Technical

Data
Evaluation of the cost of
a product
Exercise 1
 Statement
• The Lebreton company manufactures
product A, whose nomenclature is as
follows:
Level 0 A

Level 1
(1) (2) (4)
B C F

(1) (2) (1) (4

)
Level 2 E D E F
(2)
Level 3 F
 Statement

• The sub-assemblies B, C and D as well as the

finished product A are manufactured in the factory.
Components E and F are purchased externally.
Cost of manufacture or purchase
composing (€)
A 100
B 50
C 40
D 20
E 10
F 5
 Questions

• Questions

1. Calculate the standard cost of each

component

1. Calculate component
requirements to
manufacture 100 units of product A
Evaluation of the cost of
a product
Exercise 2
 Statement
• Either the finished product PF, whose BOM
and routings are given
below.
PF

(4) (2) (1)

P1 C1 C2

(0,8) (2) (2,5

M1 P2 )
M2

• PF, C1 and C2 products are manufactured

and distributed in batches of 100 units.
 Statement
• The costs are given in the table below.
M1 12,5 €/unit
Variable cost of products
purchased M2 10 €/unit
P2 42
P1€/unit 15 €/unit
200 € (100
Fixed manufacturing costs C1
units)
and packaging PF 100 € (100 units)
C1 C275 300 € (100
€/unit
Variable manufacturing
units)
and production costs C2 110 €/unit
packaging PF 222 €/unit
 Question

• Question: Calculate the cost of the

PF product.
• Remarks :
- Items M1, M2, P1 and P2 are purchased,
so their cost is equal to their purchase
cost.
- Fixed costs are given for a lot, so they
must be reduced to a fixed cost per unit.
 Definition
The main technical data (CAPM)
☞Calendars
☞Articles
☞Nomenclatures
☞Range of Opera houses
☞Means or Resources (People, Machines, Tools, Information)

☞ Fabrication orders (OF)

☞Clients
☞Suppliers
 Definitions

• Capacity: the amount of work that can

be absorbed by the resources of the
production system.
• Load: amount of work to be done
• there must be a match between
load and capacity (problems with
units of measurement)
 Calendar
• Represents the days worked (continuous week, teams...)
• Represents bridges, holidays...
Capacity
theoretical

Shift capacity expressed in hours, days...

Time
 Articles
- Any identified and codified Product
- final product
- Component
- links
PF

Plaque
plotted

Plaque
 Nomenclatures (1)
• Decomposition of the product according to a
particular point of view, into subassemblies,
components and then parts, and thus down to the
basic elements.

Hierarchical decomposition Simple

decomposition

The decomposition criterion depends on the choice of

decision- makers
 Nomenclatures (3)
• Of definition (typical of design offices)
• technical description of the products
• by function
• by material
• Of manufacture
• description of the product according to the logical order
of manufacture
• After sales
• for "customisation".
• Commercial
• declaration of options
Tree nomenclatures
A
Cycle (range)

B C a
4

C a b D b a
3 1 1 1 1 3

D b a a d e
1 1 3 2 1 3

The nomenclature is staked out if one

knows the
a d e
time to move from one level to another
2 1 3
 Product -
Nomenclature of
purchase
Voltage regulator
(ready for shipment)
(3.15) (1) (12) (100)
Sheet metal Front Resistance Fil
panel plastic
(1) (4) (11) (1)

Circuit Transistor Capacitor Packaging

printed
 Product - Nomenclature of
production Tenon regulator (ex
works)
0

(1) (1) (1) (1)

Plastic Electronic
1 Bonnet
front panel card
Power
supply

(0.65) (1) (1) (1) (4)

Sheet Components Printed Transforme Capacitor

2 metal circuit r-motor
board

(4) (12) (7) (2.5) (100)

Capacitor
3 Transistor Resistance Sheet Thread
metal
 Product - Nomenclature
of production
- Example: socket
 Ranges
Technical description of the sequence of
operations
to obtain the products
operating ranges (methods)
routings in planning
(scheduling)

Succession of operations referenced according to their

nature, their cycle time, their links with the means to be
implemented.

