Total Production Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Total Production Cost = Batch Size*(Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used)*((Cost of a Tool*Time to Change One Tool)+Cost of a Tool))
TPC = Nb*(Ct*(ts+tm)+(Nt)*((Ct*tc)+Ct))
This formula uses 7 Variables
Variables Used
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.
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
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
TPC = Nb*(Ct*(ts+tm)+(Nt)*((Ct*tc)+Ct)) --> 2*(80*(54+69)+(3)*((80*30)+80))
Evaluating ... ...
TPC = 34560
STEP 3: Convert Result to Output's Unit
34560 --> No Conversion Required
FINAL ANSWER
34560 <-- Total Production Cost
(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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6 Production Cost Calculators

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

Total Production Cost Formula

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

Average Production Cost of each component

The average Production Cost of each component is usually determined by taking an average over a defined batch of products. The reason for this is the extended costs such as the cost of tools and operating costs etc. This makes the Average Production Cost becomes quite higher for a single product than when measured over batch size.

How to Calculate Total Production Cost?

Total Production Cost calculator uses Total Production Cost = Batch Size*(Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used)*((Cost of a Tool*Time to Change One Tool)+Cost of a Tool)) to calculate the Total Production Cost, The Total Production Cost is defined as the total cost of producing a batch of components from scratch including all necessary operations and processes. Total Production Cost is denoted by TPC symbol.

How to calculate Total Production Cost using this online calculator? To use this online calculator for Total Production Cost, enter Batch Size (Nb), 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 Production Cost calculation can be explained with given input values -> 34560 = 2*(80*(54+69)+(3)*((80*30)+80)).

FAQ

What is Total Production Cost?
The Total Production Cost is defined as the total cost of producing a batch of components from scratch including all necessary operations and processes and is represented as TPC = Nb*(Ct*(ts+tm)+(Nt)*((Ct*tc)+Ct)) or Total Production Cost = Batch Size*(Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used)*((Cost of a Tool*Time to Change One Tool)+Cost of a Tool)). 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, 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 Production Cost?
The Total Production Cost is defined as the total cost of producing a batch of components from scratch including all necessary operations and processes is calculated using Total Production Cost = Batch Size*(Cost of a Tool*(Setup Time+Machining Time)+(Number of Tools Used)*((Cost of a Tool*Time to Change One Tool)+Cost of a Tool)). To calculate Total Production Cost, you need Batch Size (Nb), 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, 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 Production Cost?
In this formula, Total Production Cost uses Batch Size, 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 Production Cost = Batch Size*Production Cost of Each Component
  • Total Production Cost = Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used
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