Casting Cost Estimating

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Learning Outcomes

  • Identify key traps in casting cost estimates and how to avoid them.
  • Assess where your organization may need to reconsider its methods for assigning costs.
  • Classify various costs by work center/department in a metalcasting facility.
  • Determine the markup and profit for a product.
  • Identify and use various standards in cost estimates.
  • Calculate yield, melt loss, volume, mass, and total weight for a casting.
  • Enter and use data in a cost estimate spreadsheet to complete a quote.
  • Calculate the break-even point for a casting.
  • Discuss the benefits of activity-based costing methods.
  • Offer justification for the analysis and implementation of an activity-based costing strategy for your organization.
  • Apply concepts and methods of a cost estimating model to your own cost estimating projects.
  • Identify reasons to evaluate and follow up on an estimate.

Course Introduction

Casting Cost Estimating provides participants the opportunity to gain greater in-depth knowledge and skills in cost estimates for castings. Cost estimating is a critical factor in ensuring a manufacturing company continues to acquire customers and be profitable. Cost estimates are predictions of what the company thinks it will cost to produce a product. This course examines the various cost components and methods used to arrive at an accurate estimate of the production costs. It also provides information on common traps in casting estimates and ways to avoid these traps.

Benefits to Taking the Course

Participants will gain insights into costing methodology and cost estimating techniques and a better understanding of the complexities of casting production with insights into the reasons for differences among foundry estimates. The information from this workshop will help the estimator determine the cost of making a product and make more effective decisions with regards to the casting process.

Module 1: Introduction

Module 2: Traps in the Costing of Castings

  • What is a Cost Trap?
  • Assessing Your Current Cost Methods
  • How to Avoid Costing Traps

Module 3: Cost Components

  • Cost Structures
  • Markup and Profit

Module 4: Using Standards in Estimating

  • What is a Standard and Why is it Important?
  • The Role of Industrial Engineering in Estimating
  • Labor Standards
  • Using Standards in Estimating
  • Weight Estimating Techniques

Module 5: Cost Estimate Model

  • Overview of Cost Estimate Model
  • Using the Cost Model

 

Module 6: Break-even Analysis

  • What is Break-even Analysis?
  • Break-even Formulas

Module 7: Activity-based Costing (ABC) Method

  • What is Activity-based Costing?
  • Cost Drivers: Comparing ABC to Traditional Cost Accounting Methods
  • Uses of Activity-based Costing

Module 8: Cost Estimating Application

  • Applying the Cost Model to Your Own Casting Project

Module 9: Closing the Loop in the Estimating Process

Module 10: Conclusion

 

What our students are saying.......

"Overall, I enjoyed the course and found it very informative."
"Very well thought out. "
"Topics were presented in an easy to understand format."