Randolph Kirchain and Frank R Field, Materials Systems Laboratory, Massachusetts Institute of Technology

PIZZA MAKING PROCESS-BASED COST MODEL

MIT - Materials Systems Laboratory
Jump to Sensitivity Analysis
PIZZA DESIGN
Pizza Thickness
Pizza Diameter
Pepperoni Thickness
Pepperoni Coverage
Cheese Density
Sauce Density

8
30
0.25
80%
0.3
0.25

mm
cm
cm
g/cm2
g/cm2

EXOGENOUS DATA
Annual Production Volume

50 (000/yr)

Facility Production Capacity

Product Life
Direct Wages (w/ benefits)
Working Days/Yr

100 (000/yr)
5 yrs
$15.00 /hr
240

Downtimes
No (i.e., none NOT No.) Operations
Planned Paid
Planned Unpaid

16 hrs/day
0.5 hrs/day
1 hrs/day

Discount Rate
Price, Building Space
Building Recovery Life
Price of Electricity
Price of Nat Gas
Accounting Life of Machine
Overhead Burden (% fc)

10%
$1,500 /sq m
30 yrs
$0.080 /kWh
$6.500 /MMBtu
20 yrs
35.0%

PROCESS INPUTS
Unplanned Downtime
Material Scrap Rate
Baking Reject Rate
Oven Cost
Capacity in Parallel
Load / unload time

1.50 hrs/day
2.0%
1.0%
$75,000
2 pizzas
30 sec

Pan Cost $ 50.00

Floor space
Energy Consumption (baking)
Cooking Target Centerline Temperature
Dough Temp
Oven Temp
Direct Laborers Per Prep
Dedicated Equipment (1/0)
Auxiliary Equip. Cost (% mmch)
Installation Cost (% mmch)
Maintenance Cost (% invc)

15
240,000
60
20
225

m2
btu/h
C
C
C

1
1 (1=y;0=n)
50.0%
20.0%
5.0%

Overrides
Total Cycle Time
0 sec

Food Characteristics
Pepperoni Stick Length
Pepperoni Stick End Trim
Pepperoni Diameter
Pepperoni Cost

60
1
2.5
$1.00

Dough Density
Dough Cost
Dough Thermal Diffusivity
Cheese Cost
Sauce Cost

0.8
$ 0.25
1.50E-08
$8
$3

cm
cm
cm
/stick
g/cc
/kg
/kg
/kg

0.50
0.5

Tab

PIZZA MAKING - COST SUMMARY

MIT - Materials Systems Laboratory
VARIABLE COSTS

per piece
$3.48
$0.08
$0.42
$3.97

per year
$173,963
$3,939
$20,834
$198,736

percent
63.96%
1.45%
7.66%
73.07%

Main Machine Cost

per piece
$0.63

per year
$31,714

percent
11.66%

Auxiliary Equipment Cost

$0.26

$13,214

4.86%

Tooling Cost

$0.00

$237

0.09%

Fixed Overhead Cost

$0.37

$18,314

6.73%

Building Cost

$0.14

$7,160

2.63%

Maintenance Cost
Total Fixed Cost

$0.05
$1.47

$2,616
$73,257

0.96%
26.93%

Total Fabrication Cost

$5.44

$271,992

100.00%

Material Cost
Energy Cost
Labor Cost
Total Variable Cost
FIXED COSTS

RELATED VARIABLES
Material Requirements:
Pizza Area
Pepperoni Area
Pepperoni per Stick

706.86
565.49
236.00
1,158.46

cm2
cm2
slices/stick
in2/stick

Annual Pepperonit Required

2
28,560,470 in
24,654 sticks
$24,653.78 /year

Pizza Dough

3,648.29
2,918.64
147,409
$36,852.15

Annual Dough Required

Cheese
Annual Cheese Required

cm3
g
kg/year
/year

212.06 grams/pizza
10,710.18 kg/year
85,681.41

176.71 grams/pizza
8,925.15 kg/year
26,775.44

Sauce
Annual Sauce Required

Process Calculations
Effective Production Volume
Effective Capacity
Capacity and Volume are Consistent?
Available Operating Time

50,506
101,011
1
1,200 hours / year

Effective Cycle Time (from below)

Required Operating Time (produced)
Required Operating Time (capacity)
Run-Time for One Machine (produced)
Run-Time for One Machine (capacity)
Number of Parallel Streams

