This article delves deep into the cost analysis and management strategies of casting processes within the machinery industry. It begins by dissecting the components of casting process manufacturing costs, including material formula costs and process – related costs. Through a comparative study of standard cost and actual cost methods, their respective advantages and disadvantages are illuminated. To address the challenges in cost management, novel ideas and methods such as the application of cost – model – based software, batch cost management, and MES – system – based on – site data cost calculation are proposed. The article also forecasts the future trends of cost management in the casting industry, emphasizing the significance of information technology, intelligent manufacturing, and green manufacturing in enhancing cost – effectiveness and achieving sustainable development.
1. Introduction
In the machinery industry, casting is a fundamental and crucial manufacturing process. Casting components are widely used in various mechanical products, and their quality and cost directly influence the overall performance and market competitiveness of the final products. However, due to the complexity of the casting process, the diversity of raw materials, and the variability of process parameters, accurately calculating and effectively managing casting costs have always been arduous tasks for enterprises.
The instability of raw material prices in the market, the difficulty in precisely estimating energy consumption during the casting process, and the impact of production management efficiency on costs all contribute to the inaccuracy of cost estimation in casting enterprises. This not only leads to potential losses for enterprises but also restricts their development and competitiveness in the market. Therefore, exploring effective cost management methods for casting processes is of great practical significance for improving the economic benefits and sustainable development capabilities of machinery manufacturing enterprises.
2. Composition of Casting Process Manufacturing Costs
2.1 Composition of Casting Material Formula Costs
Taking the loader axle housing as an example, when using ZG270 – 500 material for sand – casting, the material formula cost of ZG270 – 500 mainly consists of the following parts:
- Raw Material Costs: The raw material formula of ZG270 – 500 typically includes elements such as carbon (C), manganese (Mn), silicon (Si), phosphorus (P), sulfur (S), chromium (Cr), and molybdenum (Mo). The proportion of these elements significantly affects the performance of the casting. The cost – accounting situation is shown in Table 1.
| Serial Number | Classification | Cost Proportion |
| —- | —- | —- |
| 1 | Carbon Steel Base Materials (including basic elements like carbon, manganese, and silicon) | 60% – 70% |
| 2 | Chromium | 5% – 10% |
| 3 | Molybdenum | 2% – 5% |
| 4 | Sulfur and Phosphorus | Controlled within a low range to ensure material performance |
| 5 | Impurity Control and Other Alloy Additives | 1% – 3% | - Material Loss: During the casting process, there are material losses, including melting losses and processing losses. Generally, melting losses account for 2% – 5% of the total raw material volume, while processing losses (such as deburring and trimming) account for 1% – 3%.
- Auxiliary Material Costs: These include deoxidizers, desulfurizers, slag – formers, and other auxiliary materials used in the melting process. Although they account for a relatively small proportion in the material formula cost, they play a vital role in determining the final quality of the casting.
- Energy Consumption Costs: The melting process requires a large amount of electricity or gas. Energy consumption costs account for 10% – 20% of the material formula cost. The melting temperature, time, and efficiency directly affect the energy consumption cost.
2.2 Composition of Casting Process – Related Costs
The costs in the casting process are accumulated through multiple links. Taking the sand – casting of the loader axle housing as an example, the process and cost composition are as follows:
- Mold Manufacturing Costs: The casting of the axle housing usually requires sand molds and core molds. Mold manufacturing costs include mold materials (such as sand, binders, etc.), mold processing fees, and mold maintenance fees. The material cost of sand molds accounts for about 5% – 10% of the total casting cost, among which the sand material cost is 3% – 5%, and the cost of binders and other additives is 2% – 5%. The labor and equipment – usage costs for mold manufacturing should also be included in the total cost, accounting for 5% – 8% of the process – related costs.
- Melting Costs: Melting is a key link in the casting process. The costs mainly include the melting cost of raw materials and the usage cost of melting equipment. The melting process requires high – temperature electric furnaces or induction furnaces, and the energy consumption and equipment depreciation during melting are the main sources of costs. Melting energy consumption usually accounts for 15% – 20% of the process – related costs.
- Pouring and Cooling Costs: After melting, the molten metal is poured into the sand mold. The labor and equipment – usage costs during the pouring process account for 10% – 15% of the total process cost. The length of the cooling time affects the production rhythm of the workshop and the quality of the casting. Optimizing the cooling process can reduce energy consumption costs and improve production efficiency.
