Tool Changing Cost of Each Product using Average Production Cost Calculator

✖Batch size refers to the number of identical parts produced in a single production run or cycle.ⓘ Batch Size [N_b]			+10% -10%
✖Production cost of each component involves accounting for various factors, including material costs, labor, machine operating costs, tool costs, overhead, and other related expenses.ⓘ Production Cost of Each Component [C_pr]			+10% -10%
✖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%

✖The cost of changing each Tool is the cost that arises due to the time taken by the operator to change one tool when he is paid by the hour.ⓘ Tool Changing Cost of Each Product using Average Production Cost [C_ct]

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Tool Changing Cost of Each Product using Average Production Cost Solution

STEP 0: Pre-Calculation Summary

Formula Used

Cost of Changing Each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used)
C_ct = (N_b*C_pr-N_b*C_t*(t_s+t_m)-N_t*C_t)/(N_t)
This formula uses 7 Variables

Variables Used

Cost of Changing Each Tool - The cost of changing each Tool is the cost that arises due to the time taken by the operator to change one tool when he is paid by the hour.
Batch Size - Batch size refers to the number of identical parts produced in a single production run or cycle.
Production Cost of Each Component - Production cost of each component 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.

STEP 1: Convert Input(s) to Base Unit

Batch Size: 2 --> No Conversion Required
Production Cost of Each Component: 11400 --> No Conversion Required
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

STEP 2: Evaluate Formula

Substituting Input Values in Formula

C_ct = (N_b*C_pr-N_b*C_t*(t_s+t_m)-N_t*C_t)/(N_t) --> (2*11400-2*80*(27+69)-3*80)/(3)

Evaluating ... ...

C_ct = 2400

STEP 3: Convert Result to Output's Unit

2400 --> No Conversion Required

FINAL ANSWER

2400 <-- Cost of Changing Each Tool

(Calculation completed in 00.004 seconds)

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Created by Kumar Siddhant

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

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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

Tool Changing Cost of Each Product using Average Production Cost Formula

LaTeX Go

Components of Tool Changing Cost

1) Labor Cost: The wages paid to operators and technicians for the time spent changing the tools.
2) Machine Downtime: The cost associated with the machine being idle during the tool change.
3)Tool Cost: The cost of the new tool being installed (if applicable).
4) Setup and Calibration: Time and cost for any necessary setup or calibration after the tool change.

Significance

1) Cost Management: Identifying and managing tool changing costs helps in reducing the overall production cost.
2) Efficiency Improvement: Minimizing tool change time and frequency can improve machine utilization and production efficiency.
3) Pricing Strategy: Accurate costing ensures that product pricing reflects all production expenses, maintaining profitability.
4) Process Optimization: Analyzing tool changing costs can highlight opportunities for process improvements, such as investing in longer-lasting tools or optimizing tool change procedures.

How to Calculate Tool Changing Cost of Each Product using Average Production Cost?

Tool Changing Cost of Each Product using Average Production Cost calculator uses Cost of Changing Each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used) to calculate the Cost of Changing Each Tool, Tool Changing Cost of Each Product using Average Production Cost refers to the portion of the total production cost that is attributed to the time and resources required to change tools during the manufacturing process. This cost includes the labor, machine downtime, and any associated expenses incurred each time a tool is changed. Cost of Changing Each Tool is denoted by C_ct symbol.

How to calculate Tool Changing Cost of Each Product using Average Production Cost using this online calculator? To use this online calculator for Tool Changing Cost of Each Product using Average Production Cost, enter Batch Size (N_b), Production Cost of Each Component (C_pr), Cost of a Tool (C_t), Setup Time (t_s), Machining Time (t_m) & Number of Tools Used (N_t) and hit the calculate button. Here is how the Tool Changing Cost of Each Product using Average Production Cost calculation can be explained with given input values -> 2400 = (2*11400-2*80*(27+69)-3*80)/(3).

FAQ

What is Tool Changing Cost of Each Product using Average Production Cost?

Tool Changing Cost of Each Product using Average Production Cost refers to the portion of the total production cost that is attributed to the time and resources required to change tools during the manufacturing process. This cost includes the labor, machine downtime, and any associated expenses incurred each time a tool is changed and is represented as C_ct = (N_b*C_pr-N_b*C_t*(t_s+t_m)-N_t*C_t)/(N_t) or Cost of Changing Each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used). Batch size refers to the number of identical parts produced in a single production run or cycle, Production cost of each component involves accounting for various factors, including material costs, labor, machine operating costs, tool costs, overhead, and other related expenses, 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.

How to calculate Tool Changing Cost of Each Product using Average Production Cost?

Tool Changing Cost of Each Product using Average Production Cost refers to the portion of the total production cost that is attributed to the time and resources required to change tools during the manufacturing process. This cost includes the labor, machine downtime, and any associated expenses incurred each time a tool is changed is calculated using Cost of Changing Each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used). To calculate Tool Changing Cost of Each Product using Average Production Cost, you need Batch Size (N_b), Production Cost of Each Component (C_pr), Cost of a Tool (C_t), Setup Time (t_s), Machining Time (t_m) & Number of Tools Used (N_t). With our tool, you need to enter the respective value for Batch Size, Production Cost of Each Component, Cost of a Tool, Setup Time, Machining Time & Number of Tools Used 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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