Macro-Ranges
Simplified ranges Staking
Aggregated ranges
 Means
☞Machine
Charging Station

☞Tools Combination of means

=
☞ technical Documentation Charging Station

☞men
Charging Station File
Minimum data
Optional data
- Section number
- Variable
- Position number capacity
depending on
- Description calendar
- Male rate (if
-- Hourly
Capacity of the position
cost separated from
 Manufacturing Orders

Minimum data
Optional data
- OF number - Automatic
- Order Number incrementation
of the OF number
- Free comments (customer)
- End date of manufacture
- Start date
- Quantity
 Nomenclature : type
Flat :
- Exemple : Wheel barrow
 Nomenclature: type
Flat :
- Example: wheelbarrow

Image representation
 Nomenclature:
Flat :
type
- Example: wheelbarrow

BROUETTE

1 1 1 2 1 1 4 1
Axis Benne
Wheel Bolt
Bolt Structure
Support Sleeve

Flat performance - (rake)

 Nomenclature - range
Manufacturing :
Represents the production flow chart. The nodes represent the progress of
the manufacturing process .
May be similar to a graphical representation of the manufacturing range (PERT).
It is used in methods or scheduling (for releasing
in production). BROUETTE
Wheelbarrow

Without
Together sleeves
bearing

Structure

painted
Structure
+ Support
Structure

Support
Benne

Sheet metal bolts Sleeves

Tube Bar Painting Bolt
round flat
Wheel Axis
Nomenclature: exercises
caravan attachment
- Create a flat and then a tree-like
nomenclature
 Nomenclature: exercises
Exercises: caravan attachment

- Create a flat and then a tree-like nomenclature

 Range

For example :
 Range
For example :
 Range

For example :
 Range
For example :
 Range
For example :
 Range

manufacturing range of the square

 Product - Ranges
OPERATING RANGE XY 543 - 01
Part No. Part designation
30154 C SCINTI 05/DIAPHR. B
Allocated time (in hours)
N° Name of Prep Transfer
Tool Operation Opératio
op. resource - Transpor
n/piece
ration t

10 Car tour OA00 Turning Ø 38.5mm 0.25 0.12 1

D 4

20 Milling E OP00 Lateral groove width 6mm, 0.50 0.05 2

2 depth 4mm

30 Drilling OPR5 Drilling, tapping Ø 6, deep. 0.10 0.16 2

6 36 mm
40 Op. ext. - Black epoxy paint 30 0.00 10

50 Editing - Mounting, inspection Entrance 0.30 0.02 2

in
shop
 Evaluation of the cost
• The cost of a product is the monetary
value of the resources used to
produce that product.

• Knowledge of costs basic

prerequisite is a
chain performance.
for supply
optimising
 Evaluation of the cost
Fixed and variable costs

• A variable cost is a cost whose

amount varies in direct proportion to
the activity, in this case the number of
units produced or distributed.
• A fixed cost is independent of the
quantities produced or distributed.
 Evaluation of the cost
The implosion of product costs
• Manufacturing cost: this is equal to the sum of
the costs of the operations in the routing. The
cost of an operation is equal to the time required
to perform the operation multiplied by the hourly
rate of the section (or machine) performing the
operation.
• Cost of a component: this is obtained by
multiplying its unit cost by the technical
coefficient.
• Cost of a compound: the costs of the
components
added that go into
together (material cost its composition
of the compound)
arethe manufacturing cost is added.
and
 The costs
- Cost price :
- Sum of the costs borne by a company
to manufacture and sell a product
- Purchase cost :
-Amountincluding prices of a of
fees
purchase
insurances n
purchase accessories
(transport, ...)
d
- Standard Cost :
- Pre-established cost based on technical
analysis
- Marginal Cost : produced
 The
costs
- Article code
- Type: bought / made
- Units: piece, litre, kilogram, hour (hp, s
...) ... - Rate: hourly, monthly ...
- Workforce: qualification
- Cost: per hour, per unit ...
 The costs

Calculations: standard cost

Standard Cost: CS
CS = ∑CSi
Calculations: cost price
Cost price of sale : GRP
GRP = CS x
CS = Standard Cost
% = overheads
 The costs
Exercise 3 :

Either a manufactured item "A", whose nomenclature is as

follows:

0.15 0.1 4
 The costs

The characteristics of the articles used are as

follows:

Price from Purchas

Code Type Unit e
sale
Article
price

A Made Room 1.80€ / -

Piece
B Purchased Kilogram - 1€ / Kg

C Purchased Litre - 0.5€ / Litre

D Purchased Room - 0.1€ / Piece

 The costs

The manufacturing range is :

Operation Position of Cadence Part M.O.

charge schedule

1 M1 250 0.2

2 M2 100 0.5

3 M3 300 0.3

4 Pure M.O. 50 1
hourly costs: M1 = 12€, M2 = 8€, M3 = 25€, MO = 15€.
 The
costs
question 1
Knowing that the cost accounting department has
determined the purchase (or approach) charge rates
at a value of 5% of the purchase price, calculate the
standard cost of item A
 The costs
question 2

The cost accounting department has also fixed the

overheads (representing the cost of the structures
other than purchase, thus including commercial and
distribution costs) at 20% of the standard cost. Calculate the
selling cost price as well as the margin as a % of item A