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Company Profile
Elin Electronics Limited is a Flagship Company of the Sethia Group of Industries. Annual Group Turnover of Over Rs. 5 Billion. Groups business Interest Mainly in Components for Audio and Automobile Sector and Agro Products:
The Mission Statement
We commit ourselves to delight our customers and maintain market leadership,
through continual improvement of our quality management systems by:
» Introduction of new products
» Up gradation of quality levels
» Up gradation of human resources
» Cost effectiveness of our products and activities
Resources
FACTORY AREA (in Sq.mt.)
Land Area 45200
Covered Area 26600
INVESTMENTS (in Rs. Millions)
Plant & M/c 320.00
Misc. Assets 100.00
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Working Capital 370.00
Captive Power Generation 2 MW
Strength
» Established company with a strong brand image of "Elin Inside" & experience of
almost 4 decades in Audio Components manufacturing.
» Largest manufacturer of Cassette Tape Deck Mechanisms, CD Drives, Small
AC/DC Motors.
» Regular, long-term suppliers to most Audio MNC's & OEM's in India.
» Ready expertise in Perm alloy, Ferrite processing & miniature assemblies.
» Most modern in-house facility for die/mould making, pressing, molding,
component assembly, etc.
» Focusing on Precision Engineering Industry and devoted to Electronic & Electro-
Mechanical items.
» Fairly large market potential within India.
» In depth backward integration capability to face any challenge of foreign
competition in Audio, Home appliances and similar applications.
» Export Capability - For the last 5years - Now focusing our attention to E.U. &
other Developed Countries.
» Philips has upgraded and designated us as their "ODM Partner" in place of "Co-
maker" based on our capability in Value Engineering.
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MILESTONES
2005• Entered into IT enabled services with a 24 seater call center.• Obtained TS: 16949:2002 Certification to Elin Ghaziabad.
2004• Established new company "ELIN APPLIANCES PVT. LTD." and started manufacturing electronic Irons & Toasters (Home Appliances) for PHILIPS at Baddi, Himachal Pradesh.
2003• Started manufacturing speaker for Philips Sound System (PSS).• Started manufacturing of VCD for Philips.
2002• ISO-14001 Certification to Elin Ghaziabad.• Started manufacturing Free Power Generator for Philips.• Started manufacturing Zipper Slider for Apparels.
2001
• Started manufacturing Eco Motors, Stepper Motors, CD Loader Motors and CD Drivers.• Started assembly of Logic control, Walkman Deck and CD Mechanism Assembly for SONY.• Started manufacturing of Terminal Blocks for LG. • ISO 9001:2000 Quality Certification
1999• Started Manufacturing Luminaries for Philips. (AMDAL).• Started Manufacturing Synchronous Motors for Air conditioners.
1998 • ISO 9002 Quality Certification for Goa Unit.
1997
• Started Contract Manufacturing of Radios & Radio Cassette Recorders for Philips at Goa.• Started manufacturing Electric Irons & Toasters (Home Appliances) for Philips at Goa in a company namely ASIAN MAGNETIC DEVICES PVT. LTD.(AMDPL)
1996 • ISO 9001 Quality Certificate to ELlN.
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• A new unit of Elin established at Parwanoo (H.P.), especially for contract manufacturing for PHILIPS INDIA LTD.
1990• Elin Audio Components Pvt. Ltd. Merged to form a limited company: "Elin Electronics Limited".
1989• Audio Head Manufacturing started in technical collaboration with Sankyo Seiki (Singapore).
1982• D.C. Micro Motro manufacturing, started for further indigenisation of Tape Deck Mechanism.
1975• Became first Indian Company to indigenously manufacture Tape Deck Mechanisms.
1969• Established as "Electronic Industries Of India", manufacturing Switches, Relays, Sockets, Jacks & Cords
Developing a Vision Statement
1. The vision statement includes vivid description of the organization as it effectively carries out its operations.
2. Developing a vision statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational vision.
3. Developing the vision can be the most enjoyable part of planning, but the part where time easily gets away from you.4. Note that originally, the vision was a compelling description of the state and function of the organization once it had implemented the strategic plan, i.e., a very attractive image toward which the organization was attracted and guided by the strategic plan. Recently, the vision has become more of a motivational tool, too
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often including highly idealistic phrasing and activities which the organization cannot realistically aspire.
Factory Location Address
Ghaziabad C-143, Industrial Area, Site No.1, Bulandshahar Road.Ghaziabad- 201009(U.P) India.Tel: - 91-120-4171100Fax: - 91-120-2702087E-mail:- [email protected]
Goa L-84, Verna Industrial
Estate, Verna, Salcatte, Goa-
403722
Tel: - 91-832-2783730, 731
Fax: - 91-832-2783001
E-mail:- [email protected]
Baddi Village Bhelikhol,
Tehsil, Nalagarh, Distt. Solan (H.P) Tel: - 91-1795-236898 Fax: - 91-1795-236988 E-mail:- [email protected]
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Turnover
Our Policy
» Service of nation through industry.
» Strive continuously for improvement in quality.
» Products of International Quality & Price.
» Continuous process improvement and training of employees.
» Involvement of Employees, Customers and Vendors in the improvement process
to achieve consistency in products.
» Appreciate and display outcomes, to boost confidence and moral of all.
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PRODUCT
TAPE DECK MECHANISMHome Stereos - EN - 57 (Front Loading)- CDS - 83 (Verticle Type)
CAR STEREO- EN - 303 (Play Back Model)- EN - 36 (Auto Reverse)
HEAD PHONE STEREO- EN -97 (Play Back Model)
P A SYSTEM- EDN -21 H (520 P) / EDN -21 H (102 P) (Horizontal Type)
DUPLICATOR- EDN - 21 H (502 P) (Horizontal Type)
AIR CONDITIONING / MICROWAVE OVEN / AIR COOLER / WINDOW DISPLAY
- EMM - A49Z2 UNIVERSAL SYNCHRONOUS MOTOR / INDUCTOR - EP35EA UNIVERSAL STEPPER MOTOR / INDUCTOR
Mixer & Grinder Motor - Universal & Economy
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Our Major Customers
DOMESTIC & INTERNATIONAL CUSTOMERS
Philips India Ltd.Sony India Pvt. Ltd.BPLMatsushita Air Conditioning India Ltd.HitachiBlue StarCarrier Aircon Ltd.
