Final answer:
The cost of lubricants for a production machine is part of the overall industrial productivity costs, factoring into variable costs alongside labor and machinery. It affects the efficiency and maintenance schedule, which contributes to determining the most cost-effective production plan considering labor and machine costs.
Step-by-step explanation:
The cost of lubricants used to grease a production machine in a manufacturing company can be considered a variable cost within the overall industrial productivity calculations. When determining this cost, we look at factors such as the type of lubricant needed, for example, the innovative powdered lubricants like NASA's PS300, which increases efficiency, lowers friction, reduces emissions, and generally requires a different cost assessment than traditional lubricants. The cost also integrates into the broader manufacturing cost, alongside labor and machinery investments. For instance, considering a scenario with a labor cost of $24 an hour and different combinations of labor hours and machine costs, the total production cost can significantly vary. However, if the lubricant leads to improved machine efficiency and requires less frequent applications, the initial higher cost may be offset by longer-term savings on maintenance and improved production rates.
Moreover, changing economic conditions such as labor negotiations or shifts in machine costs affect the overall manufacturing cost. For instance, if labor costs decrease to $20 an hour including benefits, the cost balance between labor and machines may shift. Similarly, if the cost of machines decreases, as in the case where the cost of a machine drops to $50, this would affect the total cost and potentially influence the decision on production methods. The goal for any manufacturing company is to streamline costs while maintaining or improving product productivity.