Machining and Operating Rate given Total Production Cost Calculator

Machining and Operating Rate Formula:

\[ Rm = \frac{Ctp - (Nt \times C)}{N \times (ts + t) + (Nt \times tct)} \]

Total Production Cost (Ctp):

Number of Tools Used (Nt):

Cost of a Tool (C):

Batch Size (N):

Setup Time (ts):

seconds

Machining Time (t):

seconds

Tool Changing Time (tct):

seconds

Machining and Operating Rate (Rm): $/second

1. What is Machining and Operating Rate?

Definition: The machining and operating rate refers to the cost per unit time for operating a machining process, considering all production costs except direct tool costs.

Purpose: It helps manufacturers determine the cost efficiency of their machining operations and optimize production processes.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ Rm = \frac{Ctp - (Nt \times C)}{N \times (ts + t) + (Nt \times tct)} \]

Where:

$ Rm $ — Machining and operating rate ($/second)
$ Ctp $ — Total production cost ($)
$ Nt $ — Number of tools used
$ C $ — Cost of a tool ($)
$ N $ — Batch size
$ ts $ — Setup time per component (seconds)
$ t $ — Machining time per component (seconds)
$ tct $ — Tool changing time (seconds)

Explanation: The formula calculates the rate by subtracting tool costs from total costs, then dividing by the total time spent on setup, machining, and tool changes.

3. Importance of Machining Rate Calculation

Details: Accurate rate calculation helps in pricing products competitively, identifying cost-saving opportunities, and improving production efficiency.

4. Using the Calculator

Tips: Enter all required values with appropriate units. Default values are provided for reference. All time values should be in seconds.

5. Frequently Asked Questions (FAQ)

Q1: Why do we subtract tool costs from total costs?
A: Tool costs are considered separately because they are capital investments rather than operational expenses.

Q2: How do I convert the rate to $/hour?
A: Multiply the result by 3600 (seconds in an hour). Example: 0.1 $/second = 360 $/hour.

Q3: What's included in total production cost?
A: Includes labor, machine operation, facility costs, materials (except tools), and overhead.

Q4: When would the rate be zero?
A: If the denominator is zero (impossible scenario in practice) or if total costs exactly equal tool costs.

Q5: How can I reduce my machining rate?
A: Reduce setup times, optimize machining processes, increase batch sizes, or reduce overhead costs.