Total Machining and Operating Costs using Average Production Cost Calculator

Formula Used:

\[ Co = (Cpr-(C'avg \times NPT)-(Nt/B \times (C'avg \times tc+C'avg))) \times B \]

Production Cost of Each Component:

Average Cost of A Tool:

Non Productive Time:

Number of Tools Used:

Batch Size:

Time to Change One Tool:

Total Machining And Operating Cost:

1. What is Total Machining and Operating Cost?

Definition: This is the total amount of money required to machine a given batch of product, accounting for tool costs, setup time, and production costs.

Purpose: It helps manufacturers determine the complete cost of producing a batch of components, including all associated machining and tooling expenses.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ Co = (Cpr-(C'avg \times NPT)-(Nt/B \times (C'avg \times tc+C'avg))) \times B \]

Where:

\( Co \) — Total Machining And Operating Cost
\( Cpr \) — Production Cost of Each Component (%)
\( C'avg \) — Average Cost of A Tool (%)
\( NPT \) — Non Productive Time (%)
\( Nt \) — Number of Tools Used (±5%)
\( B \) — Batch Size (±5%)
\( tc \) — Time to Change One Tool (%)

Explanation: The formula accounts for production costs minus tool-related costs and setup time, all scaled by the batch size.

3. Importance of Accurate Cost Calculation

Details: Proper cost estimation ensures accurate pricing, profitability analysis, and cost control in manufacturing operations.

4. Using the Calculator

Tips: Enter all required values as percentages except for Number of Tools and Batch Size which have ±5% tolerance. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why are some inputs in percentages?
A: Percentage inputs allow for relative cost calculations that can be scaled for different production scenarios.

Q2: What does ±5% mean for Number of Tools and Batch Size?
A: This indicates these values have a 5% tolerance in either direction for practical calculations.

Q3: How do I determine the Average Cost of A Tool?
A: This should include purchase price, maintenance costs, and lifespan considerations as a percentage of total cost.

Q4: What's included in Non Productive Time?
A: This includes machine setup, workpiece loading/unloading, and any other non-cutting time.

Q5: Can this calculator handle different currencies?
A: Yes, as long as all values are consistent (all in same currency percentages), the calculation will work.