Estimation of manufacturing cost
👉 Manufacturing cost estimation is the collection of methodologies and tools used to project the expected final cost of a manufactured product.
👉 Typically, 75% – 80% of manufacturing costs are determined by the design of product.
👉 The manufacturing cost is decided during the design stage because its definition tends to affect the selection of materials, machine tools and human resources that are being used in the production process.
👉 Three major factors contribute to a products expense – 1. Design costs, 2. Manufacturing costs, 3. Assembly costs.