Can’t make everything the market wants? Enter products, demand and the time each takes on the machines that limit output, and see how much of each item to make to earn the most with the hours you have, and what each extra hour is worth.
Pre-sizing and estimating tool: results do not replace design, calculations or reports signed by a licensed professional, nor verification against the applicable codes and standards.
Current mix, optimal mix and maximum demand, in units per month.
Hours used as % of hours available, for each mix option.
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It is deciding how much of each product to make in the month when the machines cannot meet all demand. Instead of following percentage margin or price, the calculator looks for the mix that earns the most contribution with the hours available at the resources that limit output (Theory of Constraints and linear programming).
Because that rule is exact only when a single resource limits output. In the example, the press brake and welding are both full: ranking by margin per press brake hour (safety guard first) jams welding and earns $52,980 of contribution, against $63,840 for the optimal mix found by linear programming.
The optimal mix is 300 enclosures, 240 shelves, 900 brackets and 200 guards a month. Contribution rises from $51,900 (current mix) to $63,840, and profit after $45,000 of fixed expenses from $6,900 to $18,840 a month. The laser cutter keeps 38.7 h of slack.
It is how much profit rises with 1 more hour at the resource. In the example, 1 more press brake hour is worth $127.71 and 1 more welding hour $50.57; the laser cutter, which has slack, is worth zero. Overtime or outsourcing pays if it costs less than that per hour, and the same figure is the cost of every hour of downtime there.
Net price: list price less sales taxes, commissions and freight. Variable cost: cost sheet (material, packaging, power, outside work per part). Demand: order book, forecast or sales history. Times: routing or time study, in minutes per unit with setup spread over the batch. Available hours: monthly shift hours × the resource’s OEE.
To secure contracted orders, key accounts or spare parts that must ship even at a low margin. The calculator makes at least that minimum and only then spreads the remaining hours. If the minimums do not fit, it shows how many hours are missing at each resource.
It assumes constant time and margin per unit, available hours already net of losses and fixed expenses that do not change with the mix. It ignores sequence-dependent setups, minimum batches, inventory and due dates within the month; results may come out fractional and should be rounded down. Use capacity planning and job sequencing to check the plan.
Important notice: Indus Metrics tools produce estimates and pre-sizing results from the data you enter and from published engineering methods. They do not replace design, calculations or reports signed by a licensed professional engineer (PE), nor verification against the applicable codes, standards and regulations, such as OSHA rules and the ASME codes. Material and fuel properties vary: check manufacturer data or your own process analyses before deciding. By using this site you agree to the Terms of Use.
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