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How is material cost per part calculated in machined/cut from stock analyses in DFM Concurrent Costing?

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How is material cost per part calculated in machined/cut from stock analyses in DFM Concurrent Costing?

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When the workpiece is cut from bar stock, the total cost of the entire length of bar stock is calculated and divided by the number of workpieces cut from the length of bar stock. Material within the kerf generated during cutoff is accounted for when determining the number of workpieces cut from the length of bar stock. The value of scrap material generated during the cutoff operation is calculated and subtracted to calculate the workpiece cost per part. If machining then takes place on the workpiece, the software subtracts the final weight of the part from the workpiece weight to get this scrap weight, which is then multiplied by the scrap value, to further update the material cost per part. When machining is carried out after some other primary process, casting for example, the workpiece is set to “near net.” Under these circumstances the material cost is based on the workpiece weight estimated from the approximate envelope dimensions. The actual workpiece cost is set in the field “Co

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