Average Production Cost of each component Calculator

✖Cost of a tool is a multifaceted consideration that includes the initial purchase price, maintenance costs, tool life, and the impact on overall production costs.ⓘ Cost of a Tool [C_t]			+10% -10%
✖Setup Time of each component is the time required to load/unload the workpiece and position the tool for production for one component.ⓘ Setup Time [t_s]			+10% -10%
✖Machining time refers to the total time required to complete a specific machining operation on a workpiece.ⓘ Machining Time [t_m]			+10% -10%
✖The Number of Tools Used is the total number of tools used for manufacturing a batch of products.ⓘ Number of Tools Used [N_t]			+10% -10%
✖Batch size refers to the number of identical parts produced in a single production run or cycle.ⓘ Batch Size [N_b]			+10% -10%
✖Tool changing time referred to as tool change time, is the duration required to remove a used tool and replace it with a new one.ⓘ Tool Changing Time [T]			+10% -10%

✖Average production cost involves accounting for various factors, including material costs, labor, machine operating costs, tool costs, overhead, and other related expenses.ⓘ Average Production Cost of each component [c_a]

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Average Production Cost of each component Solution

STEP 0: Pre-Calculation Summary

Formula Used

Average Production Cost = Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool)
c_a = C_t*(t_s+t_m)+(N_t/N_b)*((C_t*T)+C_t)
This formula uses 7 Variables

Variables Used

Average Production Cost - Average production cost involves accounting for various factors, including material costs, labor, machine operating costs, tool costs, overhead, and other related expenses.
Cost of a Tool - Cost of a tool is a multifaceted consideration that includes the initial purchase price, maintenance costs, tool life, and the impact on overall production costs.
Setup Time - (Measured in Second) - Setup Time of each component is the time required to load/unload the workpiece and position the tool for production for one component.
Machining Time - (Measured in Second) - Machining time refers to the total time required to complete a specific machining operation on a workpiece.
Number of Tools Used - The Number of Tools Used is the total number of tools used for manufacturing a batch of products.
Batch Size - Batch size refers to the number of identical parts produced in a single production run or cycle.
Tool Changing Time - (Measured in Second) - Tool changing time referred to as tool change time, is the duration required to remove a used tool and replace it with a new one.

STEP 1: Convert Input(s) to Base Unit

Cost of a Tool: 80 --> No Conversion Required
Setup Time: 0.45 Minute --> 27 Second (Check conversion here)
Machining Time: 1.15 Minute --> 69 Second (Check conversion here)
Number of Tools Used: 3 --> No Conversion Required
Batch Size: 2 --> No Conversion Required
Tool Changing Time: 0.2 Minute --> 12 Second (Check conversion here)

STEP 2: Evaluate Formula

Substituting Input Values in Formula

c_a = C_t*(t_s+t_m)+(N_t/N_b)*((C_t*T)+C_t) --> 80*(27+69)+(3/2)*((80*12)+80)

Evaluating ... ...

c_a = 9240

STEP 3: Convert Result to Output's Unit

9240 --> No Conversion Required

FINAL ANSWER

9240 <-- Average Production Cost

(Calculation completed in 00.020 seconds)

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Credits

Created by Kumar Siddhant

Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur

Kumar Siddhant has created this Calculator and 400+ more calculators!

Verified by Parul Keshav

National Institute of Technology (NIT), Srinagar

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< Average Production Cost Calculators

Total Non-Productive Time using Average Production Cost

LaTeX Go Non Productive Time = (Batch Size*(Production Cost of Each Component-Cost of a Tool*Machining Time)-(Cost of a Tool*Number of Tools Used*Time to Change One Tool)-(Number of Tools Used*Cost of a Tool))/Cost of a Tool

Setup Time for Each Product given Average Production Cost

LaTeX Go Setup Time = (Production Cost of Each Component-Cost of a Tool*Machining Time-(Number of Tools Used/Batch Size)*(Cost of a Tool*Time to Change One Tool+Cost of a Tool))/Cost of a Tool

