Machining and Operating Rate given Average Production Cost of each Component Solution

STEP 0: Pre-Calculation Summary
Formula Used
Machining and Operating Rate = (Production Cost of Each Component-(Number of Tools Used*Cost of a Tool/Batch Size))/(Setup Time+Machining Time+(Number of Tools Used*Tool Changing Time/Batch Size))
M = (Cpr-(Nt*Ct/Nb))/(ts+tm+(Nt*TCT/Nb))
This formula uses 8 Variables
Variables Used
Machining and Operating Rate - Machining and Operating Rate is the money charged for processing on and operating machines per unit time, including overheads.
Production Cost of Each Component - Production Cost of Each Component is the total amount that it takes to produce a single component from scratch.
Number of Tools Used - The Number of Tools Used is the total number of tools used for manufacturing a batch of products.
Cost of a Tool - The Cost of a Tool is simply the cost of one tool being used for machining.
Batch Size - Batch Size is the count of similar kinds of products to be manufactured.
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.
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
Production Cost of Each Component: 15000 --> No Conversion Required
Number of Tools Used: 3 --> No Conversion Required
Cost of a Tool: 80 --> No Conversion Required
Batch Size: 2 --> No Conversion Required
Setup Time: 0.9 Minute --> 54 Second (Check conversion here)
Machining Time: 1.15 Minute --> 69 Second (Check conversion here)
Tool Changing Time: 0.2 Minute --> 12 Second (Check conversion here)
STEP 2: Evaluate Formula
Substituting Input Values in Formula
M = (Cpr-(Nt*Ct/Nb))/(ts+tm+(Nt*TCT/Nb)) --> (15000-(3*80/2))/(54+69+(3*12/2))
Evaluating ... ...
M = 105.531914893617
STEP 3: Convert Result to Output's Unit
105.531914893617 --> No Conversion Required
FINAL ANSWER
105.531914893617 105.5319 <-- Machining and Operating Rate
(Calculation completed in 00.020 seconds)

Credits

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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13 Value of Production Calculators

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

Machining and Operating Rate given Average Production Cost of each Component Formula

Machining and Operating Rate = (Production Cost of Each Component-(Number of Tools Used*Cost of a Tool/Batch Size))/(Setup Time+Machining Time+(Number of Tools Used*Tool Changing Time/Batch Size))
M = (Cpr-(Nt*Ct/Nb))/(ts+tm+(Nt*TCT/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 Rate given Average Production Cost of each Component?

Machining and Operating Rate given Average Production Cost of each Component calculator uses Machining and Operating Rate = (Production Cost of Each Component-(Number of Tools Used*Cost of a Tool/Batch Size))/(Setup Time+Machining Time+(Number of Tools Used*Tool Changing Time/Batch Size)) to calculate the Machining and Operating Rate, The Machining and Operating Rate given Average Production Cost of each Component is a method to determine the maximum expense rate that can be afforded on machines and operators when based on the expense it took to manufacture a single component. Machining and Operating Rate is denoted by M symbol.

How to calculate Machining and Operating Rate given Average Production Cost of each Component using this online calculator? To use this online calculator for Machining and Operating Rate given Average Production Cost of each Component, enter Production Cost of Each Component (Cpr), Number of Tools Used (Nt), Cost of a Tool (Ct), Batch Size (Nb), Setup Time (ts), Machining Time (tm) & Tool Changing Time (TCT) and hit the calculate button. Here is how the Machining and Operating Rate given Average Production Cost of each Component calculation can be explained with given input values -> 105.5319 = (15000-(3*80/2))/(54+69+(3*12/2)).

FAQ

What is Machining and Operating Rate given Average Production Cost of each Component?
The Machining and Operating Rate given Average Production Cost of each Component is a method to determine the maximum expense rate that can be afforded on machines and operators when based on the expense it took to manufacture a single component and is represented as M = (Cpr-(Nt*Ct/Nb))/(ts+tm+(Nt*TCT/Nb)) or Machining and Operating Rate = (Production Cost of Each Component-(Number of Tools Used*Cost of a Tool/Batch Size))/(Setup Time+Machining Time+(Number of Tools Used*Tool Changing Time/Batch Size)). Production Cost of Each Component is the total amount that it takes to produce a single component from scratch, The Number of Tools Used is the total number of tools used for manufacturing a batch of products, The Cost of a Tool is simply the cost of one tool being used for machining, Batch Size is the count of similar kinds of products to be manufactured, 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 & 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 Machining and Operating Rate given Average Production Cost of each Component?
The Machining and Operating Rate given Average Production Cost of each Component is a method to determine the maximum expense rate that can be afforded on machines and operators when based on the expense it took to manufacture a single component is calculated using Machining and Operating Rate = (Production Cost of Each Component-(Number of Tools Used*Cost of a Tool/Batch Size))/(Setup Time+Machining Time+(Number of Tools Used*Tool Changing Time/Batch Size)). To calculate Machining and Operating Rate given Average Production Cost of each Component, you need Production Cost of Each Component (Cpr), Number of Tools Used (Nt), Cost of a Tool (Ct), Batch Size (Nb), Setup Time (ts), Machining Time (tm) & Tool Changing Time (TCT). With our tool, you need to enter the respective value for Production Cost of Each Component, Number of Tools Used, Cost of a Tool, Batch Size, Setup Time, Machining Time & 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 Machining and Operating Rate?
In this formula, Machining and Operating Rate uses Production Cost of Each Component, Number of Tools Used, Cost of a Tool, Batch Size, Setup Time, Machining Time & Tool Changing Time. We can use 1 other way(s) to calculate the same, which is/are as follows -
  • Machining and Operating Rate = (Total Production Cost-(Number of Tools Used*Cost of a Tool))/(Batch Size*(Setup Time+Machining Time)+(Number of Tools Used*Tool Changing Time))
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