LG Electronics India Ltd.
Bajaj Auto LimitedDaikin Shriram Air Conditioning Pvt. Ltd.Black & Decker
Tata Ficosa
Denso (Haryana) Pvt. Ltd.Voltas
Super Cassette Ind. (T-Series)
Trusound (Ahuja Radios)VideoconThomson Consumer Electronics
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Matsushita IndiaFeeders Lloyd Corporation Ltd.
Awards & RecognitionsAWARDS
2003 Quality Excellence Award from Institute of Trade & Industrial Development.
2002 ELCINA award for Quality
2002 ELCINA award of Excellence for ENVIRONMENT MANAGEMENT.
2000ELCINA award for RESEARCH & DEVELOPMENT WORK in the field of electronic components.
1999ELCINA Award for INDIGENISATION OF CAPITAL GOODS FOR MANUFACTURE OF ELECTRONIC PRODUCTS
1997National award for EXCELLANCE IN ELECTRONIC COMPONENTS from Dept of Electronics (Govt. of INDIA)
1997 ELCINA award for EXCELLANCE IN QUALITY
1997 ELCINA award for EXPORT GROWTH
1997 ESC award for EXCELLANCE IN EXPORT
1996 ELCINA award for INDIGENOUS DEVELOPMENT OF CAPITAL GOODS
1994 EXCELLENCE IN ELECTRONICS Award from Govt. of India
1994 Letter of Appreciation for Services From Philips
1994IMPORT SUBSTITUTION Award from All India Radio and Electronic Association.
1993 TWO STAR INDUSTRIES Award from Directorate of Industries.
1991R & D recognized by Department of Science & Technology, Government of India
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COSTING INTRODUCTION
What is Costing?
Costing (or cost-benefit analysis) is the process of analyzing the costs and benefits of different options to determine 1) what approach should be taken to a particular conflict and 2) what solution or resolution should be chosen once various options are being considered. Thus, costing happens early on in the process as parties decide whether they should respond at all, and if so, how; and later on once settlement possibilities have been identified.
Costing is a technique and process of ascertaining costs. This technique consists of principles and rules which govern the procedure of ascertaining the cost of products. The process of costing includes routines of ascertaining costs by historical or conventional costing, standard costing or marginal costing.
How is Costing Done?
Parties in conflict make strategic decisions on how to pursue the conflict based on assessments of the likelihood of success and the potential costs of carrying out the conflict. Oftentimes parties will underestimate the costs and overestimate their potential for success. This leads them to pursue strategies that do not advance their interests. To prevent this problem, conflict resolution professionals (mediators and negotiators) often assist with the costing process. They ask hard questions: "What makes you think you can do that?" "Where will you get the money?" "Who supports this decision?" "How will the opponent respond?" "What makes you think so?" "Does everyone agree?"
By challenging assumptions and forcing the parties to justify their assessments, the parties usually develop a more realistic assessment of the costs and benefits of the options being considered. If the mediator thinks that the answers given are unrealistic, he or she may urge the parties to check further, perhaps by consulting
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a lawyer, military planners, outside observers -- anyone who can give them a more accurate assessment of the current situation and likely future scenarios.
FULL COST ACCOUNTING
FULL COST ACCOUNTING -
Full cost accounting (FCA) generally refers to the process of collecting and presenting information (costs as well as advantages) for each proposed alternative when a decision is necessary. It is a conventional method of cost accounting that traces direct costs and allocates indirect costs. A synonym, true cost accounting (TCA) is also often used. Experts consider both terms problematic as definitions of "true" and "full" are inherently subjective.
Contents
1. Concepts 2. 1 Costs rather than outlays 3. 2 Hidden costs 4. 3 Overhead and indirect costs
Concepts
Full cost accounting embodies several key concepts that distinguish it from standard accounting techniques. The following list highlights the basic tenets of FCA.
1. Accounting for costs rather than outlays 2. Accounting for hidden costs and externalities 3. Accounting for overhead and indirect costs
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1. Costs rather than outlays
An outlay is an expenditure of cash to acquire or use a resource. A cost is the cash value of the resource as it is used. For example, an outlay is made when a vehicle is purchased, but the cost of the vehicle is incurred over its active life (e.g., 10 years). The cost of the vehicle must be allocated over a period of time because every year of its use contributes to the depreciation of the vehicle's value.
2. Hidden costs
With FCA, the value of goods and services is reflected as a cost even if no cash outlay is involved. One community might receive a grant from a state, for example, to purchase equipment. This equipment has value, even though the community did not pay for it in cash. The equipment, therefore, should be valued in an FCA analysis.
3. Overhead and indirect costs
FCA accounts for all overhead and indirect costs, including those that are shared with other public agencies. Overhead and indirect costs might include legal services, administrative support, data processing, billing, and purchasing. Environmental costs as indirect costs include the full range of costs throughout the life-cycle of a product (Life cycle assessment), some of which even do not show up in the firm's bottom line. It also contains fixed overhead, fixed administration expense etc.
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INJECTION MOLDING
INJECTION MOLDING -
Injection molding is a manufacturing process for producing parts from both thermoplastic and thermosetting plastic materials. Material is fed into a heated barrel, mixed, and forced into a mold cavity where it cools and hardens to the configuration of the mold cavity. After a product is designed, usually by an industrial designer or an engineer, molds are made by a mold maker (or toolmaker) from metal, usually either steel or aluminum, and precision-machined to form the features of the desired part. Injection molding is widely used for manufacturing a variety of parts, from the smallest component to entire body panels of cars.
