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Calculations
This unit of work addresses aspects of the following syllabus outcomes:
A student:
H1.1 investigates industry
H5.1 selects and uses communication and information processing skills.
H5.2 selects and applies appropriate documentation techniques to project management.
Extract from Industrial Technology Stage 6 Syllabus © Board of Studies NSW 1999.
Introduction
Calculations are essential parts of any industry and all design processes. They are used in the planning and ongoing evaluation of all aspects of industry. Calculations make it possible to realise designs, purchases and profits due to the accurate prediction of the use of such things as materials, funds and time.
In the past, bookkeepers or accountants performed the financial calculations of industry. The use of computing programs is now commonplace. These programs may be bought commercially or customised for specific industry applications.
The use of calculations can be divided into two basic areas, financial and engineering calculations.
Engineering calculations
Designers use these types of calculations in the planning, production and evaluation stages of any design. They are used to predict such things as forces, pressures, loads and strength requirements of members as well as the dimensional requirements of particular materials in service. Calculations are also used to determine sizes and to produce workshop drawings.
Financial calculations
Financial calculations are generally completed using spreadsheet technology. Microsoft Excel is an example of a spreadsheet program. In a spreadsheet there are a number of rows and columns. Each row and column is assigned a particular function. A column can represent income, another expenditure. Rows might be assigned to names or particular materials, services or functions.
The advantage of spreadsheets is that formulas can be calculated on all items in a row or column, thus saving a person the task of completing each row manually.
Spreadsheets are accurate and easy to use. They have the advantage of instantly updating calculations when personnel alter figures without laborious, repetitive and potentially incorrect, calculations.
Spreadsheets are used for many accounting purposes such as:
- analysing profit or loss margins
- determining cash flows
- analysis of labour costs
- taxation records
- tracking maintenance and service costs
- determining assets
- determining liabilities
- determining equity
- balance sheets
- income statements
- inventory systems
- tracking petty cash flows
- determining discounts.
View the sample wages spreadsheet.
Alter either the Hours worked or the Rate/Hour figures and watch the corresponding Cost and Total cost figures change accordingly.
Download the sample spreadsheet
Activity 1
Go to the Businessplans 
web site to see an example of a balance sheet statement. Click on any item label
and view the explanation in the window.
Activity 2
What is meant by the terms current assets and buildings and equipment?
Project management calculations
Calculations are essential during any design management process. Activities where calculations are required include:
- ordering of materials and equipment
- sizing and quantities of materials
- costing of projects
- estimates of material usage, waste and time.
Activity 3
View the sample costing spreadsheet.
Add 5 to all the quantities. What is the new total cost of the materials?
The sample spreadsheet may be downloaded and used to calculate the cost of any design solution. It may also be modified. Some basic operations are outlined below.
- Additional item numbers can be added by simply typing more numbers down the A column.
- Additional rows can be added in the body of the spreadsheet by left-clicking on the shaded row number on the left to highlight a row. Left-click Insert on the toolbar and click on Row.
- Additional columns can be added by highlight a column and again click on Insert and then Column.
Designing your own spreadsheets
To allow the spreadsheet to automatically make calculations, click on the cell where you wish to see the calculation and type in the appropriate formula. Click on the G column in the sample spreadsheet to view the formulas that have been used.
The letter-number combinations identify each cell.
The * key is the multiplication symbol and the / symbol is the division symbol.
Detailed information on how to use an Excel spreadsheet can be found by using the F1 key or by opening the Help function on the main toolbar. Information about formulas can then be found under Creating Formulas>Quick Calculations. Click on the graphic, Create Simple Formulas.
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