1. What is Machining and Operating Cost of Each Product?

Definition: This calculator determines the individual machining cost for each product in a production batch after accounting for various overhead costs.

Purpose: It helps manufacturers understand the true cost per unit by factoring in non-productive time, tool changing costs, and tool expenses.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( C_i \) — Individual machining cost per product
• \( TPC \) — Total production cost (±5%)
• \( TNPC \) — Total non-productive cost (±5%)
• \( TCC \) — Total tool changing cost (±5%)
• \( TTC \) — Total cost of tools used (±5%)
• \( B \) — Batch size (units)

Explanation: The formula subtracts overhead costs from total production cost, then divides by batch size to get per-unit cost.

3. Importance of Individual Cost Calculation

Details: Accurate per-unit cost calculation is essential for pricing decisions, profitability analysis, and cost control in manufacturing.

4. Using the Calculator

Tips: Enter all cost values (with ±5% tolerance) and batch size. All cost values must be ≥ 0 and batch size must be ≥ 1.

5. Frequently Asked Questions (FAQ)

Q1: What's included in non-productive costs?
A: Setup time, maintenance, breaks, and other activities that don't directly contribute to production.

Q2: Why account for tool changing costs separately?
A: Frequent tool changes can significantly impact production efficiency and costs.

Q3: How accurate is the ±5% tolerance?
A: This accounts for typical cost variations in manufacturing environments.

Q4: When would batch size affect the cost significantly?
A: Smaller batches have higher per-unit costs due to fixed overheads being spread over fewer units.

Q5: How can I reduce individual machining costs?
A: Increase batch sizes, optimize tool changes, reduce non-productive time, or extend tool life.

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