Unit 1

Cost estimation: Importance and aims of cost estimation – functions of estimation – difference between estimating and costing – importance of preparing realistic estimates – estimating procedure. Elements of cost, Objectives – elements of costs – ladder of cost – determination of material cost – labour cost – expenses.

Unit 2

Analysis of overhead expenses, Distribution of overhead costs – depreciation – causes of depreciation – methods of calculating depreciation.
Estimation of machining time, Calculation of machining time for lathe operations-estimation of drilling time on drilling machine – estimation of time for shaping, planning, milling and grinding.

Unit 3

Costing for metal forming and fabrication processes, Estimation of cost in welding- estimation in forging shop – cost estimation of foundry work.

Course Objectives

• To facilitate estimation of time for machining, welding, forging and allied processes.
• To impart knowledge on cost estimation of a product by considering various manufacturing processes.

Course Outcomes

• CO1: Identify the various cost elements involved in total cost of the product
• CO2: Estimate the cost of manufacturing a component by welding, casting and forging operations
• CO3: Calculate the time taken for various machining operations
• CO4: Apply appropriate methods for calculating depreciation

CO – PO Mapping

Textbook(s)

• Banga T. R. and Sharma S. C. – ‘Mechanical Estimating and Costing including Contracting” – Khanna Publishers – 2011
• O. P. Khanna – ‘Mechanical Estimating and Costing’ – Dhanpat Rai Publishers – 1999

Reference(s)

• Narang G. B. S and Kumar V. – ‘Production and Costing’ – Khanna Publishers – 2004
• Adithan M. and Pabla B. S. – ‘Production Engineering Estimating and Costing’ – Konark Publishers (P) Ltd. – 1998

Evaluation Pattern