Total Non-Productive Cost given Average Production Cost Calculator

Total Non-Productive Cost Formula:

\[ C_{np} = N_b \times (C_{pr} - (C_t \times t_m)) - N_t \times ((C_t \times T) + C_t) \]

Batch Size:

Production Cost of Each Component:

Cost of a Tool:

Machining Time:

Number of Tools Used:

Tool Changing Time:

Total Non-Productive Cost:

1. What is Total Non-Productive Cost?

Definition: Total Non-Productive Cost is the amount spent on activities that do not result in any productivity or profit to the plant during the manufacturing of a batch of components.

Purpose: It helps manufacturers understand and optimize costs associated with setup, tool changes, and other non-value-added activities.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ C_{np} = N_b \times (C_{pr} - (C_t \times t_m)) - N_t \times ((C_t \times T) + C_t) \]

Where:

\( C_{np} \) — Total Non-Productive Cost
\( N_b \) — Batch Size
\( C_{pr} \) — Production Cost of Each Component
\( C_t \) — Cost of a Tool
\( t_m \) — Machining Time
\( N_t \) — Number of Tools Used
\( T \) — Tool Changing Time

Explanation: The formula calculates the cost difference between productive machining time and non-productive activities like tool changes.

3. Importance of Non-Productive Cost Calculation

Details: Understanding non-productive costs helps in identifying areas for cost reduction and process optimization in manufacturing.

4. Using the Calculator

Tips: Enter all required values with ±5% tolerance. All values must be > 0 for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What activities contribute to non-productive costs?
A: Setup time, tool changes, machine downtime, and other activities that don't directly contribute to part production.

Q2: How can I reduce non-productive costs?
A: Implement quick-change tooling, optimize batch sizes, improve setup procedures, and use more durable tools.

Q3: Why include ±5% tolerance?
A: Manufacturing processes have natural variations - the tolerance accounts for these fluctuations in cost calculations.

Q4: How does batch size affect non-productive costs?
A: Larger batches typically have lower non-productive costs per part as setup costs are spread over more units.

Q5: What's included in production cost per component?
A: Material costs, labor, machine operation, tooling costs, and allocated overhead expenses.