Direct costs maintenance

The manufacturing cost consists of direct, indirect, distribution, and fixed costs. Direct costs are raw materials, operating labor, production supervision, utihties, suppHes, repair, and maintenance. Typical indirect costs include payroll overhead, quaHty control, storage, royalties, and plant overhead, eg, safety, protection, personnel, services, yard, waste, environmental control, and other plant categories. However, environmental control costs are frequendy set up as a separate account and calculated direcdy. The principal distribution costs are packaging and shipping. Fixed costs, which are insensitive to production level, include depreciation, property taxes, rents, insurance, and, in some cases, interest expense. 

Miscellaneous Direct Costs Estimates for the cost of maintenance and repairs, operating supplies, royalties, and patents are best based on company records for similar processes. A rough average value for the annual cost of maintenance is 6 percent of the capital cost of the plant. This percentage can vaiy from 2 to 10 percent, depending on the severity of plant operation. Approximately half of the maintenance costs are for materials and half for labor. Royalty and patents costs are in the order of 1 to 5 percent of the sales price of the product. 

The cost of maintenance may be greatly influenced by the disruption caused by the access requirements. This involves not only direct costs such as scaffolding but indirect ones such as disruption of a process plant, closure of roads, protection of plant and equipment in the vicinity, etc. 

Direct costs are costs for maintenance of materials, operating of supplies labour, control direct costs laboratory etc. 

As part of the total direct costs we also have to consider costs made for supplies and expenses maintenance, 3% of total capital supplies, 25% of direct labour. These figures, calculated back to one kg of L-phenylalanine are given in Table 8.6. 

Fm// costing. This form of costing takes all expenses into account, including direct costs such as raw materials, and also indirect costs—such as head office expenses, insurance costs, design fees, contingency provisions, services, maintenance and depreciation. 

To calculate a financial analysis of owning versus renting, add up all the costs associated with home ownership. This includes the direct costs of taxes, insurance, and maintenance, plus the opportunity cost of earnings on the capital tied up in the home. Then, compare this figure to what it would cost you to rent adequate housing. 

A similar solution but deriving from a business environment is offered by SAP, a leader in business software. The business software mySAP permits a transparent and synchronized supply chain with direct access of the production management to yield, personal costs, maintenance, raw material and energy consumption [105],... 

Corrosion, the degradation of a material s properties or mass over time because of environmental effects, is a costly reality that effects every industry. A study issued by the Federal Highway Administration (FHWA) in 2002 conservatively estimates the annual direct cost of corrosion in all U.S. industry sectors at US 276 billion. Costs associated with corrosion include cathodic/anodic protection coatings inhibitors corrosion-resistant alloys and materials and maintenance, repair, and depreciation of equipment. Indirect costs, such as lost productivity, environmental or product contamination, planning and design, and lost opportunities, can easily outpace direct costs by factors of two or more. 

I. Direct costs (recurring and nonrecurring) Manufacturing site costs Capital investment, operating and maintenance costs, labor, raw materials, and waste disposal costs... 

As 1n any economic study certain assumptions must be made. It 1s not the Intent of this paper to analyze cost factors 1n fine detail, but rather to examine and compare the major direct cost contributors 1n molding large plastic parts by these major process techniques. These direct cost factors are productivity, raw materials, process energy, tooling, flxturlng, hourly labor and capital. Indirect costs that are based on these direct cost Items are not considered 1n this study. Such Indirect Items Include supervision, maintenance, general plant overhead, Insurance, taxes and building depreciation. 

Direct costs (DC) Raw materials Operating labour (OL) Direct Supervisory Utilities Maintenance and repairs Operating supplies Laboratory charges Patents and royalties From material balance (10-50% )TOC From manpower (10-20% TOC) 20% OL From energy balance (10-20% TOC) 10% Fc 1 % Ff. (6%OL) 10-20%OL 0-6% TOC... 

Direct costs are composed from the costs of raw materials RAf), utilities Ut), operating labour (OL), direct supervision and clerical labour Ds), maintenance and repairs (M), operating supplies (Os), laboratory charges (Lab), patents and royalties. We may neglect the last term. By using the factors in Table 15.10 we obtain ... 

The plant overhead include management and payroll overhead that cam be related with the operating power OL, as well as safety and maintenance fees that can be related with the fixed-capital. For the first we may take 60% from the charges Involved in direct costs, while for the second 2.5% from fixed-capital. So we have approximately... 

