Machine Hour Rate – Made Easy
What is MHR?
Machine Hour Rate or MHR is the cost of running a machine per hour. It is one of the
methods of absorbing factory expenses to production
250T Press Brake
MHR
MHR % Contributors Overview Cost:
Fixed Cost
M/c & End of MHR Cost 26%
₹ 319.06
Labour
Installatio Life Example – I - 250T Press Brake M/c cost
n Cost Value Drivers 39% Electricity
Cost
Cost Drivers Breakup: 29%
Interest No. of
1. Fixed Cost : ₹ 83.23. Repair and Maintenance
& 6%
Insuranc
Hours 2. Power consumption : ₹ 93.35
e Working 3. Repair and Maintenance : ₹ 17.48
VMC – Vertical M/cing Centre
4. Utilized Labor Cost : ₹ 125
Repair MHR
and
Space Example - II - VMC Labor Cost
Cost 23% Cost:
Maint.
Fixed Cost ₹ 345.28
Cost Drivers Breakup : 28%
1. Fixed Cost : ₹ 117.75
Power
Labor 2. Power consumption : ₹ 74.88
Consumpt
Cost Repair and Energy
ion 3. Repair and Maintenance : ₹ 131.37 Maintenance Cost
4. Utilized Labor Cost : ₹ 96.15 31% 18%
Book your Demo for more insights -Babit Sharma: [email protected] +91 9779834085 www.CostMasters.in
Machine Hour Rate – Made Easy
A good MHR calculation =
Finance + Technical
Intelligent Cost Estimator standardizes
the inputs parameters and calculations
to reach MHR without effort and
consistency. Built in machines act as
benchmark to work out inputs.
MHR & Cycle Time evaluation path to Optimal Process
Cost Calculation – Guesses & following Benchmark prices restrict
you to realize full cost potential.
Process Cost = MHR x Cycle Time
ICE helps you accurately calculate both the factors and achieve your
Goal of right process cost calculation
Book your Demo for more insights -Babit Sharma: [email protected] +91 9779834085 www.CostMasters.in
