This above data is related with Sheet Metal fabricated product line.I have elaborated basic difference between Estimation & Costing with strategy for getting best pricing & calculations involved in Actual Spending.
This document provides an introduction to construction estimation and measurement. It defines estimation as calculating quantities and costs for construction work items. Estimates require drawings, specifications, and site data. They are prepared by measuring quantities from drawings and multiplying by unit costs. Estimates are needed to determine project costs, materials, schedules, and more. The document discusses types of estimates like preliminary, detailed, quantity, and revised estimates. It also defines estimation terms and outlines the process for preparing a detailed estimate using measurement and cost forms.
The document discusses the taking off process used in quantity surveying. Taking off involves analyzing technical drawings and specifications to identify all building elements. This information is compiled into a taking off list, which is then used to create a bill of quantities. The bill of quantities itemizes all work and materials needed for the project. It allows contractors to price out the work when bidding for the contract. An accurate taking off process is important as it provides contractors the information they need to estimate construction costs and complete the project on time and on budget.
The document discusses different procurement routes for construction projects, including traditional design-bid-build, design and build, and management contracting. Under the traditional approach, the developer hires a professional team including an architect, quantity surveyor, and engineer. The architect designs the building, the quantity surveyor prepares cost estimates and payment valuations, and engineers provide structural and mechanical support. Contractors then bid to build the design. Design and build contracts assign design and construction responsibility to a single contractor for a fixed price. Management contracts engage a contractor to manage the project in exchange for a fee, while the developer directly pays all construction costs.
Estimates are important documents that calculate the quantities, rates, and anticipated costs of works involved in a construction project. They help determine approximate construction costs, taxes, rents, materials, labor, and more. A quantity surveyor takes off quantities from drawings and calculates rates and costs. Estimates include preliminary, rough cost, detailed, annual repair, special repair, revised, supplementary, and complete estimates. They provide essential cost information to help plan and budget construction projects.
The document discusses different approximate estimating methods used to prepare preliminary cost estimates for civil engineering projects. These include the service unit method, plinth area rate method, cubical content method, typical bay method, and approximate quantity method. Approximate estimates are prepared early in the project planning process to get a rough idea of probable costs and assess project feasibility before committing resources to detailed design and planning.
This presentation covers introduction to Estimating and costing and its importance. Also, types of estimation, different terms and provisions used in estimating, are explained in it. Format of measurement sheet and abstract sheet and the rate analysis has been covered in this presentation. It can be helpful to study basics of estimating and costing.
This document provides an introduction to construction estimation and measurement. It defines estimation as calculating quantities and costs for construction work items. Estimates require drawings, specifications, and site data. They are prepared by measuring quantities from drawings and multiplying by unit costs. Estimates are needed to determine project costs, materials, schedules, and more. The document discusses types of estimates like preliminary, detailed, quantity, and revised estimates. It also defines estimation terms and outlines the process for preparing a detailed estimate using measurement and cost forms.
The document discusses the taking off process used in quantity surveying. Taking off involves analyzing technical drawings and specifications to identify all building elements. This information is compiled into a taking off list, which is then used to create a bill of quantities. The bill of quantities itemizes all work and materials needed for the project. It allows contractors to price out the work when bidding for the contract. An accurate taking off process is important as it provides contractors the information they need to estimate construction costs and complete the project on time and on budget.
The document discusses different procurement routes for construction projects, including traditional design-bid-build, design and build, and management contracting. Under the traditional approach, the developer hires a professional team including an architect, quantity surveyor, and engineer. The architect designs the building, the quantity surveyor prepares cost estimates and payment valuations, and engineers provide structural and mechanical support. Contractors then bid to build the design. Design and build contracts assign design and construction responsibility to a single contractor for a fixed price. Management contracts engage a contractor to manage the project in exchange for a fee, while the developer directly pays all construction costs.
Estimates are important documents that calculate the quantities, rates, and anticipated costs of works involved in a construction project. They help determine approximate construction costs, taxes, rents, materials, labor, and more. A quantity surveyor takes off quantities from drawings and calculates rates and costs. Estimates include preliminary, rough cost, detailed, annual repair, special repair, revised, supplementary, and complete estimates. They provide essential cost information to help plan and budget construction projects.
The document discusses different approximate estimating methods used to prepare preliminary cost estimates for civil engineering projects. These include the service unit method, plinth area rate method, cubical content method, typical bay method, and approximate quantity method. Approximate estimates are prepared early in the project planning process to get a rough idea of probable costs and assess project feasibility before committing resources to detailed design and planning.
This presentation covers introduction to Estimating and costing and its importance. Also, types of estimation, different terms and provisions used in estimating, are explained in it. Format of measurement sheet and abstract sheet and the rate analysis has been covered in this presentation. It can be helpful to study basics of estimating and costing.
