those suitable for the processes and machines selected. Therefore, this limits the initial list of
possible suitable tooling.
2. Analysis of machining operations:
A Specific machine will carry out every operation required. Each machine tool to be used will have
specific tool types to carry out certain operations. Therefore, this analysis should enable the identification
of specific tool types for specific operations.
3. Analysis of work piece characteristics:
The focus of the workpiece analysis is on the workpiece material and geometry and the capability in terms
of dimensional and geometric accuracy and surface finish. The analysis of the first two characteristics

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enables suitable tool materials and geometry (in terms of size and shape) to be identified. The third
characteristics allows the tool type and geometry to be refined further to suit the operations.
4. Tooling analysis
Using the tooling data available, the general tooling specifications generated at the third stage can be
translated into a statement of tooling requirements for the job, that is, a tooling list. This will obviously
reflect whatever tooling is actually available for the operations required.
5. Selection of tooling
There are two routes that the tool selection can take at this point. If single piece tooling is being used, then
a suitable tool holder should be selected before fully defining the tool geometry and material. However, if
insert tooling is being used then the following steps should be followed:
a. select clamping system
b. select tool holder type and size
c. select insert shape
d. select insert size
e. select insert type
f. select tool material

OR

11b) Describe the procedure/ steps involved in Process Planning

The following are the steps involved in carrying out the process planning manually:
Past experience of process planners are used in arriving at the economical manufacturing of the product.
The steps involved in process planning are :
(i) The finished product is analyzed so that its sub-assemblies and individual components are identified
from manufacturing point of view.
(ii) Prepare a Bill Of Materials [BOM] for all components of the product which forms a basis for purchase
of raw materials.
(iii) Decide which parts are to be manufactured in the plant and which parts are to be purchased from the
market depending upon the facilities available in the plant, i.e., decision with regard to “make” or “buy” to
be taken.
(iv) Choose the appropriate blank size i.e., raw material size and select the most economical process to be
followed to manufacture components of the product. This is done by comparing the various possible
methods of obtaining the final product. The basic factors of volume to be produced, i.e., production
quantity, required quality of the product and the capabilities of the equipment available are carefully
considered in this step.
(v) Decide the sequence of operations to be performed on each component in the process selected.
(vi) Each operation is assigned to the type and size of machine or work station that will perform the job
most economically.
(vii) Depending upon the accuracies called for by the drawings, determine the machine tools to do the
operations
(viii) Determine the need for any special equipment like jigs, fixtures, cutting tools etc.,
(ix) Determine the inspection stages and instruments required and the need for designing any inspection
devices (say gauges, etc.).
(x) Estimate the standard time for performing the job.
(xi) Determine the type of labour (skilled, semi-skilled or unskilled) required to do the job. Process
planning has been traditionally carried out by methods engineers, manufacturing engineers, industrial
engineers or by process planners.

12a) List out the set of Documents required for Process Planning
(i) Product design and the engineering drawings pertaining to all the components of the product. (i.e.,
components drawings, specifications and a bill of materials that defines how many of each component go
into the product).
(ii) Machining/Machinability Data Handbook (Tables of cutting speeds, depth of cut, feeds for different
processes and for different work materials).
(iii) Catalogues of various cutting tools and tool inserts.
(iv) Specifications of various machine tools available in the shop/catalogues of machine tools in the shop
(speeds, feeds, capacity/power rating of motors, spindle size, table sizes etc.).

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(v) Sizes of standard materials commercially available in the market.
(vi) Machine Hr. cost of all equipment available in the shop.
(vii) Design Data Handbook.
(viii) Charts of Limits, Fits & Tolerances.
(ix) Tables showing tolerances and surface finish obtainable for different machining processes.
(x) Tables of standard cost.
(xi) Table of allowances (such as Personal Allowance, Fatigue Allowance etc. in % of standard
time followed by the company).
(xii) Process plans of certain standard components such as shafts, bushings, flanges etc.
(xiii) Handbooks (such as Tool Engineers Handbook, Design Data Handbook).

OR

12b) i) What are the six basic factors while selecting Measuring Instruments? Explain in detail.
 Accuracy: The degree of agreement of the measured dimension with its true magnitude.
 Amplification: The ratio of measuring instrument output to the input dimension; it is
also called magnification.
 Calibration: The adjustment or setting of a measuring instrument to give readings that are
accurate within a reference standard.
 Drift: An instrument’s capability to maintain its calibration over time; also called stability.
 Linearity: The accuracy of the readings of a tool over its full working range.
 Magnification: The ratio of measuring instrument output to the input dimension; also called
amplification.
 Precision: Degree to which a measuring instrument gives repeated measurement of the same
standard.
 Repeat accuracy: The same as accuracy, but repeated many times.
 Resolution: the Smallest dimension that can be read on an instrument.
 Rule of 10 (gage maker’s rule): An instrument or gage should be ten times more accurate
than the dimensional tolerances of the part being measured. A factor of 4 is known as the mil
standard rule.
 Sensitivity: Smallest difference in a dimension that an instrument can distinguish or detect.
 The speed of response: How rapidly a measuring instrument indicates a
measurement, particularly when some parts are measured in rapid succession.
 Stability: An instrument’s capability to maintain its calibration over time; also called drift

12 b) ii) Explain Six Degrees of Freedom with Neat Sketch

Six degrees of freedom (6DOF) refers to the specific number of axes that a rigid body is able to freely
move in three-dimensional space. It defines the number of independent parameters that define the
configuration of a mechanical system. Specifically, the body can move in three dimensions, on the X, Y
and Z axes, as well as change orientation between those axes though rotation usually called pitch, yaw and
roll. Six degrees of freedom is a specific parameter count for the number of degrees of freedom an object
has in three-dimensional space, such as the real world. It means that there are six parameters or ways that
the body can move. Six degrees of freedom consists of the following movement parameters:
 Translation – Moving along the different axes X, Y and Z
Moving up and down along the Y axis is called heaving.
Moving forwards and backwards along the X axis is called surging.
Moving left and right along the Z axis is called swaying.
 Rotation – Turning in order to face a different axis
Moving between X and Y is called pitch.
Moving between X and Z is called yaw.
Moving between Z and Y is called roll.

