EXPERIMENT NO.4 To estimate the cost for a package production job-folding carton
Department of PPT, PPT, SIES GST
EXPERIMENT NO.4 Aim: To estimate the cost for a package production job-folding carton Theory:
Cartons are small to medium sized boxes made from paperboard (‘cardboard’). They comprise a significant proportion of the packaging found in the retail sector, i.e. in supermarkets and shops of all kinds, in mail order, in vending machines, in the service sector (hospitals, schools, catering, etc.) and in the dispensing of medicines. Cartons meet packaging needs cost-effectively by providing product protection and information, visual impact and convenience appropriate for the product concerned and its method of distribution and consumer use.
Folding cartons are made from paperboard, often referred to as ‘cardboard’ or ‘cartonboard’. There are several different type s of paperboard differing in the types of pulp used in their construction. The carton manufacturer sells cartons by number of cartons, 1 million or whatever, and hence is interested in buying by the area, rather than the weight required to make a given number of cartons, taking account of set-up and in-process waste. In practice, this is facilitated by modern paperboard manufacturing, which is computer-controlled on the paperboard machine within tight weight per unit area, i.e. yield, tolerances and in finishing by accurate sheet counting, in the case of sheeted orders, and length in the case of reels of a given width. What is cost? Cost is the sum total of all liabilities that is expenses actually incurred in the production of a job. Eg to print a book in a press expenses are incurred on a large numbers of items pertaining to labour, different types of materials used, overheads etc. it is not easy to work out the extent of each & every item as expenditure in relation to a particular job. So definition of cost can be summarized as follows: Cost is actual & factual by nature-it cannot be changed, cost is authentic corrective or scientific, cost is relative to production conditions cost of the same article produced by different organizations will be different and as per to conditions in the organization, cost can be worked out when the job has already been produced. What is costing? Costing is a technique of finding out the actual cost of production of a job, It is a method of finding out the actual cost of production in relating to some scientific principles of costing.
Department of PPT, SIES GST
Advantages of Costing: 1-It helps to find out the cost of each & every productive operation carried out by a press. 2-It helps to submit estimates of various printing jobs based on the actual production jobs. 3-It helps the management to find profit or loss made by a press on a particular job. 4-It provides information regarding estimating waste and inefficiency which takes place in the press.
What is Estimating? This is a technique of assessing the sell price of a job or a service scientifically, in other words it is a forecast of a same price before execution of a job. Along with costing estimating is also important relating to manufacturing process which involves large numbers of expenditure. Estimating is also termed as advanced costing or standard costing. Advanced costing mean costing done before the job has been undertaken and standard costing means assessing a standard cost on the basis of certain norms. Following are the general steps involved in estimating the printing job: 1-First step is to ascertain the direct operations which have to carry out in the execution of the job. 2-The second step is to assess the time which is to be spent in carrying out each and every operation. 3-The third step is related with the labour cost of doing the job. 4-The fourth step is to add the cost of directly chargeable material. 5-The fifth step is to add expenses to incurred on the directly chargeable materials or out work. 6-The last step is to add profit as per the policy of the management.
Cost Estimate: It is an approximation of the probable total cost of a product, program, or project, computed on the basis of available information. Four common types of cost estimates are: (1) Planning estimate: rough approximation of cost within a reasonable range of values, prepared for information purposes only. Also called ball park estimate. (2) Budget estimate: approximation based on well defined (but preliminary) cost data and established ground rules. (3) Firm estimate: based on cost data sound enough for entering into a binding contract. (4) Not-to-exceed /Not-less-than estimate: maximum or minimum amount required to accomplish a given task, based on firm cost estimate.
Department of PPT, SIES GST
Cost Estimation Process: To calculate the cost estimation for _______________ Cartons: For a given sample Job Name:
Dimensions:
Carton Type:
Material Used:
Printing Process:
No. of Colors:
Finishing Operations:
Standard Sheet Sizes: A-23” x 36” B-25” x 36” C-30” x 40” Calculate the Total Print Area of the carton: Height=________ mm Width=_________mm Check the Fitting of the above size to the Standard Sheet size and get the no. of Ups that can be fitted maximum lengthwise as well as width wise.
Department of PPT, SIES GST
Paper Calculation:
Department of PPT, SIES GST
Labour Cost:
Result: Total Cost for ____________________ Cartons=_____________________ Cost per Cartons=_____________________
Department of PPT, SIES GST
