ESTIMATION AND COSTING

Course Title: ESTIMATION AND COSTING 

Scheme (L:T:P) : 4:0:0 
Total
Contact Hours: 52 
Course Code: 15ME61T 

Type of Course: Lectures,
Self Study & Quiz 
Credit :04 
Core/
Elective: Core 

CEE:25 Marks SEE:100
Marks 

Prerequisites: Knowledge of Mathematics,
Work shop technology, Machine Tool Technology 

Course Objectives: 
This course will
also help in developing the skills required in Estimate production/operation
cost for budgeting and analysis.
Course Outcomes:
On successful completion of
the course, the students will be able to attain CO:
Course
Outcome 
CL 
Linked
PO 
Teaching Hrs 

CO1 
Understand the concept of estimation and costing. Analyze the
concept of depreciation cost. 
R/U/A/Ev 
1,2 
08 
CO2 
Know the components of costing and
Determine material cost of simple machine components. 
R/U/A/Ev 
1,2 
10 
CO3 
Ability to estimate the various machining operations. 
R/U/A 
1,2 
10 
CO4 
Ability to estimate the various Welding & Sheet metal components. 
U/A 
1,2 
09 
CO5 
Ability to estimate the various Forging & Foundry Shop components. 
U/A 
1,2 
09 
CO6 
Understand the concept of
Process costing, and types of Budget, and familiarize with accounting terminology. 
U 
1,2 
06 


Total sessions 
52 
Legend: R: Remember U: Understand A: Application An:
Analysis
COURSEPO
ATTAINMENT MATRIX
Course 
Programme Outcomes 

1 
2 
3 
4 
5 
6 
7 
8 
9 
10 

ESTIMATION AND COSTING 
1 
3 
0 
0 
0 
0 
0 
0 
0 
0 
Level
3 Highly Addressed, Level 2Moderately Addressed, Level 1Low Addressed. Method
is to relate the level of PO with the number of hours devoted to the COs
which address the given PO. If >40% of classroom sessions addressing a
particular PO, it is considered that PO is addressed at Level 3 If
25 to 40% of classroom sessions addressing a particular PO, it is considered
that PO is addressed at Level 2 If 5 to 25% of classroom sessions addressing
a particular PO, it is considered that PO is addressed at Level 1 If
< 5% of classroom sessions addressing a particular PO, it is considered
that PO is considered notaddressed 
COURSE CONTENT AND BLUE PRINT OF MARKS FOR SEE
Unit No 
Unit Name 
Hour 
Questions to be set for
SEE/Marks 
Marks weightage 
weightage (%) 

R 
U 
A 



1 
Introduction
to Estimation & costing 
08 
5 
5 
10 
20 
13.79 
2 
Estimation of materials cost 
10 
5 
5 
20 
30 
20.68 
3 
Estimation
of Cost in machine shop 
10 
5 
10 
20 
35 
24.16 
4 
Estimation
of Cost in Welding & Sheet metal shop 
09 
 