90 secs / part
1,263 hours / year
2,525 hours / year
105%
210%
3.00

Paid Operating Time (available in year)

Actual Paid Operating Time (allocated)

1,320 hours / year

1,389 person-hours / year

Number of tools required

Required Building Space

18
45 sq m

Annual Energy Consumption

303 MMBtu

Cycle Time Calculations

Predicted
Cooking Time
Total Cycle Time (sec)

Used

150
180.0

Calculation workspace for estimating cycle time

x
t

4 mm
360 sec

Dough Temp
Oven Temp

20 C
225 C

Target Temp
Time to temp
thickness
alpha

60 C
150 sec
8 mm

potato = 1050 kg/m3

1050

180.0

c p,potato = 3.64 kJ/kgK

3.64

k potato = 0.55 W/mK

0.55

-7

potato = 1.510 m /s

3.00E-08

h = 400 W/m K
Temp (x,t)

99.8318579

erf

0.610576303

10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
270
280
290
300
310
320
330
340
350
360

99.8318579
20.00
20.05344958
20.58816814
22.01377139
24.28887419
27.17807223
30.44719926
33.91728038
37.46430322
41.00644335
44.49155806
47.88761881
51.17601605
54.35
57.40
60.32
63.13
65.83
68.41
70.88
73.26
75.54
77.73
79.83
81.85
83.79
85.66
87.47
89.21
90.88
92.50
94.07
95.58
97.04
98.46
99.83

Table for looking up cycle time

10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
270
280
290
300
310
320
330
340
350
360

370
380
390
400
410
420
430
440
450
460
470
480
490
500
510
520
530
540
550
560
570
580
590
600
610
620
630
640
650
660
670
680
690
700
710
720
730
740
750
760
770
780
790
800
810
820
830
840

101.16
102.45
103.70
104.91
106.09
107.24
108.35
109.44
110.49
111.52
112.52
113.49
114.44
115.37
116.27
117.15
118.01
118.8561345
119.6780362
120.4813571
121.2667774
122.0349433
122.7864694
123.5219406
124.2419137
124.9469193
125.6374634
126.3140285
126.9770751
127.6270432
128.2643531
128.8894066
129.5025881
130.1042656
130.6947914
131.2745031
131.843724
132.4027646
132.9519225
133.4914834
134.0217217
134.5429011
135.0552748
135.5590867
136.0545709
136.5419532
137.0214512
137.4932729

370
380
390
400
410
420
430
440
450
460
470
480
490
500
510
520
530
540
550
560
570
580
590
600
610
620
630
640
650
660
670
680
690
700
710
720
730
740
750
760
770
780
790
800
810
820
830
840

850
860
870
880
890
900
910
920
930
940
950
960
970
980
990
1000
1010
1020
1030
1040
1050
1060
1070
1080
1090
1100
1110
1120
1130
1140
1150
1160
1170
1180
1190
1200

137.9576203
138.4146877
138.8646624
139.307725
139.7440498
140.173805
140.5971532
141.0142511
141.4252504
141.8302977
142.2295346
142.6230981
143.0111208
143.393731
143.7710528
144.1432066
144.5103087
144.872472
145.229806
145.5824165
145.9304064
146.2738754
146.6129202
146.9476347
147.27811
147.6044346
147.9266943
148.2449726
148.5593505
148.869907
149.1767184
149.4798594
149.7794023
150.0754175
150.3679735
150.6571372

850
860
870
880
890
900
910
920
930
940
950
960
970
980
990
1000
1010
1020
1030
1040
1050
1060
1070
1080
1090
1100
1110
1120
1130
1140
1150
1160
1170
1180
1190
1200