For civil engineer quantity surveying and estimation costing is very important for any project.
In this presentation we study about the Important terms used in estimation and costing, contingencies, work charge establishment, tools and plants, etc. types of estimates and their functions.
Valuation is estimating the fair price or value of property like buildings, land, etc. It considers factors like construction, location, demand. Valuations are needed for tasks like buying/selling, taxation, rent fixation, loans. Methods include calculating capitalized value from net income after deducting repairs, taxes, management costs, sinking funds from gross income. Land values are influenced by demand, population, costs, purposes, policies, infrastructure projects. Depreciation and obsolescence lower values over time.
The document discusses the process of estimating for construction projects. It explains that estimates are needed to determine the approximate quantities of materials and labor costs required. There are different types of estimates including approximate estimates which provide an initial cost, and detailed estimates which provide a cost closer to the actual amount. Various methods are described for calculating estimates along with the units of measurement used. Record keeping forms like measurement sheets and abstract sheets are used to document the estimated costs.
Quantity surveyors provide cost management services throughout construction projects. They estimate costs, prepare bills of quantities, and advise clients on procurement and contractual methods. The Quantity Surveyor Certified Board regulates the profession and consists of a president, registrar, secretary, and 16 members appointed by the Ministry of Works. Quantity surveyors' responsibilities include cost planning, estimating, tendering, and certifying payments during construction stages. They help control costs, resolve disputes, and ensure projects are delivered within budget.
Estimation introduction - Estimation, Costing and Valuation (ECV)Shanmugasundaram N
This document provides an overview of a course on Estimation, Costing and Valuation Engineering. The course covers topics such as quantity estimation for buildings, rate analysis and cost estimation, specifications and tenders, contracts, and valuation. The objectives are for students to learn how to prepare estimates, call for tenders, and execute construction works. Key outcomes include estimating quantities, rate analysis, understanding contract types and specifications, and evaluating property valuation. The course is divided into 5 units covering these various topics and their applications to estimating costs for structures like buildings, roads, and culverts.
The document discusses the process of preparing a detailed estimate for a construction project. A detailed estimate involves carefully calculating the costs of all project items based on detailed drawings. It is used to obtain approval from authorities, develop contract documents, and guide project execution by estimating materials, labor, and activities needed. The estimate involves taking measurements from drawings, applying specifications and rates, and abstracting totals for all items.
This document is a project report on the estimation of a building submitted by a group of civil engineering students at Himalayan Institute of Engineering & Technology. It includes calculations of the volumes of concrete required for columns, beams, slabs, and footings. It also includes calculations of the quantities of brickwork and steel reinforcement required. The project was carried out under the guidance of a faculty member and aims to provide practical experience in building estimation.
Estimation and costing of a commercial buildinglckr117
This document provides information on estimating and costing for a commercial building project. It defines estimation as calculating expected expenditures for a project based on drawings, specifications, and schedule of rates. Estimates are needed to determine feasibility, invite tenders, control costs, and ensure funds are sufficient. The estimate preparation involves detailed measurements, unit rates, and an abstract of costs. Reinforced concrete, electrification, and sanitary works are also discussed in terms of estimating quantities and rates.
The document provides information about the course CE8701 Estimation, Costing and Valuation Engineering. It discusses the objectives of the course which is to provide knowledge in estimation, tender practices, contract procedures and valuation. It outlines the 5 units that will be covered: quantity estimation, rate analysis and costing, specifications, reports and tenders, contracts, and valuation. It also provides examples of how to prepare rough cost estimates using the plinth area and unit base methods and how to take out quantities for preparing a detailed estimate using the centre line and long wall and short wall methods.
The document discusses different types of construction cost estimates. It describes preliminary estimates which provide approximate costs using methods like per unit, plinth area, or cubic content. Detailed estimates involve accurately calculating quantities for each work item. Other estimates include revised estimates for costs exceeding 5% of original estimates, supplementary estimates for additional works, and annual repair estimates for maintenance. Terminology related to construction projects is also defined.
1) The document discusses various aspects of a construction contract such as tender documents, tender process, acceptance of tenders, contract documents, conditions of contract, and termination of contract.
2) Key elements of tender documents are the notice inviting tenders, tender forms, schedules, specifications, drawings, conditions of contract, and other required information. The tender process involves opening and scrutinizing tenders, preparing a comparative statement, and accepting the tender.
3) The contract documents formalize the agreement between the owner and contractor and include details of the work, estimated cost, security deposit, completion period, specifications, drawings, conditions of contract and signatures of both parties. The contract lays out terms for execution,
This document discusses the different types of estimates used in quantity surveying and valuation. It outlines 8 types of estimates: 1) Preliminary or approximate estimate, 2) Rough cost estimate based on plinth area, 3) Rough cost estimate based on cubic contents, 4) Detailed estimate, 5) Annual repair estimate, 6) Special repair estimate, 7) Revised estimate, and 8) Supplementary estimate. For each type of estimate, it provides a brief description and example to illustrate how it is calculated and used.
