Pricing of a mechanical component
Talking about the standard components like bolts, nuts etc, which are produced in mass, it is well known that the greater the quantity produced, the lesser will be the cost per piece.
now the cost of production per piece may be like:
(raw material cost + tooling cost + machining cost + labour )/the number of components produced
is this right ?
now the cost of production per piece may be like:
(raw material cost + tooling cost + machining cost + labour )/the number of components produced
is this right ?
Replies
-
Kedar Malwadkar
I think you forget "profit" in the numerator.zaveriTalking about the standard components like bolts, nuts etc, which are produced in mass, it is well known that the greater the quantity produced, the lesser will be the cost per piece.
now the cost of production per piece may be like:
(raw material cost + tooling cost + machining cost + labour )/the number of components produced
is this right ? -
zaveriKedar MalwadkarI think you forget "profit" in the numerator.
whatever it is , just elaborate it. -
Kedar Malwadkar
I am agree with you, but just need to add profit ( it should be very small amount for bolts and nuts.)zaveriwhatever it is , just elaborate it.
That makes the equation
(raw material cost + tooling cost + machining cost + labour+profit )/the number of components produced -
white_hatwhat about transportation cost?
-
zaveri
Oh yes i knew i was forgetting something.white_hatwhat about transportation cost?
but then transportation cost , i think appears to be like : fuel cost + driver's wage + vehicle maintainance. -
Ramani AswathThere is a brand cost as well. Standard companies will charge a premium (higher profit than others).
-
zaveri
but nowadays most companies who purchase standard components do not care about the brand.bioramaniThere is a brand cost as well. Standard companies will charge a premium (higher profit than others). -
white_hatDude you keep forgetting things...! Now what about designing and testing,that is going to cost a fair amount of money.
-
Ramani Aswath
Manufacturing entities with ISO kind of certifications do.zaveribut nowadays most companies who purchase standard components do not care about the brand. -
zaveri
Standard components do not require designing.white_hatDude you keep forgetting things...! Now what about designing and testing,that is going to cost a fair amount of money.
You are reading an archived discussion.
Related Posts
hi i m am engineering student but due to backlogs i had one year drop in my academics .i just want to know whether i m applicable for campus placement...
so, we are all aware that we don't feel any weight or thrust (which act upon us on land) when we are under water..! and we are also aware that...
*Engineering Trade: Mechanical Engineering 😎
*Occupation: Undergraduate, Freshman 😒
*Hobbies & Interests: Sports (especially basketball), Contraptions, and Vehicles (especially motorcycles). 👍
*Aim in life: To be able to apply my...
Hi. I am a new CrazyEngineer. I am about to start my first year in university.
I wonder what software I need to get used to. I am pretty sure...
Firefox developers are on a roll.
Its not even a week when Firefox 14 came out of the sandbox and into the world; the upgraded version with some major memory...