Non-Productive Cost of Component given Average Production Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Non Productive Cost of Each Component = Production Cost of Each Component-(Cost of a Tool*Machining Time+ (Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool))
Cnp = Cpr-(Ct*tm+ (Nt/Nb)*((Ct*TCT)+Ct))
This formula uses 7 Variables
Variables Used
Non Productive Cost of Each Component - Non Productive Cost of Each Component is the amount spent on activities like setting up, that does not result in any productivity or profit to the plant for manufacturing of a single component.
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.
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
Production Cost of Each Component: 15000 --> 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
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
Cnp = Cpr-(Ct*tm+ (Nt/Nb)*((Ct*TCT)+Ct)) --> 15000-(80*69+ (3/2)*((80*12)+80))
Evaluating ... ...
Cnp = 7920
STEP 3: Convert Result to Output's Unit
7920 --> No Conversion Required
FINAL ANSWER
7920 <-- Non Productive Cost of Each Component
(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 Non Productive Cost Calculators

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

Non-Productive Cost of Component given Average Production Cost Formula

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

Significance of Total Non-Productive Cost

The Total Non-Productive Cost helps the concerned to determine the resource of the industry being wasted due to time lapse in important but non-profitable processes of the production line. It also helps in determining the required measures to be taken to increase the productivity of the plant which generally includes steps to decrease the Total Non-Productive Cost.

How to Calculate Non-Productive Cost of Component given Average Production Cost?

Non-Productive Cost of Component given Average Production Cost calculator uses Non Productive Cost of Each Component = Production Cost of Each Component-(Cost of a Tool*Machining Time+ (Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool)) to calculate the Non Productive Cost of Each Component, The Non-Productive Cost of Component given Average Production Cost is a method to determine the maximum capital that can be spared on a non-profitable activity during the manufacturing of a single component. Non Productive Cost of Each Component is denoted by Cnp symbol.

How to calculate Non-Productive Cost of Component given Average Production Cost using this online calculator? To use this online calculator for Non-Productive Cost of Component given Average Production Cost, enter Production Cost of Each Component (Cpr), Cost of a Tool (Ct), Machining Time (tm), Number of Tools Used (Nt), Batch Size (Nb) & Tool Changing Time (TCT) and hit the calculate button. Here is how the Non-Productive Cost of Component given Average Production Cost calculation can be explained with given input values -> 7920 = 15000-(80*69+ (3/2)*((80*12)+80)).

FAQ

What is Non-Productive Cost of Component given Average Production Cost?
The Non-Productive Cost of Component given Average Production Cost is a method to determine the maximum capital that can be spared on a non-profitable activity during the manufacturing of a single component and is represented as Cnp = Cpr-(Ct*tm+ (Nt/Nb)*((Ct*TCT)+Ct)) or Non Productive Cost of Each Component = Production Cost of Each Component-(Cost of a Tool*Machining Time+ (Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool)). Production Cost of Each Component is the total amount that it takes to produce a single component from scratch, The Cost of a Tool is simply the cost of one tool being used for machining, 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 Non-Productive Cost of Component given Average Production Cost?
The Non-Productive Cost of Component given Average Production Cost is a method to determine the maximum capital that can be spared on a non-profitable activity during the manufacturing of a single component is calculated using Non Productive Cost of Each Component = Production Cost of Each Component-(Cost of a Tool*Machining Time+ (Number of Tools Used/Batch Size)*((Cost of a Tool*Tool Changing Time)+Cost of a Tool)). To calculate Non-Productive Cost of Component given Average Production Cost, you need Production Cost of Each Component (Cpr), Cost of a Tool (Ct), 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 Production Cost of Each Component, Cost of a Tool, 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 Non Productive Cost of Each Component?
In this formula, Non Productive Cost of Each Component uses Production Cost of Each Component, Cost of a Tool, 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 -
  • Non Productive Cost of Each Component = (Total Production Cost-(Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used))/Batch Size
  • Non Productive Cost of Each Component = Total Production Cost-(Batch Size*Cost of a Tool*Machining Time+Number of Tools Used*((Cost of a Tool*Time to Change One Tool)+Cost of a Tool))
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