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COST AND PERFORMANCE ANALYSIS OF
A GO-KART
BY
FAM KUEH SZUE
Thesis Summated to the Faculty of Engineering University Malaysia Sarawak
As a partial Fulfillment of the Requirement for the Degree of Bachelor of Engineering with Honours
(Mechanical Engineering and Manufacturing System) 2002
TABLE OF CONTENTS
Letter of Approval
Sheet of Approval
Project Title
Table ofContents
Acknowledgements
Abstract
Abstrak
List of Figure
List of Table
1. INTRODUCTION 1
1.1 Definition
1.2 Objective
1.3 Draft idea of research 2
2. LITERATURE REVIEW 4
2.1 Introduction to costing 4
2.1.1 Engineering cost 6
2.1.2 Materials cost 7
2.1.2.1 Joint materials cost 9
2.1.2.2 Selection of materials 12
2.1.3 Labor cost 13
2.1.4 Tooling cost 15
2.1.5 Utilities cost 16
2.1.6 Linear Break-even analysis 17
2.2 Performance analysis 19
2.2.1 Weight distribution 19
2.2.1.1 Static weight distribution 20
2.2.1.2 Dynamic weight distribution 20
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2.2.2 Tyres balancing
2.2.3 Wheel balancing
2.2.4 Drag analysis
2.2.4.1 Form drag
2.2.4.2 Friction drag
2.2.4.3 Induced drag
2.2.5 Chassis alignment
2.2.6 Engine performance
2.2.6.1
2.2.6.2
2.2.6.3
3. METHODOLOGY
3.1 Research
3.2 Interview
3.3 Self-study
3.4 Data collection
Power
Fuel
Emission control
3.4.1 Speed test
3.4.2 Weight distribution test
3.5 Cost calculation for a go-kart
4. RESULTS AND DISCUSSIONS
4.1 Cost calculation
4.2 Results of weight distribution testing
4.3 Results of go-kart speeding test
s. CONCLUSION AND RECOMMENDATIONS
REFERENCES
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ACKNOWLEDGEMENT
I would like to express my appreciation for those help in made this paper such a success.
Without their assistance, this paper would not be finished and completed in such a short
term.
First and foremost are my supervisor, Mr. Syed Tarmizi, who provided a truly
understanding and supporting for the project. Because of his continuous encouragement,
this project becomes very successful.
Next, the author wou ld like to say special thank you to laboratory technician En. Masri
and En. Rhyier who supplement me skill of operated machine, used the special tools and
many more technical knowledge.
Beside that, I would like to say thank you to my friends Ting Hok Ching, the supervisor
of ELIP Sdn. Bhd. for his willingness to help us when we meet a problem and he also
give us some solution for the construction of go-kart.
By this opportunity, I would like to thank to our group members, Tan tang chin, Rowdy
Ignatius and Ho Yoong Chow. Their cooperation maked this project very successful.
At the same time, the author also thank to the Mr. Abdul Rahman, the owner and
managing Director of Cosamajaya Sdn. Bhd. and Mr. Rahman Putih, a lecturer from
Polytechnic Kuching who give us a opportunity to interview them and give us an idea to
do this go-kart.
Finally, I also want to thanks my families, fellow friends, relatives and those involves in
completion of the project and documentation.
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ABSTRACT
This thesis will be introduced the cost that needed to consider when constructed the
project. It also brings the effectiveness solutions to manage the cost of the project.
Additionally, the formula to calculate the cost also introduces. The influences of
materials toward the performance of kart also analyze. The cost comparison also done
between the market price and the kart that produced by the authors. The second path will
discuss the performance of the kart and state the factors that can be influence the kart
performance. The "speeding test" was special design to determine the performance of the
kart and the weight distribution test design for measured the balancing of the kart. Lastly,
the relationship between cost and performance also plotted into the graph.
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ABSTRACT
Thesis ini telah memperkenalkan pembelanjaran kos yang diperlukan untuk membuat
sesuatu projek. Di samping itu, cara yang berkesan untuk menguruskan kos
pembelanjaran juga diperkenalkan. Formula untuk mengira kos dan penggunaan bahan
mentah yang sesuai dalam projek juga di analisakan. Seterusnya, penulis telah membuat
pembandingan antara harga pasaran bagi sebuah kart dengan kart yang direkakan.