- Cleaning and Post – processing Costs: After the casting cools, it needs to be cleaned and post – processed, such as deburring, grinding, and heat treatment. The costs of these links mainly include labor, equipment usage, and consumable material costs, accounting for 10% – 15% of the process – related costs. For example, the energy consumption of heat treatment is relatively high, especially for large – scale castings that require long – term high – temperature treatment. Therefore, heat treatment costs account for a relatively large proportion in the total post – processing costs.
- Quality Inspection and Rework Costs: The quality inspection of axle housing castings involves non – destructive testing (such as X – ray, ultrasonic, etc.) and surface inspection. The costs of testing equipment, consumables, and labor account for 5% – 10% of the process – related costs. If defects are found during the inspection, rework or waste disposal is required, and this part of the cost usually accounts for 3% – 5% of the casting process cost.
- Labor and Management Costs: The labor costs in the casting process include the wages of operators at all levels and the expenses of management personnel. Labor and management costs account for about 10% – 20% of the total process – related costs.
- Equipment Depreciation and Maintenance Costs: Large – scale equipment in the casting workshop (such as melting furnaces, pouring machines, cleaning equipment, etc.) needs to be included in the depreciation cost. The daily maintenance and repair of equipment are also necessary cost expenditures, accounting for about 5% – 8% of the process – related costs.
2.3 Case Analysis of Axle Housing Sand – Casting Costs
Taking the sand – casting of a certain loader axle housing as an example, the total manufacturing cost of ZG270 – 500 can be roughly divided into material formula costs and process – related costs, as shown in Table 2.
| Project | Classification | Cost Proportion | Sub – total | Total |
|---|---|---|---|---|
| I. Material Formula Costs | Raw Materials | 35% | 57% | |
| Material Loss | 3% | |||
| Auxiliary Materials | 2% | |||
| Energy Consumption | 9% | |||
| II. Process – Related Costs | Mold Manufacturing | 11% | 43% | 100% |
| Melting | 9% | |||
| Pouring and Cooling | 7% | |||
| Cleaning and Post – processing | 7% | |||
| Quality Inspection and Rework | 6% | |||
| Labor and Management | 8% | |||
| Others | 5% |
3. Advantages and Disadvantages Analysis of Casting Cost Management
3.1 Advantages and Disadvantages of the Standard Cost Method
The standard cost method is a cost – accounting approach based on pre – set standards for manufacturing costs. For a specific type of casting, standards such as the standard amount and price of pig iron per ton of casting, standard labor hours and wage rates, and standard manufacturing expense allocation rates are determined in advance. During monthly cost accounting, the actual cost is compared with the standard cost, and the differences are analyzed.
- Advantages of the Standard Cost Method:
- Facilitates Budgeting and Planning Management: The setting of standard costs is based on historical data and experience, which can assist enterprises in long – term production planning and budget management, helping them achieve cost – control goals.
- Simplifies the Cost – Accounting Process: This method is relatively simple in accounting operations, reducing complex cost allocation and collection work, and is suitable for application in a relatively stable production environment.
- Easy for Performance Evaluation: By comparing with the actual cost, enterprises can quickly identify differences in the production process and take corrective measures. The standard cost method has high application value in production efficiency and cost – difference analysis.
- Disadvantages of the Standard Cost Method:
- Lagging Reflection of Actual Costs: The casting production process is affected by multiple factors. The standard cost method can only reflect these cost changes after monthly settlement. The management granularity of standard costs is not fine enough, making it difficult to analyze the causes of differences.
- Inaccurate Allocation of Indirect Costs: In the standard cost method, indirect costs are usually allocated on an overall corporate basis and are difficult to accurately attribute to specific parts or process links. This leads to insufficient accuracy in cost accounting, preventing enterprises from clearly understanding the actual manufacturing costs of each part.
- Ignores Cost Differences in Small – Batch and Multi – Variety Production: The casting industry often faces small – batch and multi – variety production models. The standard cost method is more suitable for large – batch and single – variety production environments. In small – batch production, the set standard costs often deviate significantly from the actual costs and cannot accurately reflect the individual cost characteristics of different parts.
3.2 Advantages and Disadvantages of the Actual Cost Method
The actual cost method is based on the actual costs incurred, and the costs generated during the production process are collected and allocated monthly. This method directly reflects various cost fluctuations in actual production. In the casting process, for example, actual cost management records the actual purchase price of pig iron, the actual working hours of workers, and the actual power consumption costs. The actual cost method includes three types: the variety method, the step – by – step method, and the batch method (order method). Casting enterprises generally use the batch method and the step – by – step method. The production of engineering machinery axles and housings is a multi – step production process, so the step – by – step cost – accounting method is suitable for this production process.
