Frequently Asked Questions
1. Estimation – Before executing the work, the Time and Cost of manufacturing to be predicted closer to the actual in Scientific way of calculation using Appropriate Formulas.
2. Costing – After processing by adding all the cost involved in manufacturing
3. Profit working – By subtracting the Manufacturing Cost from the Selling Cost. Result should have +ve value. This should be done for every product.
4. If possible, Process cost / Product Cost / Operational Cost to be monitored on daily basis
5. Last but not least, Break even Cost of Machine per Hour should be known. Otherwise it will definitely lead to LOSS in the Balance Sheet and end up with Heavy impact even to leave the business once for all.
Operational Cost includes Raw Material Cost, Process Cost, Inspection Cost and all cost involved in manufacturing
Machine cost, Interest Rate, Life of Mc in Years/Hours, Current Age of Mc, Reselling Cost of Mc, No of Operating Hrs/day
Factory Area in Sq.Ft, Space Cost/Sq.Ft, Mc Space including utilities, No of Machine in factory, Common Space
Oil consumption/Month, Oil Price/Lit, Waste consumption/Month, waste Price/kg, Monthly, Annual Maintenance Cost, Other Consumables/Month
Machine Power, Effective Running of Motors, No of Fans /Consumption, No of Lights /Power consumption, Compressor Power, Effective Running time of Compressor, No of Mc connected with Compressor, EB Unit Rate
Average Tool cost/Month, Operator Salary, No of Mc handled by Operator, Helper Salary, No of Mc handled by Helper, QC inspector Salary, No of Mc handled by QC Inspector,
Production Supervisor Salary, No of Mc handled by Production Sup, QA Supervisor Salary, No of Mc handled by QA Sup, Engineer Salary, No of Mc handled by Engineer, Admin Staff & Manager Salary, Other Overheads, Profit.
3. Right Man Power
Most of the (more than 95%) Industries do not calculate the Manufacturing Cost in Scientific way. They calculate based on experience, Assumption, Referral Methods. In some Industries the quote is made based on the estimation given by the operators+buffer for safety (Operator himself gives the estimate with a better buffer for his safety) Example: Operator’s Working 15 + His Buffer 5 = 20 + Estimator Buffer 5 = 25 + Profit 5 = 30 + Negotiation Buffer 5 = 35 becomes the Quote.
Actual Estimate 15 + profit 5 = 20. But the Quote value = 35.
Even if the customer offers 20-30, ignore the Order assumes that it would be loss, since not knowing the Break-even Cost.
So, in this competitive market, High Quotes get rejected and lead to loss the Orders. Rarely 1 or 2 out of 10 quotes is the conversion ratio.
1. Not Estimating Scientifically
2. Missing many processes on over look when Estimating, but doing all the processes when manufacturing in order to complete the Order.
3. Accepting Order for the price fixed by the customers just without knowing the Break-even cost
4. Over confidence and Over Smartness
Right Man Power – The Person doing a work with required knowledge about the work he does. (Without much of Training, Guidance, Directions and Instructions)
But unfortunately, in India we are not able to find and recruit Right Man Power. We compromise and forced to recruit the person somewhat better tin the group (Best among the Worst). Or otherwise need to pay high to have a really Right Person.
Corporate, MNC recruit Right people since they are affordable. But Nowadays, even MNC and Corporate companies are also struggling to find and to retain Right people.
Very rarely, some management having LUCK, get and have and retain Right people.
1. Recruit candidate somewhat ok Candidate, EMPOWER them by training for your purpose by External Training Sources.
Consider the Cost of Training from their CTC for the First year. If the candidate sustain with you for the next year, Reimburse the Cost of Training to him back.
SOLUTION FOR COSTING
We The Infinitive Automation Provide Solutions for
Cost Reduction by Waste Reduction to
Small and Medium scale Engineering Industries.
NEW IDEA For Growing Your Business
We are one of the major service providers to Engineering Industries, Engineering Colleges and Mechanical Engineering Students
We proudly introduce
Advanced Machining Cost Saver (AMaCE)
Sheet Metal & Fabrication Cost Estimator (SMF)
Machine Hour Rater (MHR)
Essential For Mechanical Engineers (SNCL4ME)
Time Study Tool cum Digital Log Sheet (SNCL LOG)
Some Special Features of our Products (for CNC Machine Shop and Press Shop)
Remarkable things of our Tools are
We dedicate our sincere and heartfelt thanks to
Er.EK Ponnuswamy – Past President, CODISSIA
Thamizh Chemmal, Sinthanai Kavignar Dr.Kavidasan – Director, Roots Group of Industries
For launching our products and services to SME industries.
And we dedicate our grateful thanks to
Mr.Vetri Gnanasekaran – Past President, HOSTIA
Mr.LKM Adhi- Past President, HIA
Mr.Babu – Past President, TANSTIA
Mr.Sundaram – Past President, CODISSIA
Mr.Loganathan – Past President, COSIEMA
Mr.Surulivel – President, COSIEMA
Mr.Rajan – Past President, SIEMA
Mr.Mahendra Ramdass – Past President, COINDIA
Mr.Raju – Past President –AIEMA
For their full hearted guide, support and encouragement.
And we dedicate our warm thanks to
Mr.Swaminathaswamy – Director, DMW CNC Solutions Ltd
and his team for 500% utilization of our products