Below, the costs for each individual part of the crane is shown:
The beam will be ordered, every 5.5m costing us £45.90. The aluminium legs will be manufactured following these steps:
Area of aluminium = 1.88 m2
Cutting speed = 1.1-1.8 m/sec (66-108 m/min)
Life of cutting tool when cutting to a finished result = approx 175 minutes
Cost per cutting tool = £20/11 = £1.82 per tool
Tool cost = £1.80/175mins = £0.01/min
Minimum wage of machine operator = £6/per hour = £0.10/min
Machining Cost = Co x tm
Co = operator wage + overhead (overhead = life of tool + material able to be cut by tool per minute)
tm = amount of time needed for task to be completed
Hence Machining Cost = £241/min
If the professional estimated propagation is 2m per minute, including loading and unloading of the material, then:
Cost to cut 2m of aluminium will be £241. Length of each leg = 1m and 1mm, hence cost to manufacture one leg = (1.001/2) × £241 = £120.6.
Total Cost for the whole crane:
Leg cost + Beam cost + Winch cost + bolts= £336.38 + £271.04 +£45.90 = £653.32
Distribution:
This number is purely the cost it would take for us to manufacture a single crane. We've decided to sell the crane for £980.
In a batch of 100 cranes we will offer a 5% discount for the buyer, so instead of paying £98,000 you'll pay £93,100 , that's saving £4900, which is the equivalent of 5 cranes!
NOTE: All Costs Exclude VAT and Shipping Costs