PIZZA MAKING - Sensitivity Analysis

MIT - Materials Systems Laboratory
Var. Cost

Fixed Cost

Total Cost

investment
$270,000

1
5
10
15
20
25

$3.97
$3.98
$3.98
$3.98
$3.97
$3.97
$3.97

$1.47
$73.26
$14.65
$7.33
$4.88
$3.66
$2.93

$5.44
$77.23
$18.63
$11.30
$8.86
$7.64
$6.90

$112,500

30

$3.97

$2.44

$6.42

$900

40

$3.97

$1.83

$5.81

50

$3.97

$1.47

$5.44

60

$3.97

$1.22

$5.20

70
80
90
100
110
120
130
140
150

$3.97
$3.97
$3.97
$3.97
#N/A
#N/A
#N/A
#N/A
#N/A

$1.05
$0.92
$0.81
$0.73
#N/A
#N/A
#N/A
#N/A
#N/A

$5.02
$4.89
$4.79
$4.71
#N/A
#N/A
#N/A
#N/A
#N/A

Capacity
$5.44
100

200

$67,500
$338,400

Unit Cost
Production
Volume

1
25
50
75
100
125
150
175
200
225
250
275
300
325
350
375

$77.23
$6.90
$5.44
$4.95
$4.71
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

Effect of Produc
$20.00
$18.00
$16.00
Unit Cost ($ / piece)

Prod Volume

$14.00
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00

$0.00
0

300

400

500

$126.07 $174.91 $223.75 $272.59

$8.86 $10.81 $12.77 $14.72
$6.42
$7.39
$8.37
$9.35
$5.60
$6.25
$6.90
$7.56
$5.20
$5.68
$6.17
$6.66
$4.95
$5.34
$5.73
$6.12
$4.79
$5.11
$5.44
$5.77
$4.67
$4.95
$5.23
$5.51
$4.59
$4.83
$5.07
$5.32
#N/A
$4.73
$4.95
$5.17
#N/A
$4.66
$4.85
$5.05
#N/A
$4.60
$4.77
$4.95
#N/A
$4.54
$4.71
$4.87
#N/A
#N/A
$4.65
$4.80
#N/A
#N/A
$4.60
$4.74
#N/A
#N/A
$4.56
$4.69

400
425
450

#N/A
#N/A
#N/A

#N/A
#N/A
#N/A

#N/A
#N/A
#N/A

$4.52
#N/A
#N/A

$4.65
$4.61
$4.57

Cost Breakdown @ 50,000

Cost Breakdown By Element

100%
Fraction of Total Cost

Unit Costs
Material
$3.48
Other Var
$0.50
Equip
$0.90
Tooling
$0.00
Other Fixed
$0.56
Total Cost
$5.44

75%
50%
25%
0%

vity Analysis
s Laboratory
Unit Cost
Effect of Production Volume

Past
Mass

Var. Cost
Total Cost

20

40

60

Production Volume (thousands)

Effect of Production Vol & Capacity

$20.00
$18.00

Unit Cost ($/part)

$16.00
$14.00
100

$12.00

200

$10.00

300

$8.00

400
500

$6.00

$4.00
$2.00
$0.00
0

200

400

600

$5.44
10
13
16
19
22
25

Pizza Thickness
6
$2.33
$2.58
$2.90
$3.28
$3.73
$4.25

28

$4.83

31

$5.48

34

$6.19

37

$6.97

40

$7.82

10
13
16
19

6
$2.33
$2.58
$2.90
$3.28

22
25
28
31

$3.73
$4.25
$4.83
$5.48

34
37
40

$6.19
$6.97
$7.82

$0.00
0

200

400

600

Production Volume (parts/year)

By Element

Other Fixed
Tooling
Equip
Other Var
Material

1
5
10
15
20
25
30
40
50
60
70
80
90
100
110
120
130
140
150

$5.44
77.23468
18.62633
11.30068
8.858539
7.637663
6.904979
6.416655
5.806152
5.439849
5.195648
5.021218
4.890396
4.788645
4.707245
#N/A
#N/A
#N/A
#N/A
#N/A

1
5
10
15
20
25
30
40
50
60
70
80
90
100
110
120
130
140
150

Old
28.39702
8.858801
6.416918
5.602694
5.195779
4.951473
4.788733
4.58521
4.951473
4.788667
4.672378
4.585161
4.517325
4.707245
4.640645
4.585144
4.538182
4.497929
4.625836

New
77.23468
18.62633
11.30068
8.858539
7.637663
6.904979
6.416655
5.806152
5.439849
5.195648
5.021218
4.890396
4.788645
4.707245
#N/A
#N/A
#N/A
#N/A
#N/A