5 
20 
25 
17.24 
5 
Estimation
of Cost in Forging shop & Foundry Shop 
09 
 
5 
20 
25 
17.24 
6 
Process costing & Accounting 
06 
 
10 
 
10 
6.89 
Total 
52 
15 
40 
90 
145 
100 
Legend: R; Remember, U: Understand A: Application
Estimation  Definition, Importance and
Aims Qualities and functions of an Estimator
Source of errors in estimation Constituents of Estimation Costing  Definition and Aims  Difference between costing and estimating  Depreciation and obsolescence: Definition, types, different methods of calculating depreciation numeric examples.
Material
 Direct material,
indirect material and
examples Calculation of Material cost 
Labour
 direct, indirect labour and examples  Calculation of labour cost  Expenses
 direct, indirect expenses and examples Classification of expenses  factory,
administrative, selling and distribution expenses  Fixed and variable expenses
 Components of cost  prime cost, factory cost, office cost, total cost 
Block diagram to show the relationship between elements and components of
cost Determination of selling
price  Break even analysis
 break event
chart, diagram to
illustrate break event pointEstimation of materials cost of step pulley,
spindle lathe centre, Rivets, Fly wheel, Crankshaft, Chain link, Wedge and
Gibheaded key.
The terminology associated
with machine shop estimation Definition of cutting speed, feed, depth of cut Procedure of estimating cost
of machined part for following operations: Lathe operations (Facing,
outside/inside turning, boring, drilling on lathe, grooving and threading). Drilling
operations (Drilling, reaming, tapping)Shaping operations Milling operations (Face milling, side and
face cutting, end milling) Cylindrical grinding operations (Plain cylindrical
grinding) For given machined part, estimate material cost and machining cost.
Estimation in
welding shop  gas welding cost, arc welding cost  production cost of given
welding job the types of welding costs the factors affecting the welding
cost.
Estimation in sheet metal shop  Sheet material and gauge number, Sheet metal joints  Estimate the material required for preparation of container open on one side, Cylindrical drum, funnel and tray.
Cost terminology associated
with forging shop The procedure for calculating material cost of a product for
forging shop Procedure for estimating forging cost forging losses to be
considered while estimating Estimation of forging cost.
Estimation in foundry shoppattern allowances The procedure for
calculating material cost of a product for foundry shop  Procedure for
estimating cost of pattern making. Procedure for estimating foundry cost of
components such as C.I pulley and C.I. Wheel and estimate foundry cost.
Process &
Job Costing Characteristics
Principles Procedure for Process costing.
Wagestypes, Incentivestypes, BudgetTypes, Accounting terminology like
book valueNet Present ValueWork in progress Gross Domestic Product
(GDP)balance sheetTendering manual tendering and etendering.
¨TEXT BOOKS
Sl.No. 
Title of
Books 
Author 
Publication 
1. 
Mechanical
estimation and costing 
T.R.Banga and S.C.Sharma 
Khanna publishers 
2. 
Mechanical Estimation 
Malhothra 
 
3 
Industrial Organisation
and Engineering Economics 
T.R.Banga and S.C.Sharma 
Khanna publishers 
4. 
Mechanical Estimation 
NITTTR Chennai 
NITTTR Chennai 
5 
Mechanical costing and estimation. 
Singh and Khan 
Khanna Publishers 
6 
Process planning & cost estimation 
M.Adithan 
New age International 
LIST OF SOFTWARES/ LEARNING WEBSITES:
i.
http://calculatoredge.com/index.htm#mechanical
SPECIAL INSTRUCTIONAL STRATEGIES
UNIT NO 
UNIT NAME 
STARATEGIES 
1 
Introduction to Estimation & costing 
Lectures, Discussions Presentations 
2 
Estimation of materials cost 
Demonstration of method to estimate cost
taking live demonstration at work shop place, steps based handouts 
3 
Estimation of Cost in machine shop 
Demonstration of method to estimate cost taking live
demonstration at work shop place, steps based handouts 
4 
Estimation
of Cost in Welding & Sheet metal shop 
Demonstration of method to estimate cost taking live
demonstration at work shop place, steps based handouts 
5 
Estimation
of Cost in Forging shop & Foundry Shop 
Demonstration of method to estimate cost
taking live demonstration at work shop place, steps based handouts 
6 
Process costing& budget 
Discussions,
real life
industries situation, industrial visits 
SUGGESTED LIST OF STUDENT ACTIVITYS
Note: the following activities or similar activities for assessing CIE
(IA) for 5 marks (Any one)
·
Each student should do any one of the following type
activity or similar activity related to the course and before take up, get it
approved from concerned Teacher and HOD.
·
Each student should conduct different activity and no repeating should occur
1 
Collect the finished parts from industries/market/scrap merchants
Measure the dimensions and prepare
production drawings of the parts using A4 size paper. Estimate the material
cost 
2 
Welding estimation: a. Determine raw material
volume for all welded parts. b. Select welding rod to be
used. Estimate quantity of welding rod required. c. Determine material and
consumables costs. d. For each part, estimate
welding cost. Show the assumptions and steps followed to estimate welding cost. e. Derive total cost of the part. 
3 
Casting estimation: a. Determine raw material
volume for all casted parts (Determine input weight, cut weight, net weight, losses etc.). b. Prepare pattern drawings
(production drawings with all dimensions, surface finishes, allowances, etc.) for all parts. c. Estimate pattern cost. d. Determine material and
consumables costs. e. For each part, estimate
casting cost. Show the assumptions and steps followed to estimate casting cost. f. Derive total cost of the part. 
4 
Forging
estimation: 