The document discusses cost estimation for construction projects. It describes the major categories of costs for a construction project, which include initial capital costs like construction, land acquisition, and design fees, as well as ongoing operation and maintenance costs. It also discusses approaches to cost estimation, including estimating based on historical cost data, unit costs, and computer-aided methods. Cost contingencies are also addressed.
This document provides an introduction to the subject of quantity surveying and valuation. It discusses why this subject is important given constraints like limited funds, resources and time for construction projects. Knowing quantities of materials beforehand through estimates can help with planning, procurement and achieving economy and standards in construction. The objectives covered include estimating quantities for various construction works, rate analysis, valuation and preparing tender documents. It also outlines the different types of estimates like preliminary, rough cost, detailed and repair estimates.
A tender is an invitation to bid on a project or accept a formal offer such as a takeover bid. There are different types of tenders including open/public tenders and closed/invited tenders. The tendering process involves announcing the tender, submitting bids, opening bids, evaluating bids, selecting a winner, and issuing a work order. Key sections of a tender document include conditions for participation, quality standards, specifications, contract terms and conditions, and bid submission details. Tenders are used by governments and organizations to ensure transparency and fair competition in procuring projects and services.
This document provides specifications for lime concrete used in roof terracing. It outlines the materials used including course aggregate, fine aggregate, and lime. It specifies the proportions of lime, sand, and brick ballast used. The concrete is laid in layers and consolidated by ramming and beating over 7 days while sprinkling a lime, gur, and bael fruit solution for waterproofing. The finished surface is smoothed with this solution and sloped between 1:50 to 1:36 toward outlets. It is kept wet for 10 days during curing.
For civil engineer quantity surveying and estimation costing is very important for any project.
In this presentation we study about the Important terms used in estimation and costing, contingencies, work charge establishment, tools and plants, etc. types of estimates and their functions.
Valuation is estimating the fair price or value of property like buildings, land, etc. It considers factors like construction, location, demand. Valuations are needed for tasks like buying/selling, taxation, rent fixation, loans. Methods include calculating capitalized value from net income after deducting repairs, taxes, management costs, sinking funds from gross income. Land values are influenced by demand, population, costs, purposes, policies, infrastructure projects. Depreciation and obsolescence lower values over time.
The document discusses the process of estimating for construction projects. It explains that estimates are needed to determine the approximate quantities of materials and labor costs required. There are different types of estimates including approximate estimates which provide an initial cost, and detailed estimates which provide a cost closer to the actual amount. Various methods are described for calculating estimates along with the units of measurement used. Record keeping forms like measurement sheets and abstract sheets are used to document the estimated costs.
Quantity surveyors provide cost management services throughout construction projects. They estimate costs, prepare bills of quantities, and advise clients on procurement and contractual methods. The Quantity Surveyor Certified Board regulates the profession and consists of a president, registrar, secretary, and 16 members appointed by the Ministry of Works. Quantity surveyors' responsibilities include cost planning, estimating, tendering, and certifying payments during construction stages. They help control costs, resolve disputes, and ensure projects are delivered within budget.
Estimation introduction - Estimation, Costing and Valuation (ECV)Shanmugasundaram N
This document provides an overview of a course on Estimation, Costing and Valuation Engineering. The course covers topics such as quantity estimation for buildings, rate analysis and cost estimation, specifications and tenders, contracts, and valuation. The objectives are for students to learn how to prepare estimates, call for tenders, and execute construction works. Key outcomes include estimating quantities, rate analysis, understanding contract types and specifications, and evaluating property valuation. The course is divided into 5 units covering these various topics and their applications to estimating costs for structures like buildings, roads, and culverts.
The document discusses the process of preparing a detailed estimate for a construction project. A detailed estimate involves carefully calculating the costs of all project items based on detailed drawings. It is used to obtain approval from authorities, develop contract documents, and guide project execution by estimating materials, labor, and activities needed. The estimate involves taking measurements from drawings, applying specifications and rates, and abstracting totals for all items.
This document is a project report on the estimation of a building submitted by a group of civil engineering students at Himalayan Institute of Engineering & Technology. It includes calculations of the volumes of concrete required for columns, beams, slabs, and footings. It also includes calculations of the quantities of brickwork and steel reinforcement required. The project was carried out under the guidance of a faculty member and aims to provide practical experience in building estimation.
