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# Estimating, Costing And Engineering Contracting

Course Code: 3351905

COURSE CURRICULUM
COURSE TITLE: ESTIMATING, COSTING AND ENGINEERING CONTRACTING
(COURSE CODE: 3351905)
Diploma Programme in which this course is offered
Mechanical Engineering
1.

Semester in which offered
5th Semester

RATIONALE
This course is designed to develop the ability in the students to evaluate materials,
consumables and process costs in the monetary units. Hence, it will help to increase
the productivity of the organization and conservation of valuable resources. This
course will also help in developing the skills required in the process of decision
making and to plan, use, monitor and control resources optimally and economically.
This will also be helpful in budgeting. The realm of this course is enlarged to
estimate the process costs for fluid and thermal applications also.

2.

LIST OF COMPETENCY
The course content should be taught and implemented with the aim to develop
different types of skills so that students are able to acquire following competencies:

3.

Plan, use and control resources optimally and economically.
Estimate production/operation cost for budgeting and analysis.

COURSE OUTCOMES
The theory should be taught and practical should be carried out in such a manner that
students are able to acquire different learning objectives in cognitive, psychomotor
and affective domain to demonstrate following course outcomes.
i.
ii.
iii.
iv.

Calculate material cost of given component/product.
Identify and estimate elements of cost in various processes.
Perform break even analysis to calculate break even quantity.
Investigate the problem of cost and suggest their solution using cost
reduction techniques.
v. Interpret given model of balance sheet and profit loss account.
vi. Prepare simple engineering contracts.
4. TEACHING AND EXAMINATION SCHEME
Teaching Scheme
(In Hours)

Total
Credits
(L+T+P)

Examination Scheme
Theory Marks
Practical
Marks

Total
Marks

L

T

P

C

ESE

PA

ESE

PA

2

0

2

4

70

30

20

30

GTU/ NITTTR Bhopal/14-15

Gujarat State

1

150

8 1. T – Tutorial/Teacher Guided Theory Practice. Relationship between the costs and quantity of production. Drilling. Method and example to calculate MHR of Lathe. 1. COURSE DETAILS Major Learning Outcomes (in cognitive domain) 1a. ESE -End Semester Examination. Select appropriate method of depreciation and calculate it. Depreciation and obsolescence: Definition.10 1. Classify costs. Compare costing and estimating.7 1. their classification and allocation.6 1e. numeric examples. Gujarat State 2 .2 GTU/ NITTTR Bhopal/14-15 Need. 5. 1c. Terminology associated with various cost elements and their classification. running refrigerator. Milling. Introduction. 2. 2.9 1.2 1. different methods of calculating depreciation. C – Credit. scope & importance of ECC in industries. P -Practical.Estimating. Determination of selling price and catalogue price. Terminology associated with overheads.1 1. running air conditioner. Method to calculate MHR for any machine/machine tool. PA . Difference between costing and estimating.11 2a.5 1d. 1b. Grinding and Press tool. Costing And Engineering Contracting Course Code: 3351905 Legends: L-Lecture. Calculate machine hour rate (MHR) and process hour rate (PHR). 1.Explain need. Scope & importance of ECC in industries. welding and gas cutting. types. Concept of Machine Hour Rate (MHR) and process hour rate (PHR). Unit – I overheads. Explain the terminology of ECC.1 Unit – II Break even analysis.3 1. Method to calculate PHR for any process.cost elements.Progressive Assessment.4 1. Classification of costs as fixed and variable costs. selling price and catalogue price. Method and example to calculate PHR of running diesel generating set. Unit Topics and Sub-topics 1.

