Total Non-Productive Cost given Average Production Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Total Non Productive Cost = Batch Size*(Production Cost of Each Component-(Cost of a Tool*Machining Time))-(Number of Tools Used*((Cost of a Tool*Tool Changing Time)+Cost of a Tool))
Cnp = Nb*(Cpr-(Ct*tm))-(Nt*((Ct*T)+Ct))
This formula uses 7 Variables
Variables Used
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.
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.
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.
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
Batch Size: 2 --> No Conversion Required
Production Cost of Each Component: 11400 --> No Conversion Required
Cost of a Tool: 80 --> No Conversion Required
Machining Time: 1.15 Minute --> 69 Second (Check conversion ​here)
Number of Tools Used: 3 --> No Conversion Required
Tool Changing Time: 0.2 Minute --> 12 Second (Check conversion ​here)
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Cnp = Nb*(Cpr-(Ct*tm))-(Nt*((Ct*T)+Ct)) --> 2*(11400-(80*69))-(3*((80*12)+80))
Evaluating ... ...
Cnp = 8640
STEP 3: Convert Result to Output's Unit
8640 --> No Conversion Required
FINAL ANSWER
8640 <-- Total Non Productive Cost
(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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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

Total Non-Productive Cost given Average Production Cost Formula

​LaTeX ​Go
Total Non Productive Cost = Batch Size*(Production Cost of Each Component-(Cost of a Tool*Machining Time))-(Number of Tools Used*((Cost of a Tool*Tool Changing Time)+Cost of a Tool))
Cnp = Nb*(Cpr-(Ct*tm))-(Nt*((Ct*T)+Ct))

Components Contributing to Non-Productive Time

1) Machine Downtime: Time when machines are idle due to maintenance, tool changes, setup, or other reasons.
2) Setup Time: Duration required to prepare machines, fixtures, and tooling for production.
3) Tool Change Time: Time spent on changing tools, including stopping the machine, replacing tools, and calibration.
4) Maintenance Time: Time allocated for preventive maintenance, repairs, and machine adjustments.
5) Administrative Time: Time spent on administrative tasks, such as scheduling, planning, and documentation.
6) Waiting Time: Time spent waiting for materials, instructions, or resources to proceed with production.
7) Training Time: Time allocated for employee training and skill development.

How to Calculate Total Non-Productive Cost given Average Production Cost?

Total Non-Productive Cost given Average Production Cost calculator uses Total Non Productive Cost = Batch Size*(Production Cost of Each Component-(Cost of a Tool*Machining Time))-(Number of Tools Used*((Cost of a Tool*Tool Changing Time)+Cost of a Tool)) to calculate the Total Non Productive Cost, The Total Non-Productive Cost given Average Production Cost refers to the cumulative expenses incurred during periods when machines or resources are not actively engaged in productive activities. These costs arise from various non-value-added activities, such as downtime, setup time, tool changes, maintenance, and administrative tasks. Understanding and minimizing non-productive costs are essential for optimizing manufacturing efficiency and reducing overall production costs. Total Non Productive Cost is denoted by Cnp symbol.

How to calculate Total Non-Productive Cost given Average Production Cost using this online calculator? To use this online calculator for Total Non-Productive Cost given Average Production Cost, enter Batch Size (Nb), Production Cost of Each Component (Cpr), Cost of a Tool (Ct), Machining Time (tm), Number of Tools Used (Nt) & Tool Changing Time (T) and hit the calculate button. Here is how the Total Non-Productive Cost given Average Production Cost calculation can be explained with given input values -> 8640 = 2*(11400-(80*69))-(3*((80*12)+80)).

FAQ

What is Total Non-Productive Cost given Average Production Cost?
The Total Non-Productive Cost given Average Production Cost refers to the cumulative expenses incurred during periods when machines or resources are not actively engaged in productive activities. These costs arise from various non-value-added activities, such as downtime, setup time, tool changes, maintenance, and administrative tasks. Understanding and minimizing non-productive costs are essential for optimizing manufacturing efficiency and reducing overall production costs and is represented as Cnp = Nb*(Cpr-(Ct*tm))-(Nt*((Ct*T)+Ct)) or Total Non Productive Cost = Batch Size*(Production Cost of Each Component-(Cost of a Tool*Machining Time))-(Number of Tools Used*((Cost of a Tool*Tool Changing Time)+Cost of a Tool)). 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, 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 & 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 Total Non-Productive Cost given Average Production Cost?
The Total Non-Productive Cost given Average Production Cost refers to the cumulative expenses incurred during periods when machines or resources are not actively engaged in productive activities. These costs arise from various non-value-added activities, such as downtime, setup time, tool changes, maintenance, and administrative tasks. Understanding and minimizing non-productive costs are essential for optimizing manufacturing efficiency and reducing overall production costs is calculated using Total Non Productive Cost = Batch Size*(Production Cost of Each Component-(Cost of a Tool*Machining Time))-(Number of Tools Used*((Cost of a Tool*Tool Changing Time)+Cost of a Tool)). To calculate Total Non-Productive Cost given Average Production Cost, you need Batch Size (Nb), Production Cost of Each Component (Cpr), Cost of a Tool (Ct), Machining Time (tm), Number of Tools Used (Nt) & Tool Changing Time (T). With our tool, you need to enter the respective value for Batch Size, Production Cost of Each Component, Cost of a Tool, Machining Time, Number of Tools Used & 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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