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13 a) Calculate the selling price per unit from the following data :
Direct material cost = Rs. 8,000
Direct labour cost = 60 percent of direct material cost
Direct expenses = 5 percent of direct labour cost
Factory expenses = 120 percent of direct labour cost
Administrative expenses = 80 percent direct labour cost
Sales and distribution expenses = 10 percent of direct labour cost
Profit = 8 percent of total cost
No. of pieces produced = 200

Solution :
Direct material cost = Rs. 8,000
Direct labour cost = 60 percent of direct material cost = (0.6 × 8,000) = Rs. 4,800
Direct expenses = 5 percent of direct labour cost = (4,800 × 0.05)= Rs. 240

Prime cost = 8,000 + 4,800 + 240 = Rs. 13,040

Factory expenses = 120 percent of direct labour cost

= (4,800 × 1.2) = Rs. 5,760

Administration Expenses = 80 percent of direct labour cost

= (4,800 × 0.8)= Rs. 3,840

Sales and distribution expenses = 10 percent of direct labour cost

= (0.1 × 4,800)= Rs. 480

Total cost = Prime cost + Factory expenses + Office expenses + Sales and distribution expenses
= 13,040 + 5,760 + 3,840 + 480 = Rs. 23,120

Profit = 8 percent of Total cost = (23,120 × 0.08) = Rs. 1,849.60. ie, 1,850 approx
Selling price = Total cost + Profit
= 23,120 + 1,850 = Rs. 24,970

OR

13b) Describe the various components of Job Estimate.

1. Cost of Design
The cost of design of a component or product is estimated by ascertaining the expected time for the design
of that component. This may be done on the basis of similar job previously manufactured but for new and
complicated jobs the estimator has to consult the designer who gives the estimated time of design. The

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estimate design time multiplied by the salary of designer per unit time gives the estimated cost of design. If
the design of the component is done by some outside agency, the total amount paid to outside agency gives
the cost of design.
2. Cost of Drafting
Once the design of the component is complete, its drawings have to be prepared by draftsman. The
expected time to be spent in drawing or drafting is estimated and is then multiplied by the standard drafting
rate or by the salary of the draftsman per unit time to get estimated cost of drafting.
3. Cost of Research and Development Work
Before taking up the manufacturing of actual components/parts considerable time and money has to be
spent on research and development. The research may be theoretical, experimental or developmental
research. The cost of R and D can be estimated by considering various items of expenditure incurred
during R and D work which include :
(i) Cost of labour involved.
(ii) Cost of material used.
(iii) Cost of special equipment used or fabricated for the prototype.
(iv) Depreciation, repair and maintenance cost of experimental set-up.
(v) Cost of services of highly qualified and trained personnel needed for experimentation.
(vi) Cost of preparing Test Reports, if any.
In some cases the cost of R and D may be estimated on the basis of research involved in similar
products produced in the past.
4. Cost of Raw Material
The estimation of cost of materials used in production of a component/product consists of
following steps :
(i) A list of all the materials used in the manufacture of the product is made which includes the
direct as well as indirect materials.
(ii) The quantity (weight or volume) of all the material expected to be used in the manufacture
of the product is estimated. The allowance for material wastage, spoilage and scarp are also
added for each component/part.
(iii) Cost of each material is estimated by multiplying the estimated quantity of each material
with its estimated future price. The estimate of future price of a material is made keeping in
view of present prices and general trends and variations.
(iv) Estimated cost of all the materials is added to get the overall estimated material cost.
5. Cost of Labour
The cost of labour involved in the manufacture of a product is estimated by estimating the labour time
needed to manufacture the product and multiplying it by cost of labour per hour. In order to estimate the
labour time expected to be spent on a job, one must have thorough knowledge of the various operations to
be performed, machines to be used, sequence of operations, tools to be used and labour rates. For this
purpose, the estimator may consult engineers, supervisors or foremen from production or industrial
engineering departments.
6. Cost of Inspection
A product being manufactured is inspected at various stages during its manufacture. It may be inspection
of raw material or in-process inspection or inspection of finished goods. The cost of inspection equipment,
gauges and consumable involved in the inspection and testing are taken into account while estimating the
cost of the product.
7. Cost and Maintenance Charges of Tools, Jigs and Fixtures
Estimated cost of a product includes the estimated cost and maintenance charges for the tools, jigs, fixtures
and dies required in the production. The cost of tools, jigs, fixtures etc., is estimated considering their
present prices, market trend and the number of times a particular tool can be used during its life-time. The
estimated cost divided by the number of jobs, it can make, gives the tool cost per unit produced.

8. Overhead Costs
Overhead or indirect costs are those which are not incurred specifically for any one order or product and
these cannot be charged directly to a specific order or product. The overhead costs may be estimated by
referring to the records of overhead costs in similar items produced in past. The overhead cost per unit
varies considerably with the volume of production i.e. number of components produced.

14 a) Calculate the total cost of CI (Cast Iron) cap shown in , from the following data :

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Cost of molten iron at cupola spout = Rs. 30 per kg
Process scrap = 17 percent of net wt. of casting
Process scrap return value = Rs. 5 per kg
Administrative overhead charges = Rs. 2 per kg of metal poured.
Density of material used = 7.2 gms/cc
The other expenditure details are :

Solution : To calculate material cost :

Volume of the component = (2 × 6 × 2 × 6) + (0.5x × p [(7.5)2 – (6)2] 6 = 335 cc
Net weight of the casting = 335 × 7.2 = 2,412 gms = 2.4 kgs
Process scrap = 2.4 × 0.17 = 0.4 kg
Metal required per piece = 2.4 + 0.4 = 2.8 kgs
Material cost/piece = 2.8 × 30 = Rs. 84
Process return = 0.4 × 5 = Rs. 2
Net material cost per piece = 84 – 2 = Rs. 82

(ii) Calculate Labour Cost and Overheads

Labour charges = Rs. 6.67 per piece

Shop overheads = Rs. 10 per piece
Administrative overheads = 2 × 2.8 = Rs. 5.6
Total cost per piece = 82 + 6.67 + 10 + 5.6 = Rs. 104.27

OR

14b) What are the various losses while calculating the material cost for a Forged Component?

