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8/2/2019 ppt of cost

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Manufacturing Process

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Manufacturing Process

Names Roll No. Waqas Chougle 1104

Anup Kulkarni 1121

Manish kumar Singh 1122

Akshay Patani 1134

Dhaval Shah 1141

Meenaaz Shaikh 1144

Arjun Singh 1150

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Requirements of a good manufacturing system

Product should meet design requirement

Economical Process

Quality should be built into the system

Should be flexible and responsive to new technology High productivity: Best utilization of man, material,

machine, capital and available resources.

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Estimate the Manufacturing Costs

Finished GoodsManufacturing System

Equipment Information Tooling

WasteServicesSuppliesEnergy

Raw Materials

Labor

PurchasedComponents

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Manufacturing Costs Defined Sum of all the expenditures for the inputs of the

system (i.e. purchased components, energy, rawmaterials, etc.) and for disposal of the wastes producedby the system

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Elements of the Manufacturing Cost of a

Product Manufacturing Cost

OverheadAssemblyComponents

Standard Custom LaborEquipmentand Tooling

SupportIndirect

Allocation

Raw

Material Processing Tooling

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Manufacturing Cost of a Product Component Costs (parts of the product)

Parts purchased from supplier

Custom parts made in the manufacturers own plant or by

suppliers according to the manufacturers designspecifications

Assembly Costs (labor, equipment, & tooling)

Overhead Costs (all other costs) Support Costs (material handling, quality assurance,

purchasing, shipping, receiving, facilities, etc.)

Indirect Allocations (not directly linked to a particularproduct but must be paid for to be in business)

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cost of production as indicated in the chart below :

Direct materials cost xxxxDirect wages xxxxDirect expenses xxxxPRIME COST xxxxFactory overhead xxxxFACTORY COST xxxx

Administration overhead xxxxCOST OF PRODUCTION xxxxSelling and distribution overhead xxxxCOST OF SALES xxxx

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Determining cost per unit Fixed cost(1)

Variable cost(2)

Cost of production (3) (1+2) Cost per unit (4) (3/no. of units produced)

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Work-in-process inventories at each stage of process, quarrying,

raw material crushing, stock hall, raw material mixing and grinding,clinker grinding cement in soils and packing and storage shall be maintained


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Particulars Unit Rate Rs. Particulars Unit Rate Rs.

To Direct material By Normal

Loss

To Direct Labour By Unitstransferred

to other

process

To Indirect

material

To Other

Expenses

By Abnormal

loss (B/F)

To Abnormal

gain(B/F)Total Total

1 )To find the cost per unit for valuation of units to be trans. to next processand also

for abnormal, loss or gain = Total process cost Salvage value of normalspoilage

Total units introduced Normal loss inunits

Format of process a/c


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A. Quantitative data

Opening stock at quarry, quantity quarried For the year Last year Increase\DecreaseTotal tonnes tones Over last year ton.Quantity transported to crusher XXX XXX XXXClosing stock at quarry XXX XXX XXXRaw material consumption XXX XXX XXX

B. Cost statementCost :- For the year Last yearRoyalty and duties xxx xxxLabour cost xxx xxxSalaries xxx xxxEmployees other benefits xxx xxx

Indirect materials xxx xxxInsurance xxx xxxRepair and maintenance xxx xxxFuel xxx xxxGas xxx xxxDepreciation xxx xxxOther overheads xxx xxxPower xxx xxxOther factory expenses xxx xxxSub- total: xxx xxxTotal cost of the period xxx xxx


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Example-

The manufacturing cost per tonne of ACC Ltd,Indias largest cement manufacturer by capacity,is the highest in the Indian cement industry, sayanalysts.

ACCs manufacturing cost is Rs1,529 per tonne

against the industry average of Rs1,056 pertonne.Birla Corp. Ltd has the second highestmanufacturing cost, Rs1,339 per tonne, followedby UltraTech Cement Ltd, at Rs1,240 per tonne.


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THE CEMENT MANUFACTURING PROCESSquarry

raw grinding and burning

grinding, storage, packing, dispatch

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CEMENT MANUFACTURING PROCESS

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RAW MATERIALS REQUIRED Limestone

Sand

Shale Clay

Iron

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THE CEMENT MANUFACTURING PROCESS

1. BLASTING : The raw materials that are used to manufacture cement (mainly limestone and clay) are blastedfrom the quarry.

Quarry face

1. BLASTING 2. TRANSPORT

3. CRUSHING AND TRANSPORTATION : The raw materials, after crushing, are

transported to the plant by conveyor. The plant stores the materials before they arehomogenized.

quarry

3. CRUSHING & TRANSPORTATION

2. TRANSPORT : The raw materials are loaded into a dumper.

crushing

conveyor

dumper

storage atthe plant

loader

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1.RAWGRINDING : The raw materials are very finely ground in order to produce the raw mix.

1. RAW GRINDING

Raw grinding and burning

2. BURNING

2.BURNING : The raw mix is preheated before it goes into the kiln, which is heated by a flame that canbe as hot as 2000 C. The raw mix burns at 1500 C producing clinker which, when it leaves the kiln, israpidly cooled with air fans. So, the raw mix is burnt to produce clinker : the basic material needed tomake cement.

conveyorRaw mix

kiln

cooling

preheating

clinker

storage at

the plant

Raw mill

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1.GRINDING : The clinker and the gypsum are very finely ground giving a pure cement. Other secondaryadditives and cementitious materials can also be added to make a blended cement.

1. GRINDING

Grinding, storage, packing, dispatch

2. STORAGE, PACKING, DISPATCH

2. STORAGE, PACKING, DISPATCH :The cement is stored in silos before being dispatched either inbulk or in bags to its f inal destination.

clinkerstorage

Gypsum and the secondary additives are addedto the clinker.

silos

dispatch

bags

Finish grinding

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