How to find out Costing of sheet metal parts:


Before doing the costing of any components we should know the all factor which play major role do
costing of any parts. Costing of parts can be break into three major categories

  1. Raw material cost (A)
  2. Process cost (B)
  3. Other cost (Packing, Transportation, overhead and Profit etc.) – (C )

Total cost of components = A+B+C

  1. Raw material cost (A) –

Net RMC = Raw material cost – Scrap Cost


Raw material cost = Gross weight of component (kg) X Raw Material Rate/kg
Gross weight of component (kg) = Total weight of sheet (kg)/Per sheet No of components

Gross weight (kg) = Volume X Density

Scarp Cost (kg) = Scrap Weight (kg) X Scrap rate/kg
Scrap weight (kg) = Gross weight (kg) – Net weight (kg)

2. Process Cost (B)
Generally in industries, process cost of sheet metal is considered per stroke as per the tonnage of press
machine. i.e Stroke on 10 Ton machine might be vary from Rs 0.10 to Rs 0.20 (MHR of stroke of machine
depends on type of machine and current market scenario)

3. Other Cost ( C )
Other cost of parts includes P&F (Packing and forwarding), Overheads and profits. These cost depend
on application of parts, distance of delivery location and expenses and infrastructure of the supplier.

Costing of sheet metal parts
Costing of sheet metal parts
Categories: Sheet Metal

4 Comments

anil · January 28, 2020 at 1:11 pm

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