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While calculating the volume of material to be used for a component an allowance is made for wastage of
metal due to various factors. Various allowances to be taken into account are discussed below:

(i) Shear loss : The blank required for forging a component is cut from billets or long bars. The material
equal to the product of thickness of sawing blade and cross-section of bar is lost for each cut. Similarly, if
the small pieces left at the end are not of full length, these also go as waste. Shear loss is generally taken as
5 percent of net weight.

(ii) Tonghold loss : Drop forging operations are performed by holding the stock at one end with the help
of tongs. A small length, about 2.0 – 2.5 cm and equal to diameter of stock is added to the stock for
holding. Tonghold loss = Area of X-section of bar × Length of tonghold

(iii) Scale loss : As the forging process is performed at very high temperature, the Oxygen from air forms
iron oxide by reacting with hot surface. This iron oxide forms a thin film called scale, and falls off from
surface at each stroke of hammer. Scale loss is taken as 6 percent of net weight.

(iv) Flash loss : When dies are used for forging, some metal comes out of the die at the parting line of the
top and bottom halves of the die. This extra metal is called flash. Flash is generally taken as 20 mm wide
and 3 mm thick. The circumference of component at parting line multiplied by cross-sectional area of flash
gives the volume of flash. The flash loss in weight is then calculated by multiplying the volume of flash by
density of the material.

(v) Sprue loss : When the component is forged by holding the stock with tongs, the tonghold and metal in
the die are connected by a portion of metal called the sprue or runner. This is cut off when product is
completed. Sprue loss is taken as 7 percent of net weight.

15a) Calculate the machining time to drill four 8 mm dia holes and one 40 mm dia central hole in the
flange shown. 20 mm dia hole is drilled first and then enlarged to 40 mm ∅ hole. Take cutting speed 10
m/min, feed for 8 mm∅ drill 0.1 mm/rev, for 20 mm drill feed is 0.2 mm/rev. and for 40 mm ∅drill feed is
0.4 mm/rev.

(i) Time to drill four 8 mm dia holes

S = 10 m/min.
Dia of drill D = 8 mm.
L = 10 mm; f = 0.1 mm/rev.
N = (S × 1,000)/ (π x D)= (10 × 1,000)/ (π x 8) = 398 r.p.m.
Time taken to drill one hole = L/ (f × N) = 10/ (0.1 × 398) = 0.25 min.
Time to drill 4 holes = 0.25 × 4 = 1 minute.

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(ii) Time to drill one hole of 40 mm diameter :
This hole is made in two steps :
(a) Drill 20 mm ∅ hole — 30 mm long
N =(10 × 1,000)= (π × 20) = 159 r.p.m.
Time taken = 30 / (0.2 × 159) = 0.95 min.

Enlarge 20 mm ∅ hole with 40 mm ∅ drill

N = (10 × 1,000)/ (π × 40) = 80 r.p.m.
f = 0.4 mm/rev.
Time taken = 30/ (0.4 × 80) = 0.94 min.
Total time taken to drill all the holes = 1.0 + 0.95 + 0.94 = 2.9 min.

OR

15b) A T-slot is to be cut in a C.I. slab as shown. Estimate the machining time . Take cutting speed 25
m/min, feed is 0.25 mm/rev. Dia of cutter for channel milling is 80 mm.

Solution : The T-slot will be cut in two steps :

Step I : Cut a 20 mm wide and 35 mm deep channel along the length
Dia of cutter = 80 mm
Cutting speed = 25 m/min

Length of job = 260 mm

r.p.m. of cutter = (25 × 1000)/ (π × 80) = 100
Over travel =√D𝑑 − 𝑑*d)
Over travel=√80 × 35– (35 ∗ 35) = 40 mm
Total tool travel = 260 + 40 = 300 mm
Time for cutting slot = (Length of cut/ Feed per min) = 300 / (0.25 × 100) = 12 min.

Step II : Cut T-slot of dimensions 60 × 20 with a T-slot cutter

dia of cutter = 60 mm
r.p.m. of cutter = (25 × 1,000)/(π× 60) = 133
In this case the over travel of tool = (0.5 x Dia of cutter) , since dia of cutter = width of slot
Over travel = (60/2) = 30 mm
Total tool/Table travel = 260 + 30 = 290 mm
Time taken = 290 / (0.25 × 133) = 8.7 min
Total time to cut T-slot = 12 + 8.7 = 20.7 minutes.

PART-C (1 x 15 = 15 Marks)

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16 a) Consider the component as shown in the figure. The component is to be made from mild steel with
carbide tooling at a constant surface speed of 100 m/min. on a lathe with a maximum spindle speed of
1500 rev/min. the machining allowance is 2mm. determine:
i. If the lathe is capable of turning the component at the required surface speed
ii. The total machining time for the component if the lathe is capable.

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16 b) Work out the welding cost for a cylindrical boiler drum 2.5 m × 1 m diameter which is to be made
from 15 mm thick m.s plates. Both the ends are closed by arc welding of circular plates to the drum.
Cylindrical portion is welded along the longitudinal seam and welding is done both in inner and outer
sides. Assume the following data :

(i) Rate of welding = 2 meters per hour on inner side and 2.5 meters per hour on outer side
(ii) Length of electrodes required = 1.5 m/ meter of weld length
(iii) Cost of electrode = Rs. 0.60 per meter
(iv) Power consumption = 4 kWh/meter of weld
(v) Power charges = Rs. 3/kWh
(vi) Labour charges = Rs. 40/hour
(vii) Other overheads = 200 percent of prime cost
(viii) Discarded electrodes = 5 percent
(ix) Fatigue and setting up time = 6 percent of welding time.

