1. Manajemen Industri Instructor: Rama Oktavian
16/17 Semester 5
Manajemen Industri
Instructor: Rama Oktavian
Office Hr.: M.10-15, Tu , W , Th , F

2. Engineering economics
Cost estimation
Total production cost
Direct expenses are those directly associated with the manufacture of a product, e.g., utilities, supplies, and labor
Indirect expenses are those that tend to remain constant with respect to the production rate

3. Engineering economics
Production cost

4. Engineering economics
Production cost

5. Engineering economics
Production cost
Direct Costs
Vary with production rate
Fixed Costs
Do not vary with production rate
General Expenses
Costs associated with management levels not directly related to the manufacturing process

6. Engineering economics
Direct costs
Factors that vary with the rate of production:
Raw Materials
Waste Treatment
Utilities
Operating Labor
Maintenance and Repairs
Operating Supplies
Laboratory Charges

7. Engineering economics
Total production cost

8. Engineering economics
Total production cost

9. Engineering economics
Total production cost

10. Engineering economics
Total production cost

11. Engineering economics
Total production cost

12. Engineering economics
Total production cost
Operating labor

13. Engineering economics
Total production cost
Operating labor

14. Engineering economics
Total production cost
Operating labor

15. Engineering economics
Total production cost
Utilities

16. Engineering economics
Total production cost
Utilities

17. Engineering economics
Total production cost
Maintenance and repair

18. Engineering economics
Total production cost
Plant overhead costs

19. Engineering economics
Total production cost
Example

20. Engineering economics
Total production cost
Example

21. Engineering economics
Utility cost estimation
Example

22. Engineering economics
Utility cost estimation
Example

23. Engineering economics

24. Engineering economics

25. Engineering economics

26. Engineering economics

27. Engineering economics

28. Engineering economics

29. Engineering economics

30. Thank You !