Non-Productive Cost of One Component given Individual Costs Calculator

Non-Productive Cost Formula:

\[ C_a = \frac{C_p - (C_m + C_t + c)}{B} \]

Total Production Cost (Cp):

Total Machining Cost (Cm):

Total Tool Changing Cost (Ct):

Total Cost of Tools Used (c):

Batch Size (B):

units

Tolerance:

Non-Productive Cost (Ca):

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

Definition: Non-productive cost is the amount spent on activities like setting up that don't directly contribute to manufacturing a single component.

Purpose: This calculator helps manufacturers determine the indirect costs associated with each component in a production batch.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ C_a = \frac{C_p - (C_m + C_t + c)}{B} \]

Where:

\( C_a \) — Non-productive cost per component
\( C_p \) — Total production cost
\( C_m \) — Total machining and operating cost
\( C_t \) — Total tool changing cost
\( c \) — Total cost of tools used
\( B \) — Batch size

Explanation: The formula subtracts all direct production costs from total costs, then divides by batch size to get the non-productive cost per component.

3. Importance of Non-Productive Cost Calculation

Details: Understanding non-productive costs helps in pricing strategies, cost reduction initiatives, and production efficiency analysis.

4. Using the Calculator

Tips: Enter all cost values in dollars, batch size in units, and tolerance percentage (default ±5%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What counts as non-productive cost?
A: Setup time, machine idle time, planning, and other activities that don't directly produce components.

Q2: Why include tolerance?
A: Tolerance accounts for cost variations in actual production versus estimates.

Q3: How does batch size affect the cost?
A: Larger batches spread non-productive costs over more units, reducing cost per component.

Q4: Can non-productive cost be zero?
A: No, there are always some setup and planning costs, though they can be minimized.

Q5: How to reduce non-productive costs?
A: Improve setup procedures, optimize batch sizes, and streamline planning processes.