# Process Planning  and Cost Estimation Diploma Important Questions

Subject : Process Planning & Cost Estimation

UNIT – 1, PROCESS PLANNING                 Scheme : M

NOTE : 1. The highlighted Questions are asked more than two times in the Board Exam

1. These Questions are collected from Board Examination Question Papers.

2/3 MARKS QUESTIONS

1. What are the advantages of generative process planning
2. Define value engineering
3. What are the information required to do process planning?
4. What is manual process planning?
5. What is the objective of Line balancing?
6. State the advantages of computer aided process planning.
7. State the factors affecting process planning.
8. What is the need of balancing?
9. State the difference between cost control & cost reduction.
10. Define process planning.
11. What are the informations needed for the value analysis.
12. Explain why line balancing is necessary.

10 marks questions

1. Explain the automated process planning with the help of neat sketches. State its advantages.
2. 2500 components are required for an assembly line. This component is available at the rate of Rs. 4 per piece in the local market. If the same component to be manufactured in the factory itself, the fixed cost will Rs. 2,500 and the variable cost will be Rs. 2 per piece. Decide whether to make or Buy.
3. Explain the generative process planning and state its advantages
4. A company is buying one of the component that go into their product at a total purchase cost of Rs. 20 per unit. Their annual requirements of the components is 6000 units. One of the supervisiors had put up a proposal for making the component in the shop itself because the variable cost per unit comes up to Rs. 2. Only. It was found that it requires sophisticated machines and the accounts department had worked out and estimated the annual fixed cost of Rs. 1,40,000 should the proposal be accepted. Draw the break even chart and find the minimum level of annual requirements of the components above which making the component would be profitable.
5. A company is buying a component for Rs. 40. Per unit. The annual requirement of that component is ten thousand units. If it is made in the factory itself, the variable cost is Rs. 20 per unit. Additional fixed cost will be Rs. 2,25,000 per year. Can we stop buying and make the component in factory itself? What is the minimum quantity to be produced to avoid loss?
6. Explain briefly the procedure involved in value analysis.
7. The following data refers to a manufacturing unit

Fixed cost – Rs. 1,00,000

Variable cost – Rs. 100 per unit.

Selling price – Rs. 200 per unit.

(1)         Calculate the break even point.

(2)         If the fixed cost increases to Rs. 1,25,000 and variable cost reduces to Rs. 90 per unit. Obtain the new break even point.

(3)         Also calculate the no. of components needed to be produced to get a profit of Rs. 20,000

1. Compare cost control with cost reduction.

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