Routing Maintenance

In Routing Maintenance (14.13.1), enter a routing code, which is typically the item number, and the first operation. (For rate-based routings use Routing Maintenance Rate Based (14.13.2)). The important fields for costing are:

Defines the setup, labor, and burden rates to be used in calculating cost at this operation

Used in cost calculations. Defaults from work center and can be modified. Affects setup cost only; does not affect run cost.

Used only in Advanced Repetitive to identify operations for labor and material. If Yes, then reporting of completions, labor, and non-standard components is permitted. Prior non-milestone operations will also be backflushed for labor and components. See the Advanced Repetitive Costing training guide.

The amount of time in decimal hours that it takes to set up the work center to run the standard lot size of this product.

• If you are using setup times, you need to distribute the cost of the setup normally over more than one unit of product. You can do this by determining a standard lot size for the product and then entering that lot size in the Order Quantity field of item planning, Item Master Maintenance (1.4.1), Item Planning Maintenance (1.4.7), or Item Site Planning on Maintenance (1.4.17).

• A method variance will occur if the actual order size is different than the Order Quantity field in item planning (work orders). Setup labor and burden usage variances will be generated in Advanced Repetitive.

• If setup is not to be included in the cost, leave this setting (or setup rate) at 0.00

The amount of time in decimal hours that it takes to produce one unit of this product. Note: You can use Routing Maintenance (Rate Based) (14.13.2) to specify units per hour rather than run time).

Used to move old operations out and new ones into a routing for historical purposes. The roll-up process will roll up costs for only those operations in effect for the date specified in the roll-up screen.

The expected percentage of acceptable units that will be completed at this operation. The expected yield for an operation can be expressed as:

The total manufacturing yield for a product is determined by multiplying the yield percentages for each of its operations.

The standard cost per unit that subcontractors charge to perform this operation. Subcontract Cost is discussed in more detail later in the course.

Use Item Planning Maintenance (1.4.7) or Item Site Planning Maintenance (1.4.17) to specify the Routing Code to be used for an item. For example it is common for the same item manufactured at two sites to use site specific routes, which might call for different work centers or different run times.

Labor costs are calculated from the item’s routing. The total labor cost is the combined cost to set up the operation and the cost to run that operation.

• Setup cost is the setup time multiplied by the setup rate at the work center. Since the work center only has to be set up once, the total setup cost is divided over all of the items in a batch - identified by the item’s order quantity specified in Item Master Maintenance (1.4.1), Item Planning Maintenance (1.4.7), or Item Site Planning Maintenance (1.4.17). If no order quantity is entered for an item, it defaults to one.

• Setup Cost = Setup Hrs/Order Qty * WC Setup Rate

• Run Cost = Run Hrs per unit * WC Labor Rate

• Total Cost = Setup Cost + Run Cost

Burden costs apply to both setup and run time. Labor burden is calculated as a rate per labor hour and/or a percentage of the total labor cost. This is most commonly used in a labor-intensive environment. Both types of burden can be applied: as a rate per hour and/or as a percentage of labor cost.

• Setup Labor Burden Rate =

• Setup Labor Burden Percent =

[(Setup Hrs / Order Qty) * Work Ctr Setup Rate * Work Ctr Lbr Burden%] / Item Yield% Run Labor Burden Rate =