Machine Cost Calculation

The machine cost calculation is based on the calculation of the machine manufacturing overhead costs and the service life of the machine. The costs due for one machine per running hour are calculated.The absorbed costs (total costs for the machine per year) are allocated to the direct production costs using allocation methods. Use Standard mode at the machine to calculate the machine cost rate.

The machine costs (MacC)/machine manufacturing overhead costs are calculated taking the

  • Physical machine parameters (e.g. acquisition costs),
  • Location factors (e.g. imputed interest rate) and
  • Production planning factors (e.g. production quantity)
  • and a combination of these properties (e.g. space costs).

Input parameters

You must enter the machine, location and production data for the machine hourly rate calculation. You can enter this data manually (via local machines) orFACTONuse benchmark data. The following parameters influence the machine hourly rate calculation:

Production Planning Location Factors Machine Properties
  • Production Period (Years)
  • Production Quantity
  • Location
  • Interest Rate at Location
  • Acquisition Costs
  • Energy Consumption
  • Space
  • Gas Consumption
  • Water Consumption
  • Repairs

Calculate the Machine Cost Rate

The energy costs are calculated to determine the machine hourly rate. This is done by taking machine-dependent parameters and multiplying them by the location cost parameters. The following values are calculated per year for the machine hourly rate calculation using the machine consumption and the location parameters:

Machine Consumption Location Parameters
  • Energy Consumption
  • Space
  • Gas Consumption
  • Water Consumption
  • Repairs
  • Resource Requirements
  • Auxiliary Material Requirements
  • Energy Costs
  • Space Costs
  • Gas Costs
  • Water Costs

 

 

Allocation Method

There are three ways to allocate the calculated costs of a machine to production per running hour:

Calculate Based On Economic Capacity Utilization 100%

The economic assumption is set to 100% by default. 100% of the utilizable capacity (net) is allocated to the machine cost rate.

Calculate Based On Economic Capacity Utilization

You can also use an alternative economic assumption, such as 80%. 80% of the utilizable capacity (net) is allocated to the machine cost rate.

Calculation Based on Capacity Utilization:

The actual utilizable capacity (net) is allocated to the machine cost rate.

Manual Input of the Machine Cost Rate

You can also directly input the machine cost rate. Use Estimation mode to access this feature. The cost rate is distributed evenly across the fixed and variable machine cost rate. If you also enter the fixed or variable machine cost rate, then the remainder is automatically distributed across the other machine cost rate.