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)).