Sugar Mill Roller Manufacturing Cost
Estimation
1. What Is An Estimate?
According to AACE International, the Association for Total Cost Management, an estimate is:
An evaluation of all the costs of the elements of a project or effort as defined by an agreed-upon
scope. Three specific types based on the degree of definition of a process industry plant are:
1) Order of Magnitude Estimate,
2) Budget Estimate, and
3) Definitive Estimate.
Typically, an estimate is an assessment, based on facts and assumptions, of the final cost of a project,
program, product, or process. As will be explained in this chapter, you will see that the results of this
process vary with the type, amount, and accuracy of scope and estimating data available phase of the
project
2. Cost estimation methodology
The overall casting cost estimation methodology is shown in figure 1. The user input for cost estimation
includes only part solid model, casting material, quality attributes (maximum void size, surface finish,
dimensional tolerance) and production requirements (production rate, order quantity, sample lead time and
production lead time). The part model is used for automatic computation of geometric attributes such as
casting volume and weight, minimum and maximum section thickness, cored hole size and shape
complexity. All the above inputs in turn drive process design, which is completed by semi-automatic
programs for casting process planning and methoding (feeding and gating design). Process planning deals
with decisions related to methods, equipment, steps, time required, tooling type and process parameters
(such as type of mould or core sand, sand composition, melting charge, pouring time, pouring height,
cooling time and quality checks). A case based reasoning approach, which involves searching for the
process plan of the closest matching product manufactured earlier, has been employed for this purpose.
Methoding involves design of feeding system (number, location, shape and size of feeders and feed aids)
and gating system (location, shape and size of sprue, pouring basin, well, runners, ingates and filters).
These are designed and modelled using a 3D methoding program. The output of the process design
programs, along with the geometric, material, quality and production attributes of the part, is used for
casting cost estimation. The cost model is described in detail next, followed by casting process design in a
subsequent section.
Figure 1. Cost estimation system - overall architecture
The main elements of casting cost are material, labor, energy, tooling and overheads. These are primarily
driven by product and process parameters. The cast metal and part weight forms the basis of material cost.
Process planning data in terms of process/equipment used and hours required for each activity forms the
basis of labor cost. Energy cost is estimated based on the casting weight, yield, pouring temperature and
melting equipment. Tooling cost is the most difficult to estimate, and a parametric approach has been
evolved for this purpose. Overheads are assigned based on casting weight. Cost modifiers have been
proposed to incorporate the effect of losses/rejections at different stages of production. They also help in
customizing the program for a specific foundry, and correcting the results for different types of castings.
The total casting cost is given as the sum of costs corresponding to material, labor, energy, tooling and
overheads.
C casting= C material + C labor + C energy + C tooling + C overheads (1)
Other costs related to interest rate, fixed cost, delivery, taxes; duties and premium can be added. These
elements are not considered in the present work, which focuses only on manufacturing cost driven by
product design. The equations for estimation of costs related to material, labor, energy, tooling and
overheads are presented in the following subsections. The equations are generalized for any currency, that
is, the cost values will be obtained in the same currency as that used for the material, labor and energy
rates.
3. Material cost
The material cost involves both direct and indirect materials. Direct materials (cast metal or alloy) appear
in the final product whereas indirect materials are essential for production but are not included in the final
product. Moulding sand, dispensable cores, insulating sleeves, chills etc. are indirect materials. The direct
material cost can be determined from the casting weight. However, the actual amount of metal consumed
is more than the weight of manufactured castings, owing to irrecoverable losses during melting, pouring
and fettling. The basic metal cost equation has been modified to incorporate these factors. Since rejected
castings (defective castings that cannot be repaired) are re-melted, the factor for rejection is not considered
in direct material cost equation. The material cost is given as the sum of the costs of direct and indirect
materials as,
C material = C direct + C indirect (2)
C direct= c unit_ metal × w cast × f m × f p × f f (3)
Where,
C unit_metal = Unit metal cost
w cast = Casting weight = ρc cast ×V
ρc = Casting metal density
Vcast = Casting volume
fm = Factor for metal loss in melting
fp = Factor for metal loss in pouring
ff = Factor for metal loss in fettling
The melting loss factor for various melting methods and rejection factors for various quality levels given
in table 1 and table 2 respectively have been determined based on deliberations with experts from
industries and from related literature.
Table 1. Melting loss factor and furnace efficiency factor
S/No. Furnace Type Melting loss factor and furnace efficiency factor
(Factor for metal loss in (Melting furnace efficiency
melting) fm factor) fη
1 Cupola furnace 1.05-1.12 3.0-3.5
2 Induction furnace 1.01-1.04 1.4-2.0
3 Electric arc Furnace 1.02-1.07 2.0-2.5
4 Oil/gas fired furnace 1.05-1.10 3.25-3.5
Table 2: Casting rejection factor
Metal/alloy Quality level Maximum void size (Casting rejection factor) fr
Grey iron 1 0.01-0.10 1.05-1.10
2 0.10-1.00 1.02-1.05
3 1.00-2.00 1.00-1.02
Steel 1 0.01-0.05 1.07-1.12
2 0.05-1.00 1.05-1.10
3 1.00-2.00 1.00-1.05
Indirect materials depend on the process. The moulding sand and core sand constitute the main element of
indirect material cost. The cost of moulding sand depends on the type of sand (silica, olivine, zircon,
sodium silicate, etc.), composition (amount of binder), mould box size and layout. Core sand cost mainly
depends on the type of sand (represented by the core-making process) and volume of cores. Cost modifiers
for mould rejection, core rejection, casting rejection and sand reclamation have also been considered.
Miscellaneous indirect materials (such as insulating sleeves, chills and chaplets) are added depending on
use. The total indirect material cost is given as,
C indirect = C mould _ sand + C core _ sand + C miscellaneous (4)
C mould _ sand = c unit _ mould _ sand * f recycle * fr * f mould _ rej (5)