4a. Effect of changing various parameters on BEP. Construct break even chart and determine break even quantity from given data.4 Unit –IV Cost estimation of forging and casting. Procedure of estimating forging cost.9 4. Course Code: 3351905 2b.). Consumables in arc welding and gas cutting. 2. Definition of Break Even Point (BEP) and its needs in industry.8 4. forged weight etc.1 4. The procedure of calculating material cost of a product for foundry shop. vi. iii. Estimate cost of material.Arc welding. Costing And Engineering Contracting Unit –III Cost estimation of welding. Procedure of estimating cost of forging dies. Cost terminology associated with foundry shop. forging dies and production cost for a forging component. Assumptions made in constructing Break even chart. Procedure of construction of Break Even Chart. ii. Estimating cost elements for: i. v. 4. Numeric examples. pattern and production for a casting component.4 4b.1 3. ii. Estimate cost of consumables and production for gas cutting and welding of a given job. Elements of cost in arc welding. Gas cutting. Gujarat State 3 .3 3. Factors effecting arc welding cost.10 GTU/ NITTTR Bhopal/14-15 Break Even Chart : i. cut weight.3 4. List Factors effecting arc welding cost 3b. Cost terminology associated with forging shop. iii.2 3. Given the forged component. Given the casting component. Estimate cost of material. iv. Estimation of production cost of given welding job for above methods. Margin of safety. 4.7 4. its importance and its derivation. 3. The procedure of calculating material cost of a product for forging shop (including input weight.Estimating. Calculation of BEP analytically and graphically.6 4. estimate forging cost. Procedure of estimating foundry cost. estimate foundry cost. Procedure of estimating cost of pattern making.2 4. vii.5 4.3 3a.

6. Course Code: 3351905 5a. 7d. iv. 7. Lathe operations (Facing.Select parameters. Prepare simple budget given Gujarat State 4 .(Cost per pouch).3 Given the required set of input. Cylindrical grinding operations (Plain cylindrical grinding). 5. estimate material cost and machining cost. Unit – VI Estimation of process cost. Various types of budgets.2 Procedure to estimate material cost.2 Procedure and steps to estimate cost for following processes: i. Explain various budgetary and accounting terminologies. milling and shaping operations.Estimating.(Cost per hour). cooling or heating.(Cost per unit weight). Purpose of budget. Power produced at thermal power plants. 6. key way milling and gear forming).5.1. grooving and out side threading). Estimate the machined part cost for lathe. iii. Estimate the cost of processes required based on given set of input. 7b. 7.1 The terminology associated with machine shop estimation. iii. ii.Pouch packaging. 5. Drilling operations (Drilling. Ice plant. Milling operations (Face milling.Prepare simple budget. Costing And Engineering Contracting Unit –V Cost estimation of machined part. ii. tapping).Shaping operations. terms and conditions to be GTU/ NITTTR Bhopal/14-15 5. boring. 7c. outside/inside turning. iv. reaming. With given example. 7a. Identify the elements required to estimate the process cost.6. side and face cutting. 6.4 For given machined part. 7. v.2. Producing power using diesel generating set (cost per hour and cost per unit). 7. Unit – VII Budgeting and contracting. estimate the cost of processes specified above. drilling on lathe. Interpret given contract terms and conditions. 6a. end milling. Heat exchanger. interpret industrial budget. Define budget and budgetary control.3. (Cost per unit).1 Understand importance of estimating various process costs. v.4. 7. 6b. drilling. Benefits of budget. 5.3 Procedure of estimating cost of machined part for following operations: i. 7.

13. Tendering. 7. Explain various accounting terminology like book value. I II III IV V VI VII Unit Title Teachin g Hours Introduction. Work in progress.11. Ask the questions from each topic as per marks weightage. A= Apply and above levels (Bloom’s revised taxonomy) Note: This specification table shall be treated as a general guideline for students and teachers.Estimating.10. 7. Net Present Value. Optional questions must be asked from the same topic.9. 7. 7.7. Cost estimation of welding. Costing And Engineering Contracting Course Code: 3351905 included in contract. its characteristics and advantages. Cost estimation of machined part. GTU/ NITTTR Bhopal/14-15 Gujarat State 5 . 7. Numerical questions are to be asked only if it is specified. General Notes: a. If midsem test is part of continuous evaluation. Estimation of process cost. Provision of different conditions in a contract. 3 3 3 6 5 4 4 28 Distribution of Theory Marks R U A Total Level Level Level Marks 4 0 0 4 2 2 4 8 2 2 4 8 4 4 7 15 4 3 3 22 4 3 3 18 7 4 4 30 15 10 10 70 Legends: R = Remember U= Understand. Gross Domestic Product (GDP). 7. Cost estimation of forging and casting. b. Prepare a contract for a given input situation. Budgeting and contracting. 7.8. HOURS AND MARKS (THEORY) Unit No.balance sheet terminology. manual tendering and E-tendering. unit numbers I. etc.12. II. The actual distribution of marks in the question paper may vary slightly from above table. Documents required in an engineering contract (explain). Types of contract. SUGGESTED SPECIFICATION TABLE WITH required input data. Define contracts. 6. Break even analysis. III and V are to be considered.

