Total Production Cost given Individual Costs Solution

STEP 0: Pre-Calculation Summary
Formula Used
Total Production Cost = Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used
TPC = TNPC+Cm+TCC+TTC
This formula uses 5 Variables
Variables Used
Total Production Cost - Total Production Cost is the total amount that it takes to produce a batch of components from scratch.
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.
Total Machining And Operating Cost - Total Machining And Operating Cost is the total amount of money required to machine a given batch of product.
Total Tool Changing Cost - Total Tool Changing Cost is the total cost that arises due to the time taken by the operator in changing the Cutting Tool when he is paid by the hour.
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.
STEP 1: Convert Input(s) to Base Unit
Total Non-Productive Cost: 10 --> No Conversion Required
Total Machining And Operating Cost: 100 --> No Conversion Required
Total Tool Changing Cost: 540 --> No Conversion Required
Total Cost of Tools Used: 1000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
TPC = TNPC+Cm+TCC+TTC --> 10+100+540+1000
Evaluating ... ...
TPC = 1650
STEP 3: Convert Result to Output's Unit
1650 --> No Conversion Required
FINAL ANSWER
1650 <-- Total Production Cost
(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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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 given Individual Costs Formula

Total Production Cost = Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used
TPC = TNPC+Cm+TCC+TTC

Significance of Total Production Cost in terms of Individual Costs

The Total Production Cost when calculated in terms of the Individual Costs is usually preferred in the planning stage of the production line. It gives the idea if the current series of processes will be feasible when compared to other sequences.

How to Calculate Total Production Cost given Individual Costs?

Total Production Cost given Individual Costs calculator uses Total Production Cost = Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used to calculate the Total Production Cost, The Total Production Cost given Individual Costs is a method to determine the total cost of production that will be required during the manufacturing of a batch of components. Total Production Cost is denoted by TPC symbol.

How to calculate Total Production Cost given Individual Costs using this online calculator? To use this online calculator for Total Production Cost given Individual Costs, enter Total Non-Productive Cost (TNPC), Total Machining And Operating Cost (Cm), Total Tool Changing Cost (TCC) & Total Cost of Tools Used (TTC) and hit the calculate button. Here is how the Total Production Cost given Individual Costs calculation can be explained with given input values -> 1650 = 10+100+540+1000.

FAQ

What is Total Production Cost given Individual Costs?
The Total Production Cost given Individual Costs is a method to determine the total cost of production that will be required during the manufacturing of a batch of components and is represented as TPC = TNPC+Cm+TCC+TTC or Total Production Cost = Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used. 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, Total Machining And Operating Cost is the total amount of money required to machine a given batch of product, Total Tool Changing Cost is the total cost that arises due to the time taken by the operator in changing the Cutting Tool when he is paid by the hour & Total Cost of Tools Used is the sum of the amount of all tools that have been used for production.
How to calculate Total Production Cost given Individual Costs?
The Total Production Cost given Individual Costs is a method to determine the total cost of production that will be required during the manufacturing of a batch of components is calculated using Total Production Cost = Total Non-Productive Cost+Total Machining And Operating Cost+Total Tool Changing Cost+Total Cost of Tools Used. To calculate Total Production Cost given Individual Costs, you need Total Non-Productive Cost (TNPC), Total Machining And Operating Cost (Cm), Total Tool Changing Cost (TCC) & Total Cost of Tools Used (TTC). With our tool, you need to enter the respective value for Total Non-Productive Cost, Total Machining And Operating Cost, Total Tool Changing Cost & Total Cost 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 Total Production Cost?
In this formula, Total Production Cost uses Total Non-Productive Cost, Total Machining And Operating Cost, Total Tool Changing Cost & Total Cost of Tools Used. We can use 2 other way(s) to calculate the same, which is/are as follows -
  • 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))
  • Total Production Cost = Batch Size*Production Cost of Each Component
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