Solution :
Diameter of drum = 1 meter
Length of drum = 2.5 meter
As the cylindrical portion is welded on both sides and both the ends are closed by welding
circular plates, the welding on circular plates being on one side only.
Length of weld = 2 × p × dia of drum + (2 × length of drum)
= 2 × p × 1 + (2 × 2.5)
= 11.28 meters ie, 11.3 meters pprox.

(i) To calculate direct material cost : In this example the cost of electrodes is the direct material cost.
Length of electrode required = 1.5 m/m of weld
Net electrode length required for 11.3 meters weld length = 1.5 × 11.3 = 16.95 meters
Discarded electrode = 5 percent
Total length of electrodes required = 16.95 + [(5 × 16.95)/ 100]= = 17.8 meters
Cost of electrodes = 0.6 × 17.8 = Rs. 10.68.

(ii) To calculate direct labour cost : To calculate the labour charges, first we have to calculate
the time required for making the weld (assuming that side plates have single side welding

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and longitudinal seam is welded on both sides).
Length of weld on inside of drum = 2.5 meter
Length of weld on outside of drum = 2 × p × 1 + (2.5) = 8.8 meters
Time taken for inside weld = (2.5 × 1)/ 2 = 1.25 hrs
Time taken for outside weld = (8.8 × 1)/ 2.5 = 3.5 hrs
Net time required for welding = 1.25 + 3.5 = 4.75 hrs
Fatigue and setting up allowances = 4.75 × 0.06 = 0.28 hrs
Total time required = 4.75 + 0.28 = 5 hrs
Direct labour cost = 40 × 5 = Rs. 200

(iii) To calculate cost of power consumed

Power consumption = 4 × 11.3 = 45.2 kWh
Cost of power consumed = 45.2 × 3 = Rs. 135.6

(iv) To calculate the overhead charges :

Prime cost = Direct material cost + Direct labour cost + Direct other expenses
Prime cost = 10.68 + 200 + 135.60 = Rs. 346
Overheads = (200/ 100)× 346= Rs. 692

(v) Total cost of making boiler drum = 10.68 + 200 + 135.6 + 692

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ANNA UNIVERSITY APR/MAY-2019 EXAMINATIONS

Question Paper Code: 53282

PART-A (10 x 2 = 20 Marks)

1. How is Surface Finish indicated in Engineering Drawing?

2. What are the methods of Process Planning?

Manual Process Planning and Computer Aided Process Planning (CAPP). CAPP is further classified into:
Retrieval Type and generative Approach.

3. List out the factors that are to be considered while selecting the process parameters.
 Shape requirements of the final product i.e., Geometric Form
 Size or Dimensional requirements.
 Tolerance requirements
 Surface finish requirements
 Production volume requirements
 Material requirements

4. What are the basic principles of design of Jigs and fixtures?

 To reduce the cost of production, By using them, they eliminate the laying out of work and setting up of
the tools.
 To increase the production rate.
 To ensure high accuracy of parts produced without any manufacturing defects.
 To provide for interchangeability.

5. Why importance of Realistic Cost estimates is emphasized?

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.
The cost estimate may prove to be
(i) A realistic estimate,
(ii) An over-estimate, or
(iii) An under-estimate.
• An over-estimate, later on, proves to be much more than the actual cost of that product.
• An under-estimate, later on, proves to be much lower than the actual cost of that product.
Both over-estimate and under-estimate may prove to be dangerous and harmful for a concern. Assume
that on the basis of an estimate, the concern has to fill up a tender enquiry. The overestimate means
the concern will quote a higher rate and thus will not get the job or contract. In case of an under-
estimate, the concern will get the contract but it will not be able to complete the work within that
small quoted amount and hence will suffer heavy losses. This emphasizes the importance of making
realistic estimates. Realistic estimates are very essential for the survival and growth of a concern

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6. What is Parametric Estimating?
Parametric estimating is the act of estimating cost or time by the application of mathematical formulas. These
formulas can be as simple as multiplices or as complex as regression models. Parametric estimating, sometimes
refused as statistical modeling, was first documented by the Rard Corporation in the early 1950‘s in an attempt
to predict military hardware cost.

7. What is meant by Flash Loss?

When dies are used for forging, some metal comes out of the die at the parting line of the top and bottom
halves of the die. This extra metal is called flash. Flash is generally taken as 20 mm wide and 3 mm thick.
The circumference of component at parting line multiplied by cross-sectional area of flash gives the
volume of flash. The flash loss in weight is then calculated by multiplying the volume of flash by density
of the material.

8. How Cost of Material for Casting is calculated?

Cost of material required for casting is calculated as follows :
(i) From the component drawing, calculate the volume of material required for casting. This volume
multiplied by density of material gives the net weight of the casting.
(ii) Add the weight of process scrap i.e. weight of runners, gates and risers and other material consumed as
a part of process in getting the casting.
(iii) Add the allowance for metal loss in oxidation in furnace, in cutting the gates and runners and over
runs etc.
(iv) Multiply the total weight by cost per unit weight of the material used.
(v) Subtract the value of scarp return from the amount obtained in step (iv), to get the direct material cost.

9. What is meant by Interference Allowance?

This allowance is provided where in a cycle of operation, there are certain elements which are machine
controlled. The operator cannot speed up those elemental operations. This allowance is also provided when
one worker is working on several machines

10. In general, when calculating Machining times allowances are used. Why it is important?
Any operator will not be able to carry out his work throughout the day without any interruptions. The operator
requires some time for his personal needs and rest, and hence such time should be included in standard time.

PART-B (5 x 13 = 65 Marks)

11 a) What are the two distinct approaches used in Material selection? Explain the basic steps involved in
both the cases.

