Pump, Compressor & Rotating Equipment Assembly worked example

Parts Kitting Labor at 58% billable labor factor: a worked example in pump, compressor & rotating equipment assembly

Here is what the math looks like when conditions slip. We hold every other input steady and drop billable labor factor to 58%, then walk the calculation through step by step. 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.

The inputs for this scenario

  • Kits assembled: 100 units (held at the documented default)
  • Labor cost per kit: 45 $ / unit (held at the documented default)
  • Billable labor factor: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed kitting setup cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Parts Kitting Labor cost = quantity × rate × capture factor + fixed cost.
  • Weighted cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 28.6 $ / piece at these inputs.
  • Captured value works out to 2,610 $ at these inputs.
  • Fixed adjustment works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where billable labor factor sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to billable labor factor, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. 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.

Results at a glance

  • Weighted cost: 2,860 $ (headline result)
  • Per piece value: 28.6 $ / piece
  • Captured value: 2,610 $
  • Fixed adjustment: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Parts Kitting Labor calculator, set billable labor factor to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.