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Contents -
1 Process Characteristics 2 Applications 3Equipment
o 1 Mold o 2 Mold Design o 3 Effects on the material properties o 4 Tool Materials o 5 Geometrical Possibilities o 6 Machining o 7 Cost
4 Injection process o 1 Injection Molding Cycle o 2 Time Function o 3. Molded toothbrush handle
5 Process Troubleshooting o 1. Molding trial
6 Lubrication and Cooling 7 Power Requirements
1. Process Characteristics
Utilizes a ram or screw-type plunger to force molten plastic material into a mold cavity
Produces a solid or open-ended shape that has conformed to the contour of the mold
Uses thermoplastic or thermo set materials Produces a parting line, sprue, and gate marks Ejector pin marks are usually present
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2. Applications
Injection molding is used to create many things such as wire spools, packaging, bottle caps, automotive dashboards, pocket combs, and most other plastic products available today. Injection molding is the most common method of part manufacturing. It is ideal for producing high volumes of the same object. Some advantages of injection molding are high production rates, repeatable high tolerances, the ability to use a wide range of materials, low labor cost, minimal scrap losses, and little need to finish parts after molding. Some disadvantages of this process are expensive equipment investment, potentially high running costs, and the need to design moldable parts.
3. Equipment
INJECTION MOLDING MACHINE
Injection molding machines consist of a material hopper, an injection ram or screw-type plunger, and a heating unit. They are also known as presses, they hold the molds in which the components are shaped. Presses are rated by tonnage, which expresses the amount of clamping force that the machine can exert. This force keeps the mold closed during the injection process. Tonnage can vary from less than 5 tons to 6000 tons, with the higher figures used in comparatively few manufacturing operations. The total clamp force needed is determined by the projected area of the part being molded. This projected area is multiplied by a clamp force of from 2 to 8 tons for each square inch of the projected areas. As a rule of thumb, 4 or 5 tons/in2 can be used for most products. If the plastic material is very stiff, it will require more injection pressure to fill the mold, thus more clamp tonnage to hold the mold closed. The required force can also be determined by the material used and the size of the part, larger parts require higher clamping force.
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A. Mold
Mold or die are the common terms used to describe the tooling used to produce plastic parts in molding.
Since molds have been expensive to manufacture, they were usually only used in mass production where thousands of parts were being produced. Typical molds are constructed from hardened steel, pre-hardened steel, aluminum, and/or beryllium-copper alloy. The choice of material to build a mold from is primarily one of economics; in general, steel molds cost more to construct, but their gay lifespan will offset the higher initial cost over a higher number of parts made before wearing out. Pre-hardened steel molds are less wear-resistant and are used for lower volume requirements or larger components. The typical steel hardness is 38-45 on the Rockwell-C scale. Hardened steel molds are heat treated after machining. These are by far the superior in terms of wear resistance and lifespan.
Typical hardness ranges between 50 and 60 Rockwell-C (HRC). Aluminum molds can cost substantially less, and, when designed and machined with modern computerized equipment, can be economical for molding tens or even hundreds of thousands of parts. Beryllium copper is used in areas of the mold that require fast heat removal or areas that see the most shear heat generated. The molds can be manufactured either by CNC machining or by using Electrical Discharge Machining processes
B. Mold Design
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Standard two plates tooling – core and cavity are inserts in a mold base – "Family mold" of 5 different parts
The mold consists of two primary components, the injection mold (A plate) and the ejector mold (B plate). Plastic resin enters the mold through a sprue in the injection mold, the sprue bushing is to seal tightly against the nozzle of the injection barrel of the molding machine and to allow molten plastic to flow from the barrel into the mold, also known as cavity The sprue bushing directs the molten plastic to the cavity images through channels that are machined into the faces of the A and B plates. These channels allow plastic to run along them, so they are referred to as runners. The molten plastic flows through the runner and enters one or more specialized gates and into the cavity geometry to form the desired part.
The amount of resin required to fill the sprue, runner and cavities of a mold is a shot. Trapped air in the mold can escape through air vents that are ground into the parting line of the mold. If the trapped air is not allowed to escape, it is compressed by the pressure of the incoming material and is squeezed into the corners of the cavity, where it prevents filling and causes other defects as well. The air can become so compressed that it ignites and burns the surrounding plastic material. To allow for removal of the molded part from the mold, the mold features must not overhang one another in the direction that the mold opens, unless parts of the mold are designed to move from between such overhangs when the mold opens (utilizing components called Lifters).
Sides of the part that appear parallel with the direction of draw (The axis of the cored position (hole) or insert is parallel to the up and down movement of the mold as it opens and closes) are typically angled slightly with (draft) to ease release of the part from the mold. Insufficient draft can cause deformation or damage. The draft required for mold release is primarily dependent on the depth of the cavity: the deeper the cavity, the more draft necessary.
Shrinkage must also be taken into account when determining the draft required. If the skin is too thin, then the molded part will tend to shrink onto the cores that form them while cooling, and cling to those cores or part may warp, twist, blister or crack when the cavity is pulled away. The mold is usually designed so that the molded part reliably remains on the ejector (B) side of the mold when it opens, and draws the runner and the sprue out of the (A) side along with the parts.
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The part then falls freely when ejected from the (B) side. Tunnel gates, also known as submarine or mold gate, is located below the parting line or mold surface. The opening is machined into the surface of the mold on the parting line. The molded part is cut (by the mold) from the runner system on ejection from the mold. Ejector pins, also known as knockout pin, is a circular pin placed in either half of the mold (usually the ejector half), which pushes the finished molded product, or runner system out of a mold. The standard method of cooling is passing a coolant (usually water) through a series of holes drilled through the mold plates and connected by hoses to form a continuous pathway. The coolant absorbs heat from the mold (which has absorbed heat from the hot plastic) and keeps the mold at a proper temperature to solidify the plastic at the most efficient rate.
