Cost sheet operators, number

Operating Labor The cost of operating labor is the second largest item of expense in the manufac turing cost. Labor requirements for a process can be estimated from an intelhgent study of the equipment flow sheet, paying careful attention to the various primaiy process steps such as frac tionation, filtration, etc. The hourly wage rate should be that currently paid in the company. Once the number of persons reqiiired per shift has been estimated for a particular production rate, the annual labor cost and the labor cost per unit of production can be estimated. 

The cost summary (24) is for the part SOHO and the header information is repeated (see Figure 4). It is an important principle that estimating for manufacturing requires that each operation be estimated. Each operation (18) is identified and these correspond to the basic operations sheet. The table number (12) identifies the basic data set for that operation. Balloon (25) specifies the description of the machine, process, or bench necessary to perform the operation. Lot hours (28) are transferred from the operations sheet. These lot hours differentiate between quantity. For low quantity the setup becomes more important, while the cycle minute influences the lot hours if the quantity is large. Whether the part is for small or large quantity, the method is acceptable. The system is acceptable even with very large quantities that mechanization would require. 

Each process unit described in Section 9 should refer to the page number in the appendix on which the design calculations appear or are described. Note that the latter calculations are usually printed neatly, and when done by computer, the printed output is carefully annotated. In addition, the description for each process unit should refer to a corresponding specification sheet, discussed below, which is assembled with the other specification sheets in Section 10. Finally, the descriptions should refer to the installed and operating costs for the process unit in cost summaries, discussed below. 

As well as its impact on operating income (revenue iess costs) iogistics can affect the baiance sheet of the business in a number of ways, in today s financiaiiy chai-ienging business environment improving the shape of the baiance sheet through better use of assets and resources has become a priority. 

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