Process Planning and Cost Estimating


Process Planning and Cost Estimating

Process Planning:
A process is defined as any group of actions instrumental to the achievement of the output of an operation’s system in accordance with a specified measure of effectiveness. When the product of the enterprise is designed, certain specifications are established; physical dimensions, tolerances, standards, and quality are set forth. Then it becomes a matter of deciding the specific details of how to achieve the desired output. This decision is the essence of process planning.

Cost estimation may be defined as the process of forecasting the expenses that must be incurred to manufacture a product. These expenses take into consideration all expenditures involved in design and manufacturing with all the related service facilities such as pattern making, tool making as well as portion of the general administrative and selling costs. Cost estimates are the joint product of the engineer and the cost accountant.


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