## Please Help - Manufacturing gaskets material cost breakdown

## Please Help - Manufacturing gaskets material cost breakdown

(OP)

Hello,

I was hoping to get a little bit of help with figuring out cost calculations during the manufacturing process of Gaskets.

I have a program that estimates the cost to produce a part then breaks it down into total material & labor cost.

Here’s what I know: (Everything is in inches)

Total Sell Price of material / Total Sq.In. needed = Cost per sq.in.

Cost per sq in. x sq.in per each = Material Cost per each

What I can’t figure out is how the total sell price was calculated. I’m unfamiliar manufacturing gaskets, and feel that I’m missing something in the setup process.

This is the problem I’m working with.

SETUP:

Labor Rate Per Hour: $50.00

Parts Per Hour (Cutting Ratio): 0075

Cutting Allowance (Spacing): 0.15

Thickness: 1/16

MATERIAL:

316L Stainless

Width: 48in

Length: 96in

Thick: 1/8

Cost per sq.in: $0.1111

Cost per unit: $512.10

DIE CUT GASKET TO MAKE:

Shape: Circle

Outer Dia: 2.25

Inner Dia: 1.062

QTY: 100 Pieces

NOTE: Single Part produced per cut

Parts Per Hour 132

Total Time: 0.76 Hours

NOTE: No Credit Allowed for Centers

Program Generated Results:

Material Cost Per Each : $0.6399

Labor Cost Per Each: $0.3788

Per Gasket Cost: $1.187

Here’s what I calculated:

SqIn Per Part: 3.09

Total Sq. In Needed: 309.027

Cost Per Sq. In: .207

Total Sell Price: 63.99

Cost: per each: $0.639

I was able to find the Total Sell Price ($63.99) through reversing the Cost per sq. in.

Again, I’m not familiar with manufacturing processes, and am not the best at math….so my calculations could be way off.

If anyone can help, I would be extremely grateful!!

Thanks - Nicole

I was hoping to get a little bit of help with figuring out cost calculations during the manufacturing process of Gaskets.

I have a program that estimates the cost to produce a part then breaks it down into total material & labor cost.

Here’s what I know: (Everything is in inches)

Total Sell Price of material / Total Sq.In. needed = Cost per sq.in.

Cost per sq in. x sq.in per each = Material Cost per each

What I can’t figure out is how the total sell price was calculated. I’m unfamiliar manufacturing gaskets, and feel that I’m missing something in the setup process.

This is the problem I’m working with.

SETUP:

Labor Rate Per Hour: $50.00

Parts Per Hour (Cutting Ratio): 0075

Cutting Allowance (Spacing): 0.15

Thickness: 1/16

MATERIAL:

316L Stainless

Width: 48in

Length: 96in

Thick: 1/8

Cost per sq.in: $0.1111

Cost per unit: $512.10

DIE CUT GASKET TO MAKE:

Shape: Circle

Outer Dia: 2.25

Inner Dia: 1.062

QTY: 100 Pieces

NOTE: Single Part produced per cut

Parts Per Hour 132

Total Time: 0.76 Hours

NOTE: No Credit Allowed for Centers

Program Generated Results:

Material Cost Per Each : $0.6399

Labor Cost Per Each: $0.3788

Per Gasket Cost: $1.187

Here’s what I calculated:

SqIn Per Part: 3.09

Total Sq. In Needed: 309.027

Cost Per Sq. In: .207

Total Sell Price: 63.99

Cost: per each: $0.639

I was able to find the Total Sell Price ($63.99) through reversing the Cost per sq. in.

Again, I’m not familiar with manufacturing processes, and am not the best at math….so my calculations could be way off.

If anyone can help, I would be extremely grateful!!

Thanks - Nicole

## RE: Please Help - Manufacturing gaskets material cost breakdown

( Some gasket shapes can be nested to save material, but in the general case it's not possible. )

Note also that no law anywhere forces you to compute the sell price from your costs; it can be entirely arbitrary. The only reason to compute costs at all is to check that you are not losing money.

Mike Halloran

Pembroke Pines, FL, USA