"Overall I enjoyed the course and found it very informative."
Overview
This Institute course 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.
Participants will gain insight into costing methodology, 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 to make more effective decisions with regards to the casting process.
Learning outcomes
Class participants will learn to:
- Identify key traps in casting cost estimates and how to avoid them.
- Assess where an organization may need to reconsider methods for assigning costs.
- Classify various costs by work center/department in a metalcasting facility.
- Determine product markup and profit.
- 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.
- Apply concepts and methods of a cost estimating model to your specific projects.
- Identify reasons to evaluate and follow up on an estimate.
Course Length
2.0 daysCEU Units
1.20 CEUCourse outline
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