Can you explain what is the reason for a plane like Rafale weighing 10tons to cost $100 million? The cost of precious metal like silver for 10 ton costs $5.5 million. Why is the Rafale costing $100 million? Which part costs that much?
The manhour labour needed to assemble rafale is about 30000 hours. Assuming cost of $4 per hour for Indian labour (about Rs 50000 per month salary with sunday, saturday off), the total cost will come to $120000. The additional labour to make the parts will come out to be some more, say another 30000 hours which further costs $120000. The raw material and other transportation cost needed will be upto $3 million only. Cost of electricity, water etc can be taken as equal to $1million. With some overhead, total cost of rafale comes to less than $5million
Rafale labour requirement is guessed by comparing the labour requirement for F35. F35 requires about 45000 hours labour including some time to rework due to teething issues. It is likely to come to 35000 hours as design matures. Here is a link to show F35 requires abut 45,000 hours labour to make:
http://www.thedrive.com/the-war-zone/21367/it-takes-47000-hours-of-labor-to-build-a-single-f-35a
1 man working for 8hours a day, 5 days a week for 52 weeks a year will work for about 2000 hours a year. So, 60000 hour labour means total of 30 workers worth of labour. If we exclude the design and development cost of the plane and infrastructure setting up, we have the operational cost for manufacturing a rafale plane quite low at less than $5 million. Even if the salary, electricity cost etc is higher in developed countries, say, salary is $40 dollar a hour, and electricity costs and overhead costs higher by 4 times, the total cost of Rafale should still come to less than $10 million.
The reason for high cost is that the labour is not optimally used. Each specialisation requires separate set of workers. The low number of planes ordered reduces the optimal usage of labour. A worker who can work for 2000 hours is now working for only 100-150 hours per year and rest of the time is spent on other desk work. By using the labour optimally by increasing the scaling of manufacturing, the cost of rafale can easily come to 10% of its current cost