Dalam bab yang seterusnya, penulis telah membincangkan faktor-faktor yang
mempengaruhi perestasi bagi kart yang direka. Tambahan pula, berberapa ujikaji telah
dibuat untuk mengukur perestasi kart tersebut.
Pada bab yang terakhir, penulis telah merumuskan hubungan antara kos dan
perestasi kart melalui satu graf. Akhimya berberapa cadangan telah diberikan tujuannya
adalah untuk menyediakan satu situasi yang lebih memuaskan untuk pelajar-peJajar masa
depan.
LIST OF FIGURE
Figure Page
1.1 The types of project cost 2
1.2 The factors affect the performance of a kart 3
2.1 Interrelationships between product cost components. 6
2.2 The block diagram of two classes ofjoint costs. 10
2.3 The three-cavity mo1d. 11
2.4 The fixed, semi fixed and variable costs chart 17
2.5 Break-even chart 18
3.1 Tyre referring point 29
3.2 The weight distribution test 30
4.1 Costs spent for go-kart 35
4.2 The velocity of a kart against time 40
4.3 The go-kart construct by the author 42
5.1 Performance Vs Cost. 44
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LIST OF TABLE
Figure Page
2.1 Definitions for labor analysis 14
3.1 Speed test recording form 28
3.2 Weight distribution recording form 29
4.1 The weight distributed on each position 36
4.2 The result for 100m speeding test 37
4.3 The Results of kart speeding test 38
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1 INTRODUCTION
1.1 Definition
Go-kart is defined as a land vehicle with body chassis, four wheels, engine, power
transmit system (gear, chain), steering, brake system and tyres attached on the wheel.
Cost analysis is defined as a review and an evaluation of actual or anticipated cost data
with the prices of market. This analysis involves the application of experience,
knowledge and judgment to data in an attempt to project reasonable estimated contact
cost.
Performance analysis is defined as an evaluation of engine to perform a maximum
speed with considered the power, fuel and emission control of the engine.
1.2 Objective
The aim of this thesis is to analyse the cost and performance of go-karts that is
constructed by the author and the author's friends. The author chooses this project
because of the interest in motor racing sport and automobile technology. Finally, the
author can experience the real construction in modeling go-kart that bring afford to
author in future. The specific objectives of this project are:
1. To estimated the cost spending in construct a go-kart
2. To tested the performance of 5 horsepower engine.
3. To justifY the suitable material for a go-kart.
4. To educate the author in technical skil1 and team-building skill.
5. To educate the author in managing the project cost.
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1.3 Draft idea of research
Before starting with doing this thesis, the author had prepared the draft flowchart. Figure
1.1 and figure 1.2 shown the briefing of this thesis.
Figure 1.1 The types of project cost Engineering cost (A)
------..J Materials cost (B) Project
Cost
~ Labor cost (C)
Tooling and utility Cost (D)
Total construction cost A + B + C + D Finally compare the difference between construction cost with market cost
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Kart Performance
DragChassis
• Weight • Form drag • Power
distribution
Friction drag Fuel• Tire balancing • •
• Induced drag • Emission control Chassis alignment •
Figure 1.2 The factors affect the performance of a kart
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2 LITERATURE REVIEW
2.1 Introduction to costing
It is difficult to accurate estimated costs without an understanding ofthe types ofcosts that
might be incurred in a production environment. An understanding ofhow these costs are related to
each other and to parts of the industrial is also required.
Generally, for a successful project, we must consider three elements, cost, time and desired
performance or technology level. Follow by this, the six resources below also important to
achieving the successful project.
I. Money
2. Manpower
3. Equipment
4. Facilities
5. Materials
6. Information or technology (Research and Development)
Ifwe look at any resources, all ofthem require money or cost. That is the reason why the author is
researching in this topic. Besides that, the purpose ofcost analysis is to arrive at a price that is fair
and reasonable to both the producer and buyer. There are some of the elements that affect costs are:
• The capability of management
• The efficiency of labor
• The quality and amount of subcontractor.
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Each of these factors can change with respect to either product or time.
