COST ESTIMATION

Introduction
Cost Estimation is the activity of determining the expected expenditure
for the successful completion of the project. An honest cost estimate is
important for proper planning, design and execution of the project.
Why Do We Need Cost Estimation?
1. For proper planning and execution of project.
2. Fixing the budget.
3. Selecting the process of manufacturing.
4. For investors to take decision wheather to invest or not on
certain project.
5. To understand flow or series of steps involved in the
project.
For estimating the cost of the project, the amount spent is usually divided
into two main categories:
1. Direct Cost
The amount spent on the elements that directly contribute for
manufacturing a component is called as direct cost. This includes cost
incurred for labour, raw materials, equipment, transportation etc.
2. Indirect Cost
Costs that indirectly contribute for manufacturing a component is
named as indirect cost. This includes the rent for office or workspace,
insurance cost, taxes, maintenance etc.

DEFINITION
Cost Estimation can be defined as the process of determining the total
cost or total amount which has to be spent in manufacturing the product. In
other words, it can also be defined as the estimation of total amount which has
to be invested by the manufacturer to complete the production of the part.
The main aim of every designer, in any manufacturing unit is to optimize
the cost of newly manufacturing part, that is to ensure that the cost has to be
minimum without disturbing the quality and features of the designed product.
Cost Estimation is one of the important factors which has to be carefully
calculated by the designer. Improper and incorrect estimation of cost may lead
to unnecessary and more investments which may push the manufacturer into
losses.
 Cost estimation can be made based on two major approaches which are
described below.
1. Quantitative Approach
2. Qualitative Approach

QUANTITATIVE APPROACH:
In this technique of cost estimation, the total manufacturing cost is
calculated by taking into consideration the design and features of the component
and the manufacturing processes that the product has to undergo to form into its
desired form (shape, size and structure).

QUALITATIVE APPROACH:
In Qualitative Approach, the cost estimation is made based on the
previous projects. In detail, it can be explained as follows. A search is a made to
find a similar product which has been made earlier, that is based on the type of
material, manufacturing processes needed to undergo and the Design
specifications. When a similar product is found, the cost is calculated based on
that previous project.
If the new component which is to be manufactured is quite different and
innovative this approach cannot be applied.

Between these two categories, the quantitative approach gives better

results for cost estimation when compared with the qualitative approach.

TOTAL COST= MANUFACTURING COST + DIRECT MATERIAL COST

+INDIRECT COST + LABOUR COST+ OVERHEADS

The cost of raw materials being included in the direct material cost,
wages and salaries to the labourers working for completion of the product
manufacture come under the direct labour cost. The other machinery and the
maintenance costs being the manufacturing overheads.
 COST ESTIMATIONS
COST ESTIMATION OF BLDC HUB MOTOR
We have considered our Motor specifications 1000W,48V, 3000 rpm
The cost of the motor at present is –Rs.11999 /-

COST ESTIMATION OF CONTROLLER

The controller has 48/64V rated voltage
The cost of controller is –Rs.3399/-

COST ESTIMATION OF SWING ARM

COST ESTIMATION OF SUSPENSION

We are considering only the cost of the rear shock absorber
We need 2 rear shock absorbers
The cost of 1 shock absorber is –Rs.880/-
The total cost of shock absorber is 880*2=Rs.1760/-

COST ESTIMATION OF DC-DC-DC CONVERTER,

The DC-DC converter works in the range of 36-60V
The Cost of the converter is – Rs.299/-

COST ESTIMATION OF THROTTLE+GRIP,

The specifications of the throttle is 24V 36V 48 V 72V
The Cost of both throttle and grip is -Rs.299/-

COST ESTIMATION OF BATTERY LEVEL INDICATOR ,

We are using 8-70V LCD Acid Lead Lithium Li-Fo Battery Capacity Indicator
The cost of the battery inicator is –Rs.643/-

COST ESTIMATION OF PARALLEL CONNECTOR,

XT60 Parallel Connector
The cost of the parallel connector is –Rs.225/-

COST ESTIMATION OF MATION OF MCB

We are using a Havells 32A Single Pole MCB
The cost of the MCB is –Rs.157/-

COST ESTIMATION OF FUSE

Total cost of the conversion kit
= sum of cost of (BLDC hub motor ,Controller, Swing Arm,
Suspension, DC-DC converter, Throttle +grip, Battery level
indicator , Parallel Connector, MCB, Fuse)

=(11999+ 3399 + + 1760 + 299 + 299 + 643 + 225 + 157 +

)

= Rupees.

This is the cost of the conversion kit excluding the battery cost

If battery is require kit will be provided separately

Cost of the Battery

We are using Lithium ion battery which has a battery capacity of

approximately 4kwh.

Cost of the battery is 35000Rs/-

 Cost References
1) Controller- https://www.amazon.in/xcluma-Brushless-Intelligent-Controllererickshaw/dp/
B09RWKJ3CX/ref=asc_df_B09RWKJ3CX/?tag=googleshopmob-
21&linkCode=df0&hvadid=583945145454&hvpos=&hvnetw=g&hvrand=1723972598425786204
7&hvpone=&hvptwo=&hvqmt=&hvdev=m&hvdvcmdl=&hvlocint=&hvlocphy=9062134&hvtar
gid=pla-1662192520316&psc=1

2) Dc to dc converter -
https://www.amazon.in/SNA-DC-Current-Converter-36V/dp/B09YNLW7ZW/ref=mp_s_a_1_7?
crid=1B4C0HN6B2R24&keywords=dc+to+dc+converter&qid=1656327263&sprefix=dc+to+dc+
converte%2Caps%2C404&sr=8-7

3 )MCB - https://www.amazon.in/Havells-32A-Single-Pole-MCB/dp/B0762V2GFC

4 ) SUSPENSION - https://eauto.co.in/products/rear-shock-absorber-for-honda-activa-6g?
variant=42535076298979&currency=INR&utm_medium=product_sync&utm_source=google&
utm_content=sag_organic&utm_campaign=sag_organic&gclid=CjwKCAjwquWVBhBrEiwAt1
KmwhD6LLxeUGNwJ-xI_7IUjN1y0nfFWaZ1IHVIma4eHeyicJox1z6BoCdVAQAvD_BwE

5) BATTERYINDICATOR- https://www.amazon.in/amiciSense-Lithium-Capacity-Indicator-
Voltmeter/dp/B07PNLQ6SK/ref=asc_df_B07PNLQ6SK/?tag=googleshopdes-
21&linkCode=df0&hvadid=397007714629&hvpos=&hvnetw=g&hvrand=1295986797567382017
6&hvpone=&hvptwo=&hvqmt=&hvdev=c&hvdvcmdl=&hvlocint=&hvlocphy=9062134&hvtar
gid=pla-836295586699&psc=1&ext_vrnc=hi

6) PARALLELCONNECTOR-https://www.amazon.in/s?
k=parallel+connector+for+electric+scooter&crid=1PM9XDWEVZYYB&sprefix=parallel+conn
ector+for%2Caps%2C3876&ref=nb_sb_noss

7) FUSE- https://www.amazon.in/6A-Fast-Glass-Extension-Board/dp/B09HR6CBPJ/
ref=sr_1_5?keywords=fuse&qid=1656393817&sr=8-5