Tool Changing Cost of Each Product using Average Production Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Cost of changing each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used)
CCT = (Nb*Cpr-Nb*Ct*(ts+tm)-Nt*Ct)/(Nt)
This formula uses 7 Variables
Variables Used
Cost of changing each Tool - The cost of changing each Tool is the cost that arises due to the time taken by the operator to change one tool when he is paid by the hour.
Batch Size - Batch Size is the count of similar kinds of products to be manufactured.
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.
Setup Time - (Measured in Second) - Setup Time of each component is the time required to load/unload the workpiece and position the tool for production for one component.
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.
STEP 1: Convert Input(s) to Base Unit
Batch Size: 2 --> No Conversion Required
Production Cost of Each Component: 15000 --> No Conversion Required
Cost of a Tool: 80 --> No Conversion Required
Setup Time: 0.9 Minute --> 54 Second (Check conversion here)
Machining Time: 1.15 Minute --> 69 Second (Check conversion here)
Number of Tools Used: 3 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CCT = (Nb*Cpr-Nb*Ct*(ts+tm)-Nt*Ct)/(Nt) --> (2*15000-2*80*(54+69)-3*80)/(3)
Evaluating ... ...
CCT = 3360
STEP 3: Convert Result to Output's Unit
3360 --> No Conversion Required
FINAL ANSWER
3360 <-- Cost of changing each 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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8 Tool Changing Cost Calculators

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

Tool Changing Cost of Each Product using Average Production Cost Formula

Cost of changing each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used)
CCT = (Nb*Cpr-Nb*Ct*(ts+tm)-Nt*Ct)/(Nt)

How is Tool-Changing Cost generated?

The tool-changing cost is generated on the processes that basically include changing or re-sharpening the tool. These do not result in any productivity or profit whatsoever. But as the time is consumed by the operator to perform these tasks, when paid by the hour, the operators cost plants this time too.

How to Calculate Tool Changing Cost of Each Product using Average Production Cost?

Tool Changing Cost of Each Product using Average Production Cost calculator uses Cost of changing each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used) to calculate the Cost of changing each Tool, Tool Changing Cost of Each Product using Average Production Cost is a method to determine the cost that arises due to the time taken by the operator in changing 1 Cutting Tool when he is paid by the hour, based on the expense on one component produced. Cost of changing each Tool is denoted by CCT symbol.

How to calculate Tool Changing Cost of Each Product using Average Production Cost using this online calculator? To use this online calculator for Tool Changing Cost of Each Product using Average Production Cost, enter Batch Size (Nb), Production Cost of Each Component (Cpr), Cost of a Tool (Ct), Setup Time (ts), Machining Time (tm) & Number of Tools Used (Nt) and hit the calculate button. Here is how the Tool Changing Cost of Each Product using Average Production Cost calculation can be explained with given input values -> 3360 = (2*15000-2*80*(54+69)-3*80)/(3).

FAQ

What is Tool Changing Cost of Each Product using Average Production Cost?
Tool Changing Cost of Each Product using Average Production Cost is a method to determine the cost that arises due to the time taken by the operator in changing 1 Cutting Tool when he is paid by the hour, based on the expense on one component produced and is represented as CCT = (Nb*Cpr-Nb*Ct*(ts+tm)-Nt*Ct)/(Nt) or Cost of changing each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used). Batch Size is the count of similar kinds of products to be manufactured, 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, Setup Time of each component is the time required to load/unload the workpiece and position the tool for production for one component, 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.
How to calculate Tool Changing Cost of Each Product using Average Production Cost?
Tool Changing Cost of Each Product using Average Production Cost is a method to determine the cost that arises due to the time taken by the operator in changing 1 Cutting Tool when he is paid by the hour, based on the expense on one component produced is calculated using Cost of changing each Tool = (Batch Size*Production Cost of Each Component-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used). To calculate Tool Changing Cost of Each Product using Average Production Cost, you need Batch Size (Nb), Production Cost of Each Component (Cpr), Cost of a Tool (Ct), Setup Time (ts), Machining Time (tm) & Number of Tools Used (Nt). With our tool, you need to enter the respective value for Batch Size, Production Cost of Each Component, Cost of a Tool, Setup Time, Machining Time & Number of Tools Used 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 Cost of changing each Tool?
In this formula, Cost of changing each Tool uses Batch Size, Production Cost of Each Component, Cost of a Tool, Setup Time, Machining Time & Number of Tools Used. We can use 2 other way(s) to calculate the same, which is/are as follows -
  • Cost of changing each Tool = (Total Production Cost-(Total Non-Productive Cost+Total Machining And Operating Cost+Total Cost of Tools Used))/Number of Tools Used
  • Cost of changing each Tool = (Total Production Cost-Batch Size*Cost of a Tool*(Setup Time+Machining Time)-Number of Tools Used*Cost of a Tool)/(Number of Tools Used)
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