Modelling the costing of projects to achieve optimum outcome

Budgets:

Costs:

• Set-up costs
• Material costs
• Labour costs
• Transportation costs
• Manufacturing costs
• Overhead costs / facilities costs
• Storage costs
• Packaging costs
• Energy costs
• Inflation impacting on costs
• Contingencies / allowance for unexpected events

Market and Sales:

• Sales and marketing costs / market research
• Production capacity
• Market trends
• Break even output
• Product retail price / affordability
• Market demand / expected production output

Financial Planning and Analysis:

• Profit forecasts and requirements

External Factors

• Government policies

Strategic Planning

• Long term aims and objectives

Development and Human Resources

• Training and development costs
• Quality

Planning for production:

Allocation of:

• Employees
• Materials
• Scale of production

What needs to be considered:

• Material costs (quality of product)
• Labour/Wages (automation vs high skilled)
• Premises
• Equipment available for scale or production

Selection of tools, machines and manufacturing processes:

• Successful manufacture is influenced by many factors such as the material, costs, product function and scale of production
• Designers need to have a good knowledge of the materials and how they are processed, so the final manufacturing decision can be made correctly
• The main aim is to select a manufacturing method that is suitable for the material and product, as well as economic in terms of materials and scale of manufacture
• Selecting the correct tooling involves knowledge of manufacturing processes and the materials used for the product

Topic test: