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Manufacturing Costs
Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labor cost and manufacturing overhead. It is a factor in total delivery cost. Direct materials cost Direct materials are the raw materials that become a part of the finished product. Manufacturing adds value to raw materials by applying a chain of operations to maintain a deliverable product. There are many operations that can be applied to raw materials such as welding, cutting and painting. It is important to differentiate between direct materials and indirect materials. Direct labour cost The direct labour cost is the cost of workers who can be easily identified with the unit of production. Types of labour who are considered to be part of the direct labour cost are the assembly workers on an assembly line. Manufacturing overhead Manufacturing overhead is any manufacturing cost th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Direct Materials Cost
Direct materials cost the cost of direct materials which can be easily identified with the unit of production. For example, the cost of glass is a direct materials cost in light bulb manufacturing. The manufacture of products or goods required material as the prime element. In general, these materials are divided into two categories. These categories are direct materials and indirect materials. Direct materials are also called productive materials, raw materials, raw stock, stores and only materials without any descriptive title. Direct materials cost estimation Steps to estimate the direct material costs:Phillip W. Gillet, Jr., J.D. notes, Chapter three #Find the total amount to be produced. This is usually noted as the order size. #Calculate the total amount of raw materials required to produce the order size. #Multiply that amount by the cost associated with the raw materials. #If there is a waste or scrap, its cost should be added to the costs in step 3. #If the waste or ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Labor Cost
Direct labor cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service. Also, we can say it is the cost of the work done by those workers who actually make the product on the production line. Determination of the direct labor cost *Planning the work to be performed. *Describing the job content of the work, by indicating the skill, knowledge, etc. *Matching the jobs with the employees. Usage The direct labor cost is part of the manufacturing cost. Calculation of direct labor cost In the direct labor cost we need to have the job time and wage we will pay it to the worker to calculate the direct labor cost as in this formulation:- \text = \text \times \text Depending on the context, there are various methods to calculate personnel costs, such as on an hourly or daily basis. Wage The wage is the payment rendered to the worker per hour as a compen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Overhead (business)
In business, overhead or overhead expense refers to an ongoing expense of operating a business. Overheads are the expenditure which cannot be conveniently traced to or identified with any particular revenue unit, unlike operating expenses such as raw material and labor. Therefore, overheads cannot be immediately associated with the products or services being offered, thus do not directly generate profits. However, overheads are still vital to business operations as they provide critical support for the business to carry out profit making activities. For example, overhead costs such as the rent for a factory allows workers to manufacture products which can then be sold for a profit. Such expenses are incurred for output generally and not for particular work order; e.g., wages paid to watch and ward staff, heating and lighting expenses of factory, etc. Overheads are also a very important cost element along with direct materials and direct labor. Overheads are often related to account ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Total Delivery Cost
Total Delivered Cost (TDC) is the amount of money it takes for a company to manufacture and deliver a product. Its components are: *Total Manufacturing Cost: Costs incurred up to and inclusive of the production of finished and wrapped pallets or unit loads, fit for introduction into the warehousing and distribution chain. *Product Supply Non-Manufacturing Expense: Administrative and developmental costs associated with the purchase of materials, engineering, design A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process or the result of that plan or specification in the form of a prototype, product, or process. The verb ''to design'' ... of a plant worthy production process, and administrative costs required to manage it. *Finished Product Logistics Costs: Costs incurred from the entry of finished, wrapped pallets, or unit loads to the warehousing and distribution chain, until delivery of cases to the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Raw Material
A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials that are feedstock for future finished products. As feedstock, the term connotes these materials are bottleneck assets and are required to produce other products. The term ''raw material'' denotes materials in unprocessed or minimally processed states; e.g., raw latex, crude oil, cotton, coal, raw biomass, iron ore, air, lumber, logs, water, or "any product of agriculture, forestry, fishing or mineral in its natural form or which has undergone the transformation required to prepare it for international marketing in substantial volumes". The term ''secondary raw material'' denotes waste material which has been recycled and injected back into use as productive material. Ceramic While pottery originated in many different points around the world, it is certain that it was brought to light mostly ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Welding
Welding is a fabrication process that joins materials, usually metals or thermoplastics, by using high heat to melt the parts together and allowing them to cool, causing fusion. Welding is distinct from lower temperature techniques such as brazing and soldering, which do not melt the base metal (parent metal). In addition to melting the base metal, a filler material is typically added to the joint to form a pool of molten material (the weld pool) that cools to form a joint that, based on weld configuration (butt, full penetration, fillet, etc.), can be stronger than the base material. Pressure may also be used in conjunction with heat or by itself to produce a weld. Welding also requires a form of shield to protect the filler metals or melted metals from being contaminated or oxidized. Many different energy sources can be used for welding, including a gas flame (chemical), an electric arc (electrical), a laser, an electron beam, friction, and ultrasound. While often an i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Painting
