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Pre-calculation

Before we decide to invest into any machine or system, we should try to get a detailed insight to its cost structure. If we use the same scheme for calculation for different options, we can compare the costs of them. So, the calculation scheme is important. Traditionally, we use the engineering formula, which has fife cost elements: depreciation, interest costs, repair costs, variable costs and labor costs.

But before we start to calculate the costs of any sub-process, we need to get an overview over the cost structure of the total process. To do this, we must build up the tree of calculations.

(See more at TDiv PR1-C01)

 


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