Number of Tools used given Average Production Cost

LaTeX Go Number of Tools Used = Batch Size*(Production Cost of Each Component-Cost of a Tool*(Setup Time+Machining Time))/(Cost of a Tool*Time to Change One Tool+Cost of a Tool)

Number of Tools used given Average Production Time

LaTeX Go Number of Tools Used = Batch Size*(Average Production Time-(Setup Time+Machining Time))/Time to Change One Tool

Average Production Cost of each component Formula

LaTeX Go

Average Production Cost = Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool)
c_a = C_t*(t_s+t_m)+(N_t/N_b)*((C_t*T)+C_t)

Components of Average Production Cost

1) Material Cost: The cost of raw materials used for the parts.
2) Labor Cost: Wages and benefits for the operators and other direct labor involved.
3) Machine Operating Cost: Includes depreciation, maintenance, and energy costs associated with running the machines.
4) Tooling Cost: The cost of tools, including their purchase, maintenance, and replacement.
5) Overhead Cost: Indirect costs such as utilities, rent, and administrative expenses.
6) Setup and Changeover Costs: Time and resources spent on preparing machines and tools for production.
7) Quality Control and Inspection Costs: Ensuring parts meet quality standards.
8) Non-Productive Time Costs: Time when the machine is not producing parts, including tool changes and machine downtime.

How to Calculate Average Production Cost of each component?

Average Production Cost of each component calculator uses Average Production Cost = Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool) to calculate the Average Production Cost, The Average Production Cost of each component is defined as the total cost of producing a single component from scratch including all necessary operations and processes. The reason for this is the extended costs such as the cost of tools and operating costs etc. This makes the Average Production Cost becomes quite higher for a single product than when measured over batch size. Average Production Cost is denoted by c_a symbol.

How to calculate Average Production Cost of each component using this online calculator? To use this online calculator for Average Production Cost of each component, enter Cost of a Tool (C_t), Setup Time (t_s), Machining Time (t_m), Number of Tools Used (N_t), Batch Size (N_b) & Tool Changing Time (T) and hit the calculate button. Here is how the Average Production Cost of each component calculation can be explained with given input values -> 9240 = 80*(27+69)+(3/2)*((80*12)+80).

FAQ

What is Average Production Cost of each component?

The Average Production Cost of each component is defined as the total cost of producing a single component from scratch including all necessary operations and processes. The reason for this is the extended costs such as the cost of tools and operating costs etc. This makes the Average Production Cost becomes quite higher for a single product than when measured over batch size and is represented as c_a = C_t*(t_s+t_m)+(N_t/N_b)*((C_t*T)+C_t) or Average Production Cost = Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool). Cost of a tool is a multifaceted consideration that includes the initial purchase price, maintenance costs, tool life, and the impact on overall production costs, Setup Time of each component is the time required to load/unload the workpiece and position the tool for production for one component, Machining time refers to the total time required to complete a specific machining operation on a workpiece, The Number of Tools Used is the total number of tools used for manufacturing a batch of products, Batch size refers to the number of identical parts produced in a single production run or cycle & Tool changing time referred to as tool change time, is the duration required to remove a used tool and replace it with a new one.

How to calculate Average Production Cost of each component?

The Average Production Cost of each component is defined as the total cost of producing a single component from scratch including all necessary operations and processes. The reason for this is the extended costs such as the cost of tools and operating costs etc. This makes the Average Production Cost becomes quite higher for a single product than when measured over batch size is calculated using Average Production Cost = Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool). To calculate Average Production Cost of each component, you need Cost of a Tool (C_t), Setup Time (t_s), Machining Time (t_m), Number of Tools Used (N_t), Batch Size (N_b) & Tool Changing Time (T). With our tool, you need to enter the respective value for Cost of a Tool, Setup Time, Machining Time, Number of Tools Used, Batch Size & Tool Changing Time and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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