Machining and Operating Cost of Each Product using Individual Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Machining and Operating Cost of Each Product = (Total Production Cost-(Total Non-Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/Batch Size
Cm1 = (TPC-(TNPC+TCC+TTC))/Nb
This formula uses 6 Variables
Variables Used
Machining and Operating Cost of Each Product - Machining and Operating Cost of Each Product is the total amount of money required to 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 he 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 is the count of similar kinds of products to be manufactured.
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
Cm1 = (TPC-(TNPC+TCC+TTC))/Nb --> (30000-(10+540+1000))/2
Evaluating ... ...
Cm1 = 14225
STEP 3: Convert Result to Output's Unit
14225 --> No Conversion Required
FINAL ANSWER
14225 <-- Machining and Operating Cost of Each Product
(Calculation completed in 00.004 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 Machining And Operating Cost Calculators

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

Machining and Operating Cost of Each Product = (Total Production Cost-(Total Non-Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/Batch Size
Cm1 = (TPC-(TNPC+TCC+TTC))/Nb

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 and Operating 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 and Operating 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 and Operating Cost of Each Product is denoted by Cm1 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 (Nb) 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 Cm1 = (TPC-(TNPC+TCC+TTC))/Nb or Machining and Operating 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 he 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 is the count of similar kinds of products to be manufactured.
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 and Operating 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 (Nb). 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.
How many ways are there to calculate Machining and Operating Cost of Each Product?
In this formula, Machining and Operating Cost of Each Product uses Total Production Cost, Total Non-Productive Cost, Total Tool Changing Cost, Total Cost of Tools Used & Batch Size. We can use 2 other way(s) to calculate the same, which is/are as follows -
  • Machining and Operating Cost of Each Product = Production Cost of Each Component-(Cost of a Tool*Setup Time+(Number of Tools Used/Batch Size)*((Cost of a Tool*Time to Change One Tool) +Cost of a Tool))
  • Machining and Operating Cost of Each Product = Total Production Cost-(Batch Size*Cost of a Tool*Setup Time+Number of Tools Used*((Cost of a Tool*Time to Change One Tool)+Cost of a Tool))
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