a. Determine raw material
volume for all forged parts. b. Prepare die drawings
(production drawings with all dimensions, surface finishes, allowances, etc.) for all parts. c. Estimate dies cost. d. Determine material and
consumables costs. e. For each part, estimate
forging cost. Show the assumptions and steps followed to estimate forging cost. f. Derive total cost of parts. 
5 
Machining estimation: a. Determine raw material
volume for all machined parts. b. For each part, tabulate
operation, cutting tool/s to be used and cutting parameters (speed, feed and depth of cut) to be used. c. Estimate raw material cost. d. For each part, estimate
machining cost. Show the assumptions and steps followed to estimate machining cost. e. Derive total cost of parts 
Course Assessment and Evaluation Scheme:

What 
To who m 
When/Where (Frequency in the course) 
Max Marks 
Evidence collected 
Course
outcomes 

Direct
Assessment 
CIE 
IA 
Students 
Three IA tests(Average of three
tests will be computed) 
20 
Blue books 
1,2,3,4,5,6 
Student activities 
05 
Activity sheets 
1,2,3,4,5,6 

SEE 
End Exam 
End of the course 
100 
Answer scripts at BTE 
1,2,3,4,5,6 

Indirect Assessment 
Student Feedback on course 
Students 
Middle of the course 

Feedback
forms 
1,2,3 Delivery of course 

End of Course
Survey 
End of the course 

Questionnaires 
1,2,3,4,5,6 Effectiveness
of Delivery of instructions & Assessment Methods 
CIE
Continuous Internal Evaluation SEE Semester End Examination
Note:
I.A. test
shall be conducted for 20 marks.
Average marks of three tests
shall be rounded
off to the next higher digit.
Note to IA verifier: The following documents to be verified
by CIE verifier at the end of semester
1.
Blue books ( 20 marks)
2.
Student suggested activities report for 5 marks
evaluated through appropriate rubrics.
3.
Student feedback on course regarding Effectiveness of Delivery
of instructions &
Assessment Methods
·
MODEL OF RUBRICS /CRITERIA FOR ASSESSING STUDENT
ACTIVITY RUBRICS MODEL
RUBRICS FOR ACTIVITY( 5
Marks) 

Dimension 
Unsatisfactory 
Developing 
Satisfactory 
Good 
Exemplary 
Student Score 
1 
2 
3 
4 
5 

Collection of data 
Does not collect any information relating to the topic 
Collects very limited information; some relate to the topic 
Collect
much information; but very limited relate to the topic 
Collects some basic information; most refer to the topic 
Collects
a great deal of information; all refer to the topic 
Ex:
4 
Fulfill team’s roles & duties 
Does not perform any duties assigned to the team role 
Performs very little duties but unreliable. 
Performs
very little duties 
Performs nearly all duties 
Performs all duties of assigned team roles 
5 
Shares work equally 
Always
relies on others to do the work 
Rarely does the assigned work; often needs reminding 
Usually does the assigned work; rarely needs reminding 
Normally does the assigned work 
Always does the assigned work without having to be reminded. 
3 
Listen to other Team mates 
Is
always talking; never allows anyone else to speak 
Usually does most of the talking; rarely allows
others to speak 
Talks good; but never show interest in listening
others 
Listens,
but sometimes talk too much 
Listens and speaks a fair amount 
2 
Average / Total
marks=(4+5+3+2)/4=14/4=3.5=4 

Note: This is only an example. Appropriate
rubrics/criteria may be devised by the concerned faculty (Course Coordinator)
for assessing the given activity.