Machining and Operating Cost of Each Product using Average Production Cost Calculator

✖Production Cost of Each Component is the total amount that it takes to produce a single component from scratch.ⓘ Production Cost of Each Component [C_pr]			+10% -10%
✖Average Cost of A Tool is simply the average cost of one tool being used for machining.ⓘ Average Cost of A Tool [C'_avg]			+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%
✖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 components or parts produced in a single production run before the setup is changed for another product.ⓘ Batch Size [B]			+10% -10%
✖Time to Change One Tool is the measure of time it takes to change one tool during machining.ⓘ Time to Change One Tool [t_c]			+10% -10%

✖Average Machining Cost of Each Product is the total average amount of money required to machine a single product.ⓘ Machining and Operating Cost of Each Product using Average Production Cost [C_avg]

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Machining and Operating Cost of Each Product using Average Production Cost Solution

STEP 0: Pre-Calculation Summary

Formula Used

Average Machining Cost of Each Product = Production Cost of Each Component-(Average Cost of A Tool*Setup Time+(Number of Tools Used/Batch Size)*((Average Cost of A Tool*Time to Change One Tool)+Average Cost of A Tool))
C_avg = C_pr-(C'_avg*t_s+(N_t/B)*((C'_avg*t_c)+C'_avg))
This formula uses 7 Variables

Variables Used

Average Machining Cost of Each Product - Average Machining Cost of Each Product is the total average amount of money required to machine a single product.
Production Cost of Each Component - Production Cost of Each Component is the total amount that it takes to produce a single component from scratch.
Average Cost of A Tool - Average Cost of A Tool is simply the average cost of one tool being used for machining.
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.
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 components or parts produced in a single production run before the setup is changed for another product.
Time to Change One Tool - (Measured in Second) - Time to Change One Tool is the measure of time it takes to change one tool during machining.

STEP 1: Convert Input(s) to Base Unit

Production Cost of Each Component: 18226 --> No Conversion Required
Average Cost of A Tool: 42.338 --> No Conversion Required
Setup Time: 3.65994 Minute --> 219.5964 Second (Check conversion here)
Number of Tools Used: 3 --> No Conversion Required
Batch Size: 2 --> No Conversion Required
Time to Change One Tool: 0.5 Minute --> 30 Second (Check conversion here)

STEP 2: Evaluate Formula

Substituting Input Values in Formula

C_avg = C_pr-(C'_avg*t_s+(N_t/B)*((C'_avg*t_c)+C'_avg)) --> 18226-(42.338*219.5964+(3/2)*((42.338*30)+42.338))

Evaluating ... ...

C_avg = 6960.0106168

STEP 3: Convert Result to Output's Unit

6960.0106168 --> No Conversion Required

FINAL ANSWER

6960.0106168 ≈ 6960.011 <-- Average Machining Cost of Each Product

(Calculation completed in 00.004 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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< Machining Cost Calculators

Total Machining and Operating Costs using Average Production Cost

LaTeX Go Total Machining And Operating Cost = (Production Cost of Each Component-(Average Cost of A Tool*Non Productive Time)-(Number of Tools Used/Batch Size*(Average Cost of A Tool*Time to Change One Tool+Average Cost of A Tool)))*Batch Size

Total Machining and Operating Costs given Total Production Cost

LaTeX Go Total Machining And Operating Cost = Total Production Cost-(Total Cost of Tools Used+Total Tool Changing Cost+Total Non Productive Cost)

Machining and Operating Rate given Total Machining and Operating Cost

LaTeX Go Machining And Operating Rate = Rate of Total Machining And Operating Cost/Total Production Time

Total Machining and Operating Cost

LaTeX Go Rate of Total Machining And Operating Cost = Machining And Operating Rate*Total Production Time

Machining and Operating Cost of Each Product using Average Production Cost Formula

LaTeX Go

Significance of Machining and Operating Costs

The Machining and Operating Cost basically helps in determining the count of components that can be manufactured in the given resources. If this calculated cost is lower than the actual cost based on machining time, it means that the production planning has failed, as the total number of the components that are to be produced becomes lower than the starting batch size.

How to Calculate Machining and Operating Cost of Each Product using Average Production Cost?

Machining and Operating Cost of Each Product using Average Production Cost calculator uses Average Machining Cost of Each Product = Production Cost of Each Component-(Average Cost of A Tool*Setup Time+(Number of Tools Used/Batch Size)*((Average Cost of A Tool*Time to Change One Tool)+Average Cost of A Tool)) to calculate the Average Machining Cost of Each Product, The Machining and Operating Cost of each product using Average Production Cost is a method to determine the capital that must be invested for machining and operating processes to be afforded on a single product based on the average expense it took to manufacture a single component. Average Machining Cost of Each Product is denoted by C_avg symbol.

How to calculate Machining and Operating Cost of Each Product using Average Production Cost using this online calculator? To use this online calculator for Machining and Operating Cost of Each Product using Average Production Cost, enter Production Cost of Each Component (C_pr), Average Cost of A Tool (C'_avg), Setup Time (t_s), Number of Tools Used (N_t), Batch Size (B) & Time to Change One Tool (t_c) and hit the calculate button. Here is how the Machining and Operating Cost of Each Product using Average Production Cost calculation can be explained with given input values -> 6960.011 = 18226-(42.338*219.5964+(3/2)*((42.338*30)+42.338)).

FAQ

What is Machining and Operating Cost of Each Product using Average Production Cost?

The Machining and Operating Cost of each product using Average Production Cost is a method to determine the capital that must be invested for machining and operating processes to be afforded on a single product based on the average expense it took to manufacture a single component and is represented as C_avg = C_pr-(C'_avg*t_s+(N_t/B)*((C'_avg*t_c)+C'_avg)) or Average Machining Cost of Each Product = Production Cost of Each Component-(Average Cost of A Tool*Setup Time+(Number of Tools Used/Batch Size)*((Average Cost of A Tool*Time to Change One Tool)+Average Cost of A Tool)). Production Cost of Each Component is the total amount that it takes to produce a single component from scratch, Average Cost of A Tool is simply the average cost of one tool being used for machining, Setup Time of each component is the time required to load/unload the workpiece and position the tool for production for one component, 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 components or parts produced in a single production run before the setup is changed for another product & Time to Change One Tool is the measure of time it takes to change one tool during machining.

How to calculate Machining and Operating Cost of Each Product using Average Production Cost?

The Machining and Operating Cost of each product using Average Production Cost is a method to determine the capital that must be invested for machining and operating processes to be afforded on a single product based on the average expense it took to manufacture a single component is calculated using Average Machining Cost of Each Product = Production Cost of Each Component-(Average Cost of A Tool*Setup Time+(Number of Tools Used/Batch Size)*((Average Cost of A Tool*Time to Change One Tool)+Average Cost of A Tool)). To calculate Machining and Operating Cost of Each Product using Average Production Cost, you need Production Cost of Each Component (C_pr), Average Cost of A Tool (C'_avg), Setup Time (t_s), Number of Tools Used (N_t), Batch Size (B) & Time to Change One Tool (t_c). With our tool, you need to enter the respective value for Production Cost of Each Component, Average Cost of A Tool, Setup Time, Number of Tools Used, Batch Size & Time to Change One Tool 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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