- Advantages of the Step – by – Step Method:
- Accurately Reflects Actual Cost Expenditure: It truly reflects the actual cost situation of enterprises during the casting production process, providing accurate cost data for enterprises and helping them understand their actual operating costs.
- Beneficial for Cost – Difference Analysis and Improvement: The step – by – step method collects and allocates costs according to production steps. By analyzing the costs of each production step, it can reflect the cost changes of different – specification products, providing a more accurate basis for process improvement and cost control.
- Suitable for Large – Batch and Multi – Step Production: It collects and allocates production costs according to production steps and calculates the total costs and unit costs of semi – finished products and final products at each step.
- Disadvantages of the Step – by – Step Method:
- Heavy Accounting Workload: It requires detailed recording, collection, and allocation of the costs of each process step in the production process. The calculation process is complex, the accounting cycle is long, the accounting workload is heavy, and the management cost increases.
- Lagging Cost Reflection: Since it is a post – event accounting, it is difficult to conduct timely cost control during the production process. It is difficult to take timely measures for cost control, which is not conducive to cost reduction.
- Not Conducive to Assessment and Incentive: It is difficult to clearly define the cost responsibilities of various departments and employees, which is not conducive to their assessment and incentive.
3.3 Cost – Difference Analysis between the Standard Cost Method and the Actual Cost Method
- Different Cost – Management Objectives: The standard cost method aims to optimize production to achieve standard costs, which helps enterprises improve the accuracy and efficiency of cost management. The actual cost method aims to truly reflect the actual cost expenditure situation and focuses on the authenticity and reliability of costs.
- Differences in Cost – Control Strategies: The standard cost method is more suitable for long – term cost control and budget management, while the actual cost method is more suitable for short – term cost analysis and immediate improvement.
- Differences in Cost – Management Requirements: Standard cost management pays more attention to the accuracy of cost control and the reliability of decision – making support. It requires a high level of informatization, perfect system integration, and strong data – analysis capabilities. Actual cost management emphasizes the authenticity and flexibility of cost accounting and has high requirements for data real – time – ness and cost – monitoring and early – warning functions.
3.4 Problems and Requirements in Cost Management
- Lack of Flexible Cost – Control Mechanisms: The lag in monthly settlement difference feedback makes enterprises lack flexible cost – control mechanisms when facing rapid market changes and process adjustments. They cannot quickly adapt to market and technological changes. Comprehensive cost management requires target costs or real – time predicted costs.
- Complex Cost – Difference Responsibilities: In an environment of expanding enterprise scale, complex management, and declining average profits, the complexity of actual conditions makes cost – difference responsibilities complex. Functional management and behavioral science management require clear responsibilities.
- Improving Enterprise Economic Benefits: With increasingly fierce market competition, enterprises are required to improve product quality while reducing costs. Techniques such as ex – ante prediction, value engineering, feasibility studies, and target costs should become the technical means of tactical cost management for cost control. For the sustainable development of enterprises, strategic cost management involving full – staff management, cost – source management, and the optimal combination of technology and economy is needed.
4. New Ideas and Methods for Casting Process Cost Management
4.1 Application of Software Based on Cost Models
Innovative cost – reduction strategies such as lean manufacturing are closely related to successful manufacturing cost estimation. Advanced enterprises widely use software tools based on cost models in casting cost management, such as aPriori software.
- Application Method of the aPriori Cost Model:
- Establishment of the Cost Model: The aPriori software analyzes different materials, process parameters, and production conditions to establish refined casting cost models. These models include material costs, process – related costs, equipment – usage costs, and labor costs, providing enterprises with detailed cost structures and breakdowns.
- Real – Time Cost Calculation and Simulation: The aPriori software can predict the cost of castings during the product – design stage. By simulating real – time cost changes during the production process, enterprises can adjust and optimize standard costs before production. This method not only improves the accuracy of cost accounting but also reduces cost deviations during the production process.
- Flexible Adaptation to Different Batches and Varieties of Production: For small – batch and multi – variety casting production, the aPriori software can conduct independent cost analyses for different batches and parts, as well as for different material formulas. It helps enterprises identify the specific cost – driving factors of each part and provides improvement suggestions.
- Enhancing Cost Transparency and Controllability: Through accurate cost modeling and real – time analysis, enterprises can have a clearer understanding of the costs of each production link. This transparency helps enterprises adjust strategies in a timely manner during the production process, improving the flexibility and response speed of cost management.
