Gear Box Manufacturing Cost

Sr.No

Item
1 Gear Blanks
2 Cost of Gear Shaft blanks
3 Grear Housing
4 Gear Box Assembly Kit
5 Other Tools and consumables
6 packaging material
Total Cost Price of Gear Box
Selling Price of the Gear Box
Units Sold in 2013-14
Closing Stock of year
Total Units manufactured in 2013-14
Total Units to be manufactured in 2014-15
Total Cost of Manufacturing

S.No
1
2a
b
c
d
3
a
b
4
5
6
7
8
9
10
11

Working hours per day = (450+450+390)*.85

1 gear box = 4 gears + 2 gear shafts
Monthly Capactiy of H1 = (1096/(5*4))*25
Monthly Capacity of H2 = (1096/(8*2))*25
Monthly Capacity of S1 = (1096/(3*4))*25
Monthly Capacity of S2 = (1096/(5*2))*25
Monthly Capacity of FG1 and FG2
=(1096/(2*4))*25
Monthly Capacity of FG1 and FG2 =
(1096/(6*2))*25
Monthly Capacity of Heat Treatment
Monthly Capacity of Heat Treatment
Assembly Capacity monthly for a complete gear Box
The above row in yellow defines the capacity for the entire plant
Annual Capacity of the Plant = 1370*12
Total Units to be manufactured in 2014-15
therefore units to be manufactured per month

t
Cost
2400
2800
6000
800
340
160
12500
20000
11700
1125
12825
14580
160312500

After
Changes(for
25% increase
Factor
Current
in profitability
Sales Realization
256500000
291600000
Raw Material Cost
66690000
75816000
Bougt out items
87210000
99144000
Rejections
1333800
1516320
packing material costs
2052000
2332800
Manpower
Direct
11760000
11760000
Indirect
0
0
Other cost tools and
4360500
4957200
Plant O H and Power e
21600000
21600000
Repairs and Maintena
5130000
5832000
Depreciation
7480000
7480000
Interest
7200000
7200000
Administrative and sel
5130000
5832000
welfare costs
1000000
1000000
[1-(2 to 10)] PBT
35553700
47129680
Target PBT
44442125
Profitability
13.8610916179 16.162441701
PBT growth
32.5591429303

-2687555

1096
1350 GBE
1700 GBE
2275 GBE
2725 GBE

for gear
for shaft
for gear
for shaft

3425 GBE

for gear

2275 GBE
2130 GBE
1710 GBE
6075 GBE

for
for
for
for

acity for the entire plant

16200
14580
1215

1620

shaft
gears
shafts
gear box

495

Q.1 (Part 1)
No.of Gears machined ( ready to be put in heat treatment)
No.of Shafts machined ( ready to be put in heat treatment)
No. Of Assemblies (these are from the heat treatment which have been loaded 2 shifts before)

Total Gear Boxes

Total Gear Boxes With 85% efficiency taken into account

Part 2
The capacity can be increased in the following manner
1. The number of gear sets of gear box is less compared to the shafts needed for a gear
2. the shafts extra that have been produced can be used along the extra gears that we

Morning Shifts
90
56
22

Evening Shift Night shift

90
78
56
48
19
22

63
53.55

box, so we can choose after every 4-5 shifts to convert H2 and S2 to geart hobbing and shaving
have manf. in this shift

eart hobbing and shaving machines

Q.1 (Part 1)
No.of Gears machined ( ready to be put in heat treatment)
No.of Shafts machined ( ready to be put in heat treatment)
No. Of Assemblies (these are from the heat treatment which have been loaded 2 shifts

Total Gear Boxes

Total Gear Boxes With 85% efficiency taken into account

Part 2
The capacity can be increased in the following manner
1. The number of gear sets of gear box is less compared to the shafts needed for a gear
2. the shafts extra that have been produced can be used along the extra gears that we ha

Morning SEvening Sh
Night shift
90
90
78
56
56
48
22
19
22

63
53.55

box, so we can choose after every 4-5 shifts to convert H2 and S2 to geart hobbing and shaving
ve manf. in this shift

bing and shaving machines