V. electricity rates. Course Code: 3351905 SUGGESTED LIST OF EXERCISES/PRACTICALS. Costing And Engineering Contracting 7.Estimating. ii. Thus over all development of Programme Outcomes (as given in a common list at the beginning of curriculum document for this programme) would be assured. to be used in this course. All parts must be brought in first week duration only. grinding. Welded parts (Minimum THREE). turning. Approx Hours. IV. Unit No. b. iii. 1. Forged parts (Minimum TWO). if these practical/exercises are completed appropriately. cutting tools. drilling. shaping. d. c. welding rods. they would also lead to development of certain outcomes in affective domain which would in turn lead to development of Course Outcomes related to affective domain. Measure and prepare production drawings of all the parts using A4 size paper (Manually). threading. milling. gas. Machining process parameters of various manufacturing processes (Covered in this course) for commonly used materials. However.(Minimum FIVE). III. each student will prepare production drawing of the part he/she has brought on an A4 size paper (manually) and then the batch will interchange these drawing so that all students will have drawing of all physical parts collected by GTU/ NITTTR Bhopal/14-15 Gujarat State 6 . I 2. Collection of parts: a. Collect market rates for various consumables like diesel. Following is the list of practical exercises for guidance. Note: Here only outcomes in psychomotor domain are listed as practical/exercises. iv. No. Parts having five to six machining operations like cutting. List densities of commonly used materials. VI Practical Exercises (outcomes in Psychomotor Domain) Preparatory activity: a. The practical/exercises should be properly designed and implemented with an attempt to develop different types of skills (outcomes in psychomotor and affective domain) so that students are able to acquire the competencies/programme outcomes. etc. Collect the finished parts from industries/market/scrap merchants consisting: i. Casted parts (Minimum THREE). Faculty should refer to that common list and should ensure that students also acquire outcomes in affective domain which are required for overall achievement of Programme Outcomes/Course Outcomes. After getting approval of part. etc. required 02 02 Note: Each student will be assigned to bring at least one specified part so that all varieties of about 13 parts get collected in a batch. S. b. Write various equations to calculate area and volume of commonly used shapes.

Determine raw material volume for all forged parts. Determine raw material volume for all casted parts (calculate input weight. Machining estimation: a. Prepare die drawings (production drawings with all dimensions. b. Estimate dies cost. estimate forging cost. cutting tool/s to be used and cutting parameters (speed. allowances. IV 5. Prepare pattern drawings (production drawings with all dimensions. d. e. Process estimation: a.). Casting estimation: a. e. For each part. Show the assumptions and steps followed to estimate forging cost. e. Estimate quantity of welding rod required. f. surface finishes. d. b. estimate welding cost. e. estimate casting cost. Select welding rod to be used. surface finishes.) for all parts. feed and depth of cut) to be used. net weight. Derive total cost of parts. Determine raw material volume for all machined parts. Determine material and consumables costs. Estimate raw material cost. For each part. estimate machining cost. Determine material and consumables costs. tabulate operation. b. d. Forging estimation: a. Estimate hourly rate of running ice plant. For each part. c. f. III 4. V 7. b. cut weight. IV 6. Determine raw material volume for all welded parts. allowances. Costing And Engineering Contracting 3. Determine material and consumables costs. b. Teacher will assign the input data. VI Course Code: 3351905 the batch. Derive total cost of the part. Teacher will assign the input data. etc. Welding estimation: a.Estimating. c. Show the assumptions and steps followed to estimate casting cost. Show the assumptions and steps followed to estimate the rate. etc. Estimate pattern cost. c. For each part. Show the assumptions and steps followed to estimate machining cost. losses etc. Estimate hourly rate of running diesel generating set. Show the assumptions and steps followed to estimate welding cost. Derive total cost of parts. Derive total cost of the part. Also estimate the rate to GTU/ NITTTR Bhopal/14-15 02 04 04 06 04 Gujarat State 7 . c. For each part. d.) for all parts.

