EXPERIMENT NO.

3 To estimate the cost of a given sample printed using gravure process

Department of PPT, SIES GST

EXPERIMENT NO.3 Aim: To estimate the cost of a given sample printed using gravure process.

Theory: What is cost? Cost is the sum total of all liabilities that is expenses actually incurred in the production of a job. Eg to print a book in a press expenses are incurred on a large numbers of items pertaining to labour, different types of materials used, overheads etc. it is not easy to work out the extent of each & every item as expenditure in relation to a particular job. So definition of cost can be summarized as follows: Cost is actual & factual by nature-it cannot be changed, cost is authentic corrective or scientific, cost is relative to production conditions cost of the same article produced by different organizations will be different and as per to conditions in the organization, cost can be worked out when the job has already been produced. What is costing? Costing is a technique of finding out the actual cost of production of a job, It is a method of finding out the actual cost of production in relating to some scientific principles of costing. Advantages of Costing: 1-It helps to find out the cost of each & every productive operation carried out by a press. 2-It helps to submit estimates of various printing jobs based on the actual production jobs. 3-It helps the management to find profit or loss made by a press on a particular job. 4-It provides information regarding estimating waste and inefficiency which takes place in the press.

What is Estimating? This is a technique of assessing the sell price of a job or a service scientifically, in other words it is a forecast of a same price before execution of a job. Along with costing estimating is also important relating to manufacturing process which involves large numbers of expenditure. Estimating is also termed as advanced costing or standard costing. Advanced costing mean costing done before the job has been undertaken and standard costing means assessing a standard cost on the basis of certain norms.

Department of PPT, SIES GST

Following are the general steps involved in estimating the printing job: 1-First step is to ascertain the direct operations which have to carry out in the execution of the job. 2-The second step is to assess the time which is to be spent in carrying out each and every operation. 3-The third step is related with the labour cost of doing the job. 4-The fourth step is to add the cost of directly chargeable material. 5-The fifth step is to add expenses to incurred on the directly chargeable materials or out work. 6-The last step is to add profit as per the policy of the management.

Cost Estimate: It is an approximation of the probable total cost of a product, program, or project, computed on the basis of available information. Four common types of cost estimates are: (1) Planning estimate: rough approximation of cost within a reasonable range of values, prepared for information purposes only. Also called ball park estimate. (2) Budget estimate: approximation based on well defined (but preliminary) cost data and established ground rules. (3) Firm estimate: based on cost data sound enough for entering into a binding contract. (4) Not-to-exceed /Not-less-than estimate: maximum or minimum amount required to accomplish a given task, based on firm cost estimate. Material used for laminates: The major raw materials used for manufacturing of flexible packaging laminates and pouches are: Plastics films-BOPP, PET, CPP, Metallized films, LDPE, HDPE, LLDPE etc. Paper Aluminum foil Printing Inks Laminating Adhesive (Solvent based/ Solvent less/Hot melt)

Department of PPT, SIES GST

Raw Material Costing:

Labour Costing

Department of PPT, SIES GST

Estimate Cost:

Result:

Department of PPT, SIES GST