Painting is the practice of applying paint, pigment, color or other medium to a solid surface (called the "matrix" or "support"). The medium is commonly applied to the base with a brush, but other implements, such as knives, sponges, and airbrushes, can be used. In art, the term ''painting ''describes both the act and the result of the action (the final work is called "a painting"). The support for paintings includes such surfaces as walls, paper, canvas, wood, glass, lacquer, pottery, leaf, copper and concrete, and the painting may incorporate multiple other materials, including sand, clay, paper, plaster, gold leaf, and even whole objects. Painting is an important form in the visual arts, bringing in elements such as drawing, Composition (visual arts), composition, gesture (as in gestural painting), narrative, narration (as in narrative art), and abstraction (as in abstract art). Paintings can be naturalistic and representational (as in still life and landscape art, lands ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Assembly Line
An assembly line is a manufacturing process (often called a ''progressive assembly'') in which parts (usually interchangeable parts) are added as the semi-finished assembly moves from workstation to workstation where the parts are added in sequence until the final assembly is produced. By mechanically moving the parts to the assembly work and moving the semi-finished assembly from work station to work station, a finished product can be assembled faster and with less labor than by having workers carry parts to a stationary piece for assembly. Assembly lines are common methods of assembling complex items such as automobiles and other transportation equipment, household appliances and electronic goods. Workers in charge of the works of assembly line are called assemblers. Concepts Assembly lines are designed for the sequential organization of workers, tools or machines, and parts. The motion of workers is minimized to the extent possible. All parts or assemblies are handled ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Material Handling
Material handling involves short-distance movement within the confines of a building or between a building and a transportation vehicle. It uses a wide range of manual, semi-automated, and automated equipment and includes consideration of the protection, storage, and control of materials throughout their manufacturing, warehousing, distribution, consumption, and disposal. Material handling can be used to create ''time and place utility'' through the handling, storage, and control of waste, as distinct from manufacturing, which creates ''form utility'' by changing the shape, form, and makeup of material. Role Material handling plays an important role in manufacturing and logistics. Almost every item of physical commerce has been transported on a conveyor or lift truck or another type of material handling equipment in manufacturing plants, warehouses, and retail stores. While material handling is usually required as part of every production worker's job, over 650,000 people in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Grease (lubricant)
Grease is a solid or semisolid lubricant formed as a dispersion of thickening agents in a liquid lubricant. Grease generally consists of a soap emulsified with mineral or vegetable oil. A common feature of greases is that they possess a high initial viscosity, which upon the application of shear, drops to give the effect of an oil-lubricated bearing of approximately the same viscosity as the base oil used in the grease. This change in viscosity is called shear thinning. Grease is sometimes used to describe lubricating materials that are simply soft solids or high viscosity liquids, but these materials do not exhibit the shear-thinning properties characteristic of the classical grease. For example, petroleum jellies such as Vaseline are not generally classified as greases. Greases are applied to mechanisms that can be lubricated only infrequently and where a lubricating oil would not stay in position. They also act as sealants to prevent ingress of water and incompressible mater ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Water
Water (chemical formula ) is an inorganic, transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms (in which it acts as a solvent). It is vital for all known forms of life, despite not providing food, energy or organic micronutrients. Its chemical formula, H2O, indicates that each of its molecules contains one oxygen and two hydrogen atoms, connected by covalent bonds. The hydrogen atoms are attached to the oxygen atom at an angle of 104.45°. "Water" is also the name of the liquid state of H2O at standard temperature and pressure. A number of natural states of water exist. It forms precipitation in the form of rain and aerosols in the form of fog. Clouds consist of suspended droplets of water and ice, its solid state. When finely divided, crystalline ice may precipitate in the form of snow. The gaseous state of water is steam or water vapor. W ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Land Rent
In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment made (including imputed value) or benefit received for non-produced inputs such as location (land) and for assets formed by creating official privilege over natural opportunities (e.g., patents). In the moral economy of neoclassical economics, economic rent includes income gained by labor or state beneficiaries of other "contrived" (assuming the market is natural, and does not come about by state and social contrivance) exclusivity, such as labor guilds and unofficial corruption. Overview In the moral economy of the economics tradition broadly, economic rent is opposed to producer surplus, or normal profit, both of which are theorized to involve productive human action. Economic rent is also independent of opportunity cost, unlike econo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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