Estimation of Welding Cost

By K.R.Prasanna Venkatesan WE0663

Sayings

If you cant measure it, you cant manage it Peter Drucker.

If

you are not measuring it you are not managing it corollary

Types of Companies
Large Small
Cost

Scale.
first, Cost Next.

Design

Scale.
First, Design Next.

Estimating

It is the process of determining the probable cost of a Product / Process (Welding) before the manufacturing.

Estimation is the Process done by a Technical Person and not by Accountant. Both Over Estimation and Under Estimation is Dangerous.

Costs

Direct Cost.
Material

Cost. Labour Cost. Expenses.

Indirect Cost.
Over

heads. Admin. Expense. Selling and Distribution. Profit, Discount.

Ladder of Cost.
Discount Profit Sales and Distribution Selling Price Total Or Admin. Prodn. Cost Ultimate cost Market Price

Factory
Direct Expense, Material, Labour Cost

Work Cost

Prime Cost

Material Cost
It is the cost of Materials required for a Process (Welding) Example:

Direct: Filler, Flux, Gas, etc. Indirect: Cotton wastes, Coolant, etc.

Labour Cost
It is the cost spent to the workers who are directly or indirectly involved in Manufacturing. Examples:

Direct: Operators, Welders Indirect: Watchman, Supervisor

Expenses
All other expenditure other than Material and Labour cost is called Expenses. Examples:

Direct: Power consumption, Welding M/C. cost. Indirect or overhead cost: Depreciation.

Welding Cost Parameters

Joint Design Type Weld Size Weld Type Welding Process Electrode Deposition Efficiency Others (Safety)

Thinking of Welders
If

a little is Good, a lot size is Better, and too big is Just Right.
But this leads to failure of Weld, and increase in cost, which is not preferred.

Butt Weld

Fillet Weld

Factors of Welding Cost

Time for joint preparation. Time to prepare the material for welding (blasting, removal of oils, etc.). Time for assembly. Time to preheat the joint (when required). Time for tack-up. Time for positioning. Time for welding. Time to remove slag (when applicable). Time to remove spatter. Time for inspection.

Factors of Welding Cost

Time for changing electrodes. Time to move the welder from one location to another. Time to change welding machine settings. Time spent by personnel for personal purposes. Time to repair or re-work defective welds. Costs associated with any required stress relief. Cost of electrodes. Cost of shielding materials. Cost of electric power. Cost of fuel gas for pre-heat (when required).

Basic Cost Formula

Welding Costs = (L&O) + (Consumables Costs)

The Operating Factor

The ratio of hours spent welding to total hours worked is called the operating factor.

Gas Welding & Cutting Cost

Direct Material cost = base material cost + Consumables Cost (Filler, O2 & C2H2) Direct Labour cost = Preparation or pre welding cost + welding cost + Post welding cost. Direct expense = Cost of fixture and auxiliaries. Over heads.

Three Basic Approaches

Cost

per unit. Cost per length. Cost per weight.

The application will determine which approach is most appropriate.

Cost Per Unit

This method suits for pieces that move through a workstation. For SMAW
Cost/unit

= (L&O/unit) + (filler metal and shielding material cost/unit) L&O/unit = (welding-related time/unit) x (L&O rate)

Cost Per Unit

- Contd.

For Wire Fed processes:

Filler metal cost/unit = (wire feed speed) x (welding time) x

(weight of electrode/mm) x (electrode cost/kg)

Filler metal cost (SMAW) = [{(electrode melt off rate) x

(welding time) x (weight of electrode/mm)}/(% of electrode

used)]

Shielding gas cost/piece = (flow rate) x (welding time) x (gas

cost/m 3 )

SAW flux cost/piece = (wt. of flux used) x (cost of flux/kg.)

Cost Per Length

This method is appropriate for estimating the cost of long welds Formula:

Cost/length = (L&O cost/length) + (filler metal and shielding cost/length)

L&O cost/length = (L&O rate)/(travel speed) x (operating

factor)

Filler metal cost/length (wire fed processes) = {(wire feed speed) x (wt. of electrode/(m or mm).) x (cost of electrode/Kg.)}/(travel speed)

Cost Per Length - Contd.

Filler metal cost/length (SMAW) = (melt off rate) x (wt. of electrode/length) x (cost of electrode/Kg.)/(travel speed)(% of electrode used)

Shielding gas cost/length = (gas flow rate) x (gas cost/m3 )/(travel speed)

Shielding cost/length (flux) = (wt. of weld metal/length) x (ratio of flux to weld metal) x (cost of flux/Kg.)