Costs control was also equally important in cost analysis. Because cost control not only
"monitoring" of costs and recorded the quality of data, but also analyzed the sufficient and
corrective action before it was too late.
Niebel and Draper (1974) had described the interrelationships between different types of
product costs in the following manner. Prime cost, Cp defined as the sum of direct material cost
and the direct labor cost.
Cp Lo+ MD
Factory cost, CF defined as the sum of factory expenses and prime costs. Factory expenses
included the cost for rent, heart, electrical utilities, water and indirect labor.
CF Cp + Factory expenses
Manufacturing cost, CM defined as the sum of general expenses and factory cost. General
expenses will include the cost ofdesign engineering, purchasing, suppliers and salaries.
Manufacturing cost, CM CF + general expenses
When determining the product price. The additional costs, sales expenses will include. Sales
expenses will cover all the cost for selling and delivering the product. Such cost may consist of
advertising expenses, shipping costs, salesman's salaries and commission.
Total cost is then defined as the sum of manufacturing cost and sales expenses.
Total cost, CT = CM + sales expenses
Finally, the products selling price may be given as the sum ofthe total cost and a specified margin
ofprofit.
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Selling price CT + profit
The interrelationship between different product costs is illustrated in Figure 2.1
Profit
General Expense
Sales Expense
Selling Price
Direct Material
Direct
Factory Expense
Prime Cost
Factory Cost
Manufa c-turing
Cost
Total Cost
Figure 2.1 Interrelationships between product cost components. ( From Product Design and Process Engineering by
Niebel and Draper, • 1974 McGraw-HilI.
Project cost can divided into five major groups, these are engineering cost, materials cost,
labor cost, tooling cost and utility cost.
2.1.1 Engineering cost
The engineering cost will include the drafting and the design of the project cost.
May be this cost does not clearly applies in our project, but it is consumes time and the knowledge
ofthe project designer. In the other hand, the cost must be included to employ the engineers in this
situation.
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The engineering cost can be calculated as:
Engineering cost (EC) = Total hours for project design X salary/hour
2.1.2 Materials cost
Material is the cost of all components and raw material included in the end product that is
being produced. Sheet metal, automobile engine, pipes, carburetor, spark plug, steering handle and
solid metal are all the example of materials cost that the author used in producing kart. While, the
examples below are not included into material cost: raw material purchased for production tooling,
special purpose test equipment, and materials required for end product packaging during shipment.
Material cost analysis contains bill of materials, finisher, standard and non-standard designs, and
extensive inventories of direct and indirect materials. Normally, cost of material can be found by
historical and measured information.
Most common material cost are direct and indirect materials, while the direct cost can be
subdivided into three categories raw materials, subcontract items, and interdivisional transfer
items. Raw materials include fabricated, intermediate, or processed the material inform that will
receive direct labor work in conversion to another design. Standard commercial materials are a
class of material normally not converted. They are accepted in manufactured state and significant
proportion of total material cost. Subcontract items are parts, components, assemblies,
intermediate materials, or equipment produced by a supplier or vendor in accordance with designs,
specifications or directions applicable only to design being estimated. Interdivisional transfer
materials are materials sold or transferred between divisions, or subsidiaries that have common
ownership or control. Indirect materials are those, materials necessary for the conversion ofdirect
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materials and are not directly traceable to the design. Examples: lubricating oils and perishable
tooling.
Shape implies mass or area or length or count or one of the many engineering dimensional
units. The cost per unit shape is in compatible dimensions.
Normally, engineer will determine the theoretical amount or counts of the material
during the material take off. The take offcould be the bill ofmaterials or could be a separate listing
indicate material specification, size, weight, length, shape and so on
Material scarp also happening during the production, this is because of human mistake. Example:
wrong in drilling hole. In manufacturing work when the conversion or changing of the properties
or configuration that make a mistake. It will be classed as waste. Shrinkage is the loss ofmaterials
because of the theft or physical laws. The physical laws were referred to aging, oxidation,
chemical reduction, natural spoilage and so on if reduction is in quality and quantity will occur.
