Large and Small Shop Practices Flashcards
A cost of producing a project can be broken into?
Direct costs and general expenses.
Example of direct costs?
Solid lumber consumed when building a project
What are general expenses
ALL the costs necessary to facilitate the construction of the project, but cannot be tied specifically to a project.
Indirect costs such as electricity are sometimes called general requirements of the project or Project Overhead
Amount left over after all direct costs are paid out
Profit
Economic factors for project costs
Supply & Demand
Natural disasters ( Hurricane hits gulf supply runs short or slow)
Owner and Designer consultant relationship may have effect on
Quality of the drawings/Specs
Project administration they provide
All has effect on final costs
Why is a Preliminary Estimate performed?
To determine feasibility of a project during the early design phase.
Cost Manegment Estimates require?
Series of preliminary estimates to be prepared so that informed decisions can be made to be included in the design.
When project is underway, preliminary estimates are utilized to provide a budgetary control system that enables cabinetmaking company to identify production deficiencies
Detailed estimates?
Work as specified and provide some profit for the bidder.
Items that should be considered in the estimates are?
Equipment or materials required
Labour costs
Waste ect
Factors of Overhead general expenses
Company history
Size of company
Experience of project estimators
Size of projects
Product type and mix
Local vs International markets
Examples of Overhead
Material or Labour cost that cannot be billed directly to a project Ex:
DUO SIP:
D- ebt payment
U- tilities
O- ffice supplies
S- hop supplies
I- nsurance
P-ayroll
Site work overhead refers to ?
Work that takes place outside of shop.
Mid - Large size company employs how many ?
271 people
Third of whom are not productive workers in the sense they do not produce product.
Training in Small shop vs Large
Small - Little bit of everything
Large shops - Produces Specialists good at narrower spectrum of tasks
Why is shop layout important
Efficiency
Safety
Product Conversion?
Conversion system is based on the product mix and describes whether the processes used to produce products are identical or custom nature
Mass producing items which differ little from one order to the next is called ?
Low mix or high vol/low mix
Plants that produce standard profiles and trims fall into which conversion system
Continuous Conversion System
What is a Intermittent Conversion System
Variety of custom products produced at one time
Referred to as job shop
Used in shops that have standard products that are customized
Low Vol/High Mix
How is process flow improved?
Reducing handling of materials and the distance they must travel.
What is a work center
Grouping of similar machines that perform similar processes
What are Cells in regards to shop layout
Groupings of a variety of machines and people that permit one piece flow.
Summarize Low Mix/High Vol vs High Mix/Low Vol?
Low Mix/High Vol is considered continuous product conversion
High Mix/Low Vol is considered intermittent product conversion.
What is the arrow in the picture demonstrating?
A work centre
