Dimensions of WF Cost Roll Up Formula

2012-06-19
2013-03-07
  • Frankie Figs
    Frankie Figs
    2012-06-19

    Hello,

    The set of formulas for the Manufacturing Workflow Cost Roll Up is the following (This has been taken from the description field of Manufacturing Management || Standard Costing Management || Workflow Cost Roll-Up):

    Labor Cost Operation = (Setup Time / Qty Batch Size) * Duration * Labor Rate to this Resource
    Overhead Cost Operation = (Setup Time / Qty Batch Size) * Duration * Overhead Rate to this Resource

    Labor Cost Workflow = Sum of every the Labor Cost Operation
    Overhead Cost Workflow = Sum of every the Overhead Cost Operation

    Cost Workflow = Labor Cost Workflow + Overhead Cost Workflow

    Observation:

          IF we assume the following set of units for the corresponding variables:

          Labor Rate to this Resource = $/min,
          Duration        = min,
          Setup Time   =  min,
          Qty Batch Size = lbs
         
          THEN

           Labor Cost Operation = (min*$$) / Lbs.

    Why are the units for this operation defined as such? Is their a mistake in the unit assumptions I made?

    Regards,

     
  • Hi Frank!

    A manufacturing workflow can be defined in different time units   (Hours, Minutes, Seconds) this allows you to define operations in the most appropriate according to the process.

    The Manufacturing resource is defined with a unit opración per hour, So the system performs necessary calculations to convert from  duration unit to hour  and these are multiplied by the hourly rate.

    kind regards
    victor.perez@e-evolution.com

     
  • Frankie Figs
    Frankie Figs
    2012-06-26

    The Great Victor!

    Thank you for time!

    So now I wonder the following:

    1. How do I define the operations per hour for the Manufacturing Resource?
    2. How do I define the Hourly rate for this resource?

    Regards,