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# Cost per component

Yngwie

Cost per component | 28 April, 2005

Just to check and see if I'm using the right formula in my "cost per component placement" calculation is correct or not. Any input would be much appreciated.

Total cost of the machine : A Depreciates over 5 years Actual/best UPH obtained 11000 cph.

M/C cost per hour = A/(365 days x 24 hours x 5 Years) = A/(365x24x5) = B

Therefore the cost per comp = B/11,000

And if we were to compare the machines cost per component, it has to be based on the same product run. Correct?

yngwie

Cost per component | 28 April, 2005

Do you run 24 hrs a day 365 days a year? Do you have 100% utilization? If no to either or both questions you need a differant formula.

pr

Cost per component | 28 April, 2005

I would also say that using 11,000 cph (best time) is an overestimate. Why not take the avg components placed over a 24 hr. period and get your cph from that?

just a thought, pr