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Mold Cost, Mold Price and Delivery
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159 5 5.1 Mold Cost, Mold Price and Delivery Mold Cost and Records Keep proper records of any job! Some of the following may be obvious to the reader, but it is surprising how many mold makers and their staff do not keep proper records. The decision makers must be aware of the methods used by mold makers to arrive at a mold cost and mold price. They will then better understand what is involved when negotiating the purchase of any mold or special equipment used to increase production and to improve productivity. The mold cost is the total of the actual costs incurred to make. | Copyrighted Materials Copyright 2006 Hanser Publishers Retrieved from www.knovel.com I 159 5 Mold Cost Mold Price and Delivery 5.1 Mold Cost and Records Some of the following may be obvious to the reader but it is surprising how many mold makers and their staff do not keep proper records. The decision makers must be aware of the methods used by mold makers to arrive at a mold cost and mold price. They will then better understand what is involved when negotiating the purchase of any mold or special equipment used to increase production and to improve productivity. Keep proper records of any job The mold cost is the total of the actual costs incurred to make a mold which include general plant overhead but does not include any addition for risk and profit as will be discussed later. It is the sum of all moneys spent for raw materials hardware and services plus the total of the time hours used by designers machinists assemblers and other technicians involved in building a mold and any additional equipment required for this mold multiplied by the hourly wage or salary rates which will include all employee benefits provided. Added to this is the plant overhead rate. Hourly rates and or overhead rates used in these calculations can be different for different employees or groups of employees and for different equipment used or there can be a single plant-wide rate. Major costs to make a mold Raw materials Direct labor hours Machining costs hours Purchased components Equipment depreciation Testing costs hours Overhead Plant costs Overhead costs can also be included in the hourly rates so that the actual rate used to arrive at the mold cost consists of for example 18.00 actual hourly pay to the employee plus 12.00 employee s benefits plus 25.00 overhead rate for a total rate of 55.00 per hour to be used when calculating the mold cost. In order to arrive at an accurate mold cost it is therefore important 1 To have a complete and clearly understood Bill of Materials BoM and .