Semester

Spring

Date of Graduation

2008

Document Type

Problem/Project Report

Degree Type

MS

College

Statler College of Engineering and Mineral Resources

Department

Industrial and Managements Systems Engineering

Committee Chair

Robert. C. Creese

Committee Co-Chair

Rashpal Ahluwalia

Committee Member

Rashpal Ahluwalia

Committee Member

Feng Yang

Abstract

The cost model developed is for small, glass-manufacturing enterprises to help them determine their product costs. It estimates the direct cost in glass manufacturing such as material, labor and energy costs. The overhead costs were based on AACE recommended practices to determine product cost and selling price. The model was tested to estimate the costs in glass marble manufacturing. It determines the unit material cost of the product based on material mix ratio and material costs. The energy costs for the product were based on the batch processing time and gas consumption rate. The model was analyzed to predict variations in prices of natural gas and raw materials. For an increase of natural gas cost from $5/MCF to $10/MCF, the change in unit price of natural gas increased from $0.07/lb to $0.15/lb. For every $1/MCF increase in cost of natural gas, the product cost increased by $0.02/pound. For an increase of $0.10/lb in unit cullet cost, the unit material cost of the product increased by $0.08/lb.

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