Machining and Operating Cost of Each Product using Individual Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Machining Individual Cost of Each Product = (Total Production Cost-(Total Non Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/Batch Size
Ci = (TPC-(TNPC+TCC+TTC))/B
This formula uses 6 Variables
Variables Used
Machining Individual Cost of Each Product - Machining Individual Cost of Each Product is the total amount of money required to individual machine a single product.
Total Production Cost - Total Production Cost is the total amount that it takes to produce a batch of components from scratch.
Total Non Productive Cost - 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.
Total Tool Changing Cost - Total Tool Changing Cost is the total cost that arises due to the time taken by the operator in changing the cutting Tool when one is paid by the hour.
Total Cost of Tools Used - Total Cost of Tools Used is the sum of the amount of all tools that have been used for production.
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.
STEP 1: Convert Input(s) to Base Unit
Total Production Cost: 30000 --> No Conversion Required
Total Non Productive Cost: 10 --> No Conversion Required
Total Tool Changing Cost: 540 --> No Conversion Required
Total Cost of Tools Used: 1000 --> No Conversion Required
Batch Size: 2 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Ci = (TPC-(TNPC+TCC+TTC))/B --> (30000-(10+540+1000))/2
Evaluating ... ...
Ci = 14225
STEP 3: Convert Result to Output's Unit
14225 --> No Conversion Required
FINAL ANSWER
14225 <-- Machining Individual Cost of Each Product
(Calculation completed in 00.004 seconds)

Credits

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Created by Kumar Siddhant
Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur
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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 Individual Cost Formula

​LaTeX ​Go
Machining Individual Cost of Each Product = (Total Production Cost-(Total Non Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/Batch Size
Ci = (TPC-(TNPC+TCC+TTC))/B

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 Individual Cost?

Machining and Operating Cost of Each Product using Individual Cost calculator uses Machining Individual Cost of Each Product = (Total Production Cost-(Total Non Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/Batch Size to calculate the Machining Individual Cost of Each Product, Machining and Operating Cost of Each Product using Individual 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 total cost of different processes. Machining Individual Cost of Each Product is denoted by Ci symbol.

How to calculate Machining and Operating Cost of Each Product using Individual Cost using this online calculator? To use this online calculator for Machining and Operating Cost of Each Product using Individual Cost, enter Total Production Cost (TPC), Total Non Productive Cost (TNPC), Total Tool Changing Cost (TCC), Total Cost of Tools Used (TTC) & Batch Size (B) and hit the calculate button. Here is how the Machining and Operating Cost of Each Product using Individual Cost calculation can be explained with given input values -> 14225 = (30000-(10+540+1000))/2.

FAQ

What is Machining and Operating Cost of Each Product using Individual Cost?
Machining and Operating Cost of Each Product using Individual 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 total cost of different processes and is represented as Ci = (TPC-(TNPC+TCC+TTC))/B or Machining Individual Cost of Each Product = (Total Production Cost-(Total Non Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/Batch Size. Total Production Cost is the total amount that it takes to produce a batch of components from scratch, 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, Total Tool Changing Cost is the total cost that arises due to the time taken by the operator in changing the cutting Tool when one is paid by the hour, Total Cost of Tools Used is the sum of the amount of all tools that have been used for production & Batch Size refers to the number of components or parts produced in a single production run before the setup is changed for another product.
How to calculate Machining and Operating Cost of Each Product using Individual Cost?
Machining and Operating Cost of Each Product using Individual 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 total cost of different processes is calculated using Machining Individual Cost of Each Product = (Total Production Cost-(Total Non Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/Batch Size. To calculate Machining and Operating Cost of Each Product using Individual Cost, you need Total Production Cost (TPC), Total Non Productive Cost (TNPC), Total Tool Changing Cost (TCC), Total Cost of Tools Used (TTC) & Batch Size (B). With our tool, you need to enter the respective value for Total Production Cost, Total Non Productive Cost, Total Tool Changing Cost, Total Cost of Tools Used & Batch Size 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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