Material selection is done by the product designer considering the requirements of the parts designed and
the hardness, strength properties and other mechanical characteristics of the material. Cost and availability
of the material are also considered. Material should be strong enough and at the same time manufacturing
or producibility of the part using the given material and the process are also equally important. In the initial
stages of design, the broad material groups such as ferrous or non-ferrous or other non-metallic materials
can be considered. At a later stage specific material in the group can be identified. In certain products or
components specific properties of materials such as fatigue strength, thermal conductivity, electrical
properties like conductivity, magnetic permeability and insulation resistance may have to be considered.

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Material Selection parameters

(i) Functional requirements : The primary function of the part for which the material is selected is the
foremost consideration. A good knowledge of the product application is important. The properties of
materials which have a direct bearing on the functional requirement of the part are : fatigue characteristics,
strength, hardness, electrical and
thermal properties.
(ii) Reliability : Reliability of the materials refers to the consistency with which the material will meet all
the products requirement throughout its service life. This is important for trouble-free maintenance of the
product during its life time.
(iii) Service life durability : The length of service (years or hours of operation of the product) over which
material is able to perform its function satisfactorily.
(iv) Aesthetics and appearance : Factors like colour, texture, lusture, smoothness and finish play an
important role in the aesthetics or appearance of the final product.
(v) Environmental Factors : Environmental factors such as temperature, humidity, corrosive atmosphere
affects the product and its performance. Hence proper materials which can with stand such environmental
effects should be selected and they should be given suitable protective coatings.
(vi) Compatibility with other materials during service : When one type of material is used in
combination with another type of material in a product or in an assembly the properties of both types of
materials should be compatible and should suit each other. Otherwise deterioration in the performance of
the product or assembly such as excessive wear & tear, and corrosion of parts in fitment are likely to take
place.
(vii) Producibility or manufacturability: The extent to which the material can be processed effectively
and easily using a particular machine tool or process should also be considered in the selection of the
material. Machinability of materials for machined components is an important factor.
(viii) Cost : The cost of material is a significant factor in many situations. The availability of the material
is equally important. Appropriate material for the product or component is to be selected taking into
consideration all the above factors.

OR

11b) Discuss the different steps involved in Process Selection

Process Selection
Consideration should be given to the following factors in selecting a particular process
1. Nature of part, including materials, tolerances, desired surface finish and operation required.
2. Method of fabrication including machining or assembling of similar parts or components.
3. Limitation of facilities including the plant and equipment available.
4. Possibility of likely product design changes to facilitate manufacturability or cost reduction.
5. In-plant and outside materials handling systems.
6. Inherent process to produce specified shape, surface, finish to give desired mechanical properties.
7. Available skill level of operators for the production.
Sometimes the following additional factors affect the selection of a particular process.
(a) Proposed or anticipated production requirements, including volume requirements, production rates and
short- term or long- term production runs.
(b) Total end-product costs.
(c) Time available for tooling-up.
(d) Materials receipt, storage, handling and transportation.
Careful consideration of these factors will result in the selection of the most appropriate process for the
manufacture of a particular product. Selection of an appropriate manufacturing process depends on many
factors and requires considerable knowledge, skill and competence of the process planner or process
analyst.

Process Sheet : Once the process (example : machining) has been selected, the next step is to list
operations in a logical sequence. The processes are written in a sequential order in the process sheet or
operation analysis sheet. The process sheets are used as instruction sheets, for the operator to process the
part. Process sheets format vary widely in industry depending on such factors as type of product, type of
industry, type of equipment and type of manufacturing. However, most process sheets include such

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information as description and numerical order of operations, manufacturing equipment used jigs, fixtures,
tools and gauges used, speeds, feeds and depths of cut, material specifications, drawing specifications and
revisions, if any.

Machine Selection: Product manufacturing requires tools and machines that can produce economically as
well as accurately. Economy depends to a large extent on the proper selection of the machine or process
for the job that will give a satisfactory finished product. The selection of the machine is influenced, in turn
by the quantity of items to be produced. Usually there is one machine best suited for a certain output. In
small lot or jobbing type manufacture, general purpose machines such as the lathe, drill press, and milling
machine may prove to be the best type since they are adoptable, have lower initial cost, require less
maintenance, and possess the flexibility to meet changing conditions in the shop.

Process Selection Parameters

There are several factors which govern the selection of a manufacturing process:
1. Shape requirements of the final product i.e., Geometric Form : Geometric parameters such as solid
shape, hollow shape, flat shape, flanged shape, concave shape, convex shape, cylindrical shape, presence
of any part feartures such as groove, threaded shape, hole, chamfer, etc. are considered in the selection of a
manufacturing process. Each process has its own capabilities and limitations with respect to the production
of the above shapes and part features.
2. Size or Dimensional requirements : Some processes are capable of handling parts of small sizes and
some processes can handle large sized parts economically and effectively.
3. Tolerance requirements : Each manufacturing process has got its own capability with regard to
tolerance or accuracy of parts that can be produced using that process e.g. grinding process always gives
close tolerances when compared with turning process. Depending upon the tolerance specified on the part
drawing, suitable machining process is to be selected.
4. Surface finish requirements : Each manufacturing process has got its own capability with regard to the
surface finish which it can provide on the part machined, e.g. reaming process can provide a better surface
finish in a hole when compared with drilling process. Similarly cylindrical grinding give a better surface
finish, than a plain turning process. Depending on the finish requirements specified on the component
drawing, appropriate machining process need to be selected.
5. Production volume requirements: The economics of any machining process depends on the
production volume, i.e., no. of components required on a weekly, monthly or annual basis as the case may
be. Existing order quantity as well as any anticipated future orders and their quantity need to be considered
in the process selection. Some of the processes and additional cost incurred in the specialized toolings, jigs
and fixtures can be justified only when there is a large volume of production.
6. Material requirements : The hardness, and strength characteristics of the material influence the tooling
required. To machine hard and tough materials, carbide and ceramic tools are required. If slender or thin
materials are machined, proper work holding devices and specially designed jigs and fixtures are required
is order to avoid distortion and bending of work pieces during machining. Thus material requirements of
the part also influence the appropriate selection of machining process.

12a) For the figure given below calculate the maximum surface speeds for Turning, Facing and Parting off
operations. The Maximum Spindle Speed is 600 rpm used in the Lathe.

