TAILIEUCHUNG - Ebook Process planning and cost estimation (2nd edition): Part 2

(BQ) Part 2 book "Process planning and cost estimation" has contents: Standard data, materials available to develop an estimate, methods of estimates, estimating procedure, constituents of a job estimate, allowances in estimation,.and other contents. | 92 Process Planning and Cost Estimation Unit–4 COST ESTIMATION INTRODUCTION In this rapid developing and competitive age, it is necessary for a factory that the advance information about the cost of a job or a manufacturing order to be put through should be available before taking up the actual production. Estimating which is predetermination of cost is mainly concerned with the factory owner. It helps him to decide about the manufacturing, and selling prices. TYPES OF ESTIMATE Estimates can be developed in a variety of different ways depending upon the use of the estimates and the amount of detail provided to the estimator. Importance of understanding estimating methods. Every estimator should understand every estimating method and when to apply each, because no one estimating method will solve all estimating problems. Guesstimates Guesstimates is a slang term used to describe as estimate than lacks detail. This type of estimate relies on the estimators experience and judgment. There are many reasons why some estimates are developed using his method. One example can be found in the tool and die industry. Usually, the tool and die estimator is estimating tool cost without any tool or die drawings. The estimator typically works from a piece part drawing and must visualize what the tool or die looks like. Some estimators develop some level of detail in their estimate. Material cost, for example, is usually priced out in some detail, and this brings greater accuracy to the estimator by reducing error. If the material part of the estimate has an estimating error of plus or minus 5 per cent and the reminder of the estimate has an estimating error of plus or minus 10 per cent, the overall error is reduced. Budgetary The budgetary estimate can also be a guesstimate but is used for a different purpose. The budgetary estimate is used for planning the cost of a piece part, assembly, or project. This type of estimate is typically on the high side .

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• Standard data
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• Process planning
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• Methods of estimates
• Estimating procedure
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• Data Encryption Standard
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