Estimation and costing of a commercial buildinglckr117
This document provides information on estimating and costing for a commercial building project. It defines estimation as calculating expected expenditures for a project based on drawings, specifications, and schedule of rates. Estimates are needed to determine feasibility, invite tenders, control costs, and ensure funds are sufficient. The estimate preparation involves detailed measurements, unit rates, and an abstract of costs. Reinforced concrete, electrification, and sanitary works are also discussed in terms of estimating quantities and rates.
The document provides information about the course CE8701 Estimation, Costing and Valuation Engineering. It discusses the objectives of the course which is to provide knowledge in estimation, tender practices, contract procedures and valuation. It outlines the 5 units that will be covered: quantity estimation, rate analysis and costing, specifications, reports and tenders, contracts, and valuation. It also provides examples of how to prepare rough cost estimates using the plinth area and unit base methods and how to take out quantities for preparing a detailed estimate using the centre line and long wall and short wall methods.
The document discusses different types of construction cost estimates. It describes preliminary estimates which provide approximate costs using methods like per unit, plinth area, or cubic content. Detailed estimates involve accurately calculating quantities for each work item. Other estimates include revised estimates for costs exceeding 5% of original estimates, supplementary estimates for additional works, and annual repair estimates for maintenance. Terminology related to construction projects is also defined.
1) The document discusses various aspects of a construction contract such as tender documents, tender process, acceptance of tenders, contract documents, conditions of contract, and termination of contract.
2) Key elements of tender documents are the notice inviting tenders, tender forms, schedules, specifications, drawings, conditions of contract, and other required information. The tender process involves opening and scrutinizing tenders, preparing a comparative statement, and accepting the tender.
3) The contract documents formalize the agreement between the owner and contractor and include details of the work, estimated cost, security deposit, completion period, specifications, drawings, conditions of contract and signatures of both parties. The contract lays out terms for execution,
This document discusses the different types of estimates used in quantity surveying and valuation. It outlines 8 types of estimates: 1) Preliminary or approximate estimate, 2) Rough cost estimate based on plinth area, 3) Rough cost estimate based on cubic contents, 4) Detailed estimate, 5) Annual repair estimate, 6) Special repair estimate, 7) Revised estimate, and 8) Supplementary estimate. For each type of estimate, it provides a brief description and example to illustrate how it is calculated and used.
The document discusses cost estimation for construction projects. It describes the major categories of costs for a construction project, which include initial capital costs like construction, land acquisition, and design fees, as well as ongoing operation and maintenance costs. It also discusses approaches to cost estimation, including estimating based on historical cost data, unit costs, and computer-aided methods. Cost contingencies are also addressed.
This document provides an introduction to the subject of quantity surveying and valuation. It discusses why this subject is important given constraints like limited funds, resources and time for construction projects. Knowing quantities of materials beforehand through estimates can help with planning, procurement and achieving economy and standards in construction. The objectives covered include estimating quantities for various construction works, rate analysis, valuation and preparing tender documents. It also outlines the different types of estimates like preliminary, rough cost, detailed and repair estimates.
A tender is an invitation to bid on a project or accept a formal offer such as a takeover bid. There are different types of tenders including open/public tenders and closed/invited tenders. The tendering process involves announcing the tender, submitting bids, opening bids, evaluating bids, selecting a winner, and issuing a work order. Key sections of a tender document include conditions for participation, quality standards, specifications, contract terms and conditions, and bid submission details. Tenders are used by governments and organizations to ensure transparency and fair competition in procuring projects and services.
This document provides specifications for lime concrete used in roof terracing. It outlines the materials used including course aggregate, fine aggregate, and lime. It specifies the proportions of lime, sand, and brick ballast used. The concrete is laid in layers and consolidated by ramming and beating over 7 days while sprinkling a lime, gur, and bael fruit solution for waterproofing. The finished surface is smoothed with this solution and sloped between 1:50 to 1:36 toward outlets. It is kept wet for 10 days during curing.
This document discusses various methods of construction cost estimation, including preliminary estimates, plinth area method, cubical contents method, unit base method, abstract estimates, detailed estimates, bottom up method, and square foot estimates. It also discusses factors that influence specification, rate analysis, and final estimates. Preliminary estimates provide early project costs but have low accuracy of 20-30%. Detailed estimates use quantities, rates, and specifications to determine costs more accurately. The bottom up method aggregates task estimates to determine total project costs.
This document provides information about estimating and costing for construction projects. It discusses the need for estimation to determine project feasibility and cost, outlines the estimating process, and lists the key data required which includes drawings, specifications, and rates. Measurement rules and units for different construction items like earthwork, concrete, masonry, woodwork, and finishing works are also covered. The document emphasizes accurate measurement of work quantities as the basis for preparation of estimates.
The document discusses various types of construction contracts and tendering processes. It defines a tender as an invitation from an owner to contractors to execute work at a specified cost and time. There are different types of tenders including open, sealed, limited, and single tenders. Key aspects of the tendering process include tender forms, documents, notices, evaluation criteria, acceptance procedures, contract documents, deposits, and measurements. Different types of construction contracts are also summarized such as lump-sum, item rate, percentage rate, cost plus, and turn-key contracts.
