Non-Productive Cost of Component given Average Production Cost Calculator

Non-Productive Cost Formula:

\[ C_{ai} = C_{pr} - (C_t \times t_m + (\frac{N_t}{N_b}) \times (C_t \times T + C_t)) \]

Production Cost of Each Component:

Cost of a Tool:

Machining Time:

Number of Tools Used:

Batch Size:

Tool Changing Time:

Non-Productive Cost of Component:

1. What is Non-Productive Cost of Component?

Definition: Non-productive cost is the amount spent on activities like setting up that does not result in any productivity profit to the plant for manufacturing of a single component.

Purpose: It helps manufacturers understand the hidden costs associated with production that don't directly contribute to the manufacturing process.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ C_{ai} = C_{pr} - (C_t \times t_m + (\frac{N_t}{N_b}) \times (C_t \times T + C_t)) \]

Where:

\( C_{ai} \) — Non-productive cost of component
\( C_{pr} \) — Production cost of each component
\( C_t \) — Cost of a tool
\( t_m \) — Machining time
\( N_t \) — Number of tools used
\( N_b \) — Batch size
\( T \) — Tool changing time

Explanation: The formula subtracts the productive costs (tool costs and machining time) from the total production cost to reveal the non-productive costs.

3. Importance of Non-Productive Cost Calculation

Details: Understanding non-productive costs helps in identifying inefficiencies, optimizing production processes, and reducing overall manufacturing costs.

4. Using the Calculator

Tips: Enter all required values with ±5% tolerance. Production cost and tool cost should be in the same currency units. Time values should be consistent (seconds, minutes, or hours).

5. Frequently Asked Questions (FAQ)

Q1: What constitutes non-productive costs?
A: These include setup time, tool changing time, machine idle time, and other activities that don't directly add value to the product.

Q2: How can I reduce non-productive costs?
A: Strategies include optimizing tool change procedures, increasing batch sizes, and improving setup processes.

Q3: Why is batch size important in this calculation?
A: Larger batch sizes spread the non-productive costs over more units, reducing the per-component cost.

Q4: Should I include labor costs in the tool cost?
A: Yes, tool cost should include all associated costs - purchase price, maintenance, and labor for tool changes.

Q5: How accurate is the ±5% tolerance?
A: This represents typical variance in manufacturing processes. For precise calculations, use exact measured values.