Cost per Pack Calculator
Work out the true cost of a single pack from material, labour, line speed, OEE and scrap — the number behind every pricing and margin decision.
Inputs
Result
A cost-per-pack floor from material, labour and scrap — add energy, depreciation and overhead for a fully loaded cost. See the Knowledge Base.
How to use itBuild a true cost per pack
- Enter the material costs — the film or web per pack, plus other materials such as the tray, label and gas.
- Enter labour and line speed. The line labour cost per hour divided by the good packs produced per hour gives the labour cost carried by each pack.
- Set OEE and scrap rate. These convert nameplate speed into real good output, and load the cost of scrapped packs onto the good ones — giving a realistic, not theoretical, cost per pack.
Why it mattersWhy cost per pack is the number that counts
Every pricing, tender and margin decision ultimately rests on what a single pack costs to produce. Yet the headline material price hides most of the story: a fast line with poor uptime, or a few percent of rejects, can quietly add more to the pack cost than the choice of film. Breaking the cost into material, labour and scrap — and grossing up for real output rather than nameplate speed — shows where the money actually goes and which lever (a cheaper film, higher OEE, lower scrap or faster labour) moves the number most.
The mathsThe formulas
Labour per pack = labour cost per hour ÷ good packs per hour
Base cost = material + labour
Total per pack = base cost ÷ (1 − scrap)
OEE (overall equipment effectiveness) discounts the nameplate speed for availability, performance and quality losses, so the good-pack rate reflects what the line really delivers. Dividing labour cost by that rate spreads the operator cost across good packs only. Finally, dividing by (1 − scrap) grosses the cost up so that the packs which do ship carry the cost of the ones that were thrown away.
Where the cost hidesThe levers that move cost per pack
Material is the obvious lever — down-gauging the film or switching web can cut it directly — but on many lines uptime and scrap matter just as much. Lifting OEE from 60% to 80% cuts the labour per pack by a quarter; halving a 6% reject rate removes both the wasted material and the grossing-up penalty. Model each in turn to see which is worth chasing on your line. For the material side, see the film usage calculator and the material guides.
FAQFrequently asked questions
How do I calculate cost per pack?
Add the material cost per pack to the labour cost per pack, then gross up for scrap. Labour per pack is the line's hourly labour cost divided by the number of good packs it produces per hour, which depends on speed, OEE and reject rate.
Why include OEE in cost per pack?
Because nameplate speed is not real output. Overall equipment effectiveness discounts speed for downtime, minor stops and quality losses. Using it means the labour cost is spread over the packs the line actually makes, not the packs it could make in theory.
How does scrap affect the cost per pack?
Scrapped packs consume material and machine time but generate no revenue, so their cost must be carried by the good packs. Dividing the base cost by (1 − scrap rate) loads that waste onto the packs that ship, which is why even a few percent of rejects noticeably raises the cost.
What costs does this calculator leave out?
It covers material, labour and scrap — the variable costs most sensitive to line performance. A fully loaded cost would add energy, machine depreciation, maintenance, floor space and general overhead, which you can layer on top of this figure.
What is the fastest way to cut cost per pack?
It depends on the line, which is the point of modelling it. Down-gauging film cuts material directly; raising OEE cuts labour per pack; reducing scrap cuts both material and the grossing-up penalty. Change each input in turn to see which moves your number most.