Estimate the Cost of the project

Estimate the Cost of the project Points : Estimate the Cost of the project Cost estimating is not so easy task; breaking down manufacturing costs into many groups can never be completely systematized. New situations bring new problems which emphasize different costs. In one case, perhaps the depreciation rate on some piece of machinery will be critical, whereas in another case it may have no significance at all. The ability of an engineer to estimate costs quickly accurately wisely is as vital as his grasp of technical matters. Since economy is the keynote in industry today, unsound estimates may ruin any chance for economical manufacture from the Start.

Similarly firstly in project making it is very difficult to estimate the correct manufacturing cost. Secondly there is much difference between the parts made by production method and individually. However an approximate cost may be calculated by considering the following factors.
1. Cost on design work (drawing, blue prints etc.)
2. Cost of raw material used in project making.
3. Cost on pattern
4. Casting cost
5. Machining cost
6. Overhead charges e.g. labor salary, depreciation allowance, building charging. electrical charges. other allowances etc.