Cost calculation of cnc machining operation

cnc machine and its application

1. Cost calculation of cnc machining operation By 12dm01 , Abdul S ubhan 12dm02, Abdulkader

2. Machine cost When planning we need: –An accurate method of calculating the cost of owning machinery. •The comparative cost of different machine combinations. •The comparative cost of getting the work done through means that do not include ownership –To know the effective work we are getting from machinery. •The ability to calculate costs per hour . What are the timeliness costs from not being able to get the job done and what are the risks of overcapacity.

3. Cost components Fixed cost: 1, Interest on capital. 2 , D epreciation . 3, Tax insurance. Variable cost: 1, Repair and maintenance. 2, Energy. Fixed: because they are fixed regardless of the level of use. Variable : Because they vary with the level of use.

4. Importance of planning When buying machinery, planning is important in order to be able to fix payments to the business. Most companies will use individual contracts but bulk purchase can be advantageous. There will be more competition in the market. S o we should price competitively. To fix a price we should know well about the market and set a brand value.

5. Depreciation Reasons : Reduction in machine performance due to worn parts. Increase in cost for the same unit of output, due to increase in power consumption, labour or repair cost.

6. Cost calculation Straight Line: fixed amount depreciated every year. Simple if considering having the asset for a longer period. Fixed Percentage (diminishing balance): More accurately reflects the value of the asset throughout its life. Useful when looking at ownership alternatives. Geometrically Adjusted Diminishing Balance: The most accurate, reflects the initial drop in value of the asset.

7. Variable costs Repair and Maintenance costs can be highly variable and unpredictable for individual machines. As machines get older then clearly they are likely to need more repairs. Standard methods use the results from surveys to calculate estimated repair and maintenance. The more complex the machine the more likely it is that costs will increase as the machine gets older. The most common way to express it is as a cumulative cost through the life of the machine.

8. Types of calculation

9. conclusion The cost of operation is mainly based on the no of hours the machine has running. The second major factor Is the complexicity of the work piece. And the other factor is the cost of raw material and some time it may be supplied by the consumer due to the type of material he needs.

10. Thank you……