The document estimates the costs for a two bedroom residential building using the long wall and short wall method. The total cost is Rs. 14,89,228 for a built up area of 109 sqm, working out to Rs. 13,662.642 per square meter. Drawings and measurement sheets are included to detail the specific costs.
Accurate estimates are important for software projects. While it may be tempting to underestimate to avoid issues like Parkinson's Law, underestimating causes more severe problems like reduced project planning effectiveness and a lower chance of on-time completion. The software industry has a poor track record, with only 28% of projects being delivered on time and on budget according to one study. Having accurate estimates improves visibility, quality, coordination, budgeting, and credibility. Overall, predictability of cost, schedule and functionality is valued more by project managers than flexibility or development speed alone.
The document discusses specifications, which are explicit sets of requirements for materials, products, or services. It describes different types of specifications like formal, program, functional, and document specifications. It also outlines how specifications are developed by various organizations, their common uses in engineering and business, guidance for writing good specifications, and considerations for process capabilities during production.
This document contains questions and answers related to the subject of Estimation and Quantity Surveying. It includes definitions of key terms like tender, contract, estimate, detailed estimate, abstract estimate, and quantity surveyor. It also provides examples of calculating quantities of materials for constructions like walls, roads, and culverts. Methods for measurement of quantities and types of estimates are described.
This document provides approximate estimates for flyovers constructed at four different locations. It summarizes the key details of each flyover project such as location, client, contractor, scope of work, cost, duration, progress, resources used, and per meter cost. The average cost per meter of the flyovers according to the estimates given is Rs. 5,37,635.
Rates Analysis For Calculating Material and Labour for building works ALI HYDER GADHI
The document discusses the analysis of rates for construction items. It provides materials costs, labor costs, and calculations to determine the total rate per unit of different construction works. For example, it calculates that the rate of excavation work is Rs. 9857 per cubic meter based on labor and materials. It also provides an example of determining the materials required for a 10 square meter conglomerate floor with two layers of concrete.
Estimating projects has always been an arduous task for organizations around the globe. Methods of estimations vary with different project management techniques.
The document provides details on the construction of buildings and roads. It discusses the classification, measurement, and construction of buildings, foundations, retaining walls, and breast walls. It also covers road surveys, the importance and classification of roads, gradients, and the construction of cemented and tarred roads. Foundations transmit loads from buildings to the soil and include shallow and deep types. Retaining walls hold back earth to prevent landslides while breast walls are constructed to prevent sliding at the back of roads.
This document discusses factors that affect the cost of woven fabrics for garment manufacturers. It notes that fabric costs make up 65-70% of garment production costs, so accurate costing is important. Key costs include direct costs like raw materials (66%), production (8%), and labor (8%); indirect costs like overheads (7%); and profit margins (10-20%). Fabric cost is affected by raw material type and quality, construction details like thread count and weight, production methods, wastage and shrinkage, dyeing and finishing processes. Ensuring accurate consideration of all relevant cost factors helps manufacturers get the best fabric prices.
This document describes Sachin Gupta's vocational training report submitted for his Bachelor of Engineering degree in Civil Engineering. The report details his training at the Construction Division No. 1 of the Public Works Department in Lucknow, India, where he learned about cement road construction. The report includes sections on the materials used in cement roads such as cement, sand, aggregate, as well as tests conducted on concrete like slump tests, compression tests, impact tests, and cube tests. It also provides details on the various steps of cement road construction.
DK Construction Sdn Bhd is a Grade 4 construction company based in Selangor, Malaysia. They have extensive experience constructing various projects including housing, industrial estates, and infrastructure. The document outlines DK's company profile, project team, strengths including their expertise, reputation, management skills, and experience on relevant projects. It also discusses potential weaknesses as a new contractor with inexperienced laborers and restrictions on design variations due to a slim profit margin. Finally, it notes errors in the client's tender document regarding deposit amounts, tender bonds, invitation letters, and unit specifications.
This document provides an introduction to the subject of estimating and costing for the 2nd year intermediate vocational course in construction technology. It discusses key definitions like estimating, costing, and procedures for estimating. The importance of estimation and costing is explained. The data required for preparing an estimate like drawings, specifications, and rates is described. The document also discusses complete estimates, lump sum items, and work charged establishment. Measurement units for different construction items like earthwork, concrete, masonry, woodwork, and finishing works are listed with the applicable unit of measurement and payment.
Rocks are used in various purpose like building material, in foundation, as railway ballast,in dam etc. That's why careful studies bring out the inherent advantage and disadvantage of a site and such studies go a long way either in reducing or in increasing the cost of the structure.