copper. checked and duly dated signed by teacher. Show the assumptions and steps followed to estimate the costs. They should be given physical part/s and should be asked to estimate the material and process cost. ACTIVITY.No. Total Hours 04 28 Notes: a. d. PA component of practical marks is dependent on continuous and timely evaluation of exercises. etc. Show the assumptions and steps followed to estimate the rate.Estimating. milling and drilling machines. b. students are to be assessed for competencies achieved. c. photographs and movies of actual project work using power point presentation. Present the work including work distribution. litho. Prepare process plans for each part. Costing And Engineering Contracting 8. e. Show the assumptions and steps followed to estimate the rate. Specify output (HP or kW). Show the assumptions and steps followed to estimate the rate. It must be hand written / hand drawn by student himself. c. Estimate the material. ALL Course Code: 3351905 produce a Ton of ice with same data.) costs (as applicable). etc. e. b. 1 Do market survey and find prevailing hourly rates of lathe. 8. SUGGESTED LIST OF STUDENT ACTIVITIES. Aluminum. 2 Do market survey and find prevailing hourly rates of renting diesel generating sets. Sr. Teacher will assign the input data. It is also required to get each exercise recorded in logbook. consumables and manufacturing process (May be welding. Also prepare required pattern/die drawings and estimate cost of them (if applicable). d. Term work report must not include any photocopy/ies. forging. machining. Estimate cost of parts and assembly. printed manual/pages. Sketch the parts taken in Design of Machine Elements (DME) under Mini project. Estimate unit rate of thermal power plant. etc. d. 3 Do market survey and find prevailing rates of commonly used engineering materials like MS. Estimate hourly rate of running heat exchanger. brass. stainless steel. GTU/ NITTTR Bhopal/14-15 Gujarat State 8 . casting. For practical ESE part. Student activities are compulsory and are part of term work. Mini Project and presentation: a. The batch constituted in DME course is to be continued. Teacher will assign the input data. c. It is compulsory to prepare log book of exercises. Mini project and presentation topic/area has to be assigned to the students in the beginning of the term by batch teacher.

Vernier caliper. NITTTR. Sr. Demonstration of method to estimate cost Cost estimation of taking live examples. steps based handouts. i. RAJYAGURU. Demonstration of method to construct with live examples. NITTTR. Power point presentations.htm#mechanical COURSE CURRICULUM DEVELOPMENT COMMITTEE Faculty Members from Polytechnics:  A. 4. Shrimali and Jain Mechanical costing and estimation. 0-25mm and 25-50mm.. contracting Title of Book Author Publication Mechanical estimating and costing. live examples. Budgeting and Power point presentations. 2. steps process cost based hand out.Estimating. live demonstration at machined part work shop place. iii. demonstration at site. live demonstration at work shop place. Khanna Publishers.TALSANIYA-Lecturer in Mechanical Engineering.M. Banga and Sharma Mechanical estimating and costing. 3. Khanna Publishers. steps based handouts. Singh and Khan Learning package in ECC. GTU/ NITTTR Bhopal/14-15 Gujarat State 9 .M. Unit Unit Name 1 I Introduction 2 II Break even analysis 3 III 4 IV 5 V 6 VI 7 VII 10.Bhopal. Micrometer. 11. Cost estimation of Demonstration of method to estimate cost forging and casting taking live examples. GP. 1. SUGGESTED LEARNING RESOURCES. No. Costing And Engineering Contracting 9. Sr.com/index. C) List of Software/Learning Websites. Bhavnagar. 150mm.No. iv. Course Code: 3351905 SPECIAL INSTRUCTIONAL STRATEGIES. Bhopal Khanna Publishers. Cost estimation of Demonstration of method to estimate cost welding taking live demonstration at work shop place. Lecturer in Mechanical Engineering. B) List of Major Equipment/ Instrument with Broad Specifications.Bevel protector. ii. Estimation of Live examples. Sir BPI. steps based handouts. Strategies. i. live examples. A) List of Books. http://calculatoredge. Thread gauges.  R. Porbandar.

Sarathe.  Dr.K. Mechanical Engg. NITTTR. Mechanical Engg.K. NITTTR. A. Bhopal.Pradhan.Estimating. Associate Professor. S. Associate Professor. Bhopal GTU/ NITTTR Bhopal/14-15 Gujarat State 10 . Costing And Engineering Contracting Course Code: 3351905 Coordinator and Faculty Members from NITTTR Bhopal:  Prof.