# 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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