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Unformatted text preview: OC = operating costs Operating costs include such things as a. energy costs b. maintenance costs (scheduled and unscheduled) c. warranty and/or obsolescence costs 6. Areas of cost-saving activity A. Material selection B. Analytical methods – stop calculating/start building C. Specifications a. tolerances b. surfaces finishes, etc. c. manufacturing processes D. Standardization (minimum no. of sizes of parts) E. Other specifics to area of design 1 7. Detailed estimation of selling price SP = IC + P 5% < P < 30% of IC IC = (IC’) (M/A) 5% < M/A < 20% of IC’ where IC’ = initial cost excluding miscellaneous + administration overhead IC’ = (MC + OH) + (PP + OH) + (PL + OH) + (E/D + OH) 10% 10% 75-150% 25-100% where: MC = material cost PP = purchased parts PL = production labor E/D = engineering/drafting OH = overhead 2...
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- Spring '10
- Energy costs, OVC, IC IC