Basic Cost Calculation by kbxssk1

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									Basic Cost/Unit Calculation


     Cost/Unit,Headcount,Labor
           Rate,Takt time
  Formulations
Cost/unit=(Headcount x Takt Time) x Labor Rate
          =(Headcount x 1/CPH) x Labor Rate
          =(Assy time) x Labor Rate

Headcount= Assy Time(min.)/Takt time(min.)
Takt time(hr)= 1/CPH(components output per hour)
Labor Rate= $/hr
CPH = Throughput (Output per hour)
ROIC Calculation


        Operating Profit,Tax
      ,Inventory,Asset,AR,AP
  Formulations
ROIC % = (OP-Tax)__________
         (AR-AP+Inv+Assets)

OP=Operating Profit
Tax=Tax Amount(Tax Rate ~15%-30% x Profit)
AR= Account Receivables
AP= Account Payable
Inv=Inventory Amount(Whole Supply Chain)
Assets= Capitalised Equipment/Tools/Building
Supply Chain=SKD(Partial Consign),Buy/Sell,FCA,DDU
Weighted Average Cost Account
           (WACA)

     Cost element,Weighted %
MACRO application
Macro Application

• Tools>Record Macro New>”Stop
  Recording”
• Tools>Macro>Macro1>Run
• View> Toolbar>Control Toolbox
Cost of Capital calculation(CoC)


        BOM,Pack,Ship,Mfg
  Formulations
Cost of Capital= BOM + Pack +Ship+Mfg
               = (BOM +++)

BOM = Build of Materials as per product spec.
Pack = Packing Materials as per product spec.
Ship = Ship Materials as per shipping spec.
Mfg = Manufacturing labor cost as per
       production process spec. + Manufacturing
             overhead cost
  Formulations
Cost of Capital Target = 12.5%


Inventory = (BOM+++) x LTV/365 x Inv.Days x 12.5%
                 LTV

LTV=Annual Volume of the products plan
BOM=BOM ($/unit)
Inv.Days=365/Inv.Turns per year

								
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