Re: Material Costs

From: Ian Gibson (igibson@hkucc.hku.hk)
Date: Wed Aug 21 1996 - 04:23:35 EEST


Terry Wohlers wrote:-
>
>I promised provide more information on Vern Schmidt's report, so here it is.
>The information is focused on Chrysler's speedometer adapter benchmark part,
>which measures roughly 50 x 50 x 80 mm. The material cost for this part was
>about 2.6 percent of the total cost of producing the part.

Ha, but you overlooked one thing Moriarty!

The material cost can be considered a proportional measurement by which to
fairly bill customers. I think that was the original source of this thread.
The amount of material contained in the part is proportional to laser time,
which is proportional to depreciation cost and maintenance cost. A company
can therefore be billed for machine usage based on material used. I think.

I agree that preparation time is not part of this. Maybe a company could
bill that separately anyway since that is going to be very dependent on the
knowledge and experience (and starting point) of the customer.
Dr Ian Gibson
Dept. Mechanical Engg.
University of Hong Kong
Hong Kong

email: igibson@hkucc.hku.hk
tel: +852 2859 7901
fax: +852 2858 5415

When it takes all night to do what you used to do all night - You're the
oldest swinger in town.



This archive was generated by hypermail 2.1.2 : Tue Jun 05 2001 - 22:37:32 EEST