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OR

12b) Discuss the following: “there are number of patterns that a process control chart can exhibit that
indicate a process is out of control without any points outside the control limits”

Control charts have long been used in manufacturing, stock trading algorithms, and process improvement
methodologies like Six Sigma and Total Quality Management (TQM). The purpose of a control chart is to
set upper and lower bounds of acceptable performance given normal variation. In other words, they

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provide a great way to monitor any sort of process you have in place so you can learn how to improve your
poor performance and continue with your successes
A control chart is a visual display used to plot values of a measure of process performance to determine if
the process is in control. Control chart construction is similar to determining a confidence interval for the
mean of the sample. A control chart has a nominal value also called central line, which can be average or
target desired to be achieved and two control limits based on the sampling distribution of the quality
measure. Control Limits are the statistical boundaries of a process, which define the amount of variation
that can be considered as normal or inherent variation. The larger value represents the upper control limit
(UCL) and the smaller value represents the lower control limit (LCL). Most commonly used are 3 sigma
control limits (± 3 Standard deviations from the mean). If the process is in control, a value outside the
control limit will occur only 3 time in 1000 (1 - .997 = .003). A sample statistic that falls between UCL
and LCL indicates that the process is exhibiting common causes of variation. A statistic that falls outside
the control limits indicates that the process is exhibiting assignable causes of variation as shown in Figure .
But, it is not always true that observations falling outside the control limits are due to poor quality of
service process. It may result due to change in the procedure of service process. If the performance
measure shows improvement with such observations, then incorporate the cause and reconstruct the
control chart with revised data.

General approach or steps in using quality control chart:

• Decide on some measure of service system performance or quality characteristic of service. The measure
can correspond to a population proportion nonconforming (attribute data) or corresponds to the mean of a
continuous random variable (variable data).
• Collect representative historical data from which estimates of the population mean and variance for the
system performance measure can be made.
• Decide on sample size, and using the estimates of population mean and variance, calculate +3 standard
deviation control limits.
• Graph the control chart as a function of a sample mean values versus time.

13 a) Enumerate about Conceptual Cost Estimation Method.

Conceptual Cost Estimating
It is estimating during the conceptual design stage. In the conceptual design stage, the geometry of parts
and materials have not been specified, unless they dictate essential product functions. In the conceptual
design stage, the costs associated with a change in the design are low. In the conceptual design stage, the
incurred costs are only 5 to 7% of the total cost whereas the committed costs are 75 to 85% of the total
cost. The accuracy of the conceptual cost estimate depends on the accuracy of the data base. The accuracy
of conceptual cost estimating is approximately – 30% to + 50%. Accuracy in conceptual cost estimating is
important since at the conceptual design stage only significant cost savings can occur.
Conceptual cost estimating methods include :
(a) Expert opinion,
(b) Analogy methods, and
(c) Formula based methods.
(a) Conceptual Method Based on Expert Opinion
If back-up and/or historical cost data are not available, getting expert opinion is the only way for
estimating cost.
The disadvantages of this method are
(i) The estimate is subjected to bias.

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(ii) The estimate can’t be quantified accurately.
(iii) The estimate may not reflect the complexity of the product or project.
(iv) Reliable data base for future estimates are not possible.
In spite of these disadvantages, the expert opinion is useful when historical data base is not available. It is
also useful to verify cost estimate arrived at using other methods of conceptual estimating (like analogy
methods and formula based methods).
(b) Conceptual Method Based on Analogy
Analogy estimating derives the cost of a new product based on past cost data of similar products. Cost
adjustments are made depending on the differences between the new and previous product/system.
Analogy estimating requires that the products be analogous or similar and products manufactured using
similar facilities or technology. If the technology changes, the analogy estimating relationship has to
changed to reflect the changes in technology. Another limitation of this method is that analogy estimates
often omit important details that makes cost considerably higher than the original cost estimates.
(c) Conceptual Method Based on Formula
There are formula based methods that are primarily used in the conceptual cost estimating. These are :
(i) Factor method,
(ii) Material cost method,
(iii) Function method, and
(iv) Cost-size relationship.
These methods are known as Global cost estimation methods and they generally use one of the above
methods only.

(i) Factor method

This is the simplest method, but it can give reliable estimates if the data are kept up-to-date, taking into
consideration factors such as inflation, and environmental issues which tend to increase the cost.
Example : In respect of different categories of equipment, material cost per kg is given below. The
equipment in each category costs about the same on a weight basis and the cost between categories
increases by a factor of approximately 10

A precision piece of equipment is approximately 10 times the cost of a mechanical/electrical piece of

equipment which is about 10 times the cost of a functional piece of equipment. Material cost figures given
are rough values. They can be refined.

(ii) Material cost method

Material cost method is justified since the material cost is the largest cost item in the prime cost of many
manufacturing companies.
According to this method :
Estimated cost of an item = (Material cost of the item being estimated/ Material cost share of item
being estimated in %)

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(iii) Function method

In function method more variables are used and the expressions are non-linear. The function is basically a
mathematical expression with constants and variables that provides a mathematical function for the cost
estimate. One expression is given below :

(iv) Method based on cost-size relationships

Another approach to the determination of conceptual costing is by considering the cost-size relationships.
In this approach, one can compare the cost of different designs on a relative basis or on an actual cost
basis. Expression have been developed from data on investment castings and for machined parts.

OR

13b) Explain the objectives of Cost Estimation.

The objectives of cost estimation are given below :
(i) It gives an indication to the manufacturer whether the project to be undertaken will be economical or
not.
(ii) It enables the manufacturer to choose from various methods of production the one which is likely to be
most economical, as all possible methods of production for particular product are analysed and evaluated.
(iii) It enables the manufacturer to fix the selling price (sales price) of the product in advance of actual
production. This is required to ensure that the product will be competitive and also to provide a reasonable
profit on the investment of the company.
(iv) it helps in taking decisions to make or to buy.
(v) Cost estimation gives detailed information of all the operations and their costs, thus setting a standard
to be achieved in actual practice.
(vi) It gives an estimate of the total expenditure expected to be made on a project enabling the management
to arrange the necessary finance or capital.
(vii) It helps a contractor to submit accurate tenders for entering into contract to manufacture certain
products.
(viii) Cost estimation enables the management to plan for procurement of raw materials/tools etc., as it
gives detailed requirements.

