Primary Direct Costs

Material cost and direct overhead cost are calculated using the formulas below.

Material Cost = (Part Volume *
Material Cost Per Volume / Utilization) / Final Yield

aPriori calculates the cost for material based on the following factors:

• Part volume (specified by required PSO; see Part Volume)

• Material cost per volume (see formula below)

• Material utilization rate (see Material Utilization)

• Final yield (see Yields)

Material Cost Per Volume =
Material Cost Per Mass * Material Density

Material cost per volume is the product of the following quantities:

• Material cost per mass (specified in the Material Selection dialog)

• Material density (listed in the Material Selection dialog)

Labor Cost = Labor Rate * Labor Time / Final Yield

Labor cost is the product of the following:

• Labor rate: this is the product of the following:

  • Machine property Labor Rate
  • Cost model variable laborRateAdjustmentFactor (1 in starting point Digital Factories)
  • Machine property Work Center Labor Rate Factor (1 in starting point Digital Factories)

• Labor time (see Times below)

• Final yield (see Yields)