- Casting aPriori Cost Prediction: In a selected virtual digital factory, by importing the three – dimensional model information of a certain axle housing, the aPriori system automatically simulates the processing process and quickly generates the estimated cost and detailed cost breakdown of the part. When the material formula selection or production batch size changes, the corresponding cost also changes.
- Actual Application Cases of aPriori: Some foreign casting enterprises have introduced aPriori software. Through real – time cost calculation and simulation based on detailed cost models, they have optimized the establishment of standard cost plans and methods, improved the level of cost – fine – management, and achieved the following results:
- Reduced cost – accounting deviations by 30%. Accurate cost modeling has reduced cost deviations caused by manual estimation.
- Shortened the product – development cycle by 15%. Since cost analysis and optimization can be carried out during the design stage, enterprises have achieved a faster response speed in product development and batch adjustment.
4.2 Batch Cost Management
In the casting process, batch management and batch – cost analysis are important means of optimizing cost management, especially in the multi – variety and small – batch production model. Batch cost management can effectively improve the accuracy of cost control. The batch management of materials can introduce a Warehouse Management System (WMS) to achieve information – based warehouse management and help enterprises improve warehouse operation efficiency.
- Concept and Implementation of Batch Cost Management: Batch cost management refers to the collection and analysis of costs based on production batches. This method can accurately track the cost differences of each batch, helping enterprises adjust process parameters for different batches and optimize cost control.
- Cost Collection and Analysis: Material costs, process costs, and labor costs are collected and recorded separately for each batch. By analyzing the cost differences of each batch, the main reasons for cost fluctuations can be identified. For example, in the casting of a certain batch of axle housings, if the material loss is higher than the standard, it may be due to inaccurate batching or improper pouring technology.
- Cost Comparison and Optimization between Batches: By comparing the costs of different batches, enterprises can identify the optimal production batch and apply the experience to subsequent batch production. For example, if a certain batch has a high mold service life and a high product – qualification rate, the mold material and design of this batch can be analyzed and promoted in other batches.
- Adaptation to Order Diversity: Batch cost management is particularly effective in dealing with diverse orders
请继续英文输出文章
4.2 Batch Cost Management
In the casting process, batch management and batch – cost analysis are important means of optimizing cost management, especially in the multi – variety and small – batch production model. Batch cost management can effectively improve the accuracy of cost control. The batch management of materials can introduce a Warehouse Management System (WMS) to achieve information – based warehouse management and help enterprises improve warehouse operation efficiency.
- Concept and Implementation of Batch Cost Management: Batch cost management refers to the collection and analysis of costs based on production batches. This method can accurately track the cost differences of each batch, helping enterprises adjust process parameters for different batches and optimize cost control.
- Cost Collection and Analysis: Material costs, process costs, and labor costs are collected and recorded separately for each batch. By analyzing the cost differences of each batch, the main reasons for cost fluctuations can be identified. For example, in the casting of a certain batch of axle housings, if the material loss is higher than the standard, it may be due to inaccurate batching or improper pouring technology.
- Cost Comparison and Optimization between Batches: By comparing the costs of different batches, enterprises can identify the optimal production batch and apply the experience to subsequent batch production. For example, if a certain batch has a high mold service life and a high product – qualification rate, the mold material and design of this batch can be analyzed and promoted in other batches.
- Adaptation to Order Diversity: Batch cost management is particularly effective in dealing with diverse orders. Enterprises can conduct independent cost analyses according to the characteristics of different orders, adjust process parameters, production rhythms, and personnel configurations to ensure the flexibility of cost management.
- Design of Casting Batch Management: Material batches are distinguished by raw material suppliers, material types, and time; molten iron batches are distinguished by material batches, other auxiliary materials, and months; casting batches are distinguished by molten iron batches, core molds, sand molds, and months.
- Actual Application Effects of Batch Cost Management: In some foreign casting enterprises, batch cost records are more conducive to accurate cost – difference analysis. Through batch cost management, the following effects have been achieved:
- Reduced material waste by 10%. By comparing the material costs collected by batch, the reasons for high – waste batches are identified and improved.
- Increased equipment utilization rate by 5%. Batch analysis reveals the equipment usage in different batches, helping enterprises optimize equipment scheduling and improve production efficiency.
4.3 On – site Data – based Cost Calculation with the MES System
Modern casting enterprises are gradually introducing the Manufacturing Execution System (MES) in cost management to achieve real – time cost calculation and control. The MES is a management system oriented to workshop production, which plays a role in transmitting information to optimize production activities. The MES realizes refined on – site cost dynamic management through the automatic collection and analysis of on – site data.