The value of an estimate lies in its accuracy, which depends on the care with which it is prepared.
Carelessly prepared estimates may prove to be harmful to the organisation or may even result in the
closure of the firm. If a job is overestimated, i.e., the estimated cost is much above the actual cost of the

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product, the shop or firm will not be able to compete with its competitors who have estimated the price
correctly and loses the order to its competitors. On the other hand, to underestimate i.e., estimated cost is
below the actual cost of product, means a financial loss to the firm and too many losses mean failure or
closure of the shop. (But when the cost estimate is to be used as a goal, i.e., target cost to be achieved in
production, it should be set on lower side than the actual estimated cost. The factory is more likely to try to
meet a low cost target than to try to get costs down very far below an overestimated target cost).

14 a) Calculate the cost of forging a crank shaft as shown. The forging is to be made out of a bar stock of
50 mm ∅ and following data is available :
(i) Material price = Rs. 80 per kg
(ii) Direct labour charges = Rs. 23 per piece
(iii) Overhead charges = 150 percent of material cost
(iv) Density of material = 7.5 gms/cc
(v) Losses = 28 percent of net weight

Solution : From the drawing of the forged component

Volume of forging = [2*(π/4)*(52)*10]+[2*12*5*8]+[ (π/4)*(52)*4] = 1430 cm3
Net weight of component = 1,430 × 7.5 = 10,725 gms
= 10.725 kgs
Losses = 28 percent of net weight = (0.28 × 10.725) = 3 kg
Gross weight = 10.725 + 3 = 13.725 kgs
Material cost per piece = 13.725 × 80 = Rs. 1100
Labour cost = Rs. 23 per piece
Overheads = 150 percent of material cost = 1.50 × 1100 = Rs. 1650
Cost of component = 1100 + 23 + 1650 = Rs. 2773

OR

14b) A lap welded joint is to be made as shown:

Estimate the cost of weld from the following data :

Thickness of plate = 10 mm
Electrode diameter = 6 mm
Minimum arc voltage = 30 Volts
Current used = 250 Amperes
Welding speed = 10 meters/hour
Electrode used per meter of weld = 0.350 kgs
Labour rate = Rs. 40 per hour
Power rate = Rs. 3 per kWh
Electrode rate = Rs. 8.00 per kg

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Efficiency of welding m/c = 50 percent
Connecting ratio = 0.4
Overhead charges = 80 percent of direct charges
Labour accomplishment factor = 60 percent

Solution :
Time per meter run of weld = (1/10) hrs = 6 minutes.
Power cost = [(VxA)/1000] * (t/60) * (1/E)* (1/r)*C
=[(30x250)/1000] * (6/60) * (1/0.5)* (1/0.4)*3
=Rs.11.25

V = Voltage
A = Current in Amperes
t = Welding time in minutes
E = Efficiency of the welding machine
= 0.6 for welding transformer
= 0.25 for welding generator
r = Ratio of operating time to connecting time taken by the operator
C = Cost of electricity per kWh i.e., Unit.

Cost of labour per meter of weld length = [(Cost of labour per hour)/( Welding speed in metre per hr)]*(1/
Labour accomplishment Factor)

= (40/10)*(100/60) = Rs. 6.66/meter of weld length

Cost of electrodes per meter of weld = 0.350 × 8 = Rs. 2.80

Total direct cost per meter of weld = Rs. 11.25 + 6.66 + 2.80 = Rs. 20.71
Overhead charges per meter of weld = (Rs.20.71 × 80)/ 100 = Rs. 16.60
Total charges for welding one meter length of joint = Rs. 20.71 + 16.60 = Rs. 37.31
As this is a double fillet weld, lap joint length of weld = 1.5 × 2 = 3 meters
Total charges of making the welded joint = Rs. 37.31 × 3 = Rs. 112

15a) Elucidate about the time elements considered to arrive at total time required to perform machining
operation.
To estimate the cost of any product involving machining operations, the machining time is required to be
estimated before the total cost of the product/component can be computed. In addition to actual time taken
for operation to be carried out, time is spent on certain other elements of work.
The total time required to perform a machining operation consists of following elements :
(i) Set-up time,
(ii) Handling time,
(iii) Machining time,
(iv) Tear down time,
(v) Down time, and
(vi) Allowances.
1. Set-up Time
This is the time taken to prepare the machine for operation. The set-up time includes the time taken to :
(i) Study the component drawing.
(ii) Draw tools from tool crib, and
(iii) Install and adjust the tools, jigs and fixtures on the machine.
The time over and above the unit standard time to produce first few pieces is also considered in set-up
time. We can say that set-up time is the overall preparation time less the standard time for the units
produced during the process of preparation. The set-up time occurs only once for a batch or lot being taken
up for production. Standard data are available for set-up time for various machine tools.
2. Handling Time

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It is the time taken by the operator in preparing a part for machining and for disposing the part after
operation has been completed. The handling time includes the time for loading and unloading the
component on the machine, making measurements on parts during machining, etc.
3. 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 piece to when the tool leaves the component after completion of operation. The machining time
depends on the type and extent of machining required, material being machined, speed, feed, depth of cut
and number of cuts required.
4. Unit Operation Time
The sum of handling time and machining time for a job is called operation time. It is the duration of time
that elapses between output of two consecutive units of production. It is also called cycle time.
5. Tear Down Time
It is the time taken to remove the tools, jigs and fixtures from the machine and to clean the machine and
tools after the operation has been done on the last component of batch. The tear down time is usually
small. The tear down time occurs only once for a complete lot or batch taken for machining. Standard data
are available for tear down time for various machines.
6. Down Time
It is the time wasted by the operator due to breakdowns, non-availability or delay in supply of tools and
materials etc.
7. Allowances
In additions to the elements of time described above, the total time to perform an operation includes a
number of allowances like time for personal needs of the operator, time for checking, time for tool
sharpening etc. The various allowances are follows :
(a) Personal allowance : This is the time taken by the operator in attending to his personal needs and
includes the time spent in going to toilet and cafeteria. It is usually taken as 5 percent of total time, i.e., 30
minutes in 8 hour Shift.