Those losses are determined as:
Sa = St (1 +Ll + L2 + L3)
Where all unit in percentage,
Sa =actual shape in units of area, length, Mass, volume, count, etc
St =theoretical shape required for design in units of area, length, etc
Ll = loss due to scrap, decimal
L2 loss due to waste, decimal
L3 loss due to shrinkage, decimal
The engineer computes the efficiency ofconversion of raw materials as
Es = Stl SaX 100%
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The relationship between direct material cost, cost of material and salvage cost are given by,
Cdm = Sa Cms - V s
where Cdm cost ofdirect material, USD per unit
Cms = cost of material, compatible to Sa units
Vs salvage cost, USD per unit
Material cost yield also can be calculated as follow
Em (Np Sa Cms - Ns Vs )/ (NsSa Cms) X 100 %
where Em material cost yield, %
Ns = number of salvage unit
a. Joint material cost
Joint materials are those materials that result from the processing of a singular raw material
supply. Joint materials are intermingled up to the point at which the materials are divided into
separable units. This cost confronted with elements of material and labor costs. The points of
division are called split point. Material and labor costs up to these points are referring to the joint
cost or unit costs. There are two classes ofjoint costs:
a. Material being "distributed"
b. Material being "converted" into two or more products.
Figure 2.2 shown the block diagram of two classes ofjoint costs.
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LMotenO! JI--......1 [ MOlenOi
PCOduCl ~ c=J -, PrOduct 8 PrOduc' C
f--·~~"«
L 1 U Product A ProduCl B
Figure 2.2 (A) Material bring "distributed" (B) Material bring "Convelsion"
A distinction was necessary between distributed and converted types ofjoint costs. Usually
we selected a unit of value per unit of reference to separate joint costs into unit cost. Commonly,
These was in dollar value per units of measure: $/m2, $/kg, $/kW, $/hr and $/product unit. The
simplest of measured unit, the clearer its use became and the more accurate of the conclusions
drawn from the analysis. Allocators can be classified as followed:
I. Physical measure (geometry, weight, shape, etc.)
2. Energy (kW, etc)
3. Time (second, year, man hour, etc)
4. Units of finished product, each, 10 units, etc.
The unit of reference will be defined for tranceability of cost to avoid changed the unit through a
process. For example, if kilogram was used for the material stage, kilogram was convenient as a
finished product. Unnecessary unit conversion should be avoided. Here we take an example to
calculating the design with joint cost problem.
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1 F
This is the mold for 3 buttons injection moldered process.
Figure 2.3. Shown the three-cavity mold.
Sprue
3 buttons
3 runners
Figure 2.3 The three-cavitys mold.
Facts for the designs
Volume = 60,000 mm3 for 3 buttons
Weight = 0.06 kg for 3 buttons
Sprue = 25,000 mm3, weight 0.02 kg
Runners = 2,400 mm3, weight = 0.002kg
Waste 28,000 mm3, 0.02 kg, USD $ 0.1080
Good product 60,000 mm3, 0.047 kg, USD $ 0.2531
Total shot =88,000 mm3, 0.067 kg, USD $ 0.3712
Unit material cost 0.3712/3 = USD $ 0.1237 1unit
Material in good product = 0.2531/3 = USD $ 0.08441 unit
I. Labor apportioned on total kglhr
Given material costs USD $5.56 per kilogram
Density = 760kg 1m3
Operator cost USD $16.51 hour
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Output = 400 (0.067) 26.8 kg/hr
Unit labor cost for the design = 26.81 (26.8+ output for other design) X [16.5] X [111200]
2. Labor apportioned on shotslhr and total shots = 400 + number of unit output for
other design.
Unit labor cost for design =4001 total shots X [16.5] X [1/1200]
3. Labor apportioned on kg/hr of final product produced
Total kg/hr for design = 1200/3 X [0.047kg] = 8.8 kg/hr
Unit labor cost for design 8.81 (8.8+total kg/hr for other design) X [16.5] X [11l200]
* Total unit cost for design material cost + labor cost
In this example the material cost is uniformly related to production value of output. Labor cost,
however, can be apportioned on 3 basis. Arithmetically, those lead to different answers for the
contribution oflabor cost ofjoint cost. From three of acceptable solution, one of them is the "best"
one.
b. Selection of materials
The different of materials using in construction go-kart will affect the cost spent on the
project. Each type of material had theirs own specification and properties. So the material that
select in author's project will decided three views point. One ofthe point is money, if we choosing
high quality material in the author kart construction the cost different. Of cause the quality of the
product can be better, but beside that the cost of materials will be increased. This is not meat our
project cost estimating. The other point is material properties,
Example
Some of the materials are easy to weld but some are not.
