Non-Productive Cost of Each Component given Total Production Cost Calculator

Non-Productive Cost Formula:

\[ C_{np} = C_{tp} - (N \times C \times t + N_t \times ((C \times t_c) + C)) \]

Total Production Cost:

Batch Size:

units

Cost of a Tool:

Machining Time:

sec

Number of Tools Used:

Time to Change One Tool:

sec

Tolerance:

Non-Productive Cost:

Tolerance Range (±5%):

1. What is Non-Productive Cost of Each Component?

Definition: Non-Productive Cost refers to expenses incurred during manufacturing that don't directly contribute to production, such as setup time, tool changes, and machine idle time.

Purpose: This calculator helps manufacturers identify and quantify indirect costs to improve cost efficiency and pricing strategies.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ C_{np} = C_{tp} - (N \times C \times t + N_t \times ((C \times t_c) + C)) \]

Where:

$ C_{np} $ — Non-Productive Cost ($)
$ C_{tp} $ — Total Production Cost ($)
$ N $ — Batch Size (units)
$ C $ — Cost of a Tool ($)
$ t $ — Machining Time (seconds)
$ N_t $ — Number of Tools Used
$ t_c $ — Time to Change One Tool (seconds)

Explanation: The formula subtracts all direct production costs from the total cost to reveal hidden non-productive expenses.

3. Importance of Non-Productive Cost Calculation

Details: Identifying non-productive costs helps in:

Accurate product pricing
Process optimization
Cost reduction strategies
Budgeting and financial planning

4. Using the Calculator

Tips:

Enter all production parameters accurately
Default tolerance is ±5% but can be adjusted
All values must be positive numbers
Results show the non-productive cost and tolerance range

5. Frequently Asked Questions (FAQ)

Q1: What's included in non-productive costs?
A: Setup time, machine idle time, tool changes, maintenance, and other indirect costs.

Q2: Why include a tolerance percentage?
A: Manufacturing costs often vary; tolerance accounts for this variability in estimates.

Q3: How can I reduce non-productive costs?
A: Optimize setup processes, implement quick-change tooling, and improve workflow efficiency.

Q4: Is tool depreciation included?
A: Yes, through the tool cost parameter which should include depreciation factors.

Q5: Can this be used for single-piece production?
A: Yes, set batch size to 1, but non-productive costs will be proportionally higher.