This document discusses the process of cost estimating for construction projects from the programming phase through the construction documents phase. It outlines the key steps in performing a quantity take-off during the construction documents phase, including preparing by reviewing drawings and specifications, potentially visiting the site, taking precise measurements of materials, and listing items with quantities, costs, and totals to create a bid proposal. Accuracy depends on following best practices like measuring all items and accounting for unusual conditions.
The document provides information on preparing cost estimates for manufactured products. It discusses gathering cost information, identifying and calculating labor costs, establishing resource requirements, developing estimated costs, and verifying estimates. It describes direct and indirect costs, and outlines methods of costing like process, job, and batch costing. Key components of a cost estimate like materials, labor, expenses/overheads are defined. The document is intended to guide understanding of cost estimation processes.
This document discusses job costing and batch costing. Job costing involves compiling costs for specific quantities of goods or services produced according to a customer's order. Costs are accumulated separately for each job. Batch costing is used when a company produces goods in batches for stock. The cost per unit is determined by dividing the total batch cost by the number of units in the batch. The document outlines the key features, objectives, advantages, and disadvantages of job costing as well as providing examples of job cost sheets and how to calculate economic batch size.
The document discusses process planning and cost estimation for manufacturing. It includes:
1. Definitions of process planning and its importance in estimating costs accurately.
2. Details on how computer-aided systems can be used to improve cost estimations through techniques like group technology coding, storing part details in databases, and refining estimates.
3. The advantages of computer-based estimating including improved accuracy, consistency, and ability to provide different levels of detail compared to manual methods.
This document discusses different costing techniques used in various industries and businesses. It provides examples of four costing techniques - marginal costing, standard costing, budgetary costing and how they help in decision making, cost control and cost reduction. Marginal costing helps management take short-term decisions and control variable costs. Standard costing enables cost control and performance evaluation by comparing actual and standard costs. Budgetary costing facilitates achieving organizational goals through periodic review of actual performance against budgets.
The document discusses cost estimating and costing. It defines cost estimating as determining the probable cost of manufacturing a product before production starts. This involves estimating costs for materials, labor, overhead etc. Costing determines the actual costs incurred during production. It provides information for setting prices, cost control, make-or-buy decisions and more. The document outlines different types of costing systems used such as job costing, batch costing and process costing.
This document discusses the need for product costing solutions and Vedant Resources and Infrastructure Development's should costing services. It notes that product costs account for 70% of revenue and are key to profit but detailed cost breakdowns are unknown in the concept stage. The challenges include engineers being unfamiliar with manufacturing processes and limited cost data during development. Vedant provides should costing, tear down analysis, local sourcing support, and cost estimation to help understand cost drivers, optimize design for cost, and aid in supplier negotiations. Their approaches include bottom-up, parametric, and rough order of magnitude cost modeling at different levels of detail and speed.
Product costing and material ledger documentation was summarized as follows:
[1] Product costing allows companies to plan, track, and analyze product costs from raw materials procurement through production to the final cost of goods sold. The material ledger provides actual costing functionality to revalue inventory costs.
[2] Key aspects of product costing include establishing standard costs, performing costing runs to calculate costs, and updating material master prices. The costing structure includes activity types, cost elements, and cost centers.
[3] The material ledger allows companies to determine actual costs for materials and revalue inventory using methods like moving average or standard price valuation.
This document defines key concepts in cost accounting and cost management. It discusses how cost accounting provides information for both management and financial accounting by measuring and reporting costs. It also describes different types of costs like direct, indirect, fixed and variable costs. Finally, it summarizes standard costing and analysis of variance, which are techniques used to evaluate actual performance against pre-established cost standards.
This document discusses various concepts related to cost estimation. It defines cost estimation and cost accounting, and describes different methods of costing like job costing, output costing, operating costing and process costing. It also covers elements of cost like direct, indirect and overhead costs. Methods of cost estimation include guesstimates, budgetary, using past history, and parametric estimating. The cost estimation procedure involves preparing a bill of materials, calculating material, labor and overhead costs. Allowances in cost estimation and allocation of overhead costs are also discussed. Finally, problems related to material, labor and ladder of costs are presented.
The purpose of cost estimating is to find the cost of the manufacturing operations and to assist in setting the price for the product
Costing is the determination of an actual cost of a component after adding different expenses incurred in various departments
importance of estimation power point presentationniyatishah939575
The document discusses cost estimating and costing. It defines cost estimating as determining the probable cost of manufacturing a product before production starts. Costing is defined as accurately recording the actual costs incurred during production. The key purposes of cost estimating include setting selling prices, evaluating designs, and making manufacturing decisions. Costing provides actual costs for profit/loss analysis, price fixing, and cost control. Different costing methods like job costing, batch costing, and process costing are used depending on the type of production.
