Non-Productive Cost of Each Component given Total Production Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
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))
Cnp = TPC-(Nb*Ct*tm+Nt*((Ct*tc)+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.
Total Production Cost - Total Production Cost is the total amount that it takes to produce a batch of components from scratch.
Batch Size - Batch Size is the count of similar kinds of products to be manufactured.
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.
Time to Change One Tool - (Measured in Second) - Time to Change One Tool is the measure of time it takes to change one tool during machining.
STEP 1: Convert Input(s) to Base Unit
Total Production Cost: 30000 --> No Conversion Required
Batch Size: 2 --> 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
Time to Change One Tool: 0.5 Minute --> 30 Second (Check conversion here)
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Cnp = TPC-(Nb*Ct*tm+Nt*((Ct*tc)+Ct)) --> 30000-(2*80*69+3*((80*30)+80))
Evaluating ... ...
Cnp = 11520
STEP 3: Convert Result to Output's Unit
11520 --> No Conversion Required
FINAL ANSWER
11520 <-- Non Productive Cost of Each Component
(Calculation completed in 00.020 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
Parul Keshav has verified this Calculator and 400+ more calculators!

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 Each Component given Total Production Cost Formula

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))
Cnp = TPC-(Nb*Ct*tm+Nt*((Ct*tc)+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 Each Component given Total Production Cost?

Non-Productive Cost of Each Component given Total Production Cost calculator uses 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)) to calculate the Non Productive Cost of Each Component, The Non-Productive Cost of Each component given Total Production Cost is a method to determine the maximum capital that can be spared on a non-profitable activity during the manufacturing of a batch of components. Non Productive Cost of Each Component is denoted by Cnp symbol.

How to calculate Non-Productive Cost of Each Component given Total Production Cost using this online calculator? To use this online calculator for Non-Productive Cost of Each Component given Total Production Cost, enter Total Production Cost (TPC), Batch Size (Nb), Cost of a Tool (Ct), Machining Time (tm), Number of Tools Used (Nt) & Time to Change One Tool (tc) and hit the calculate button. Here is how the Non-Productive Cost of Each Component given Total Production Cost calculation can be explained with given input values -> 11520 = 30000-(2*80*69+3*((80*30)+80)).

FAQ

What is Non-Productive Cost of Each Component given Total Production Cost?
The Non-Productive Cost of Each component given Total Production Cost is a method to determine the maximum capital that can be spared on a non-profitable activity during the manufacturing of a batch of components and is represented as Cnp = TPC-(Nb*Ct*tm+Nt*((Ct*tc)+Ct)) or 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)). Total Production Cost is the total amount that it takes to produce a batch of components from scratch, Batch Size is the count of similar kinds of products to be manufactured, 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 & Time to Change One Tool is the measure of time it takes to change one tool during machining.
How to calculate Non-Productive Cost of Each Component given Total Production Cost?
The Non-Productive Cost of Each component given Total Production Cost is a method to determine the maximum capital that can be spared on a non-profitable activity during the manufacturing of a batch of components is calculated using 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)). To calculate Non-Productive Cost of Each Component given Total Production Cost, you need Total Production Cost (TPC), Batch Size (Nb), Cost of a Tool (Ct), Machining Time (tm), Number of Tools Used (Nt) & Time to Change One Tool (tc). With our tool, you need to enter the respective value for Total Production Cost, Batch Size, Cost of a Tool, Machining Time, Number of Tools Used & Time to Change One Tool 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, Batch Size, Cost of a Tool, Machining Time, Number of Tools Used & Time to Change One Tool. 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 = 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))
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!