1. What is Total Machining and Operating Cost?

Definition: The total amount of money required to machine a given batch of product, calculated by subtracting non-productive costs from total production costs.

Purpose: Helps manufacturers understand the true cost of machining operations by separating productive costs from other expenses.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( C_o \) — Total Machining and Operating Cost ($)
• \( TPC \) — Total Production Cost ($)
• \( TNPC \) — Total Non Productive Cost ($)
• \( TCC \) — Total Tool Changing Cost ($)
• \( TTC \) — Total Cost of Tools Used ($)

Explanation: The formula subtracts all non-productive costs (tool changing, tool costs, and other non-productive time) from the total production cost to reveal the actual machining and operating costs.

3. Importance of This Calculation

Details: Understanding this cost helps in pricing products competitively, identifying cost reduction opportunities, and improving operational efficiency.

4. Using the Calculator

Tips: Enter all costs in dollars. Total Production Cost must be greater than zero, while other costs can be zero if not applicable.

5. Frequently Asked Questions (FAQ)

Q1: What's included in Non Productive Cost?
A: Includes setup time, inspection time, loading/unloading time, and other activities that don't directly contribute to machining.

Q2: How is Tool Changing Cost calculated?
A: Typically calculated as (number of tool changes) × (time per change) × (operator's hourly rate).

Q3: What if I don't have tool changing costs?
A: Simply enter 0 for the tool changing cost field.

Q4: Can this be negative?
A: Yes, if non-productive costs exceed production costs, indicating serious inefficiencies.

Q5: How often should I calculate this?
A: Regularly, especially when changing production methods or evaluating new jobs.

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