How do you calculate parts kitting labor cost?

Multiply kits by the per-kit rate and the capture factor, then add fixed cost. Here 100 x $45 x 80% = $3,600 captured, plus $250 fixed = $3,850 total, or $38.50 per kit.

What does the capture or billable factor do?

It scales the variable labor to reflect utilization, chargeable share, or an efficiency haircut. At 80%, only $3,600 of the $4,500 theoretical labor is captured, which is why total lands at $3,850 with fixed cost.

Why include a fixed setup cost separately?

Setup — cart staging, line-side rack prep, WMS setup — happens once per run regardless of kit count. Keeping it separate ($250 here) means per-kit cost falls as volume rises, which the $38.50 per-kit figure reflects.

How does per-kit cost change with volume?

The variable part stays at $36/kit (45 x 80%), but the $250 fixed cost spreads thinner. At 100 kits it adds $2.50/kit for a $38.50 total; at 500 kits it would add only $0.50/kit.

Should the capture factor be over or under 100%?

Under 100% for utilization or efficiency losses (as in the 80% example). You would only exceed 100% to load in overtime premium or non-productive time, in which case relabel it as a burden factor.

Total cost vs per-kit cost — which do I quote?

Quote per-kit ($38.50) when pricing per pump or comparing to an outsource rate; use total ($3,850) when budgeting the whole run or approving a purchase order.

Pump, Compressor & Rotating Equipment Assembly calculator

Parts Kitting Labor Calculator

Parts kitting labor cost totals what it takes to stage and kit components for pump and compressor assembly, combining a variable per-kit labor rate with a fixed setup charge. Materials handlers, cell cost estimators, and lean planners use it to price the kitting operation and to see the true per-unit burden of feeding the assembly line. It matters because kitting is pure overhead until the pump is built — poorly costed kitting hides in indirect labor and quietly erodes cell margin. Applying a billable or capture factor to the variable labor lets you model utilization, chargeable share, or an efficiency haircut so the number reflects real, not theoretical, labor.

What this calculator does

Parts kitting labor cost totals what it takes to stage and kit components for pump and compressor assembly, combining a variable per-kit labor rate with a fixed setup charge.
Use it when parts kitting labor in pump, compressor and rotating equipment assembly is being put through a pump, compressor and rotating equipment assembly weighted-cost review.
It multiplies kit count by the per-kit labor rate and a capture factor, adds fixed setup cost for the total, and divides by kit count for a per-unit cost.

Formula used

Parts Kitting Labor cost = quantity × rate × capture factor + fixed cost
Per-unit parts kitting labor = total cost ÷ quantity

Inputs explained

Kits assembled:
Labor cost per kit:
Billable labor factor:
Fixed kitting setup cost:

How to use the result

Use it to price a kitting run, compare in-house versus outsourced kitting, or roll kitting labor into a pump assembly's fully burdened cost.
It assumes one blended per-kit rate; kits with very different part counts or pick complexity will be mis-costed by a single average rate.

Current U.S. benchmarks

Industrial electricity averages 8.66 cents per kWh across the U.S. (EIA, Apr 2026), up 5.5% from a year earlier. Energy-intensive steps carry this directly into unit cost.
Manufacturing hourly earnings average $30.27 (BLS, Jun 2026), up 4.4% from a year earlier. Median machinist pay is $28.24/hr (OEWS 2025), with state medians on each state page. Manufacturers have 529k open positions nationally (BLS JOLTS).
Steel mill PPI stands at 348.53 (BLS, May 2026), up 6.7% from a year earlier. New factory orders are up 2.3% year over year (Census).
The U.S. has 21,668 machinery manufacturing establishments employing about 1,086,146 workers (Census County Business Patterns, 2023).

Common questions

How do you calculate parts kitting labor cost? Multiply kits by the per-kit rate and the capture factor, then add fixed cost. Here 100 x $45 x 80% = $3,600 captured, plus $250 fixed = $3,850 total, or $38.50 per kit.
What does the capture or billable factor do? It scales the variable labor to reflect utilization, chargeable share, or an efficiency haircut. At 80%, only $3,600 of the $4,500 theoretical labor is captured, which is why total lands at $3,850 with fixed cost.
Why include a fixed setup cost separately? Setup — cart staging, line-side rack prep, WMS setup — happens once per run regardless of kit count. Keeping it separate ($250 here) means per-kit cost falls as volume rises, which the $38.50 per-kit figure reflects.
How does per-kit cost change with volume? The variable part stays at $36/kit (45 x 80%), but the $250 fixed cost spreads thinner. At 100 kits it adds $2.50/kit for a $38.50 total; at 500 kits it would add only $0.50/kit.
Should the capture factor be over or under 100%? Under 100% for utilization or efficiency losses (as in the 80% example). You would only exceed 100% to load in overtime premium or non-productive time, in which case relabel it as a burden factor.

Last reviewed 2026-05-12.