Full cost is obtained starting from the direct cost, to which the share of the common costs that can be attributed to the productive process considered (land maintenance and insurance charges, general and administration costs, welfare contributions, taxes, financial charges and rents) is added. In this specific case, it represents the overall amount of the costs attributed to the farm managed by an independent farmer. This is the most... 

These costs include direct costs of the industry and, in certain cases, those costs sustained by the users of the product because of maintenance or replacement. Costs from interactions among sectors were not included. 

Petroleum Refining Approximately 23% of the world s petroleum refineries are in the United States. The nation s 163 refineries supplied more than 18 million barrels of refined petroleum products per day in 1996 with a total corrosion-related direct cost of 3.7 billion. Maintenance expenses amount to 1.8 billion of this total vessel expenses are 1.4 billion and fouling costs are approximately 0.5 billion annually. 

Chemical, Petrochemical, and Pharmaceutical Production The chemical industry includes manufacturing facilities that produce bulk or specialty compounds from chemical reactions between organic and/or inorganic materials. The petrochemical industry includes facilities that manufacture substances from raw hydrocarbon materials such as crude oil and natural gas. The pharmaceutical industry formulates, fabricates, and processes medicinal products from raw materials. Annual direct costs total 1.7 billion for this sector, which amounts to 8% of capital expenditures. This does not include corrosion costs related to operation and maintenance. Acquiring detailed data from individual companies and processing it can help assess the corrosion costs of operations and maintenance. 

The total cost of direct corrosion maintenance to the US Air Force for fiscal year 1997 was estimated at approximately 800 million (48 Table 3.19). 

G Cooke et al., A Study to Determine the Annual Direct Cost of Corrosion Maintenance for Weapon Systems on Equipment in the United States Air Force, Final Report, CDRI, no. AOOl, 1998. 

There are 543,019 concrete and steel bridges of which 78,448 are structurally deficient, leaving 464,571 bridges to be maintained for estimating purposes it is assumed that all these bridges have a conventionally reinforced concrete deck. The annualized life-cycle direct cost of original construction, routine maintenance, patching and rehabilitation for a black steel rebar deck costs between 18,000 and 22,000. These costs are both corrosion- and non-corrosion related. 

In the case of steel bridges, there is an additional cost for maintenance painting, and expenditure for painting is estimated at 0.5 billion per year. The total annual direct cost of corrosion of bridges estimated to be 10.15 billion to 6.43 billion itemized as... 

The Battelle-NBS study (1) used an economic input/output analysis to estimate the cost of corrosion in the United States. In the model, the US economy was divided into 130 industrial sectors. For each sector, estimates were made on the costs of corrosion prevention, as well as the cost of repair and replacement because of corrosion. The following direct costs were included in the study replacement of equipment or buildings loss of product maintenance and repair excess capacity redundant equipment corrosion control such as inhibitors organic and metallic coatings engineering research and development testing design insurance parts and equipment inventory. 

Maintenance and Direct Labor Costs Maintenance and direct labor costs will vary considerably depending on variations in hourly wage rates, unit size, cleanout frequency, and so forth. Equipment manufacturers can supply an estimate of the manpower requirement for direct and maintenance labor for a given piece of equipment. 

The cost of corrosion is partly connected with the efforts to give stmctures an attractive appearance, it is partly the direct cost of replacement and maintenance and the simultaneous economic loss due to production interruptions, and it includes extra cost of using expensive materials and other measures for the prevention of corrosion and the loss or destruction of products. 

They produce redundancy and incompatibility. In addition to redundant and incompatible user interfaces, closed systems foster data redundancy, hardware and software incompatibility, duplication of programs and duplication of security schemes. In some cases, the user or programmer finds it easier to re-enter data that already reside in an existing database than to build a bridge to extract the information. Clearly, such duplication makes maintenance of consistency between data in various databases a major challenge. Each level of redundancy compounds the problem. Not only are direct costs increased unnecessarily, but the integrity, accuracy, and security of information are threatened. 

In a more recent cost of corrosion study (Koch et al., 2002), the annual direct cost of corrosion on US highway bridges was estimated at 8.3 billion overall, with 4.0 billion of that on the capital cost and maintenance of reinforced concrete highway bridge decks and substructures. Indirect... 

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