Preparing cost estimate for manufactured products.ppt by-aragaw gebremedhinAragaw Gebremedhin
Here are the solutions to the examples provided:
1) A) Prime cost (PC) = Direct material cost + Direct labour cost = $160 + $200 = $360
B) Factory cost (FC) = Prime cost + 35% of prime cost = $360 + 35% of $360 = $360 + $126 = $486
C) Total production cost (TC) = Factory cost + 20% of factory cost = $486 + 20% of $486 = $486 + $97.20 = $583.20
D) Selling price = Total cost + 10% of total cost = $583.20 + 10% of $583.20 = $583.20 + $58.32
Process planning and cost estimation unit iiis Kumaravel
This document provides information about cost estimation, including definitions, reasons for doing estimates, components of a cost estimate, and methods of estimating costs. It defines cost estimation as predicting the expected cost of producing a product before actual production. Estimates are done to assist management in deciding whether to produce a product and help set a selling price. A cost estimate includes costs of design, materials, labor, tools/fixtures, overhead, etc. Methods of estimating include the conference, comparison, and detailed analysis methods. The document also outlines the general procedure for cost estimation.
This document discusses cost estimation methods and procedures. It defines cost estimation as predicting the expected cost of producing a product before actual production. There are various types of cost estimates, including factor methods, material cost methods, and function methods. The key components of a cost estimate include material costs, labor costs, overhead costs, and costs of tools, equipment, and inspection. The document outlines the basic steps in cost estimation such as analyzing product requirements, estimating material and labor costs, and applying overhead charges.
The document discusses cost estimation, which involves predicting the costs of producing a product before actual production. It covers methods of costing, types of estimates, estimating procedures, and components of a cost estimate such as material, labor, overhead costs. The objectives of estimating are to determine selling price and profitability. Detailed analysis and comparison to similar past products are common estimation methods.
Episode 27 : Project Management Costs
Cost Method
1. If there is lack of information regarding the existing plant, investment cost can be estimated by using cost factor. It requires the existence of a process concept and the rough layout of the main equipment in order to determine the cost of the main processing unit.
Operating Cost
Consists of (a) Cost of raw material
Utility cost
Labour cost
Maintenance cost
Utility Cost
1. It is quantity based and consisted of electric power, steam and coolant consumption, heating media such as coal and other energy sources like hydrogen.
The document discusses several costing techniques including throughput accounting, theory of constraints (TOC), target costing, and backflush costing. Throughput accounting focuses on increasing throughput and reducing inventory and expenses. TOC identifies bottlenecks limiting throughput and ways to remove them. Target costing determines the maximum allowable cost for a new product based on the anticipated selling price and desired profit. Backflush costing calculates product costs retrospectively at the end of the accounting period without tracking costs throughout production.
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[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
3. Estimation & Costing
Difference
Estimation Costing
We Do these Calculation on the basis of input got
from client to predict price of new product
We do these Calculations on the basis of Actual
Spendings to make that product
we can take reference of previous cost sheet of
similar kind of projects or Changes As per
requirement & processes involved as per
drawing
We have all actual data (from material in to out),
So that will be accurate actual price.
Used for sending quotations to the clients to get
Purchase Order for Manufacturing.
Used for finding our profits & Losses after
manufacturing the Product
4. We Can Save Our Cost through:
1. Considering Factors like Companies limitations in processing like Bending,
Laser Cutting, Punching etc. resulting in we can find out brought out items
& sorting out In-House processes & variables in process cost.
2. Finding out actual hidden cost.
3. Finding out ways to minimize losses in process & maximizing efficiency in
process planning.
4. Trying to work on Optimizing product cost through Material, Man &
Machine.
5. Exact Calculations of Actual Spending.
6. Maximizing business values while obtaining best pricing.
7. Improving the "value" of products and services by using an examination of
function or reducing the cost.
8. Finding out alternative substitution of materials & Methods without
affecting Functionality.(Value Engineering )
9. Settlement of price according to customer & requirements & Considering
our profit.
5. Let’s Have a Look On Actual Spending &
Pricing
We must know Exact spending (Cost Variables
Factors ) on any project or Product to decide correct
Pricing.
Exact spending is depends on Scope of Supply,
Material, (Design) Functionality, Processes &
Overheads .
6. Processes & Overheads :
Machine Running Cost : To calculate actual running
cost of any Machine there are five Cost Variable
factors:
1. Machine Depreciation Cost
2. Electricity
3. Maintenance / Tooling / Consumables
4. Operator Cost
5. Overheads involved in process ( Overheads related
to processing will cover in process cost itself )
7. Considerations in Bellow calculations:
Not a Standard Categorization ( For Simplified Calculations Only)
Special Processes General Processes
Shearing
Other Fabrication Processes
Laser Cutting
Turret Punching
Bending
Powder Coating / Painting
Notes:
•We can get Machine Hourly Depreciation from machine Purchase price &
Date of purchase .
