Cost per hour

 

Value for cost of cutting time

 

The program aims to reduce the overall cost of cutting by correctly balancing the cost of cutting time against the cost of material.

 

More complex patterns usually reduce waste but increase cutting time.

 

Therefore enter a realistic figure for the machine cost if the program is to work effectively. Enter the cost as a 'Machine Cost per Hour' in money units to two decimal places. For example, 120.60 dollars per hour, 75.86 pounds sterling per hour.

 

Base the machine cost on the full running cost of the saw, including allowances for maintenance, depreciation, labour costs (operators), and an overhead recovery rate. The precise costing and factors considered will vary from company to company, but for example:-

 

Running cost of Saw            132.50 per hour

1 operator                      12.50 per hour

Overhead recovery rate          12.75 per hour

                               ------

Total machine cost             157.75 per hour

 

The overall goal of all the optimisers is to produce parts with the lowest cost per square unit of yield (cost per area). This is defined as:-

 

cost per area = total material cost + total machine cost

        -----------------------------------------

            total area of parts produced

 

This is the most effective way of comparing optimiser results, especially when overproduction is allowed, since it gives the cost of producing each part.


See also