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Breakdown

This document provides a breakdown of the costs to manufacture an oil pan. It lists 10 steps that describe various costs like material costs, machine costs, labor costs, and overhead. The total manufacturing cost is $20.21 per unit and the selling price is $26.97 after accounting for SG&A of 16% and profit of 15%. Upfront tooling costs to set up the manufacturing process are also provided and total $458,400.

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Frank Sant
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138 views1 page

Breakdown

This document provides a breakdown of the costs to manufacture an oil pan. It lists 10 steps that describe various costs like material costs, machine costs, labor costs, and overhead. The total manufacturing cost is $20.21 per unit and the selling price is $26.97 after accounting for SG&A of 16% and profit of 15%. Upfront tooling costs to set up the manufacturing process are also provided and total $458,400.

Uploaded by

Frank Sant
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Oil Pan Breakdown

Cost
Contrib
step Description ution Reference
I Melting Costs 7.04 Kg of Alum Melted/shot $0.77 .09 Euro / kg $0.11/kg 65% casting yield

II Material 5.03 kg of Alum Sold $11.66 $2.32 / Kg Alum 380 Price


Material Burden $0.35 3% Material Burden
Purchased Material $0.00
GM Metal Contingency $0.08 $0.084 30% price Contingency on metal dross losses
III Machine Costs Die Casting $0.91 Die Casting Machining
Machining $1.09 $2,000,000 Die Cast Cell Cost $1,350,000
10 Amortiz. Period (Yrs) 5 Amortiz. Period (Yrs)
15.0% Cost of operation 15.0% Cost of operation
$230,000 Amort (+) 15% COO $310,500 Amort (+) 15% COO
493,500 Pcs / Year 493,500 Pcs / Year
$0.91 Machine Cost / piece $1.09 Machine Cost / piece
1 # of Cavities
150,000 Die Life (shots) 1 Pieces per Cycle
70 sec cycle 62 sec cycle
51.4 Pieces per Hour 58.1 Pieces per Hour
1.958 Mach Use (for Costing Only) 1.735 Mach Use (for Costing Only)
2.798 Mach Use (for Equip Only) 2.041 Mach Use (for Equip Only)
246,857 shots
IV Burden Machine $2.00 Machine Burden 100%
General $1.00 General Burden 50%

V Direct Labor $1.38 Direct Labor 2100.0 PCS/DAY


Assume Labor rate / hour fully fringed $23.50
Direct Casting 1 51.4 Pcs/Hr $0.46
Direct Machining 2 58.1 Pcs/Hr $0.81
Material Handling 1 205.7 $0.11
$1.38

VI Special Costs $0.95 Tool Replacement


$0.00 Perishable Tooling

VII Total Manufacturing Costs $20.21

VIII SG&A $3.23 Based on 16.0%

IX Profit $3.52 Profit 15.0%

X Selling Price $26.97

Casting Tools $237,500 Single Cavity Die Cast Die


Trim Tool $47,500 Single Cavity Trim Die
Machining Fixtures $75,000 Single fixture with 4 castings / fixture
CMM Fixture $19,900 Single CMM fixture
Gages $28,700 Dedicated Gages
Leak Test $49,800 Leak Test Fixture

Total: $458,400

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