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)).