160

#N/A

160 4.585136

#N/A

170

#N/A

170 4.549225

#N/A

180

#N/A

180 4.517303

#N/A

190
200
210
220
230
240
250
260
270

#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

190
200
210
220
230
240
250
260
270

#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

4.488742
4.585131
4.55606
4.529632
4.505502
4.585128
4.560708
4.538167
4.517296

za Thickness
6.5
$2.33
$2.59
$2.91
$3.30
$3.76
$4.28

7
$2.34
$2.60
$2.92
$3.32
$3.78
$4.31

7.5
$2.34
$2.61
$2.94
$3.34
$3.81
$4.34

8
$2.35
$2.61
$2.95
$3.36
$3.83
$4.38

8.5
2.352296
2.622571
2.963352
3.374639
3.856433
4.408733

9
2.357415
2.631221
2.976455
3.393116
3.881206
4.440723

9.5
2.362533
2.639871
2.989558
3.411594
3.905979
4.472713

10
2.367651
2.648521
3.002661
3.430071
3.930752
4.504702

10.5
2.37277
2.657171
3.015764
3.448548
3.955524
4.536692

$4.87

$4.91

$4.95

$4.99

$5.53

$5.58

$5.63

$5.68 5.724853

$6.25

$6.31

$6.37

$6.43 6.488672 6.547841 6.607009 6.666177 6.725345

$7.04

$7.11

$7.18

$7.25 7.322998 7.393069 7.463139 7.533209 7.603279

$7.90

$7.98

$8.06

$8.15 8.227831 8.309724 8.391618 8.473512 8.555405

6.5
$2.33
$2.59
$2.91
$3.30

7
$2.34
$2.60
$2.92
$3.32

7.5
$2.34
$2.61
$2.94
$3.34

8
$2.35
$2.61
$2.95
$3.36

$3.76
$4.28
$4.87
$5.53

$3.78
$4.31
$4.91
$5.58

$3.81
$4.34
$4.95
$5.63

$3.83 3.856433 3.881206 3.905979 3.930752

$4.38 4.408733 4.440723 4.472713 4.504702
$4.99 5.03154 5.071668 5.111796 5.151924
$5.68 5.724853 5.77404 5.823228 5.872415

$6.25
$7.04
$7.90

$6.31
$7.11
$7.98

$6.37
$7.18
$8.06

$6.43 6.488672 6.547841 6.607009 6.666177 6.725345

$7.25 7.322998 7.393069 7.463139 7.533209 7.603279
$8.15 8.227831 8.309724 8.391618 8.473512 8.555405

5.03154 5.071668 5.111796 5.151924 5.192051

8.5
2.352296
2.622571
2.963352
3.374639

5.77404 5.823228 5.872415 5.921602

9
2.357415
2.631221
2.976455
3.393116

9.5
2.362533
2.639871
2.989558
3.411594

10
10.5
2.367651 2.37277
2.648521 2.657171
3.002661 3.015764
3.430071 3.448548
3.955524
4.536692
5.192051
5.921602

Working Area
x

11
2.377888
2.665821
3.028867
3.467025
3.980297
4.568682
5.232179
5.97079
6.784513
7.67335
8.637299

1 mm

Dough Temp
Oven Temp

20 C
225 C

Target Temp

60 C

thickness
alpha

5 mm

potato = 1050 kg/m3

1050

c p,potato = 3.64 kJ/kgK

3.64

k potato = 0.55 W/mK

0.55

-7

potato = 1.510 m /s

7.50E-09

h = 400 W/m K

11
2.377888
2.665821
3.028867
3.467025

20
60 20.58817
120 27.17807
180 37.4643

3.980297
4.568682
5.232179
5.97079

240
300
360
420

47.88762
57.39662
65.82632
73.25831

6.784513
7.67335
8.637299

480
540
600
660
720
780
840
900
960
1020
1080
1140
1200
1260
1320
1380

79.82736
85.66485
90.88461
95.5811
99.83186
103.7004
107.239
110.4908
113.4916
116.2716
118.8561
121.2668
123.5219
125.6375
127.627
129.5026