(b) Fatigue : The long working hours and working conditions such as poor lighting, poor ventilation etc.,
cause fatigue and affects the efficiency of worker i.e., fatigue decreases the workers capacity to work. The
allowance for fatigue is taken depending upon the type of work.
(c) Tool sharpening/Tool change allowance: This allowance is provided for the time taken by the
operator to get the tool changed or to resharpen the tool when it becomes dull. This time varies from
machine to machine and depends upon the type of tool being used.
(d) Inspection or Checking allowance : Inspection is a vital part of the total process of production.
Inspection is necessary to ensure that parts are manufactured according to laid down standards. The time
taken in checking the part for its dimension, process and fitness is reckoned as inspection time. The
inspection time depends on the dimensional tolerances and the instrument being used for checking
(e) Other allowances : Some allowance is provided to compensate for the activities, in which the operator
is engaged, but are not included in normal operation cycle. The activities include periodic cleaning of
machines, getting stocks, filling coolant reservoirs and disposal of scrap etc. These miscellaneous activities
vary from shop to shop and in a well organised shop, these may be reduced to a minimum by proper
planning. The total time required to make a component is the sum of unit operation time and proportion of
set-up time, tear-down time, down time and allowances for one work piece.

OR

15b) A mild steel bar 100 mm long and 38 mm in diameter is turned to 35 mm dia. And was again turned
to a diameter of 32 mm over a length of 40 mm as shown. The bar was machined at both the ends to give a
chamfer of 45° × 5 mm after facing. Calculate the machining time. Assume cutting speed of 60 m/min and
feed 0.4 mm/rev. The depth of cut is not to exceed 3 mm in any operation.

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PART-C (1 x 15 = 15 Marks)

16 a) Explain with an example about overhead costs and various bases used for absorption of overheads

These are known as overhead charges, burden or on cost. All the expenses over and above prime cost are
indirect expenses. Overhead is the sum of indirect labour cost, indirect material cost and other expenses
including service which cannot be conveniently charged to specific cost unit. These can be further
classified as
1. Production expenses/Factory expenses.
2. Administrative expenses.
3. Selling expenses.
4. Distribution expenses.
(i) Production expenses
These expenses cover all indirect expenditures incurred by the undertaking from the receipt of the order
until its completion ready for dispatch. Production expenses are also known as factory on cost, production
overhead, factory overhead, work on cost, works overhead etc. Some examples of factory expenses or
production expenses are:
(i) Rent, rates and insurance chargeable against the works.
(ii) Indirect labour example: supervision such as salaries of foreman, supervisors, factory manager etc.
(iii) Consumable stores and all forms of indirect material such as cotton waste, grease, oil etc.
(iv) Depreciation, maintenance and repair of buildings, plant, machine tools etc.,
(v) Power such as steam, gas, electricity, hydraulic or compressed air, internal transport etc.
(ii) Administrative expenses
These expenses 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.

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(iv) Travelling expenses for attending meetings etc.
(v) Charges for electric consumption for light, heating and cooling.
(vi) Stationary, auditing expenses.
(vii) Insurance of building and employees, repairs, maintenance and depreciation of building and furniture.
(iii) Selling expenses
These consist of the expenditures spent towards securing orders, and finding or retaining markets for the
products manufactured. Following is the list of selling expenses:
(i) Advertising and publicity expenses.
(ii) Salaries of the sales department staff including sales manager, salesman etc.
(iii) Travelling expenses of sales engineers.
(iv) Cost of preparing tenders and estimates.
(v) Expenses of making blocks and posters.
(vi) Sales stock storage charges.
(iv) Distribution expenses
These are the expenses which are paid for the distribution of the product. It includes the expenditure made
on holding finished stock, packing cost and dispatching them to the customer. This type of expenses
includes:
(i) Finished stock storages.
(ii) Lost of packing.
(iii) Loading, unloading charges, freight and warfare.
(iv) Expenses of transportation and vehicles.
(v) Salaries of dispatch clerks and labourers.

Allocation of Overheads

Percentage on Prime Cost

In this method the total overhead or on cost of the factory is expressed as a % of the combined total of
direct labour and material which constitutes prime cost and then the % rate is applied to each job.

Rate of Overhead = (Total Overhead Cost / Total Prime cost) x 100

It does not take into account labour and material of different rates and machines of different sizes used for
different jobs.This method is suitable, where only one type of product is being manufactured and where
direct labour cost and direct material cost is nearly same.

Percentage on Direct Labour Cost

Rate of Overhead = (Total Overhead Cost / Total Direct Labour cost) x 100

This method is suitable, where practically all the work is done by hand and the wages paid to direct labour
are uniform.

Percentage on Direct Material Cost:

Rate of Overhead = (Total Overhead Cost / Total Direct Material cost) x 100

Man Hour Rate:

Rate of Overhead / hour = (Total Overhead Cost / Total Productive hours worked)

This method is suitable, where the work is done by hand and not by machine, where different categories of
labour are employed whose wages are not uniform.

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Machine Hour Rate

Machine Hour Rate = (Overhead expenses for specific machine) / Estimated Machine
Hours

Total overhead in this system are distributed over the group of similar machines in the following way:
 Power consumption is metered separately.
 Depreciation charges are calculated separately.
 Building rents, insurance, taxes, light charges and indirect labour and indirect material are
distributed on the basis of the floor areas occupied by the machines.
 The expenditure of wages paid for idle period of machines is not considered.

16 b) Interpret the various symbols in the given Engineering Drawing:

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