To ease maintenance and venting, cavities and cores are divided into pieces, called inserts, and sub-assemblies, also called inserts, blocks, or chase blocks. By substituting interchangeable inserts, one mold may make several variations of the same part. More complex parts are formed using more complex molds. These may have sections called slides that move into a cavity perpendicular to the draw direction, to form overhanging part features. When the mold is opened, the slides are pulled away from the plastic part by using stationary “angle pins” on the stationary mold half.
These pins enter a slot in the slides and cause the slides to move backward when the moving half of the mold opens. The part is then ejected and the mold closes. The closing action of the mold causes the slides to move forward along the angle pins. Some molds allow previously molded parts to be reinserted to allow a new plastic layer to form around the first part. This is often referred to as over molding. This system can allow for production of one-piece tires and wheels.2-shot or multi-shot molds are designed to "over mold" within a single molding cycle and must be processed on specialized injection molding machines with two or more injection units.
This process is actually an injection molding process performed twice. In the first step, the base color material is molded into a basic shape. Then the second material is injection-molded into the remaining open spaces. That space is then filled during the second injection step with a material of a different color. A mold can produce several copies of the same parts in a single "shot". The number of "impressions" in the mold of that part is often incorrectly referred to as cavitations. A tool with one impression will often be called a single impression (cavity) mold. A mold with 2 or more cavities of the same parts will
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likely be referred to as multiple impression (cavity) molds. Some extremely high production volume molds (like those for bottle caps) can have over 128 cavities.
.
C. Effects on the material properties
The mechanical properties of a part are usually little affected. Some parts can have internal stresses in them. This is one of the reasons why it's good to have uniform wall thickness when molding. One of the physical property changes is shrinkage. A permanent chemical property change is the material thermo set, which can't be remolded to be injected again.
D. Tool Materials
Tool steel or beryllium-copper are often used. Mild steel, aluminum, nickel or epoxies are suitable only for prototype or very short production runs. Modern hard aluminum (7075 and 2024 alloys) with proper mold design, can easily make molds capable of 100,000 or more part life.
E. Geometrical Possibilities
The most commonly used plastic molding process, injection molding, is used to create a large variety of products with different shapes and sizes. Most importantly, they can create products with complex geometry that many other processes cannot. There are a few precautions when designing something that will be made using this process to reduce the risk of weak spots.
First, streamline your product or keep the thickness relatively uniform. Second, try and keep your product between 2 to 20 inches.
The size of a part will depend on a number of factors (material, wall thickness, shape, process etc.). The initial raw material required may be measured in the form of granules, pellets or powders. Here are some ranges of the sizes.
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Method Raw MaterialsMaximum
SizeMinimum Size
Injection Molding (thermo-plastic)
Granules, Pellets, Powders
700 oz.Less than 1 oz.
Injection Molding (thermo-setting)
Granules, Pellets, Powders
200 oz.Less than 1 oz.
F. Machining
Molds are built through two main methods: standard machining and EDM. Standard Machining, in its conventional form, has historically been the method of building injection molds. With technological development, CNC machining became the predominant means of making more complex molds with more accurate mold details in less time than traditional methods.
The electrical discharge machining (EDM) or spark erosion process has become widely used in mold making. As well as allowing the formation of shapes that are difficult to machine, the process allows pre-hardened molds to be shaped so that no heat treatment is required. Changes to a hardened mold by conventional drilling and milling normally require annealing to soften the mold, followed by heat treatment to harden it again.
EDM is a simple process in which a shaped electrode, usually made of copper or graphite, is very slowly lowered onto the mold surface (over a period of many hours), which is immersed in paraffin oil. A voltage applied between tool and mold causes spark erosion of the mold surface in the inverse shape of the electrode.
G. Cost
The cost of manufacturing molds depends on a very large set of factors ranging from number of cavities, size of the parts (and therefore the mold), complexity of the pieces, expected tool longevity, surface finishes and many others. The initial cost is great; however the piece part cost is low, so with greater quantities the overall p rice decreases.
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4. INJECTION MOLDING PROCESS
With Injection Molding, granular plastic is fed by gravity from a hopper into a heated barrel. As the granules are slowly moved forward by a screw-type plunger, the plastic is forced into a heated chamber, where it is melted. As the plunger advances, the melted plastic is forced through a nozzle that rests against the mold, allowing it to enter the mold cavity through a gate and runner system. The mold remains cold so the plastic solidifies almost as soon as the mold is filled.
A. Injection Molding Cycle
The sequence of events during the injection mold of a plastic part is called the injection molding cycle. The cycle begins when the mold closes, followed by the injection of the polymer into the mold cavity. Once the cavity is filled, a holding pressure is maintained to compensate for material shrinkage. In the next step, the screw turns, feeding the next shot to the front screw. This causes the screw to retract as the next shot is prepared. Once the part is sufficiently cool, the mold opens and the part is ejected.
B. Time Function The closing and ejection times, can last from a fraction of a second to a few
seconds, depending on the size of the mold and machine. The cooling times, which dominate the process, depend on the maximum thickness of the part.