- Cost Calculation Method of the MES:
- Real – time Data Collection: The MES can automatically collect production data from all links in the casting process, including melting time, pouring temperature, cooling time, equipment utilization rate, and labor input. These data provide an accurate basis for cost accounting.
- Dynamic Cost Accounting: The MES can perform dynamic cost calculations based on the real – time collected data. For example, it automatically calculates the actual cost of current production according to the material consumption, equipment operation time, and energy consumption. This real – time cost accounting enables enterprises to detect cost deviations during the production process and take immediate measures to adjust, thereby reducing unnecessary cost expenditures.
- Integration of Process Optimization and Cost Analysis: The MES can also integrate cost accounting with process optimization. By analyzing the costs of different production links, it helps enterprises identify the weak links in the process. For example, if the energy consumption of a certain link is continuously higher than expected, the MES can prompt managers to conduct equipment maintenance or process adjustments.
- Settings of the MES System in Casting Production: The MES system in casting production is set to conduct real – time metering and accounting by process.
- Actual Application Effects of the MES System: Some foreign casting enterprises use the MES system to obtain cost – difference data during production for in – process cost control, demonstrating more efficient cost management:
- Improved cost – management efficiency by 20%. The automatic collection and analysis of real – time data reduce the time and errors of manual accounting.
- Reduced energy consumption during the production process by 5%. By dynamically monitoring energy – consumption costs, enterprises can adjust the equipment operation status in a timely manner to reduce unnecessary energy consumption.
5. Research Conclusion
This research has deeply explored the manufacturing cost management issues in the casting process of heavy – duty machinery. By combining the advantages and disadvantages of the standard cost method and the actual cost method in current enterprise applications, it has analyzed the difficulties and challenges in casting cost accounting. The main conclusions are as follows:
- Complexity of Casting Process Cost Accounting: The composition of casting process costs involves multiple links, including material formula costs and production process costs. These costs are diverse and dynamic, and the interactions between different links make accurate cost accounting and management very difficult.
- Limitations of the Standard Cost Method and the Actual Cost Method: The advantage of the standard cost method lies in its ease of operation and management, but its indirect cost allocation method is difficult to accurately reflect the true costs of specific parts. The actual cost method can more accurately reflect the actual production costs, but the monthly fluctuations are large, resulting in poor cost – management stability. Both methods have problems of cost – accounting deviation and management difficulty.
- Potential of New – type Cost Management Methods: By referring to the experience of advanced foreign enterprises and introducing cost – model – based software, batch cost management, and the MES system, casting enterprises can achieve more accurate and flexible cost management. These new – type methods can overcome the limitations of traditional methods, improve the accuracy and real – time nature of cost accounting, and enhance the enterprise’s adaptability.
- Informatization and Intelligence: The Future Direction of Casting Cost Management: With the help of modern information technology and intelligent manufacturing tools, casting enterprises can achieve dynamic cost accounting and optimization during the design stage and production process. This method can not only improve cost transparency and accuracy but also enhance production efficiency and resource utilization rate, helping enterprises gain a greater cost advantage in the fierce market competition.
6. Conclusion
In the field of cost management for casting processes, future development will mainly focus on informatization, intelligence, and green manufacturing. These trends pose new challenges and opportunities for the cost management of casting enterprises.
In the future, casting enterprises will achieve full – process information sharing and data docking. Through the comprehensive application of information systems, enterprises can conduct dynamic cost monitoring and analysis in design, production, quality management, and other links, improving management efficiency. Digital twin technology, artificial intelligence, and other technologies can help casting enterprises simulate and optimize the casting process in a virtual environment, test different material formulas, process parameters, and production conditions, and thus find the optimal cost – reduction plan.
With the increasingly strict environmental protection requirements, casting enterprises need to pay more attention to the efficient use and recycling of materials. By optimizing material formulas, reducing waste generation, and promoting material recycling, material costs and environmental protection costs can be significantly reduced. The introduction of energy – saving equipment and technologies can also reduce energy consumption during the production process, as well as carbon emissions and energy – consumption costs in the casting process.
In conclusion, casting enterprises need to continuously innovate and improve in cost management. Future cost management will no longer be just simple accounting and control but a full – process optimization process that runs through design, production, and quality management. Only by organically combining informatization, intelligence, and green manufacturing can casting enterprises maintain their competitiveness in global competition and achieve the dual goals of economic benefits and sustainable development.
