Average Production Cost of each component Solution

STEP 0: Pre-Calculation Summary
Formula Used
Production Cost of Each Component = 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)
Cpr = Ct*(ts+tm)+(Nt/Nb)*((Ct*TCT)+Ct)
This formula uses 7 Variables
Variables Used
Production Cost of Each Component - Production Cost of Each Component is the total amount that it takes to produce a single component from scratch.
Cost of a Tool - The Cost of a Tool is simply the 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.
Machining Time - (Measured in Second) - Machining Time is the time when a machine is actually processing something. Generally, machining time is the term used when there is a removal of unwanted material.
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 is the count of similar kinds of products to be manufactured.
Tool Changing Time - (Measured in Second) - Tool Changing Time is the average time required by the operator or automation system (such as automatic tool changer – ATC) to change the tool.
STEP 1: Convert Input(s) to Base Unit
Cost of a Tool: 80 --> No Conversion Required
Setup Time: 0.9 Minute --> 54 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
Cpr = Ct*(ts+tm)+(Nt/Nb)*((Ct*TCT)+Ct) --> 80*(54+69)+(3/2)*((80*12)+80)
Evaluating ... ...
Cpr = 11400
STEP 3: Convert Result to Output's Unit
11400 --> No Conversion Required
FINAL ANSWER
11400 <-- Production Cost of Each Component
(Calculation completed in 00.020 seconds)

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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6 Production Cost Calculators

Average Production Cost of each component
Go Production Cost of Each Component = 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)
Total Production Cost
Go Total Production Cost = Batch Size*(Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used)*((Cost of a Tool*Time to Change One Tool)+Cost of a Tool))
Average Production Cost of Each Component using Individual Costs
Go Production Cost of Each Component = (Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used)/Batch Size
Total Production Cost given Individual Costs
Go Total Production Cost = Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used
Average Production Cost of each Component given Total Production Cost
Go Production Cost of Each Component = Total Production Cost/Batch Size
Total Production Cost for given Batch Size
Go Total Production Cost = Batch Size*Production Cost of Each Component

Average Production Cost of each component Formula

Production Cost of Each Component = 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)
Cpr = Ct*(ts+tm)+(Nt/Nb)*((Ct*TCT)+Ct)

Average Production Cost of each component

The average Production Cost of each component is usually determined by taking an average over a defined batch of products. 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.

How to Calculate Average Production Cost of each component?

Average Production Cost of each component calculator uses Production Cost of Each Component = 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 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. Production Cost of Each Component is denoted by Cpr 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 (Ct), Setup Time (ts), Machining Time (tm), Number of Tools Used (Nt), Batch Size (Nb) & Tool Changing Time (TCT) and hit the calculate button. Here is how the Average Production Cost of each component calculation can be explained with given input values -> 11400 = 80*(54+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 and is represented as Cpr = Ct*(ts+tm)+(Nt/Nb)*((Ct*TCT)+Ct) or Production Cost of Each Component = 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). The Cost of a Tool is simply the 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, Machining Time is the time when a machine is actually processing something. Generally, machining time is the term used when there is a removal of unwanted material, The Number of Tools Used is the total number of tools used for manufacturing a batch of products, Batch Size is the count of similar kinds of products to be manufactured & Tool Changing Time is the average time required by the operator or automation system (such as automatic tool changer – ATC) to change the tool.
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 is calculated using Production Cost of Each Component = 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 (Ct), Setup Time (ts), Machining Time (tm), Number of Tools Used (Nt), Batch Size (Nb) & Tool Changing Time (TCT). 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.
How many ways are there to calculate Production Cost of Each Component?
In this formula, Production Cost of Each Component uses Cost of a Tool, Setup Time, Machining Time, Number of Tools Used, Batch Size & Tool Changing Time. We can use 2 other way(s) to calculate the same, which is/are as follows -
  • Production Cost of Each Component = (Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used)/Batch Size
  • Production Cost of Each Component = Total Production Cost/Batch Size
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