Cost Engineering Solutions Ltd 1 C€$ “DETAILED” ESTIMATING Dave Lewis European Aerospace Cost...
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Transcript of Cost Engineering Solutions Ltd 1 C€$ “DETAILED” ESTIMATING Dave Lewis European Aerospace Cost...
Cost Engineering Solutions LtdCost Engineering Solutions Ltd 1 C€$C€$
“DETAILED” ESTIMATING
Dave Lewis
European Aerospace Cost Engineering Working Group 18th April 2002.
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Bottoms-up Estimating
A method of estimating characterised by a thorough, detailed analysis of all tasks, components and assemblies.
The results are rolled up to produce an estimate of the entire project.
Can be developed using a combination of many estimating methods.
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Why Estimate Price is a policy. Cost is a fact To determine a cost basis upon which to
negotiate a selling price Long term financial planning Control of manufacturing costs Standard for measurement To determine “most” economical method of
manufacture To choose alternatives
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Why Estimate Price is a policy. Cost is a fact To determine a cost basis upon which to
negotiate a selling price Long term financial planning Control of manufacturing costs Standard for measurement To determine “most” economical method of
manufacture To choose alternatives
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Bottoms-up Estimating
A method of estimating characterised by a thorough, detailed analysis of all tasks, components and assemblies.
The results are rolled up to produce an estimate of the entire project.
Can be developed using a combination of many estimating methods.
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Types of Estimate
DetailedBottoms upPrime Cost EstimatingGrass RootsEngineering
ComparativeParametric
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Estimating Standards (1)
Good understanding of the estimating & cost management system
Knowledge of how shop floor activities are recorded Knowledge of incentive schemes How direct labour rates are derived and overheads
are recovered How raw materials, bought-out parts, finished parts,
and work in progress are issued and priced
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Estimating Standards (2)
How to estimate including separate identification of allowances and contingencies
Estimates should be prepared in units of time Definition of the task Knowledge of costing system (job-costing, standard
costing, process costing, etc.,)
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Estimating Standards To cover individual operations
Types of activity or machiningSet-up times for individual machinesParting off allowancesCuts different depths and diametersRivetingWeldingComposite lay upTreatmentsScrap allowancesCleaning Time
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Data/Information (1) Cost allocation sheet List of manufacturing plant and equipment Statement of work Build standard Test Specification Type of estimate required Detail drawings Make and buy plan Work breakdown structure Batch sizes, quantities Cost breakdown structure
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Data/Information (2)
Specifications Planned batch sizes, quantity required, delivery
programme In-house manufacturing plans Main assumptions Estimating allowances (e.g. scrap, rectification,
learning, and the basis that these have been derived Proposals for contingencies, risk, etc
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Data/Information (3) Proposals for tooling required Take into account concurrent spares Inspection requirements Recorded cost on past products/batches, performance Labour and overhead rates Recorded data to justify allowances, e.g. learning
rates achieved, scrap rates, rectification levels etc Raw material and bought-out prices
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Preparations for Estimating
Set of estimating standardsObtain drawings, schedules etc]What is the PurposeTimescaleLevel of confidence required
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Process Outline
WBSWBS
Product TreeProduct Tree
Work PackageWork Package
Gantt +ResourcesGantt +
ResourcesTeam SizingTeam Sizing
Manufacture& Test
Manufacture& Test
Planning &Estimating Sheets
Planning &Estimating Sheets
Learning CurvesLearning Curves
Works CostWorks Cost
OBS
StandardsProceduresSpecs
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DESCRIPTION OF A WBS
Work Breakdown Structure – Stage 1
“A deliverable- orientated grouping of project elements that organizes and defines the total work scope of the project. Each descending level represents an increasingly detailed definition of the project work.”
