PRODUCTION PLANNING AND COST ESTIMATION
UNIT I –PRODUCTION PLANNING AND CONTROL
1. What are the objectives of production planning and control? (DEC 2008)
a. Systematic planning of production activities to achieve the highest efficiency in production of goods/services.
b. To organize the production facilities like machines, men, etc., to achieve stated production objectives w.r.t. quantity and quality time cost.
c. Optimum scheduling of resources.
d. To conform to delivery commitments.
e. Materials planning and control.
2. Compare production planning and production control. (MAY 2008)
Production planning Production control
a) Production planning is a Production control will be in action when
pre-production activity production acitivity begins.
b) Planning is useful to anticipate the Control involves in taking corrective steps
problems and devising remedial measure in case of error to match actual performance
in case the problem arises. against the planned performance.
3. What are the different techniques of loading and scheduling?
i) Master scheduling
ii) Perpetual loading
iii) Order scheduling
iv) Loading by schedule period
4. What is master scheduling? (NOV 2007)May 2011
It gives an overall picture of the jobs. It is mainly used for small corners such as research and development laboratories, computer centre, foundries, repair shop etc.
5. What are the advantages of master scheduling? May 2011
i) The overall cost of operating is minimum than any other loading and scheduling
systems.
ii) This method is very simple to understand.
iii) This could be even maintained by clerical staff.
iv) It could be easily kept current.
6. What are the disadvantages of master scheduling?
i) The detailed information cannot be obtained.
ii) It is efficient for small units only.
7. Explain the Kanban system. (MAY 2008)
Kanban system is a simple information system used by a work centre to signal its supplier work centre to request a replacement container and to authorize production of another container of that particular item.
8. What is JIT? (MAY 2009) May 2011
Just in time. A manufacturing system whose goals is to optimize processes and
procedures by continuously pursuing waste reduction.
9.What is production?
Production consists of a series sequential operations to produce a desirable product acceptable to customer and meets the customer demand, with respect to the quality and intended function.
10. Define the term production planning and control.
Direction and coordination of firm’s resources towards attaining the prefixed goals.
11. What is Demand ?
Demand is nothing but the number of items pe unit of time.
12. Define process planning. (NOV 2007)
It is defined as the systematic determination of methods by which a product is to be manufactured economically and competitively. It consists of selecting the proper machines, determining the sequence of operations, specifying the inspection stages, and tools, jigs and fixtures such that the product can be manufactured as per the required specifications. The detailed process planning is done at each component level.
13. What are the activities associated with process planning? (NOV 2007)
a. List of operations to be performed and their sequence.
b. Specifications of the machines and equipment required.
c. Necessary tooling, jigs and fixtures.
d. Gives the manufacturing deals with respect to feed, speed and depth of cut
for each operations to be performed.
e. It gives the estimated or processing times of operations.
14. What are the parameters for material selection ?
Function, Appearance, Reliability, Service life, environment, compactability, cost
15. What are the tools for acquiring and documenting and Knowledge?
Flow charts, Decision tables, experts system shells.
16. What are the considerations to be given while selecting a process or machine?
a. Economic considerations
b. Production rate and unit cost of production.
c. Durability and dependability.
d. Lower process rejection.
e. Minimum set-up and put away times.
f. Longer productive life machines or equipment.
g. functional versatility.
17. List the process planning activities?
Analyse, determine, select, calculate, document, communicate.
18. What are the levels of production planning ? (NOV 2007)
Factory planning , process planning , operation planning.
19. What are the factors control the production planning?
volume production , nature of process, nature of operations
20. What are the basic components of MRP system?
i) Master production schedule.(MPS) ii) Bill of materials (BOM) iii) Inventory status File.
21. What are the approaches for process planning?
a) Manual process planning b) Computer Aided process planning.
22.List the benefits of CAPP.
a) Process standardization. b) Productivity improvement.
c) Product cost reduction.d) Elimination of human error
e) Reduction in time. f) Reduced paper work.
23. What is safety stock?
Minimum stock which must be maintained at all times.
24. What is material requirement planning?
Material requirement planning is a computational technique that converts the master schedule for final products in to a detailed schedule for the raw materials and parts used in the final products.
25. What is bill of material file?
The bill of materials designs what items and how many of each are used to make up a specified final product.
The bill of materials file is used to compute the raw material and component requirements for end products listed in the master schedule.
26. What is line of balance?
Line of balance is a charting technique that uses lead times and assembling sequencing to compare planned components completions with actual component completions.
27. What is an Economic order quantity?
It is the quantity to be ordered is one that strikes a balance between the inventory carrying cost and the inventory carrying cost. This quantity is referred to as Economic order quantity.
28. Define the term break-even point. May 2011
Break-even point refers to the level of sales at which the sale income equal the total costs.
UNIT II – ESTIMATING AND COSTING
1. Define cost estimating. May 2011
Cost estimating is the estimation of the expected cost of producing a job or manufacturing order before the actual production is taken up or predicting what new things will cost, before they are made. The expected expenditure on all the items used to make a product is added to give the estimated cost of final product.
