Bottling, Canning & Filling Lines worked example

Changeover Cost at 110% cost allocation share: a worked example

Push cost allocation share up to 110% and the picture changes. This example computes every intermediate figure at that operating point. a packaging line is changing package size, flavor, closure, label, can end, carton, tray, or case pattern

The inputs for this scenario

  • Changeover labor and machine downtime: 3.5 hours (unchanged)
  • Blended cost per changeover hour: 240 $ / unit (unchanged)
  • Cost allocation share: 110 % (raised for this scenario; the documented default is 100)
  • Fixed parts, purge and QA setup cost: 650 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Allocated packaging changeover cost = changeover labor and machine downtime × blended cost per changeover hour × allocation share) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,574 $ changeover cost for packaging changeover cost, the number this scenario is built around.
  • At this operating point the engine returns 450 $ / hr for blended cost per changeover hour.
  • At this operating point the engine returns 924 $ changeover cost for allocated packaging changeover cost.
  • At this operating point the engine returns 650 $ for fixed parts, purge, packaging, or qa setup cost.

How this compares with the baseline

  • Against the tool's baseline example, where cost allocation share sits at 100% and the headline result is 1,490 $ changeover cost, this scenario comes in 5.64% above the baseline at 1,574 $ changeover cost.
  • It computes total changeover cost by valuing changeover downtime at a blended hourly rate, applying an allocation share, and adding fixed setup costs. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Packaging changeover cost: 1,574 $ changeover cost (headline result)
  • Blended cost per changeover hour: 450 $ / hr
  • Allocated packaging changeover cost: 924 $ changeover cost
  • Fixed parts, purge, packaging, or QA setup cost: 650 $

Run it with your numbers

  • Every input above is editable in the live Changeover Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.