Cost per weight

It

is best used in applications in which significant volumes of weld metal must be deposited, such as multi pass applications. Hard facing and overlay welding are ideal applications.

Formula

Cost/Kg. = (L&O cost/Kg.) + (filler metal and shielding

cost/Kg.)

L&O Cost/Kg. = (L&O rate)/{(deposition rate) x (operating factor)}

Filler metal cost/Kg. (any process) = (cost of filler

metal/Kg.)/(electrode efficiency)

Shielding cost/Kg. (gas) = (shielding gas flow rate) x (cost of shielding gas/m3 ) /(deposition rate)

Shielding cost/Kg. (flux) = (cost of flux/Kg.) x (ratio of flux to filler metal)

Thumb Rule
In case of on site welding process, if it is difficult to estimate the weldment weight. for such case, the Universal Thumb Rule is weldment weight is 2% of total structures weight.

Power Cost.
V x Ax t x 1x1 x 1000 60 r
Where

V Voltage in volts
A Current in amps t Welding time in min

Efficiency of the welding machine, (0.6 Transformer & 0.25 Generator)

r Operating factor

C Rate of Electricity per kWhr in rupees

Theoretical Vs Actual
Tooling time. Fit ups Fixture non alignment because of spatter deposition Filler may change, So quality. may change Skill varies from men to men.

So we should use Digital communication technology for monitoring the welding and whether the std. are followed or not.

Theoretical Vs Actual

If we increase the size of fillet weld, the area of Fillet will be Doubled, And the cost will increase. And not only that, it leads to Stress.

Weld Area Vs. Cost

Note: Labour Cost is 80% of Total Cost (Based on Typical Modern Welding rates and Efficiency)

Tips

Select the cost calculation method that most directly measures the important cost variables for the specific application. When evaluating the effect on overhead costs, ask: Will the changes in the welding operations affect the company throughout? Carefully evaluate the impact of the proposed change on the operating factor. Some changes will decrease this variable, others will increase it. Make sure the data used for cost computations reflect reality.

Some Data
Operating Factor 10 20 Labor and Overhead percent of Total Cost 89 81

30 40 50 60 70 80 90

73 67 62 58 54 51 48

Steps to Reduce Welding Cost

Analyze the delivery of consumable and accessories to welding point. Analyze whether material handling is effective. Look for ways to correct over welding. Enhance current welding process and procedures. Optimize joint preparation. Eliminate any extra welds from design. Look for items that can be welded rather than cast. Look for ways to eliminate costly record keeping Examine safety concerns

An Example

If we consider a boiler drum, there are linear and circumferential welds. That can be done by all kind of welding processes.

So here we are going to see some sample calculations.

Given Data
Length 3m Diameter 1.2m Thickness 15mm Both side welding. Rate of weld 2m/hr(outside), 2.5m/hr (inside) Length of electrode required 1.5m/m of weld.

Given Data
Cost of electrode 2.75/m Power consumption 4kwhr/m of weld Power charge -45 paise / kwhr

Labour Charge Rs. 9/hr Over heads 90% of prime cost Discarded Electrode 6% Fatigue and setting up time 5% of weld time.

Calculations
Length of weld: = 2 x x D + (2 x L) = 13.54m Total electrode length = 1.5 x 13.54 = 20.31m Electrode Discarded = 6% = 1.22m. Total electrode wanted = 1.22 + 20.31 = 21.53m Cost of electrode = Rs.59.21

Calculations
Labour Cost Length of inside weld = 3m. Time = 1.5hr Length of outside weld = 10.54m. Time = 4.216 hr. Net time = 5.716 hr. Total time = net + (Fatigue) = 6 hr. Cost = Rs. 54.

Calculations

Power Consumption = 4 x 13.54 = 54.16 kwhr. Cost = 0.45 x 54.16 = Rs. 24.37 Prime cost = 59.21 + 54 + 24.37 = Rs. 137.58 Over Heads = Rs. 123.82 (90%)

Total Cost = 137.58+123.882 = Rs. 261.40

In other process the process may vary. But the procedure is same

Conclusion

Simplified calculations make this task easier Can find Alternate means of manufacturing Company with economy and new technology can and will compete Successfully

References

Process Planning and Cost Estimation V. Jayakumar. Welding Principles and Applications Larry Jeffus Design and planning manual for cost effective welding AWS. www.weldingdesign.com www.weldingdesign.com/323/Issue/Article/False/ 10864/ http://www.weldingdesign.com/323/Issue/Article/ False/10760/Issue