Annual Production Quantity and Basic Processing Cost (Pc)
In order to represent the basic processing cost of an ideal design for a particular process, it is necessary to be clear upon which factors it depends. The factors
are :-
- Equipment costs including installation
- Operating costs (labour, No of working shifts supervison and overheads)
- Processing time(s)
- Tooling costs
- Product demand
The above variables are taken into account to calculate the basic processing cost
Pc using the following formula:-
Basic Processing Cost Pc = αT + β/N where :-
α |
is the cost of setting up & operating the process, including plant, labour,
supervision & overheads per second. |
T |
is the process time in seconds for processing the ideal design. |
β |
is the process specific total tooling cost for an ideal design. |
N |
is the total production quantity per annum. |
This manufacturing cost estimating demonstrator uses the data from the plots of N against
Pc for the 20 processes covered. To improve the accuracy
of the results for your company is necessary to obtain data for your parts /suppliers.