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

These variables are taken into account to calculate the basic processing cost
**P _{c}** using the following formula:-

Basic Processing Cost **P _{c} = αT + β/N** where :-

Variable | Description |
---|---|

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 **
P _{c}** for the 20 processes covered. To improve the accuracy
of the results for your company is necessary to obtain data for your parts /suppliers.

Contact Us sales@valuedrivendesign.co.uk.