Lesson 13. Variable Costs

Variable costs includes the following items:

  • Repair and maintenance costs

  • Fuel costs

  • Lubrication (oil) costs

  • Labour costs

i) Repair and Maintenance Costs   

Repair and maintenance costs are considered as an essential and significant part of machinery ownership.  Occasional repairs and periodic maintenance are required to maintain a machine in good working order and ensure a high degree of reliability.  The more a machine is used, the greater is its need for repair.  The following factors necessitate the repairs in a machine:

  • Routine wear

  • Accidental breakage or damage 

  • Operator’s   negligence, and

  • Periodic overhauls

Repair costs consists of the expenditures incurred for the spare parts and the labour for repairs made in a shop or on the farm.  Repair costs vary from one geographical region to another because of the differences in machinery use, labour wages and prices of spares.  Repair costs increases with the age of a machine but tend to level off as a machine becomes older.  The accumulated repair and maintenance costs (TAR) at any point in a machine’s life can be estimated by using the following formulae (IS:9164 - 1979).

For four - wheeled and crawler tractors                                             TAR =   0.100 X1.5            

For stationary power units and two-wheeled tractor                            TAR  =  0.120 X1.5

For agricultural trailer                                                                       TAR  =  0.127 X1.4 

For PTO-driven combine, seed drill and Sprayer                                TAR  =  0.159 X1.4

For plough, planter, harrow, ridger and cultivator                                TAR  =  0.301 X1.3

For seed cleaner                                                                               TAR  =  0.191 X1.4

For self-propelled combine, dozer and scraper                                    TAR  =  0.096 X1.4

Where,

TAR  = Total Cumulative repair and maintenance costs per year divided by the purchase price of the machine expressed as percentage

X      = 100 times the ratio of accumulated hours of use to wear out life

ii) Fuel and Oil Cost

With tractors and other powered farm equipment, the cost of fuel and oil must be included in the total machine charge.  Power required may be estimated as follows:

                                        D S

                        dbp   =    --------

                                        270

Where,

dbp  =  drawbar horse power, hp

D       =  draught, kgf

S       =   speed, km/h

or

                                       D S

                        dbp  =    -------

                                       3.6

Where,

dbp  =  drawbar power, kW

D       =  draught, kN

Fuel consumption depends on the size of the power unit, load factor and operating conditions.  The actual consumption can be measured in the field or can be estimated by using the following equation (IS:9164 - 1979):

F  =  0.15 P

Where,

F  =  average diesel consumption, l/h

P  =  rated power, kW

or

F  =  0.25 P

Where,

F  =  average petrol consumption, l/h

P  =  rated power, kW

Fuel consumption can also be estimated by the following equation:

F  =  LCF   RHP   SFC/1000

Where,

F       =  fuel consumption, l/h

LCF  =  load coefficient factor for the operation

RHP  =  rated horsepower of the power source, hp (kW)

SFC  =  specific fuel consumption, ml/hp/h (ml/kW/h)

The values of LCF and SFC for different operations and power sources are given in Table 3.

Labour Charge:  The cost of operator and labour is calculated from the actual operator and labour charges paid in Rupees per day at the prevailing rates in that region.

Table 3: Values of LCF and SFC for different operations and power sources.

Power source

Type of work

LCF

SFC

ml/kW/h

SFC ml/hp/h

 

Stationary diesel engine

-  Water lifting

0.6

300

220

-  Threshing

0.7

300

220

 

Tractor

-  Light work e.g. transport, water

    lifting etc.

0.4

285

210

-  Medium work e.g. secondary      

    tillage, sowing,     inter-culture etc.

0.5

285

210

-  Heavy work e.g. primary tillage,    

   Sheller, cane crusher, combine etc

0.6

285

210

 

Self-propelled combine

                 -

0.6

285

210

 

Small petrol engine

-  Spraying, dusting etc. 

0.8

680

500

 Oil costs  =  0.20 x Fuel costs

Last modified: Monday, 24 March 2014, 6:55 AM