TEK-501 EKONOMI TEKNIK

MANUFACTURING
COST
 Introduction
Predict the expense of producing
desired product.
Determine process attractiveness
and profitability when employed with
sales realization and capital ratio.
Need exact data on
Taxes -- Insurance
Utility -- Local wage scale,
Etc
 Introduction

3 method to predict manufacturing

cost
1. Chart Method
2. Table Method
3. Factoring Component Method
3.1 Variable or Controllable Cost
3.2 Fixed Cost
 Manufacturing Cost:
Chart Method

Use appendix 3 section 1 on Garret

Charts CE-index was 320 at 1987
Accurateness is order of magnitude
 Manufacturing Cost:
Table Method

Use appendix 3 section 2 on Garret

Table was build at 1973-1974
The process may change with time
Still useful for conservative first
approximation
Manufacturing Cost:
Factoring Method
 Manufacturing Cost:
Variable or Controllable Cost
Manufacturing Cost:
Fixed Cost
 Manufacturing Cost:
Raw Material

Based on stoichiometry and material

balance calculation.
Include additives, treating agents,
catalyst, filter aids, and so forth.
Bulk shipments are cheaper than
smaller container shipments but they
need greater storage and inventory
facilities.
Free on Board (FOB) meaning no
charge for shipment and freight delivery.
 Manufacturing Cost:
Utility
Has become one of the larger segment
chemical plants operating cost.
Energy is a greatest potential utility
factor to be economize.
Energy should be itemized such as
Motor horsepower, steam consumption, fuel
requirement, cooling water needs, and so
on.
Other utility such as
Compressed air, room heating, air
conditioner, telephone, etc.
Manufacturing Cost:
Utility
 Manufacturing Cost:
Operating Labor
Predict the labor requirements for each major
piece of equipment of the flow sheet.
Does not include maintenance, supervision,
analytical, clerical, and other type.
 Manufacturing Cost:
Operating Labor
Shift
When the plant working 24 hours a day, it
would be required 4 to 5 groups to work on
shift schedule
The shift usually used rotating scheme with
some overtime job
The shift should coverage holidays, days
vacation or leaves, and sickness
Shift differential make different on pays
compensation
Swing shift (3 to 11 pm) should be paid higher then
morning shift (7am to 3 pm)
Graveyard shift (11 pm to 7 am) should be paid higher
then Swing shift
 Manufacturing Cost:
Operating Labor
4 Groups

5 Groups
Manufacturing Cost:
Operating Labor
 Manufacturing Cost:
Interest
Must treated individually
Rate should be considerably calculated
carefully
Will be Learned on next chapter (see
you soon.)
 Manufacturing Cost:
Labor Related Cost
Payroll Overhead
Budget for labor welfare, employers share, social
security, disability insurance, workmans
compensation, health insurance, pension fund,
vacation, and so on.
Supervisory and Other Labor
Support labor to assist the operation
Commonly determined by listing the specific staff
required
Smaller operation usually give higher percentage
than larger plants.
Laboratory Charges
Laboratory charges include lab supplies, as well as
labor itself to perform all plants quality.
 Manufacturing Cost:
Capital Related Cost
Maintenance
Varies considerably with the operating environment,
age of installation, managements commitment, etc.
Operating supply
Operating supply are somewhat related to the plant
cost that include all the supplies to run the plant
Environmental
Every plant must have environmental, safety,
hazardous waste engineers to handle this problems.
They will need endless meeting, training programs,
inspections, report and paperwork required by the
government, good public relations, clean and
nonpolluting activity.
 Manufacturing Cost:
Capital Related Cost
Depreciation
Fund that subtracted from the actual gross
profit to allow replacement of the plant or
equivalent acknowledging when the plant
has been less competitive or obsolete with
the passing time.
Land is not allowed to be depreciate
Salvage Value is the rest of plant or
equipment value (harga sisa atau loak) if
unknown then take zero.
Process equipment mostly have 5 to 15
years lifetime
Buildings has 25 to 45 years lifetime
 Manufacturing Cost:
Capital Related Cost
Method to calculate depreciation
1. Straight Line
depreciation
originalplant cos t salvage value ,$
plant or component life, years

