Non-Productive Cost of One Component given Individual Costs Solution

STEP 0: Pre-Calculation Summary
Formula Used
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
Cnp = (TPC-(Cm+TCC+TTC))/Nb
This formula uses 6 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.
Total Production Cost - Total Production Cost is the total amount that it takes to produce a batch of components from scratch.
Total Machining And Operating Cost - Total Machining And Operating Cost is the total amount of money required to machine a given batch of product.
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 Machining And Operating Cost: 100 --> 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
Cnp = (TPC-(Cm+TCC+TTC))/Nb --> (30000-(100+540+1000))/2
Evaluating ... ...
Cnp = 14180
STEP 3: Convert Result to Output's Unit
14180 --> No Conversion Required
FINAL ANSWER
14180 <-- 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
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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 One Component given Individual Costs Formula

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
Cnp = (TPC-(Cm+TCC+TTC))/Nb

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 One Component given Individual Costs?

Non-Productive Cost of One Component given Individual Costs calculator uses 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 to calculate the Non Productive Cost of Each Component, The Non-Productive Cost of One Component given Individual Costs is a method to determine the maximum capital that can be spared for 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 One Component given Individual Costs using this online calculator? To use this online calculator for Non-Productive Cost of One Component given Individual Costs, enter Total Production Cost (TPC), Total Machining And Operating Cost (Cm), Total Tool Changing Cost (TCC), Total Cost of Tools Used (TTC) & Batch Size (Nb) and hit the calculate button. Here is how the Non-Productive Cost of One Component given Individual Costs calculation can be explained with given input values -> 14180 = (30000-(100+540+1000))/2 .

FAQ

What is Non-Productive Cost of One Component given Individual Costs?
The Non-Productive Cost of One Component given Individual Costs is a method to determine the maximum capital that can be spared for a non-profitable activity during the manufacturing of a single component and is represented as Cnp = (TPC-(Cm+TCC+TTC))/Nb or 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 Production Cost is the total amount that it takes to produce a batch of components from scratch, Total Machining And Operating Cost is the total amount of money required to machine a given batch of product, 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 Non-Productive Cost of One Component given Individual Costs?
The Non-Productive Cost of One Component given Individual Costs is a method to determine the maximum capital that can be spared for a non-profitable activity during the manufacturing of a single component is calculated using 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. To calculate Non-Productive Cost of One Component given Individual Costs, you need Total Production Cost (TPC), Total Machining And Operating Cost (Cm), 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 Machining And Operating 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 Non Productive Cost of Each Component?
In this formula, Non Productive Cost of Each Component uses Total Production Cost, Total Machining And Operating 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 -
  • 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 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))
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