1. What is Total Machining and Operating Cost?

Definition: This is the total amount of money required to machine a given batch of product, calculated by subtracting other costs from total production cost.

Purpose: Helps manufacturers understand the true cost of machining operations separate from tooling and setup costs.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

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

Explanation: The formula subtracts tool-related costs and non-productive time costs from the total production cost to isolate the machining and operating costs.

3. Importance of This Calculation

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

4. Using the Calculator

Tips: Enter all cost values in dollars. The tolerance field (default ±5%) helps account for cost variations in real-world scenarios.

5. Frequently Asked Questions (FAQ)

Q1: What's included in Non Productive Cost?
A: Includes setup time, inspection, material handling, and other activities that don't directly contribute to production.

Q2: How is Tool Changing Cost calculated?
A: Typically calculated as: (Number of tool changes × Time per change × Operator hourly rate).

Q3: Why include a tolerance percentage?
A: Manufacturing costs often vary; the tolerance provides a realistic range for budgeting purposes.

Q4: Can this be used for single-part costing?
A: Yes, though it's more commonly used for batch production costing.

Q5: How often should I recalculate these costs?
A: Whenever tooling costs change, production methods change, or at least quarterly to account for labor rate changes.

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