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C. Molded toothbrush handle –
Although most injection molding processes are covered by the conventional process description above, there are several important molding variations including:
Co-injection (sandwich) molding Fusible (lost, soluble) core injection molding Gas-assisted injection molding In-mold decoration and in mold lamination Injection-compression molding Insert and outset molding Lamellar (micro layer) injection molding Low-pressure injection molding Metal injection molding Microinjection molding Microcellular molding Multicomponent injection molding Multiple live-feed injection molding Powder injection molding Push-Pull injection molding Reaction injection molding Resin transfer molding Remolding Structural foam injection molding Structural reaction injection molding Thin-wall molding Vibration gas injection molding Water assisted injection molding Rubber injection Injection molding of liquid silicone rubber
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5. Process Troubleshooting
Optimal process settings are critical to influencing the cost, quality, and productivity of plastic injection molding. The main trouble in injection molding is to have a box of good plastics parts contaminated with scrap. For that reason process optimization studies have to be done and process monitoring has to take place. To have a constant filling rate in the cavity the switch over from injection phase to the holding phase can be made based on a cavity pressure level.Having a stable production window the following issues are worth to investigate:The Metering phase can be optimized by varying screw turns per minute and backpressure. Variation of time needed to reload the screw gives an indication of the stability of this phase. Injection speed can be optimized by pressure drop studies between pressure measured in the Nozzle (alternatively hydraulic pressure) and pressure measured in the cavity. Melted material with a lower viscosity has less pressure loss from nozzle to cavity than material with a higher viscosity. Varying the Injection speed changes the sheer rate. Higher speed = higher sheer rate = lower viscosity. Pay attention increasing the mold and melt temperature lowers the viscosity but lowers the sheer rate too. Gate seal or gate freeze / sink mark / weight and geometry studies have the approach to prevent sink marks and geometrical faults. Optimizing the high and duration of applied holding pressure based on cavity pressure curves is the appropriate way to go. The thicker the part the longer the holding pressure applied. The thinner the part the shorter the holding pressure applied. Cooling time starts once the injection phase is finished. The hotter the melted plastics the longer the cooling time the thicker the part produced the longer the cooling time.
A. Molding trial
When filling a new or unfamiliar mold for the first time, where shot size for that mold is unknown, a technician/tool setter usually starts with a small shot weight and fills gradually until the mold is 95 to 99% full. Once this is achieved a small
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amount of holding pressure will be applied and holding time increased until gate freeze off (solidification time) has occurred. Gate solidification time is an important as it determines cycle time, which itself is an important issue in the economics of the production process. Holding pressure is increased until the parts are free of sinks and part weight has been achieved. Once the parts are good enough and have passed any specific criteria, a setting sheet is produced for people to follow in the future. The method to setup an unknown mold the first time can be supported by installing cavity pressure sensors. Measuring the cavity pressure as a function of time can provide a good indication of the filling profile of the cavity. Once the equipment is set to successfully create the molded part, modern monitoring systems can save a reference curve of the cavity pressure. With that it is possible to reproduce the same part quality on another molding machine within a short setup time.
6. Lubrication and Cooling
Obviously, the mold must be cooled in order for the production to take place. Because of the heat capacity, inexpensiveness, and availability of water, water is used as the primary cooling agent. To cool the mold, water can be channeled through the mold to account for quick cooling times. Usually a colder mold is more efficient because this allows for faster cycle times. However, this is not always true because crystalline materials require the opposite: a warmer mold and lengthier cycle time.
7. Power Requirements
The power required for this process of injection molding depends on many things and varies between materials used. Manufacturing Processes Reference Guide states that the power requirements depend on "a material's specific gravity, melting point, thermal conductivity, part size, and molding rate." Below is a table from page 243 of the same reference as previously mentioned that best illustrates the characteristics relevant to the power required for the most commonly used materials.
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Material Specific Gravity Melting Point (°F)
Epoxy 1.12 to 1.24 248
Phonetic 1.34 to 1.95 248
Nylon 1.01 to 1.15 381 to 509
Polyethylene 0.91 to 0.965 230 to 243
Polystyrene 1.04 to 1.07 338
ESSENTIAL ELEMENT OF MOLDING COSTING
ABC LTD. VENDOR COASTING SHEET
VENDOR NAME: XYZ LTDCONTACT PERSON: RAM LAL
ADDRESS: XYZ LTD. PLOT NO. 12 BADDI SOLAN (H.P.)
1 COMPONENT NAME JAR2 COMP. WT. 26.93 SPRUE WT. 4.24 CAVITY 25 SHOT WT. ---6 REJ.% AVG. 1.57 METERIAL GRADE PP PT 1001
8MASTER BATCH GRADE ---
9 MACHINE TONNAGE ---10 CYCLE TIME 3511 PRINTING ---12 INSERT ---13 SPECIAL PACKING 0.2714 PLACE DESPATCH ---15 MAN POWER 1 MAN
VENDOR REMARKS:SINGNATURE:
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CALUCLATION OF MOLDING COSTING
Price break-up (For M/s. XYZ)
Delivery from M/s ABCAll prices in Rs. Per piece unless otherwise statedS. No. Description JAR
I Material Cost
1 Net wt /pc in gms `2 Sprue wt. 4.20
3 No. of cavities 2
4 Shot wt in gms (1*3+2) 58.00
5 Rejection % 1.5%6 Gross wt /pc in gms (4+4*5)/3 29.44
7 Material PP PT 1001
8 Grade
9 Colour whiteII Moulding Cost
10 Moulding M/c 130 T
11 Tariff / shift in Rs. 988
12 production hrs/ shift 7.2013 Cycle time in seconds 35
14Production / shift in pcs (12*3 *60*60/13) 1481.14
III Moulding cost/pc (11/14) 0.67
polybag 0.27
One person for packaging 0.14
IV TOTAL COST 0.94
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P RODUCT COSTING
PRODUCT COSTING –
Product costing is the process of tracking and studying all the various expenses that are accrued in the production and sale of a product, from raw materials purchases to expenses associated with transporting the final product to retail establishments. The production of a product's various components is often so synchronized on highly automated production lines that there is little or no need to maintain component inventories; thus, the old costing formulas, still used by many industries, are no longer applicable…. Further complicating the costing equation is the trend in manufacturing to focus more attention on quality, flexibility and responsiveness, to meet customer needs. This makes production-line cost analysis more difficult because each line requires small, but significant, changes in production techniques." As a result, today's managers and business owners have found that the limited information available through older job costing methods is inadequate for making informed decisions in the contemporary business environment.