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Work Breakdown Structure 1 - Product Tree
A n ten n a R x/S ervo
B od y N eed le E TC
V a lve M C O etc
P ro jec t
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Work Breakdown Structure 2 - Support Functions
A n ten n a R X /S ervo
D es ig n
B od y N eed le E tc
V a lve M C O etc
P ro jec t m an ag er S ch ed u lin g e tc
P ro jec t M an ag em en t
P ro jec t
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Valve Assembly
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Valve Assembly 1. Needle valve body
2. Needle
3. Valve seat insert
4. Bush
5. Guide Bush
6. End cap
7. BS010 - ‘0’ ring
8. BS011 - ‘0’ ring
9. BS015 - ‘0’ ring
10. Skid washer
11. Conical Spring
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Drawings/Schedules
Parts Listing Description of Materials Quantities Assembly Routing
ProcessDepartmentMachines
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Estimating Sheets Separate sheet for each assembly/sub-assembly
Part/Item numbersQuantity per assemblyMaterial costDepartmental labour rateMachining group ratePart/Item hours and costBudget out costsScrap/Rework and yieldCover each operation
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Operations SheetOp 1 Manual M/C Ops Prep Matl Run Total
Hrs £ Hrs Hrs
1Cut piece hex bar approx 20mm longer than required length 20 15 15
2 Put 3 jaw chuck on lathe 15 153 Fix Material into chuck 5 54 Using square L/H facing tool, face material off 15 155 Centre & Drill 15 15
6
Set up boring bar in tool post & bore each bore to size, use plug gauges to check sizes are correct on each bore 10 20 30
7Using profile turn tool, turn front of job to size. Check using vernier & micrometer 10 5 15
8Using die or screw cut bar, thread front end. Check using screw ring gauge 10 10 20
9 Part of job leaving 0.5mm on length. 5 5
Op 2 Mandrel for Holding Component Prep Matl Run Total
1 Place 1" mild steel bar in 3 jaw chuck 5 20 10 152 Drill & tap to required size 5 5
Op 3 Prep Matl Run Total
1 Screw component into mandrel 5 52 Use profile tool to face & turn job 5 10 153 Screw cut back end using a die 10 10
4Use groove tool to machine grooves, check all sizes using vernier & micrometer 5 10 15
5 Chamfer hole using centre 5 56 Unscrew component 5 5
Total 65 40 145 210
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List Of Items/Quantities & Matl Estimates
ESTIMATE WORK-UP SHEET Page 1 of 1Part Number:
Enquiry or Order Number: Spare ABCD Assembled on:
Description: Needle Valve Assembly
Estimate No.: 1 (Materials) Issue No: 3 Order Quantity:
Sheet No: 1
Processes /
Finishes Bought-out Subcontract Raw material
£ £ £ £
1 Valve Assembly 1 402 Needle 1 503 Valve Seat 1 254 Bush 1 105 Guide Bush 1 206 End Cap 1 137 BS 010 'O' Ring 1 608 BS 011 'O' Ring 1 609 BS 015 'O' Ring 1 6010 Skid Washer 1 2511 Conical Spring 1 15121314151617181920
Name of estimator and date
MaterialRemarksItem No.Drawing No. Description Quantity
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Estimate By Cost Centre
ESTIMATE WORK-UP SHEET - Labour hours by cost centrePage 1 of 1
Enquiry or Order Number: Spare Part Number:Assembled on:
Description: Valve assembly
Estimate No.: Issue No: 3
Sheet No: 1
Section Number (Cost Centre)
Hrs Hrs Hrs Hrs Hrs Hrs Hrs Hrs Hrs Hrs Hrs Hrs Hrs Hrs Hrs £1 1 85 50 15 5 45 10 210 40234567891011121314151617181920
Totals 85 50 15 5 45 10 0 0 0 0 0 0 0 0 210 40
Name of estimator and date
Tools
Item No. Quantity MaterialLabourSet-upProdSet-upProdSet-upProdSet-upProdSet-upProd ProdSet-upProdSet-up
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Labour Cost Calculation
ESTIMATE WORK-UP SHEET Summary of Labour Charges
Enquiry or Order Number: Sheet 1 of Part Number: Needle Valve
Description: Assembled on:
Estimate No.: Order Quantity:
Production Hours & Labour Total cost Production Hours & Labour Total costSection minutes Hourly rate Section minutes Hourly rate
£ £ £ £1 85 20 1700 50 30 15002 15 30 450 5 30 1503 45 15 675 10 30 300456789101112131415161718192021
Production Labour: 145 2825
Amortised setting: 65 2095Total set-up = Set-up (each)
Quantity
Totals (carried forward to Fig. 4) 210 4920
Special Tooling (if required)
Material costSubcontract costLabour cost
Total special tooling
Name of estimator and date
Set-upProduction
Line no.
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Estimate SummaryEstimate Summary
Enquiry or Order Number: Spare Page 1 of 1Estimate Type: Part Number:Description: Needle Valve Assembled on:
Estimate No.: 1 Issue No:
Sheet No: 1 Order Quantity:
Direct Labour
Processes and Finishes 0 0 from Fig. 1
Sub-total Processes 0 0
Production Labour 2825 from Fig. 3
Amortised Set-up 2095 from Fig. 3
Subcontract
Sub-total Labour 4920
Materials
Raw materials 40 from Fig. 1Bought-out materials
Sub-total Materials 40
Notes:
Prime Cost (each)
Finishes 0
Labour and amortised set-up 4920
Material cost 40
Amortised special tooling total special tooling divided by batch quantity
Sub-total 4960
Test, etc. 100
Total prime cost 5960Name of estimator and date
£
£ £
Remarks DetailEstimated Cost (each)
Work-up Basic
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Other Considerations
Learning CurvesAllowancesRisk Assessment
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Gantt + Resources
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Cost Engineering Solutions LtdPhone + 44 (0) 7739 559580
Fax + 44 (0) 1438 216254Email [email protected]