Total Cost of Tools used given Average Production Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Total Cost of Tools Used = ( Batch Size*(Production Cost of Each Component -Cost of a Tool*(Setup Time+Machining Time)) -Cost of a Tool*Number of Tools Used*Time to Change One Tool)
TTC = ( Nb*(Cpr -Ct*(ts+tm)) -Ct*Nt*tc)
This formula uses 8 Variables
Variables Used
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.
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.
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
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
Time to Change One Tool: 0.5 Minute --> 30 Second (Check conversion here)
STEP 2: Evaluate Formula
Substituting Input Values in Formula
TTC = ( Nb*(Cpr -Ct*(ts+tm)) -Ct*Nt*tc) --> ( 2*(15000 -80*(54+69)) -80*3*30)
Evaluating ... ...
TTC = 3120
STEP 3: Convert Result to Output's Unit
3120 --> No Conversion Required
FINAL ANSWER
3120 <-- Total Cost of Tools Used
(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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Verified by Parul Keshav
National Institute of Technology (NIT), Srinagar
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3 Total Cost of Tools Used Calculators

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

Total Cost of Tools used given Average Production Cost Formula

Total Cost of Tools Used = ( Batch Size*(Production Cost of Each Component -Cost of a Tool*(Setup Time+Machining Time)) -Cost of a Tool*Number of Tools Used*Time to Change One Tool)
TTC = ( Nb*(Cpr -Ct*(ts+tm)) -Ct*Nt*tc)

Significance of Total Cost of Tools Used

The Total Cost of Tools Used helps us in determining the maximum amount of tool that can be renewed during the production of a given batch of products. This renewing might include buying or resharpening the tool. Thus if the number of Tools to be used gets bounded, the machining operation would have to be optimized in order to give sufficient tool life to survive against the boundation.

How to Calculate Total Cost of Tools used given Average Production Cost?

Total Cost of Tools used given Average Production Cost calculator uses Total Cost of Tools Used = ( Batch Size*(Production Cost of Each Component -Cost of a Tool*(Setup Time+Machining Time)) -Cost of a Tool*Number of Tools Used*Time to Change One Tool) to calculate the Total Cost of Tools Used, The Total Cost of Tools used given Average Production Cost is a method to determine the total amount available to be spent on renewing Machining Tool for production of a batch of components. Total Cost of Tools Used is denoted by TTC symbol.

How to calculate Total Cost of Tools used given Average Production Cost using this online calculator? To use this online calculator for Total Cost of Tools used given 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) & Time to Change One Tool (tc) and hit the calculate button. Here is how the Total Cost of Tools used given Average Production Cost calculation can be explained with given input values -> 3120 = ( 2*(15000 -80*(54+69)) -80*3*30).

FAQ

What is Total Cost of Tools used given Average Production Cost?
The Total Cost of Tools used given Average Production Cost is a method to determine the total amount available to be spent on renewing Machining Tool for production of a batch of components and is represented as TTC = ( Nb*(Cpr -Ct*(ts+tm)) -Ct*Nt*tc) or Total Cost of Tools Used = ( Batch Size*(Production Cost of Each Component -Cost of a Tool*(Setup Time+Machining Time)) -Cost of a Tool*Number of Tools Used*Time to Change One Tool). 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 & Time to Change One Tool is the measure of time it takes to change one tool during machining.
How to calculate Total Cost of Tools used given Average Production Cost?
The Total Cost of Tools used given Average Production Cost is a method to determine the total amount available to be spent on renewing Machining Tool for production of a batch of components is calculated using Total Cost of Tools Used = ( Batch Size*(Production Cost of Each Component -Cost of a Tool*(Setup Time+Machining Time)) -Cost of a Tool*Number of Tools Used*Time to Change One Tool). To calculate Total Cost of Tools used given 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) & Time to Change One Tool (tc). 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 & 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 Total Cost of Tools Used?
In this formula, Total Cost of Tools Used uses Batch Size, Production Cost of Each Component, Cost of a Tool, Setup Time, 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 -
  • Total Cost of Tools Used = Total Production Cost-(Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost)
  • Total Cost of Tools Used = Total Production Cost-(Total Machining And Operating Cost+Total Tool Changing Cost+Total Non-Productive Cost)
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