•Some Cost factors are complicate to calculate because, use of consumable are
different as per material & Application, So suggest average value for it.
•I have distinguished as pricing factors as per Estimation Purpose & Actual
Costing Purpose.
8. Unit rates of following special processes for
estimation purpose & Actual Cost Factors:
Machine Actual Running Cost
Special
Machines /
Processes
ACTUAL COST FACTORS
ESTIMATION
COST
FACTORS
Shearing
Machine
Depreciation
Electricity
Maintenance
/ Tooling/
Consumables
Operator
Cost
Overheads
As per No. of
Strokes
Laser Cutting
As Per
Cutting
Length ( OR
HOUR RATE)
Turret
Punching
As per No. of
punches
Bending
As per No. of
Bends
Powder
Coating /
Painting
As per m2
9. Areas to progress in Special
Processes:
Make Sure about, Our Process Unit rates are Covering
mentioned cost Factors or not.
If its actual cost not matching with our methods of
unit rates, It Means there is scope of improving its
Pricing.
10. OPERATIONS
FABRICATION & ASSEMBLY COST ESTIMATION
COST
CALCULATIONACTUAL COST FACTORS
CUTTING
DEPRECIATION
WHERE
APPLICABLE
ELECTRICITY
WHERE
CONSUMED
MAINTENANCE/
TOOLING/
CONSUMABLES
LABOUR/
OPERATOR
COST
OVERHEADS
RATE AS PER
MATERIAL KG
ROLLING
DRILLING
FINISHING /
MACHINING
1) MILLING
2) GRINDER
3) LATHE OR
SHAPER
MATERIAL
HANDLING
1) CRANE USAGE
2) FORK LIFTS OR
PALLET TRUCKS
3) INTERNAL
TRANSPORTATION
4) LOADING &
UNLOADING &
STORAGE
WELDING
ASSEMBLY
FITTING
11. Areas to progress in Fabrication
Process:
Make Sure about Our Fabrication Cost per KG of
material weight are Covering mentioned cost Factors.
If its actual cost not matching with our methods of KG
rates, It Means there is scope of improving its Pricing.
12. OVERHEADS IN COMPANY (% of TOTAL PRODUCT COST) INVOLVED
TYPE OF OVERHEADS (Categorized For Our Understanding)
WORK OFFICE SALES
BUILDING RENT OFFICE RENT SALES AMISSION
SALARY OF DRIVERS / SECURITY GUARDS
/ EMPLOYEES / MANAGERS / DIRECTOR
SALARY OF OFFICE STAFF SALARY OF SALES STAFF
All KIND OF INSURANCES LEGAL EXPENSES ADVERTISING
REPAIRING & REPLACEMENT OF SPARE
PARTS OF M/C
MAINTENANCE OF OFFICE EQUIPMENTS TRAVELLING EXPENSES
PLANT ELECTRICITY BILLS (EXCLUDING
MACHINE ELECTRICITY CONSUMPTION)
OFFICE ELECTRICITY BILLS
LIGHTING REQUIRED IN PLANT BUILDING MAINTENANCE
WATER BILLS
DEPRECIATION OF OFFICE USED
EQUIPMENT / M/C
FAX & TELEPHONES USAGE
OFFICE STATIONARIES
OFFICE EQUIPMENTS & SYSTEMS
POSTAGE & TELEGRAMS
13. Areas to Progress in Overheads:
These are some overheads excluding overheads in
manufacturing processes.
We need to calculate how much overhead factors we
are covering through our % of Overhead on total Price.
We can Improve this by Replacing Assumptions with
exact calculations through Studying on available data.
14. Improvements :
Try to work out for getting best Pricing.(Low Cost must be
our aim for compete a market)
(What If Analysis)- To send a quote to client in short
duration we need to use some thumb rules & prices as per
Area(Square meter) & Total Weight (KGS) & Referring
Previous Cost Sheets, So Try to Improve these details by
Analyze these Data.
We need to cross check both Estimated Price & Actual Cost
Price, study & Analyze those for getting best pricing.
Use these details & Analyzed data for preparing further
quotations & modifying Estimation Calculations. (This is
Continuous Improvement Process).
15. Strategy Of Improvement
Continuous Analyzing Available Data & Studies on
Processes & Cost Involvement.
Having discussion with technical expert for finding
out Hidden Costs & Getting in to deep for getting
more exact values.
Modifying (Correcting) Input Data on basis we are
doing further calculations.{Ex. Machine rates,
Depreciations, Consumable Prices , Formulae used}
16. Note: Most welcome to your Queries.
Your Expert Opinion can make it Correct & Complete.
_ Ajinkya Deshpande
Thank You