A model estimating exercise is shown below. The pattern may change from press to press to include or exclude certain factors like in-house processing of entire work requirement or outsourcing some of the work. Based on this pattern the presses work out the rate to be charged for printing.

The rate for printing and processing is charged in terms of per page of ‘n’ size for minimum ‘n’ quantity like 100 or 500 pages, which however does not include the material cost and which will be charged separately. The rates are revised from time to time based on profit generated. If the job required is less than the minimum order level required, then the rates will be higher because minimum work will have to be anyway carried out. Since the rates are per page of ‘n’ size, it does not matter if the requirement is 10 point font size or 14 point font size.

The rate for printing and processing is charged in terms of per page of ‘n’ size for minimum ‘n’ quantity like 100 or 500 pages, which however does not include the material cost and which will be charged separately. The rates are revised from time to time based on profit generated. If the job required is less than the minimum order level required, then the rates will be higher because minimum work will have to be anyway carried out. Since the rates are per page of ‘n’ size, it does not matter if the requirement is 10 point font size or 14 point font size.

**A.**

**Before estimation the consent or customers desire on the following are obtained:**

(1) Size of the book

(2) No of copies to be printed

(3) No of multi colour images

(4) Font size to be used and layout of the page

(5) Paper to be used

(6) No of colors to be used in text matters (say headings in separate colour and text in separate color etc)

(7) No of days within which the book should be delivered

(8) Ex works delivery or delivery at site of customer

**B.**

**Estimation -general Principles**

(1) Decide process to be engaged for completion of the work- letterpress, Offset, Screen printing etc

(2) Check pending jobs to be completed in line

(3) Find out where the job can be inserted in the existing supply line before committing

**C.**

**Estimation**

**-Various factors for decision**

(1) Decide mode of composing the matter-manual or mechanical

(2) Estimate no of pages to be printed based on the size of book and size of type faces

(3) Estimate composing time required till final proof can be got approved

(4) Estimate designing and layout making time if it is to be done by offset

(5) Estimate the process work time (camera work) including retouching, mounting of negatives and positives, colour separation etc or make ready for the letterpress

(6) Estimate time in plate making and printing time including no of machine to be deployed

(7) Estimate the time for final bindery work, including cutting, folding, gathering etc

**D.**

**Estimation/Cost - Direct workers**

(1) Estimation of cost for Composing including time required for proofing, make ready etc :

-No of compositors to be engaged x Per day rate of compositor x No of days required for completion of the work

(2) Estimation of cost for the designing and layout :

-No of layout Artist to be engaged x Per day rate of artist x No of days required for completion

(3) Estimation of the cost for processing negatives/positives if by Offset:

-No of cameramen to be engaged x Per day rate x No of days required for completion

(4) Estimation of the cost for Layout artist for mounting of films, retouching etc :

-No of worker to be engaged x Per day rate x No of days required for completion

(5) Estimation of the cost for processing plates if by Offset:

-No of plate maker to be engaged x Per day rate x No of days required for completion

(6) Estimation of the cost for printing including colour printing :

-No of printer(s) to be engaged x Per day rate x No of days required for completion

(7) Estimation of the cost for Binding work :

-No of binder(s) to be engaged x Per day rate x No of days required for completion

**E.**

**Estimation/Cost - major Material**

(1) Estimation of cost for Paper:

-No of reams of paper required for the job x rate per ream

(2) Estimation of cost for the films :

-No of films required x rate per film

(3) Estimation of the cost for processing material like developer etc for negatives/positives if by Offset:

-Cost per pkt of chemicals x no of pkts required to process them x rate per pkt

(4) Estimation of the cost for bindery material etc :

- One sheet of rexin or other cover material like leather (Sq inch) required per book x Rate per piece (Sq. inch) x no of books

-Boards or other material required per book x Rate per piece x no of books

(5) Estimation of the cost for ink including black and colors :

- Qnty required in Kg x rate per kg

(6) Estimation of the cost for plates/ Blocks required :

- No of plates x rate per plate /Block

(7) Estimation of the cost for other Bindery material :

-approx cost

F.

F.

**Estimation/Cost - Major Machineries and equipments**

(1) Estimation of cost to be recovered from printing machine :

-Per hour rate of machine x No of days converted to hours required to work

(2) Estimation of cost to be recovered from process camera :

-Per hour rate of process camera x No of days converted to hours required to work

(3) Estimation of cost to be recovered from cutting machine :

-Per hour rate of machine x No of days converted to hours required to work :

Estimation/Cost of the proposed job:

Estimation/Cost of the proposed job:

**D + E + F + some % for indirect recovery + Overheads + Profit**

G.

G.

**Estimation/How the machinery and equipments per hourly rates are worked out**

**- an illustrative model work out**

Every manufacturer while supplying the machine will indicate the useful life of machines for 'n' no of years in eight hour single shift. For example the value of the machine is 20,00,000/- and the useful life has been indicated as 15 years then the calculation is done as below:

Interest on investment @ 10% - Rs 02,00,000=00

Overheads normally @ 40% - Rs 08,00,000=00

------------------------

Rs 30,00,000=00

-----------------------

Cost to be recovered per day Rs 30,00,000/15 years x 290*= Rs 690 =00 per day

(*Only 290 days are considered for

calculation per annum taking into

consideration the intervening

holidays and absenteeism)

**The per hour cost to be recovered will be Rs 690/8 = Rs 86=00 rounded**

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