With this in mind, companies have increasingly turned to detailed, long-range examinations that provide a more accurate representation of a product's true costs and benefits. "Companies are discovering that their competitiveness is enhanced when purchasing, manufacturing, logistics, and product design groups begin using total life cycle costing.”Total life cycle cost recognizes that the purchase price of an item is only part of its total cost, just the beginning of a series of costs to be accumulated by the firm, its downstream customers, and users until the end of the product's life." This analysis is further enhanced when companies include suppliers/vendors in the process, because the costing process can help create a partnership relationship that enables both parties to move away from competitive stances on pricing, delivery dates, etc., toward cooperative initiatives that optimize the expense of creating and maintaining new products.
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Costs Associated With Manufactured Products -
There are myriad potential costs associated with selling a product which may be directly or indirectly linked to the actual production process. Possible costs include:
Developing and maintaining supplier relationships. Transportation costs, including carrier payment terms; special charges in the
realms of packaging, handling, and loading and unloading; and loss and damage expenses.
Sales and freight terms that define payment terms, sales, and title transfers. Payment terms—options here range from 15 days to as many as 90 days in
some industries, and letter of credit terms provide additional options. These options, stated Cavinato, "Often are not considered by managers in purchasing, traffic, and sales. Instead, most firms mandate these terms and they become 'boiler plate' in purchase orders, carrier contracts, and invoices. It can be mutually beneficial to negotiate these terms with suppliers and carriers.
Costs to receive, process, or make ready, including unloading, counting, inspection, and inventory costs, as well as expenses associated with disposal of packaging and other product protection/transportation materials.
Logistics expenses (warehousing, loading, unloading, handling, inventory control), which are typically lumped together under the catch-all title "Overhead," despite the fact that costs for each of these can vary significantly depending on the arrangement.
Production costs accrued in actual manufacture of goods. Warranty costs. Quality costs, including costs associated with defective products (what
percentage and how far down the production line), inspections, product returns, chargeback’s, cooperage, and storage.
Lot size costs, including inventory and cash flow costs associated with lots of varying size.
Supplier inventory. Overhead costs of supplier and customer transactions, including billing,
collection, payment preparation, and receiving processes.
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Product improvement and modification, including costs of correcting defects and standardization of materials and packaging
Challenges of product costing
The pricing of products depends notably on the competition in the market. In a weakly competed market, such as a closed market, the sales price can be calculated as follows:
Sales price = cost + profit
Since competition is not strong, the changes in the company costs and profit targets can be incorporated into the sales price. In modern open markets, competition is very strong and the pricing equation changes to
Cost = sales price - profit
The sales prices are defined by the market competition and the product’s competitiveness. Profit should never be bargained to ensure the company’s survival in the long run. Thus, costs are the target function that can be influenced by the companies.
One basic difficulty in product costing is that products do not drive all the company expenses. For example, it would be very artificial to allocate general management costs, administration, general IT-support and human resource costs, etc. on products. Even within a factory, there are many questionable costs, not directly driven by the type, number or volume of products. In addition, there are costs that are driven by substantial material vendors and customers. “In fact there is no single correct (product) cost figure” (Walker 1999). Product costs are always calculated from the financial transaction data of the cost centers of the organization. Several methods exist, and each company uses a method of its own.
The simplest product costing method is to use only the direct costs. In the early days, labor cost used to have more meaning. Everything was done manually, and output volume was directly dependent on the number of employees involved. When machines began to substitute labor in production, machine costs became less visible. Most machine costs are depreciation costs, which are not comparable to direct labor costs.
It is possible to calculate the hourly cost of a machine by using deprecations and interest on invested capital plus operating and maintenance costs, but this not
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directly visible in the P/L statement. The following cases also easily remain as hidden costs in traditional accounting:
1. What is the (account) name for the costs of the unmanned hours of the factory? Depreciation and interests on the capital run every second (for 8760 hours a year), but manufacturing operates for 2000 – 6000 hours a year, depending on how many shifts are used.
2. What is the (account) name for the cost of the standing hours due to poor product demand, material shortage and machinery breakdown?
3. How do we visualize the costs of poor product quality, rework, repair, etc.?
In the standard costing method, product cost is calculated based on BOM and the capacity demand of the product. Direct costs include the raw material (component) prices and the labor cost for the product-specific work time. Indirect costs are expressed in terms of multiplier factors and extras onto direct costs. This standard cost is used as an average target product cost and followed up by comparing with the actual cost calculated similarly
In practice, we can also find other types of standard costs. Ideal cost (theoretical cost) does not include any waste, scrap, inefficiency, delays, etc., representing an ideal situation that is never reached in real life. This standard is used to motivate efficiency and cost reduction efforts. Standard cost is sometimes called normal cost and used to point out the everyday target level. Normal cost includes the allowable level of inefficiency, scrap, etc., reached on a “good day”. Although the purpose of standard costing is to give targets for product manufacturing, these costs differ from the target costing method, which is used in the early development phases of a product.
Standard costing is a simple and suitable method for actual cost follow-up, but may lead to inappropriate decisions when used incorrectly in future planning. The main problem is that standard product costing does not provide enough information to enable the user to control the overheads and other indirect costs related to the product. For example, the production overheads multiplier is typically expressed as an additional percentage of the product direct cost. This value is calculated recursively from the past accounting figures, allowing a typically growing trend for overheads when the figure is used as a standard for a new product.