2. Define cost accounting.
Cost accounting means classify, recording and allocating the appropriate expenditure for determining the cost of production and is achieved by keeping a continuous record of all the costs involved in manufacturing.
3. Write the common method costing.
a. Job costingb. Batch costingc. Process costing
d. Operating cost methode. Unit cost methodf. Multiple cost method
4. Define Job costing.
This method is concerned with finding the cost of each individual job or contracts. In this method, the total cost for each order is obtained from the daily cost sheet. The method is adopted in job order industries such as ship building, machine manufacturing, fabrication, building contract.
5.What are the components of a cost estimate?(NOV 2007)
a. Cost design
b. Cost drafting
c. Cost of research and development
d. Cost of materials.
e. Cost of labour
f. Cost of inspection.
g. Cost of tools, jigs and fixtures.
6.Define overhead expenses. (NOV 2007)
Overhead expenses include all other expenditure made on the product except direct materials cost, direct labour charges and direct other expenses. Administrative expenses, sales and advertisement costs etc., form a part of overhead expenses.
7. What are the two major groups of total cost of the product?
a. Direct costsb. Indirect costs
8. What are the direct expenses? (NOV 2003)
Cost of special jigs, patterns, tooling made for job, or cost of research and development work done for that specific job.
9. What are the indirect expenses?
a. Factory expenses
b. Administrative expenses.
c. Selling and distribution expenses.
10. What are the components of Primary cost?
a. Direct material cost, b. Direct labour cost, c. Direct expenses.
11. What are the components of Production cost?
a. Factory cost, b. Administrative expenses.
12. List any two objectives of cost estimation . (DEC 2007)
a. To establish the selling price of product.
b. To verify the quotations submitted by vendors.
c. To take make or buy decisions.
d. To prepare production budget.
13. Name the types of material cost.
a. Direct materials costb. Indirect material cost.
14. Who are called indirect lab our ?
Indirect lab our are the non productive staff who helps the productive lab our in performing their duties..
15. What are the types of estimates ? (DEC 2008)
a) preliminary estimatesb) final estimates.
16. What are the knowledge required for cost estimation.
a. Design time. b. amount and cost of materials required.
c) production time requird. d) labour charges.
e) cost of machinery f) previous estimates
g) volume h) change of cost.
17. What is meant by indirect material?
Indirect material is the one which cannot be traced as a part of the product. It is the material required for maintaing and operating the plant and equipment but cannot be the part of product.
18. Name the types of estimate.
a. preliminary estimation.b. Final estimation.
19. What are the method of estimation?
a. Conference method.
b. Comparision method.
c. Detailed analysis method
20. What is lead time?
The length of time between placing an order and receipt of items is called lead time. It is the time that elapses between placing of an order and the receiving the material to stock. It an order to placed today and material is received after one month, then the lead time is one month. the lead time determines the amount of material to be kept in stock.
21. What are the functions of production planning and control?
a. Material function, b. Machines and equipment, c. Methods, d. Routing,
e. Estimating f. Loading and scheduling, g. Dispatching, h. Expediting i. Inspection
22. Define man-hour.
A man-hour is defined as availability of one man for one hour for doing a job.
23. Define machine-hour.
A machine-hour is defined as availability of one machine for one hour for doing a job.
UNIT III – ELEMENT OF COST
1. What are the usual three elements of costing?
a. Material cost.
b. Labour cost.
c. Other expenses.
2. Write short notes on direct labour cost. (MAY 2007)
Direct labourer is one who actually works and processes the materials to convert it into the final shape. The cost associated with direct labour is called direct labour cost.
3. Write short notes on indirect labour cost. May 2011
Indirect labourer is one who is not directly employed in the manufacturing of the product but his services are used in some indirect manner. The indirect labour includes supervisors, inspectors, foremen, storekeeper gatekeeper, maintenance staff crane driver etc. The cost associated with indirect labour is called indirect labour cost.
4. Give examples for indirect materials.
Grease, lubricating oil used to lubricate the equipments, coolants, cotton wastes, kerosene.
5.What is indirect labour cost? (JUNE 2009)
It is the wages paid to the indirect labour.
6. What are the types of expenses?
Direct expenses, Indirect expenses.
7. List the factory expenses.
Factory on cost, works on cost, factory overhead, production overhead.
8. What is selling expenses?
These are the expenses which are incurred for creating and enhancing the demand for the products.
9. What are the data required for estimation of cost of any product?
a. Machining operations
b. Machining time required for each operation
10. Write short note on down time. (2008)
It is the time wasted by the operator due to break down, non-availability or delay in supply of tools and materials etc.
11. What are the various allowances in estimation?
a. Personal allowance b. Fatigue
c. Tool sharpening/Change allowance d. Checking allowance
12. Define the term fatigue allowance.
The long working hours and poor working conditions such as poor lighting, poor ventilation etc., causes fatigue and effect the efficiency of worker i.e. fatigue decreases the workers capacity to work.
