Machining and Operating Rate using Individual Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Cost of a Tool = (Total Production Cost-(Total Non-Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/(Batch Size*Machining Time)
Ct = (TPC-(TNPC+TCC+TTC))/(Nb*tm)
This formula uses 7 Variables
Variables Used
Cost of a Tool - The Cost of a Tool is simply the cost of one tool being used for machining.
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.
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.
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
Machining Time: 1.15 Minute --> 69 Second (Check conversion here)
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Ct = (TPC-(TNPC+TCC+TTC))/(Nb*tm) --> (30000-(10+540+1000))/(2*69)
Evaluating ... ...
Ct = 206.159420289855
STEP 3: Convert Result to Output's Unit
206.159420289855 --> No Conversion Required
FINAL ANSWER
206.159420289855 206.1594 <-- Cost of a Tool
(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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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 using Individual Cost Formula

Cost of a Tool = (Total Production Cost-(Total Non-Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/(Batch Size*Machining Time)
Ct = (TPC-(TNPC+TCC+TTC))/(Nb*tm)

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 using Individual Cost?

Machining and Operating Rate using Individual Cost calculator uses Cost of a Tool = (Total Production Cost-(Total Non-Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/(Batch Size*Machining Time) to calculate the Cost of a Tool, Machining and Operating Rate using Individual Cost is a method to determine the maximum expense rate that can be afforded on machines and operators when based on the expenses it took for different activities in order to manufacture a complete batch of components. Cost of a Tool is denoted by Ct symbol.

How to calculate Machining and Operating Rate using Individual Cost using this online calculator? To use this online calculator for Machining and Operating Rate 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) & Machining Time (tm) and hit the calculate button. Here is how the Machining and Operating Rate using Individual Cost calculation can be explained with given input values -> 206.1594 = (30000-(10+540+1000))/(2*69) .

FAQ

What is Machining and Operating Rate using Individual Cost?
Machining and Operating Rate using Individual Cost is a method to determine the maximum expense rate that can be afforded on machines and operators when based on the expenses it took for different activities in order to manufacture a complete batch of components and is represented as Ct = (TPC-(TNPC+TCC+TTC))/(Nb*tm) or 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 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 & 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.
How to calculate Machining and Operating Rate using Individual Cost?
Machining and Operating Rate using Individual Cost is a method to determine the maximum expense rate that can be afforded on machines and operators when based on the expenses it took for different activities in order to manufacture a complete batch of components is calculated using Cost of a Tool = (Total Production Cost-(Total Non-Productive Cost+Total Tool Changing Cost+Total Cost of Tools Used))/(Batch Size*Machining Time). To calculate Machining and Operating Rate 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) & Machining Time (tm). 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 & Machining 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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