CalculationProduction Hourly Rate (Machine and Operator)
Production Hourly Rate (Machine and Operator)
Combines machine hourly rate and labor cost into a rate per production hour, including multi-machine operation.
How to use the result
With multi-machine operation, labour is not counted twice: each machine carries only the share of the operator time it actually consumes. Estimate this share from a work-sequence chart or multi-moment study.
Setup and manual work fully occupy the operator. If the machine is idle during this work, include its rate as well; if setup takes place away from the machine, use a lower machine share in setup costs.
Formulas
manufacturing hourly rate = machine hourly rate + labour cost rate · operator sharerate for setup = machine hourly rate + labour cost ratecharge-out rate = rate · (1 + remaining overhead) · (1 + profit) Sources: VDI 3258 Part 1 (cost accounting using machine-hour rates); REFA methods (multi-machine work)