13. Write short note on tool sharpening/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.
14. Define design cost.
The cost of design of a product is estimated by ascertaining the expected time for the design of the that product.
15. Define drafting cost .
After the completion of the design the drawing have to be prepared by drafts man.
16. List the components of job estimate.
Design cost , drafting cost, R&D cost, Materials cost , labour cost , Inspection cost. Overhead cost, cost of tools and jigs and fixtures.
17.What is cost of research?
Considerable time and money has to be spent on research and development work.
18. What is tool cost per unit produced ?
Estimated cost / number of job.
19. Define inspection cost.(May 2008)
Estimating the inspection cost , one should consider the cost of inspection equipments, gauges and consumables, wages to the Inspectors.
20. What is overhead cost? (MAY 2009)
Overhead expenses are those which cannot be charged directly to a particular product manufactured.
21. What is prime cost ?
The sum of direct labour cost and direct material cost and direct expenses.
22. What is total cost?
The sum of prime cost and factory overheads and administrative expenses and selling and distribution expenses.
23. What is unit cost method?
This method is adopted by the firms ,which supply a uniform product rather than a varity of products such as mines,quries,etc.
24. What is manufacturing cost?
Sum of factory cost and administrative expenses.
25. What is selling price?
Total cost + profit.
26. What is market price ?
Selling price + discount.
27. What are the various costs associated with inventory?
i) Purchase cost, ii) Capital cost, iii) Ordering cost, iv) Holding costs, v) Shortage cost.
28.What is cost of research?
Considerable time and money has to be spent on research and development work.
29. What is tool cost per unit produced ?
Estimated cost / number of job.
30. Define inspection cost .
Estimating the inspection cost , one should consider the cost of inspection equipments, gauges and consumables, wages to the Inspectors
UNIT IV – PRODUCT COST ESTIMATION
1. Explain the terms direct other expenses in costing of welded joint.
The direct other expenses include the cost of power consumed, cost of fixtures used for a particular job etc.
2. Explain the terms overheads expenses in costing of welded joint.
The overheads include the expenses due to office and supervisory staff, lighting charges of office and plant, inspection, transport, cost of consumables and other charges. The cost of equipment is also apportioned to the individual components in the form of depreciation.
3. What are the various losses considered while calculating the materials cost for a forgedcomponent.
a. Shear loss.b. Tonghold loss.
c. Scale loss.d. Flsh loss.e. Sprued loss.
4. Explain the term Shear loss. (MAY 2008)
The blank required for forging a component is cut from billet 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% of net weight.
5. Explain the term Tonghold loss.(DEC 2009)
Drop forging operations are performed by holding the stock at one end with the help of tongs. A small length, about 2.0-2.5cm and equal to dia of stock is added to the stock for holding.
6. Explain the term Scale loss.
As the forging process is performed at very high temperature, the oxygen from air forms iron oxide by reacting with hot surface. The iron oxide forms a thing film called scale, and falls off from surface at each stroke of hammer. Scale loss is taking as 6% of net weight.
7. Explain the term Flash loss. (MAY 2004)
When dies are used for forging, some metals come 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 20mm wide and 3mm thick. The circumference of component at parting line multiplied by cross-sectional area of flash gives the volume of flash. The flash lioss is then calculated by multiplying the volume of flash by density of the material.
8. Explain the term sprue loss. (2003)
When the component is forged by holding the stock with tongs, the tonghold and metal in the die even when metal is squeezed in dies, are in contact through a portion of metal called sprue or runner. The cut off when product is completed. Sprue loss taken as 7% of net weight.
9. Explain the terms direct material cost in costing of forged component.
a. Calculate the net weights of forging.
Net weight = Volume of forging X Density of materials.
b. Calculate the gross weight.
Gross weight = Net weight + Materials loss in the process.
c. Direct materials cost = Gross weight X Piece per Kg.
10. Discuss the various constituents of cost of a forged component.
a. Cost of direct materials.
b. Cost of direct labour.
c. Direct expenses such as due to cost of die and cost of press.
d. Overheads.
11. Explain the terms direct labour cost in costing of forged component.
Direct labout cost is estimated as follows.
Direct labour cost = tX l
Where t = Time for forging per piece (in hours)
l = Labour rate per hour
12. Explain the distribution of die cost on individual components.
Apportioning of Die cost:
Let cost of die = Rs. X
No. of components that can be produced using this die = Y components.
Cost of die/component = Rs. X/Y
13. Explain the terms overheads expenses in costing of forged component.
The over heads include supervisory charges, depreciation of plant and machinery, consumable, power and lighting charges, office expenses etc. The overheads are generally expressed as p[percentage of direct labour cost.
14. Explain the distribution of machine cost on individual components. May 2011
Apportioning of Machine Cost:
Let cost of press = Rs. A
Life of press = B = n year = nX12X4X5X8 = 1920n hours