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Capital Cost Estimating An Overview
Published in Kenneth K. Humphreys, Paul Wellman, Basic Cost Engineering, 1995
Kenneth K. Humphreys, Paul Wellman
Indirect costs (1) In construction, all required costs which do not become a final part of the installation and may include, but are not limited to, field administration, direct supervision, capital tools, startup costs, contractor’s fees, insurance, taxes, etc. (2) in manufacturing, costs not directly assignable to the end product or process, such as overhead and general-purpose labor, or costs of outside operations, such as transportation and distribution. Indirect manufacturing costs sometimes include insurance, property taxes, maintenance, depreciation, packaging, warehousing, and loading. In government contracts, indirect cost is often calculated as a fixed percent of direct payroll cost.
Economics of Manufacturing
Published in Zainul Huda, Manufacturing, 2018
Manufacturing Cost: This cost is directly involved in the manufacturing of a product. It is the sum of direct materials cost, direct labor cost, and manufacturing overhead costs (see Equation 19.1).
Dynamic hierarchical collaborative optimisation for process planning and scheduling using crowdsourcing strategies
Published in International Journal of Production Research, 2022
Yujie Ma, Gang Du, Yingying Zhang
On the other hand, minimising the cost of parts can ensure the maximum benefit of platform enterprises. The total cost is divided into three parts: manufacturing cost (), transportation cost () and inventory cost () (Chu et al. 2015). The manufacturing cost consists of fixed manufacturing costs and variable manufacturing costs. Among them, the variable manufacturing costs include the preparation costs of each part processed on different machines, the processing costs, and the idle costs of the machine. The manufacturing cost is determined by the upper-level decision variable and the lower-level decision feedback variable. Due to the simple operation of transportation, an increasing number of enterprises use crowdsourcing to carry out the part transportation. If parts are transported via crowdsourcing, the company saves the fixed cost of hiring workers but increases the variable transportation cost of crowdsourcing. The specific expression is as follows: where is the variable transportation costs of crowdsourcing and is the fixed costs of hiring workers. Variable transportation costs are divided into two parts: one is the transportation costs of parts to the warehouse, and the other is the transportation costs in the production process of parts.
Measuring operational excellence: an operational excellence profitability (OEP) approach
Published in Production Planning & Control, 2019
Luis Alejandro Gólcher-Barguil, Simon Peter Nadeem, Jose Arturo Garza-Reyes
Manufacturing cost per unit, a key performance measure (Andersson and Bellgran 2015), is the sum of costs of all resources consumed in the process of making a product compared to the production output. Manufacturing cost is comprised of direct materials (e.g. raw materials and the packaging materials cost, etc.) (Huang and Yang 2016), direct labour (e.g. dedicated shop-floor personnel, etc.) (Wacker, Yang, and Sheu 2006), direct consumables (e.g. lubricants, water if not used as a raw material, etc.) and indirect consumables (e.g. electricity, bunker, gas, etc.) (Wu and Chen 2017), spare parts (Hu et al. 2018) and other manufacturing overhead costs (see Figure 1).