Total Non-Productive Cost given Average Production Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
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))
TNPC = Nb*(Cpr-(Ct*tm))- (Nt*((Ct*TCT)+Ct))
This formula uses 7 Variables
Variables Used
Total Non-Productive Cost - Total Non-Productive Cost is the amount spent on activities that do not result in any productivity or profit to the plant during the manufacturing of a batch of components.
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.
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.
Tool Changing Time - (Measured in Second) - Tool Changing Time is the average time required by the operator or automation system (such as automatic tool changer – ATC) to change the tool.
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
Machining Time: 1.15 Minute --> 69 Second (Check conversion here)
Number of Tools Used: 3 --> No Conversion Required
Tool Changing Time: 0.2 Minute --> 12 Second (Check conversion here)
STEP 2: Evaluate Formula
Substituting Input Values in Formula
TNPC = Nb*(Cpr-(Ct*tm))- (Nt*((Ct*TCT)+Ct)) --> 2*(15000-(80*69))- (3*((80*12)+80))
Evaluating ... ...
TNPC = 15840
STEP 3: Convert Result to Output's Unit
15840 --> No Conversion Required
FINAL ANSWER
15840 <-- Total Non-Productive Cost
(Calculation completed in 00.020 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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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)

Total Non-Productive Cost given Average Production Cost Formula

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))
TNPC = Nb*(Cpr-(Ct*tm))- (Nt*((Ct*TCT)+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 Total Non-Productive Cost given Average Production Cost?

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

How to calculate Total Non-Productive Cost given Average Production Cost using this online calculator? To use this online calculator for Total Non-Productive Cost given Average Production Cost, enter Batch Size (Nb), Production Cost of Each Component (Cpr), Cost of a Tool (Ct), Machining Time (tm), Number of Tools Used (Nt) & Tool Changing Time (TCT) and hit the calculate button. Here is how the Total Non-Productive Cost given Average Production Cost calculation can be explained with given input values -> 15840 = 2*(15000-(80*69))- (3*((80*12)+80)).

FAQ

What is Total Non-Productive Cost given Average Production Cost?
The Total Non-Productive Cost given Average Production Cost is a method to determine the maximum capital that can be spared on the non-profitable activities during the manufacturing of a complete batch of components and is represented as TNPC = Nb*(Cpr-(Ct*tm))- (Nt*((Ct*TCT)+Ct)) or 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)). 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, 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 & Tool Changing Time is the average time required by the operator or automation system (such as automatic tool changer – ATC) to change the tool.
How to calculate Total Non-Productive Cost given Average Production Cost?
The Total Non-Productive Cost given Average Production Cost is a method to determine the maximum capital that can be spared on the non-profitable activities during the manufacturing of a complete batch of components is calculated using 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)). To calculate Total Non-Productive Cost given Average Production Cost, you need Batch Size (Nb), Production Cost of Each Component (Cpr), Cost of a Tool (Ct), Machining Time (tm), Number of Tools Used (Nt) & Tool Changing Time (TCT). With our tool, you need to enter the respective value for Batch Size, Production Cost of Each Component, Cost of a Tool, Machining Time, Number of Tools Used & Tool Changing Time 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 Non-Productive Cost?
In this formula, Total Non-Productive Cost uses Batch Size, Production Cost of Each Component, Cost of a Tool, Machining Time, Number of Tools Used & Tool Changing Time. We can use 2 other way(s) to calculate the same, which is/are as follows -
  • 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 = Total Production Cost-(Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used)
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