2. Double 2 original plant cos t previous depreciation salvage value

Depreciati onDeclining
Balance
life of plant or equipment

n th year
3. Sum
ofonYear
Depreciati Digits original plant cos t salvage value
total sum of years
 Manufacturing Cost:
Capital Related Cost
Local Taxes, Fees, and Insurance
Every Locality charges taxes (or business
license fees), governmental permits, yearly
charges, assessment, miscellaneous license,
and so on.
Liability insurance and other insurance is
necessity
Indonesian Taxes Regulation
Rp. 0 s.d. Rp 50 juta, tarifnya 10%
Rp. 50 juta s.d. Rp 100 juta, tarifnya 15%
Rp. 100 juta ke atas, tarifnya 30%
 Manufacturing Cost:
Capital Related Cost
Plant Overhead Cost
Direct cost to the plant support and labor
welfare
Medical
Safety and protection
General plant overhead
Restaurant
Plant superintendent
Storage facilities
 Manufacturing Cost:
Sales Related Cost
Patents and Royalties
Royalties are often charged on a yearly or tonnage
production basis.
Packaging and Storage
All product require some expense for storage,
handling for shipment, bagging or filling, and so on.
Administrative Cost
Executive salaries, clerical wages, engineering and
legal cost, office maintenance, communication, and
so on.
Distribution and Sales
Sales officer, salesman expense, shipping,
advertising, technical sales service, etc
Research and Development
Budget for conducting new product development or
founding something new which could make the plant
still competitive.
 Manufacturing Cost:
Cash Flow Calculation
Sales
Biaya Pr oduksi
Keuntungan Kotor
Depresiasi
Keuntungan Setelah Depresiasi
pajak
Keuntungan Bersih
Depresiasi
Cash Flow
 Manufacturing Cost:
Exercise
1. Sebuah plant didirikan dengan biaya (total plant cost) Rp.
175.000.000,- termasuk tanah. Biaya untuk pembelian
tanah plant tersebut adalah Rp.25.000.000,-. Apabila umur
pabrik tersebut adalah 10 tahun dan di akhir umurnya akan
didapatkan nilai sisa (salvage value) sebesar Rp.
10.000.000,- hitung depresiasi plant tersebut dengan
menggunakan metode.
a. Straight line
b. Double declining balance
c. Sum of years digit
d. Plotkan data umur pabrik vs depresiasi untuk soal a,
b dan c
e. Plotkan data umur pabrik vs kumulatif depresiasi
untuk soal a, b dan c
2. Penghasilan kena pajak wajib pajak sebuah badan usaha
sebesar Rp 300.000.000,- berapa pajak yang harus
 Manufacturing Cost:
Home Task
3. Data sebuah plant acetaldehyde adalah sebagai
berikut:
Kapasitas rancangan 75.000 ton/tahun
Harga jual produk Rp. 10.000.000,- per ton
Total purchased equipment Rp.
30.000.000.000,-
Pembelian tanah Rp.5.000.000.000,-
Investasi 40% didapatkan dari pemegang
saham dan 60% didapatkan dari pinjaman
bank. Cicilan ke bank setiap tahunnya sama
dan dilakukan selama umur pabrik yaitu 10
tahun dengan bunga 30% dari sisa pinjaman.
On stream efficiency sebesar 90%
 Manufacturing Cost:
Home Task
Raw Material per ton of product
Ethylene 610 kg Rp. 1.500.000,- per
ton
Oxygen 99,5% 9460 scf Rp. 200,- per scf
HCl 20% 30 lb Rp. 20.000/liter HCl
= 1042,67 gr/lt
Katalis Rp. 100.000/ton
Utilitas
Listrik 45 KWH Rp. 2000 per KWH
Kukus (150 psig) 2,4 Mlb Rp. 11.000 per
mmbtu (1kg kukus = 1800 btu)
Air proses 1,7 Mgal Rp. 3000 per m3
Air demineralisasi 120 Mgal Rp. 1500 per m3
Air cooling water 48 Mgal Rp. 2500 per m3
 Manufacturing Cost:
Home Task
Operator
4 orang/shift
5 kelompok shift
Gaji per orang Rp. 1.500.000,- per bulan
Depresiasi
Double Declining Balance method
Nilai sisa Rp. 1.000.000.000,-
Other Cost
Start up 20%
Working capital 10%
Offsite facilities 5%
a. Tentukan biaya prduksi pabrik tersebut
b. Susun cash flow pabrik tersebut selama umur pabrik berlangsung.
PREPARE FOR FIRST
EXAMINATION