1440
1500
1560
1620
1680
1740
1800

131.2745
132.9519
134.5429
136.0546
137.4933
138.8647
140.1738

t
erf
Temp (x,t)
Target Temp @

9 sec
1.00
20 C
300 sec

100

90

80

20

10

60 113.4916 47.88762

25.1962 20.58817 20.03976

120 142.6231 79.82736

43.3385 27.17807 21.72364

180 156.7257 99.83186 60.32467

240 165.4246 113.4916
300
360
420
480
540
600
660
720
780

171.4709
175.9859
179.5227
182.3902
184.7759
186.8011
188.5483
190.0758
191.4261

123.5219
131.2745
137.4933
142.6231
146.9476
150.6571
153.8845
156.7257
159.2519

57.39662
65.82632
73.25831
79.82736
85.66485
90.88461
95.5811
99.83186
103.7004

39.59405
46.27005
52.58606
58.46464
63.89885
68.91157
73.53672
77.81084
81.76912

840 192.631 161.5173

132.77 107.239 85.44391
900 193.7149 163.5638 135.5591 110.4908 88.86438
960 194.6967 165.4246 138.1108 113.4916 92.05631
1020 195.5915 167.126 140.4567 116.2716 95.04244
1080
1140
1200
1260
1320
1380
1440
1500
1560
1620
1680
1740
1800

196.4115
197.1665
197.8646
198.5128
199.1166
199.6809
200.2099
200.707
201.1753
201.6176
202.0362
202.433
202.8099

168.6896
170.133
171.4709
172.7156
173.8773
174.9649
175.9859
176.9469
177.8535
178.7107
179.5227
180.2935
181.0264

142.6231
144.6316
146.5004
148.245
149.8785
151.4121
152.8558
154.2178
155.5056
156.7257
157.8838
158.985
160.0337

60

37.4643 26.44199

74.0283 47.88762 32.79352

85.04872
94.06864
101.5951
107.985
113.4916
118.2975
122.5378
126.314
129.7044

70

118.8561
121.2668
123.5219
125.6375
127.627
129.5026
131.2745
132.9519
134.5429
136.0546
137.4933
138.8647
140.1738

97.84281
100.475
102.9546
105.2953
107.5092
109.607
111.5983
113.4916
115.2945
117.014
118.656
120.2263
121.7297

50

40

30

20

10

0
0

200

60
120
180
240
300
360
420
480
540
600
660
720
780
840
900
960
1020
1080
1140
1200
1260
1320
1380
1440
1500
1560
1620
1680
1740
1800

2
113.4916
142.6231
156.7257
165.4246
171.4709
175.9859
179.5227
182.3902
184.7759
186.8011
188.5483
190.0758
191.4261
192.631
193.7149
194.6967
195.5915
196.4115
197.1665
197.8646
198.5128
199.1166
199.6809
200.2099
200.707
201.1753
201.6176
202.0362
202.433
202.8099

4
47.88762
79.82736
99.83186
113.4916
123.5219
131.2745
137.4933
142.6231
146.9476
150.6571
153.8845
156.7257
159.2519
161.5173
163.5638
165.4246
167.126
168.6896
170.133
171.4709
172.7156
173.8773
174.9649
175.9859
176.9469
177.8535
178.7107
179.5227
180.2935
181.0264

6
25.1962
43.3385
60.32467
74.0283
85.04872
94.06864
101.5951
107.985
113.4916
118.2975
122.5378
126.314
129.7044
132.77
135.5591
138.1108
140.4567
142.6231
144.6316
146.5004
148.245
149.8785
151.4121
152.8558
154.2178
155.5056
156.7257
157.8838
158.985
160.0337

8
20.58817
27.17807
37.4643
47.88762
57.39662
65.82632
73.25831
79.82736
85.66485
90.88461
95.5811
99.83186
103.7004
107.239
110.4908
113.4916
116.2716
118.8561
121.2668
123.5219
125.6375
127.627
129.5026
131.2745
132.9519
134.5429
136.0546
137.4933
138.8647
140.1738

10
20.03976
21.72364
26.44199
32.79352
39.59405
46.27005
52.58606
58.46464
63.89885
68.91157
73.53672
77.81084
81.76912
85.44391
88.86438
92.05631
95.04244
97.84281
100.475
102.9546
105.2953
107.5092
109.607
111.5983
113.4916
115.2945
117.014
118.656
120.2263
121.7297

6
8
10

200

400

600

800

1000

1200

Impact of Design Changes ($/pizza)

40

37

34

31

28

25 Pizza Diameter

22

19

16

13

10
6

6.5

7.5

8.5

Pizza Thickness

9.5

10

10.5

11

$8.0
0$10.
00
$6.0
0$8.0
0