CalculationSetup Cost per Order and per Part
Setup Cost per Order and per Part
Builds setup time from individual steps, prices it at machine and labor rates, and distributes it across the lot size.
How to use the result
The steps show where time is spent. Measuring them on an existing part nearly always identifies one or two steps with significant savings potential. This breakdown follows the SMED approach to setup-time reduction.
Setup costs are one-time costs per order, not unit costs. In quotations, always calculate them using the batch size to which the price applies.
Formulas
setup time = (basic setup + setups · time + tools · time + first part + tear-down) · sharesetup rate = machine hourly rate · occupied share + labour cost ratesetup cost = setup time / 60 · setup ratesetup cost per part = setup cost / batch size Sources: REFA methods (setup time tr, order time); Shingo: SMED, Single Minute Exchange of Die