Attempts to create generic product costing methods have been under way for decades, resulting in, for example, and activity-based costing. Still, there is
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disagreement as to how this method should and could be applied in company accounting. In a series of three articles, Schnoebelen (1993) describes the design and implementation of an advanced cost management system (ACMS). To provide maximum benefit, however, these new cost management concepts must be practically integrated into the business processes and operating systems (Schnoebelen 1993a). In conventional product costing methodologies only costs incurred in the manufacturing process are applied to products to determine the cost of manufacturing. The new thinking in cost management has forced accountants to break through the typical product costing barriers by applying all organizational costs in a more relevant and enlightening way. All organizational costs can be attached to cost objects (e.g., a process, product, customer etc.). The business objectives of the ACMS should include the following targets:
Improving the understanding of the organizational cost structure and behavior by products, business processes and business activities.
Improving product costing to enhance product and customer profitability.
Highlighting opportunities to reduce or avoid costs.
Improving cost planning and simulation capabilities.
Supporting the cost management information needs of non-manufacturing and non-financial functions, including product design, engineering, purchasing and marketing.
Better utilizing manufacturing and administrative resources.
Improving performance reporting.
Providing a sound, fundamental cost accounting framework.
Increasing the timeliness, efficiency, reliability and accessibility of financial information.
The system features that correspond to these objectives are illustrated in Table 4. A lot of attention has been given to the implementation of ACMS. Three different (concurrent, pilot and phase) approaches to implementation have been recognized and described. Data validity control is also considered a very important measure of system quality.
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The official definition of throughput is revenue minus total variable costs. However, some companies exclude all the other expenses, such as the variable selling and shipping costs, considering direct material the most significant factor. Thus, a simplified version of throughput accounting is also used. The visible difference between conventional and throughput accounting is the handling of direct labor, which is considered as a fixed cost. The variable cost nature of direct labor seems to be more a historical reminder than contemporary reality. In many companies, labor cost is, in practice, treated as a fixed cost.
VARIOUS STEPS IN PREPARATION OF PRODUCT COSTING
STEP1: Planning
Summarize the new product plan in a document that clarifies the design requirements:
1. Outline the product’s concept and mission.2. Generate primary specifications for the product’s performance and
design.
3. Schedule the product’s design, manufacturing and marketing.
4. Define product target cost, selling price and volume.
STEP2: Concept design
Formulate the basic concept of the new product based on the design requirements mentioned in step 1.
1. Formulate the main functional areas.2. Assign the target cost to the functional area of the new product.
3. Design the basic product concept under the target cost.
4. Use a rough cost estimate to ascertain whether the basic product concept has been designed to fit the target cost.
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STEP3: Basic design
Make a general drawing of the product based on the previous steps:
1. Assign target cost to the top and middle functions of each functional area or main component of the new product.
2. Frame a general drawing under the target cost.
3. Use a rough estimate to ascertain whether the general drawing has been designed to fit the target cost.
STEP4: Detailed design
Write the product’s manufacturing specifications based on:
1. The detailed manufacturing specifications under the target cost.2. A detailed cost estimate to ascertain whether the product’s
manufacturing specifications have been designed to fit the target cost.
STEP5: Manufacturing preparation
Write the product’s manufacturing specifications based on:
1. The design of the manufacturing process, type and jig under the target cost.
2. The detailed cost estimate used to ascertain whether the manufacturing preparations for the product are accomplished within the target cost.
The implementation of target costing was introduced with a new target of $1162 per ton, which equals a 60% cost reduction. The management accepted the challenge, and after at cost-driven analysis, four major reductions were accomplished:
1. Fiber cost: 60% cost reduction.2. Paper machine cost: Yield from 47% -> 75%.
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3. Dye costs: material savings of $250 per ton incorporated in the yield improvement at the paper machine resulted in an amazing $769 reduction per ton.
4. Conversion costs: Based on benchmarking, a reduction from $303 to $150 was challenged with the risk of possible outsourcing. During 18 moths, the cost dropped to $240, and the continuous improvement seemed to gain even more.
Together, these produced the desired level of costing and a dramatic turnaround in the mind set.
PROCESS OF PRODUCT COSTING -
1. Costing is a generic system. It is completely integrated with basic transactions of rest all modules for the purpose of data capture so that there is assured reconciliation.
2. Product-costing calculation based on captured data can be completely customized with diverse methods for apportioning costs over individual products or batches.
3. The costing structure assumes typical scenario of manufacturing company where cost components of a product can be broadly divided into:
a. Material costs
b. Conversion costs (manufacturing costs)
c. Post manufacturing costs
d. Overheads.
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4. System gives:
-Segregation of individual cost components-Head-wise reporting for products and batches on standard costs, actual costs, and contribution-A way to relate sensitivity of ‘components of product cost’ to ‘cost of resources’. This is to assess individual / combined impact on product costs and heads because of things like ‘5% rise in wages’, ‘10% increase in power costs’, or ‘2% reduction in material cost’
Costing module also integrates with project management module that allows definition, budgeting, and control of project-wise and activity-wise costs.
Variance reporting gives variance of standard costs versus actual costs.
Products Costing - Flow Diagram –
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.
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IMPORT
IMPORT -
The term "import" is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus an import is any good (e.g. a commodity) or service brought in from one country to another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale. Import goods or services are provided to domestic consumers by foreign producers. An import in the receiving country is an export to the sending country.
Imports, along with exports, form the basis of international trade. Import of goods normally requires involvement of the customs authorities in both the country of import and the country of export and are often subject to import quotas, tariffs and trade agreements. When the "imports" are the set of goods and services imported, "Imports" also means the economic value of all goods and services that are imported. The macroeconomic variable I usually stand for the value of these imports over a given period of time, usually one year.
Contents –
1 Definition
2 Balance of trade
3 Types of import
4 Role of the Internet
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Definition -
"Imports" consist of transactions in goods and services (sales, barter, gifts or grants) from non-residents residents to residents. The exact definition of imports in national accounts includes and excludes specific "borderline" cases. A general delimitation of imports in national accounts is given below:
An import of a good occurs when there is a change of ownership from a non-resident to a resident; this does not necessarily imply that the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of ownership even though in legal terms no change of ownership takes place (e.g. cross border financial leasing, cross border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair). Also smuggled goods must be included in the import measurement.
