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

Capacity Management - Current Year

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

New Capacity will be based on Optimization of H2

Total Time Available (1096*25)
Time used by H2 for shafts (1350*16)
Idle Time for H2
Setup time to shift from Shafts to gears
Effective idle time H2 for manufacturing
Max No. Shafts that can be manufactured

Max No. Gears that can be manufactured

The new Capacity of the Plant = 1350+157

Month
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar

Cost
2400
2800
6000
800
340
160
12500

ty Management - Current Year

1096 Gear Box Equivalents
1350 GBE
1700 GBE
2275 GBE
2725 GBE
3425 GBE
2275 GBE
2130 GBE
1710 GBE
6075 GBE

Time
27400
21600
5800
120
5680
157 GBE

157 GBE
1507 GBE

Monthly Demand and Alternatives

20013-14
Industry Sales
Company Sales
15000
25000
35000
10000
10000
20000
20000
10000
5000
10000
15000
20000

900
1500
2100
600
600
1200
1200
600
300
600
900
1200

2014-15
Industry Demand Company Demand
17250
28750
40250
11500
11500
23000
23000
11500
5750
11500
17250
23000

1035
1725
2415
690
690
1380
1380
690
345
690
1035
1380

PBT Statement for both Years

S.No

Factor
1 Sales Realization
2a Raw Material Cost
b Bougt out items
c Rejections
d packing material costs
3 Manpower
a Direct
b Indirect
4 Other cost tools and consumables
5 Plant O H and Power etc.
6 Repairs and Maintenance
7 Depreciation
8 Interest
9 Administrative and selling costs
10.00 welfare costs
11 [1-(2 to 10)] PBT
Profitability

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 Sold in 2014-15
Total Units manufacttured in 2014-15
Total Cost of Manufacturing

20000
11700
1125
12825
13455
14580
160,312,500.00

Alternative 1
Production
1350
1350
1350
1025
1025
1025
1205
1025
1025
1025
1025
1025

h Years
After Changes(for
25% increase in
Current
profitability
234000000
269100000
60840000
69966000
79560000
91494000
1216800
1399320
1872000
2152800
9720000
2040000
3978000
21600000
4680000
7480000
7200000
4680000
1,000,000.00
28133200

9720000
2040000
4574700
21600000
5382000
7480000
7200000
5382000
1,000,000.00
39709180

12.0227350427
PBT growth %

14.7562913415
41.1470433509

ative 1
Inventory
1125
1440
1065
0
335
670
315
140
475
1155
1490
1480
1125

Alternative 2
Production
Inventory
1125
1350
1440
1350
1065
1350
0
1350
660
1350
1320
1350
1290
1350
1260
1350
1920
1350
2925
1350
3585
1350
3900
1350
3870