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Estimating- An Model exercise

A model estimate is shown below. The pattern may change from press to press to include or exclude certain factors as the in-house processing techniques may differ from press to press. Generally the presses follow the  pattern given below to  work out the estimate.
 
The rate of printing and processing is charged in terms of per page rate of ‘n’ size for minimum ‘n’ quantity like 100 or 500 pages of A4 or A5 sizes, 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 as cost is worked out as rate per page x no of pages printed.


A.  

Before commencing estimate  the following information is obtained:
(1) Size of the book
(2) No of copies to be printed
(3) No of multi colour images to be  incorporated
(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.

Estimate -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.  
Estimate -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. 

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:

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

 
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:

Landed cost of the machine including transport etc at  site. –  Rs  20,00,000 =00
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

Remember that all the machines will not have the same useful life and therefore the per hourly rate of each machine will have to be kept worked out taking into consideration the machinery and equipments useful life . The basis for calculation will however vary with press to press , but the general principle is as enunciated above .

About The Author

Jayaraman

Retired Govt of India Official. My hobby is to write articles that range from Printing technologies to Spiritual.

Terabyte Vault

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