Imports of services consist of all services rendered by non-residents to residents. In national accounts any direct purchases by residents outside the economic territory of a country are recorded as imports of services; therefore all expenditure by tourists in the economic territory of another country are considered as part of the imports of services. Also international flows of illegal services must be included.
Basic trade statistics often differ in terms of definition and coverage from the requirements in the national accounts:
Data on international trade in goods are mostly obtained through declarations to custom services. If a country applies the general trade system, all goods entering the country are recorded as imports. If the special trade system (e.g. extra-EU trade statistics) is applied goods which are received into customs warehouses are not recorded in external trade statistics unless they subsequently go into free circulation of the importing country.
A special case is the intra-EU trade statistics. Since goods move freely between the member states of the EU without customs controls, statistics on trade in goods between the member states must be obtained through
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surveys. To reduce the statistical burden on the respondents small scale traders are excluded from the reporting obligation.
Statistical recording of trade in services is based on declarations by banks to their central banks or by surveys of the main operators. In a globalize economy where services can be rendered via electronic means (e.g. internet) the related international flows of services are difficult to identify.
Basic statistics on international trade normally do not record smuggled goods or international flows of illegal services. A small fraction of the smuggled goods and illegal services may nevertheless be included in official trade statistics through dummy shipments or dummy declarations that serve to conceal the illegal nature of the activities.
Balance of trade
Balance of trade represents a difference in value for import and export for a country. A country has demand for an import when domestic quantity demanded exceeds domestic quantity supplied, or when the price of the good (or service) on the world market is less than the price on the domestic market.
The balance of trade, usually denoted NX, is the difference between the value of the goods (and services) a country exports and the value of the goods the country imports:
A trade deficit occurs when imports are large relative to exports. Imports are impacted principally by a country's income and its productive resources. For example, the US imports oil from Canada even though the US has oil and Canada uses oil. However, consumers in the US are willing to pay more for the marginal barrel of oil than Canadian consumers are, because there is more oil demanded in the US than there is oil produced.
In macroeconomic theory, the value of imports I can be modeled as a function of the domestic absorption A and the real exchange rate σ. These are the two largest factors of imports and they both affect imports positively:
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Types of import -
There are two basic types of import:
1. Industrial and consumer goods 2. Intermediate goods and services
Companies import goods and services to supply to the domestic market at a cheaper price and better quality than competing goods manufactured in the domestic market. Companies import products that are not available in the local market.
There are three broad types of importers:
1. Looking for any product around the world to import and sell. 2. Looking for foreign sourcing to get their products at the cheapest price. 3. Using foreign sourcing as part of their global supply chain.
Direct-import refers to a type of business importation involving a major retailer (e.g. Wal-Mart) and an overseas manufacturer. A retailer typically purchases products designed by local companies that can be manufactured overseas. In a direct-import program, the retailer bypasses the local supplier (colloquial middle-man) and buys the final product directly from the manufacturer, possibly saving in added costs. This type of business is fairly recent and follows the trends of the global economy.
Role of the Internet -
Many online auction websites are now providing wholesalers through a wholesale list, generally, the lists that require a fee to view, may not be updated frequently, the data may be old, and the companies listed may no longer be in business. Another form of online middlemen is B2B trade companies. These cater mainly to big businesses who are importing large quantities of goods from foreign countries. They also have sister sites that serve smaller orders for small businesses. In addressing the concerns of listed companies' legitimacy and dependability, such B2B portals may inspect suppliers at their actual premises before they list suppliers. Alternatively, these companies may also branch out of cyberspace and
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organize their own sourcing fairs, where thousands of buyers and suppliers can meet face-to-face.
IMPORT COSTING
IMPORT COSTING –
Import Costing is a module designed for companies wanting to track their imports and to calculate the landed cost of the items in each shipment.
Overview –
The Import Costing module is used to construct 'shipments' from existing purchase orders.
A shipment can comprise of a single purchase order or span multiple purchase orders. These orders can be coasted at any stage by specifying relevant exchange rates and applying user defined shipment costs. Based on the newly calculated unit cost, selling prices can also be optionally set.
When the costs have been finalized and the goods received, the shipment can be processed to update the inventory and purchase order files. General Ledger postings are automatically set up, and a supplier invoice is created. A history of each shipment is retained for later viewing or reporting. A 'sundry shipment' option is included to allow stock items to be coasted and selling prices set in advance of placing any orders. This is beneficial to importers who need to finalize prices before receiving orders from customers.
Shipment features:
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Allows new shipments to be created and existing shipments which are still 'in transit' to be altered.
The shipment routine displays all outstanding orders for a nominated supplier.
Shipments are constructed by selecting all or part of the detail items from the displayed orders.
Shipments are automatically assigned a shipment number and stored in a new shipment file.
Detail lines can be added and removed from shipments at any time and quantities in a shipment can be modified at any time.
Additional details relevant to the shipment, such as due dates, exchange rates, country of origin and shipping line may also be entered and stored as a reference with each shipment.
Costing features:
Allows shipments to be loaded and coasted. The shipment is automatically totaled and converted to local currency at a
nominated exchange rate. Up to eight user-defined shipment costs. Cost may be apportioned by quantity, value, weight, volume, percentage or
manually. The ability to perform a 'What if' analysis to see the effect of changes in
exchange rates and shipment costs on the final landed cost prior to processing.
Allows the old cost, new cost and current selling price to be viewed as well as the margin based on the new landed cost.
Costs can be entered as they are received and stored with the shipment so that the costing can be updated over a period of time.
Selling prices can be updated by a number of methods such as specifying a required margin or by maintaining the previous margin.
“Sundry" shipments can be created, allowing new costs and selling prices to be calculated, for importers requiring "previews" of shipments before purchase orders are placed.
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