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IENG 217 Cost Estimating for Engineers

IENG 217 Cost Estimating for Engineers. Product Estimating. Find cost and price if markup is 50%. Reading bottom to top and left to right, TC = 2(5+1) + 1(10+3) + 3(1+0) + 1(8+20) + 4(4+0) + 1(40) = $112 Price = 112 x 1.5 = $168. Sample 2. Sample 2.

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IENG 217 Cost Estimating for Engineers

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  1. IENG 217Cost Estimating for Engineers Product Estimating

  2. Find cost and price if markup is 50%.

  3. Reading bottom to top and left to right, TC = 2(5+1) + 1(10+3) + 3(1+0) + 1(8+20) + 4(4+0) + 1(40) = $112 Price = 112 x 1.5 = $168

  4. Sample 2

  5. Sample 2 Unit Cost = 735.31 / 2500 = $0.294 20% markup = 0.294*1.2 = $0.353

  6. Sample 3 For the engineering change proposal A, the cost at unit 14 is $8000 and the learning rate is 80%. For EC proposal B, the unit 14 cost is $6000 and the learning rate is 90%. Which proposal is best at unit 15 or 30? Proposal A: S = -0.322 K = 8000 / 14–0.322 = 18713 T15 = 18713 (15-0.322) = 7824 T30 = 18713 (30-0.322) = 6259

  7. Sample 3 For the engineering change proposal A, the cost at unit 14 is $8000 and the learning rate is 80%. For EC proposal B, the unit 14 cost is $6000 and the learning rate is 90%. Which proposal is best at unit 15 or 30? Proposal B: S = -0.152 K = 6000 / 14–0.152 = 8961 T15 = 8961 (15-0.152) = 5973 T30 = 8961 (30-0.152) = 5344

  8. Sample 3 Proposal A: S = -0.322 K = 8000 / 14–0.322 = 18713 T15 = 18713 (15-0.322) = 7824 T30 = 18713 (30-0.322) = 6259 Proposal B: S = -0.152 K = 6000 / 14–0.152 = 8961 T15 = 8961 (15-0.152) = 5973 T30 = 8961 (30-0.152) = 5344

  9. Sample 4 A company that produces engine-generator sets is planning follow-on bidding with the learning model. At the 980th unit a 5-kW product required 68 hr of direct labor with a slope of 95% learning. (a) Follow-on will involve 2460 more units. Extend the constructed line to include this second shipment. What is the value of unit 3440. (b) Now engineering believes that the 5-kW product must reduce to 56.3 hr at the 3440th unit. Find the new slope and the lot time for the second shipment. What is the average time per unit for the follow-on lot?

  10. Sample 4 A company that produces engine-generator sets is planning follow-on bidding with the learning model. At the 980th unit a 5-kW product required 68 hr of direct labor with a slope of 95% learning. (a) Follow-on will involve 2460 more units. Extend the constructed line to include this second shipment. What is the value of unit 3440. (a) T980 = 68,  = 95%, s = -0.074 68 = K (980–0.074) K = 113.2 T3440 = 113.2 (3440–0.074) = 61.97

  11. Sample 5 (not covered on Quiz) (b) Now engineering believes that the 5-kW product must reduce to 56.3 hr at the 3440th unit. Find the new slope and the lot time for the second shipment. What is the average time per unit for the follow-on lot? Find new slope: s = (log 68 – log 56.3) / (log 980 – log 3440) = – 0.1504  = 90.1% Find new K T3440 = K (3440–0.1504) K = 191 Find Average and Cumulative times for 980 and 3440 For 980 Ta = [1/(1-0.1504)] (191) (980–0.1504) = 79.788 Tc = 79.788 x 980 = 78,192.4 For 3440 Ta = [1/(1-0.1504)] (191) (3440–0.1504) = 66.057 Tc = 79.788 x 3440 = 227,236.9 For follow-on Tc = 227,236.9 – 78,192.4 = 149,044 Ta = 149,044 / 2460 = 60.59

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