Manufacturing guide | Matics https://matics.live/manufacturing-guide/ Connected Worker Platform & Real-time Manufacturing Analytics Thu, 09 Nov 2023 09:18:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 How to Calculate Cycle Time https://matics.live/manufacturing-guide/how-to-calculate-cycle-time/ Mon, 24 Apr 2023 09:07:07 +0000 https://matics.live/?post_type=manufacturing-guide&p=5880 Manufacturing cycle time is the total amount of time that it takes to create a finished product. This includes everything from the time the raw materials are purchased until the completed product comes off the assembly line.  Cycle time consists of two types of hours – productive and non-productive. Productive hours include the process time, […]

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]]> How to Calculate OEE https://matics.live/manufacturing-guide/how-to-calculate-oee/ Mon, 24 Apr 2023 09:06:32 +0000 https://matics.live/?post_type=manufacturing-guide&p=5881 OEE, or overall equipment effectiveness, is the best way for a factory to measure its productivity. Measuring OEE involves looking at 3 factors: availability, performance and quality.  OEE = availability * performance * quality  Availability refers to the time that each machine is actually up and running as compared to the amount of time that […]

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]]> How to Calculate Product Cost https://matics.live/manufacturing-guide/how-to-calculate-product-cost/ Mon, 24 Apr 2023 09:05:49 +0000 https://matics.live/?post_type=manufacturing-guide&p=5882 Calculating product cost is important for factory management to understand the expenses involved in creating a specific product. As opposed to the total production cost, which reveals the overall costs of the entire production line, product cost looks at one product at a time and enables management to compare and contrast the expenses created by […]

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]]> How to Calculate Direct Material Cost https://matics.live/manufacturing-guide/how-to-calculate-direct-material-cost/ Mon, 24 Apr 2023 09:05:28 +0000 https://matics.live/?post_type=manufacturing-guide&p=5883 Direct material cost is the total cost to a company of all of the raw materials needed to manufacture products. It includes the cost of the materials themselves as well as related costs like packaging, transportation, storage, etc. The components included in calculating the direct material cost are: Raw material cost – this is the […]

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]]> How to Calculate Production Cost https://matics.live/manufacturing-guide/how-to-calculate-production-cost/ Thu, 20 Apr 2023 11:18:37 +0000 https://matics.live/?post_type=manufacturing-guide&p=5879 Total production cost is the total cost of the entire production line and includes the costs of the three major components involved in manufacturing a product: direct materials, direct labor, and overheads. The exact formula is: Total production cost = direct materials + direct labor + overheads Each component of the formula has to be […]

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]]> How to Improve the Manufacturing Process https://matics.live/manufacturing-guide/how-to-improve-the-manufacturing-process/ Thu, 20 Apr 2023 10:01:57 +0000 https://matics.live/?post_type=manufacturing-guide&p=5875 Improving the manufacturing process is a crucial step in achieving production line efficiency and ensuring that the factory is working at its optimal capacity. There are many strategies that manufacturers can employ in order to improve process quality and optimize production. Following are several steps that can be taken to improve efficiency and productivity in […]

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]]> How to Find Total Manufacturing Costs https://matics.live/manufacturing-guide/how-to-find-total-manufacturing-costs/ Thu, 20 Apr 2023 09:57:32 +0000 https://matics.live/?post_type=manufacturing-guide&p=5873 Total manufacturing cost is the measure of exactly how much it cost the company to produce its final products. Calculating total manufacturing costs takes into account all costs that are accrued throughout the entire production process beginning with the purchase of raw materials and ending with the final product. The total manufacturing costs formula is: […]

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]]> How to Calculate Manufacturing Overhead Cost https://matics.live/manufacturing-guide/how-to-calculate-manufacturing-overhead-cost/ Thu, 20 Apr 2023 09:54:35 +0000 https://matics.live/?post_type=manufacturing-guide&p=3852 GAAP (generally accepted accounting principles) dictates that the total cost of finished goods and works in progress that manufacturers include on their balance sheet and cost of goods income statement must include manufacturing overhead cost.  What are Overhead Costs? Manufacturing overhead includes the total amount of indirect costs involved in production, and usually includes line […]

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]]> How to Calculate Production Efficiency https://matics.live/manufacturing-guide/how-to-calculate-production-efficiency/ Thu, 20 Apr 2023 09:51:51 +0000 https://matics.live/?post_type=manufacturing-guide&p=5871 Production efficiency is a metric that every manufacturer should be monitoring closely. It considerably impacts your bottom line, as it highlights how much production you’re achieving based on your available capacity and resources. It’s important to ask, “How to calculate production efficiency?” to ensure you’re accurately gauging this essential indicator for your operations. What Is […]

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]]> How to Increase Throughput https://matics.live/manufacturing-guide/how-to-increase-throughput/ Wed, 14 Dec 2022 13:26:25 +0000 https://matics.live/?post_type=manufacturing-guide&p=3850 Throughput is one of the most important metrics to track for your processes. Manufacturers are always asking, “How to increase throughput?” but the answers are rarely obvious and are often complex. However, the right manufacturing strategies can help your operations increase throughput and enjoy the increased productivity and profitability that come with it. What Is […]

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