Ahmet Can OLDAÇ - 030060098 week 1 answers

Direct-labor costs:

The direct labor cost is for the labor directly involved in manufacturing (productive labor). This cost includes all labor from the time raw materials first are handled to the time when the product is finished. This period generally is referred to as floor-to-floor time. For example, a machine operator picks up a round barfrom a bin, machines it into the shape of a threaded rod, and places it into another bin. The direct-labor cost is calculated by multiplying the labor rate (hourly wage, including benefits) by the time that the worker spends producing the part.

(Kalpakjian, S., Schmid, S. R., Manufacturing Engineering and Technology, 5th ed., p. 1262)

(new)Direct Labor [accounting]:
Direct Labor is the effort of people who manufacture or perform a service. It could be also consideres as work that adds value to the final product or service. The cleaner in a hospital, the chef prepairing meals in a restaurant are examples for direct labor.
Direct labor cost is the wages or salaries paid to these direct labor personel. It includes basic compensation, production efficiency bonuses and employer's share of Social Security and Medicare taxes. In a stable company the direct labor costs include all empoyer-paid insurance costs, holidays, retirement benefits etc.


Cost Accounting: Foundations and Evolutions (Michael R. Kinney,Cecily A. Raiborn)Page 35
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Numerical Control:

Numerical control (NC) is a method of controlling movements of a machine components by directly inserting coded instructions in the form of numbers and letters into the system.The system automatically interprets these data and converts them to output signals.These signals , in turn, control various machine components , such as turning spindles on and off, changing tools, moving the workpiece or the tools along specific paths, and turning cutting fluids on and off.

(Kalpakjian S., Schmid S.R.,Manufacturing engineering and technology, 1153)

(new)Numerical Conrol [manufacturing method]:
Numerical control can be simply defined as an operation of machine tools by the means of specificially coded instructions to the machine control system. Today the modern CNC system(not the NC system) uses an internal micro processor8i.e computer). That means the programmer can change the the program on the control itself instantly. The NC system however, uses fixed logical functions those that built-in and permanently wired within the control unit.

CNC programming handbook: a comprehensive guide to practical CNC programming( Peter Smid) page1

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Burden rate:

Indirect-labor costs are generated in the servicing of the total manufacturing operation, consisting of such activities as supervision, repair, maintenance, quality control, engineering, research, and sales; it also includes the cost of office staff. Because they do not contribute directly to the production of finished parts, or they not chargeable to a specific product, these costs are referred to as burden rate (overhead) and are charged proportionally to all products.

(Kalpakjian, S., Schmid, S. R., Manufacturing Engineering and Technology, 5th ed., p. 1264)

(new)Burden Rate [accounting]:
Burden rate is the fixed cost component of product costs. "Fixed manufacturing costs for period" divided by "units production output for period" is the burden rate. Burden rate is dependent on the number divided into total fixed manufacturing costs for the period, which is the productioun output of the period.


Accounting For Dummies (John Tracy,John A. Tracy, CPA) page 237

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Sustainable manufacturing: In recent years we all become increasingly aware that ultimately there are limited natural resources on this earth, clearly necessitating the need to conserve materials and energy.The term sustainable manufacturing is now used to indicate and emphasize the need for conserving resources,profitability,this is to be done for the purpose of (a) increasing the life cycle of products,(b) eliminating damage to the environment, and (c) ensuring our collective social well-being,especially for future generations.(Serope Kalpakjian-Steven R. Schmid p:1245)

(new)Sustainable Manufacturing [manufacturing method]:
There is no generally accepted definition of sustainable manufacturing. However the Lowell Center for Sustainable Production at the University of Massachusetts defines sustainable production as "the creation of goods ans services using process and systems that are; non-polluting, conservating of energy and natural resources, economically viable, safe and healthful for workers, communities and consumers, and socially and creatively rewarding for all working people."


Eco-Innovation in Industry: Enabling Green Growth(Organisation for Economic Co-operation and Development)page 23-24

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Tool steels

Tool steels are made to meet special quality
requirements, primarily due to their use in manufacturing
processes as well as for machining metals, woods,
and plastics.Some examples are cutting tools,
dies for casting or forming, and gages for dimensional
tolerance measurements. Tool steels are very clean
ingot-cast wrought products with medium (minimum
0.35%) to high carbon content and high alloy (up to
25%) contents, making them extremely expensive.
(Grote Antonsson, Springer Handbook of Mechanical Engineering, pg.178)


(new)Tool Steels [material]:
Tool steels are steels used to make tools for cutting, forming or otherwise shaping a material into a part or a component adapted to a definite use. Tool steels have high hardness, and micrestructures that have high hardness are the major objectives of the final heat treatments applied to them. Ideally in plain carbon and low-alloy steels, the highest hardness is achieved by forming microstructures that consist entirely of martensite. A compeletely martensitic structure is unattainable, however the transformation of austenite to nonmartensitic microstructure can be suppressed. This is due to the carbide particles that are not dissolved during austenitizing. Also if the Carbon content increases the amount of retained astenite increases aswell.

Tool steels  (George Adam Roberts,George Krauss,Richard L. Kennedy) Page 86

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