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Density of irons are grater that aluminum and fiber
Strength and elastic of materials also affected the final product.
The third point is kart performance, to improved the performance ofkart the suitable material must
be choose for better performance.
2.1.3 Labor cost
Labor can be classified into direct-indirect, designed-non designed, wage-salary and blue
collar-management. Payment for wage may be based on attendance or performance.
The labor cost always calculate as:
Labor cost = time x wage
Wage is defined in the context of the operation design. The design may be for one worker
and one machine or several workers with several machine ad processes. The unit for wages one
dimensionally compatible to the time estimate. If the time estimate is in days per unit the wage is
expressed in dollars per days.
Direct labor time for work is directly related to design.
Example: carpenter, assembly in manufacturing
Indirect labor is shop labor other than direct labor.
Example: stockroom clerks, foremen, and material handlers.
Man-hour usually used in measuring the time of the small construction or project.
Man-month and man-year also used to measure the long-term construction.
Example of man-hour units:
Number of man-hours per meter of weld.
Number of man-months per area of cutting.
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Table 2.1 shown all the definition of labor analysis
I Table 2.1 Definitions for labor analysis
The time reports for work, which may include delays, idle time, and inefficiency as well as efficient effort.
Actual time
Interruption in the work that caused additional time that could delay
Avoidable have been avoided or minimized by the worker by using better I
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skill or judgment.
A method of time study where the total elapsed time from the timing
Continuous start of the study is recorded at the end ofelement.
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A subpart ofand operation separated for timing and analysis beginning and ending points are described, and the element is the
smaller part of an operation observed by time study.
Element
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The description of the elements of an operation in a measurable IElemental I
breakdown s~uenre. ~
Idle time A time interval in which the operator, equipment, or both are not performing useful work.
Machine Idle machine time occurring as a result ofoperator attention on interference another machine in multiple-machine work
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Machine! Time require for a machine or process Process time
Man-hour A unit of measure representing one person working for one hour
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Operation Designated and described work subject to work measurement, estimating and reporting.
A unit of measure representing one person working for one hour Person-hour
Rating factor Involves comparing the performance of the operator under observation by using experience or other bench marks; or cycle;
100 % is normal, and rating factors less than or greater than normal indicate slower or faster performance
Regular Elements that occur once in every cycle element
Standard Sums of rated elements that have been increased for allowances I time
Variable An elements whose normal time varies or depends on one element more dependent effects j
2.1.4 Tooling cost
Tools cost conduct the costs spending on buying the new tools for construct a new project.
During the construction of new project, special tools required for the certain purpose. So this
special tools need to purchase for construction used. Beside that, some ofthe tool can't be found in
market. In this typed of cased, we needed to build our own tool. Some of tools were expensive.
Especially for the box set tools, such as sockets spanner set, cutting tools and drilling tools also
required in the construction process.
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Some tools were purchased from outside vendors. So detailed estimated oftools costs will be
made. Costs must be considered for a variety of activities associated with tool fabrication. Vernon
(1968) assigns the following percentage distribution of costs associated with metal stamping dies.
3 % models and templates
12% design
3 % patterns castings and labor
50% fabrication time
22% material
10% tryout and testing
100%
Percentage cost distributions and magnitudes vary with the type of tooling being produced
and tooling costs are highly dependent on the volume of parts that are dictated by the production
schedule.
2.1.5 Utility cost
Utility cost was the cost that spent to pay of the electrical energy. We used electricity to
tum on the generators, included labor facility, to repair, to supply, the machines, air-condition and
charging the fuel. So these costs also consume in the project cost spent. Since fuel costs have risen
so rapidly, a separate fuel escalation charge was added later to compensate for the incremental fuel
costs above the base fuel cost. Energy production costs are normally treated as a constant unit cost
(in terms of$IkWh), although any given generator can usually produce energy for slightly less cost
at optimum load than at other loads.
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