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Total Non-Productive Cost given Average Production Cost Formula

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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. Check FAQs

C np = N b \cdot (C pr - (C t \cdot t m)) - (N t \cdot ((C t \cdot T) + C t))

C_np - Total Non Productive Cost?N_b - Batch Size?C_pr - Production Cost of Each Component?C_t - Cost of a Tool?t_m - Machining Time?N_t - Number of Tools Used?T - Tool Changing Time?

Total Non-Productive Cost given Average Production Cost Example

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Here is how the Total Non-Productive Cost given Average Production Cost equation looks like with Values.

Here is how the Total Non-Productive Cost given Average Production Cost equation looks like with Units.

Here is how the Total Non-Productive Cost given Average Production Cost equation looks like.

8640 = 2 \cdot (11400 - (80 \cdot 1.15)) - (3 \cdot ((80 \cdot 0.2) + 80))

8640 = 2 \cdot (11400 - (80 \cdot 1.15min)) - (3 \cdot ((80 \cdot 0.2min) + 80))

8640 = 2 \cdot (11400 - (80 \cdot 1.15)) - (3 \cdot ((80 \cdot 0.2) + 80))

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Total Non-Productive Cost given Average Production Cost Solution

Follow our step by step solution on how to calculate Total Non-Productive Cost given Average Production Cost?

FIRST Step Consider the formula

C np = N b \cdot (C pr - (C t \cdot t m)) - (N t \cdot ((C t \cdot T) + C t))

Next Step Substitute values of Variables

∴

C np = 2 \cdot (11400 - (80 \cdot 1.15min)) - (3 \cdot ((80 \cdot 0.2min) + 80))

Next Step Convert Units

∴

C np = 2 \cdot (11400 - (80 \cdot 69s)) - (3 \cdot ((80 \cdot 12s) + 80))

Next Step Prepare to Evaluate

∴

C np = 2 \cdot (11400 - (80 \cdot 69)) - (3 \cdot ((80 \cdot 12) + 80))

LAST Step Evaluate

∴

C np = 8640

Total Non-Productive Cost given Average Production Cost Formula Elements

Variables

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.

Symbol: C_np

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Batch Size

Batch size refers to the number of identical parts produced in a single production run or cycle.

Symbol: N_b

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Production Cost of Each Component

Production cost of each component involves accounting for various factors, including material costs, labor, machine operating costs, tool costs, overhead, and other related expenses.

Symbol: C_pr

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Cost of a Tool

Cost of a tool is a multifaceted consideration that includes the initial purchase price, maintenance costs, tool life, and the impact on overall production costs.

Symbol: C_t

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Machining Time

Machining time refers to the total time required to complete a specific machining operation on a workpiece.

Symbol: t_m

Measurement: TimeUnit: min

Note: Value should be greater than 0.

Number of Tools Used

The Number of Tools Used is the total number of tools used for manufacturing a batch of products.

Symbol: N_t

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Tool Changing Time

Tool changing time referred to as tool change time, is the duration required to remove a used tool and replace it with a new one.

Symbol: T

Measurement: TimeUnit: min

Note: Value should be greater than 0.

Credits

Creator Image

Created by Kumar Siddhant

Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur

Kumar Siddhant has created this Formula and 400+ more formulas!

Verifier Image

Verified by Parul Keshav

National Institute of Technology (NIT), Srinagar

Parul Keshav has verified this Formula and 400+ more formulas!

Other formulas in Average Production Cost category

Go Number of Tools used given Average Production Cost

N t = N b \cdot \frac{C pr - C t \cdot (t s + t m)}{C t \cdot t c + C t}

Go Number of Tools used given Average Production Time

N t = N b \cdot \frac{t p - (t s + t m)}{t c}

See More

How to Evaluate Total Non-Productive Cost given Average Production Cost?

Total Non-Productive Cost given Average Production Cost evaluator 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 evaluate the Total Non Productive Cost, The Total Non-Productive Cost given Average Production Cost refers to the cumulative expenses incurred during periods when machines or resources are not actively engaged in productive activities. These costs arise from various non-value-added activities, such as downtime, setup time, tool changes, maintenance, and administrative tasks. Understanding and minimizing non-productive costs are essential for optimizing manufacturing efficiency and reducing overall production costs. Total Non Productive Cost is denoted by C_np symbol.

How to evaluate Total Non-Productive Cost given Average Production Cost using this online evaluator? To use this online evaluator for Total Non-Productive Cost given Average Production Cost, enter Batch Size (N_b), Production Cost of Each Component (C_pr), Cost of a Tool (C_t), Machining Time (t_m), Number of Tools Used (N_t) & Tool Changing Time (T) and hit the calculate button.

FAQs on Total Non-Productive Cost given Average Production Cost

What is the formula to find Total Non-Productive Cost given Average Production Cost?

The formula of Total Non-Productive Cost given Average Production Cost is expressed as 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)). Here is an example- 8640 = 2*(11400-(80*69))-(3*((80*12)+80)).

How to calculate Total Non-Productive Cost given Average Production Cost?

With Batch Size (N_b), Production Cost of Each Component (C_pr), Cost of a Tool (C_t), Machining Time (t_m), Number of Tools Used (N_t) & Tool Changing Time (T) we can find Total Non-Productive Cost given Average Production Cost using the 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)).

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