Example
This example shows how QMI’s Manufacturing Department sets up:
• Shop calendar with five eight hour days
• Department 0400 with a labor capacity of 8 hours/day
• Work center 1000 with a setup rate of $5.00/hour, a labor rate of $4.50/hour, and labor burden of 0.01%
• Routing with three operations:
Operation 10 (assembly) requires 0.5 hours setup time to get the components from the inventory room; additionally, per device, it requires 1.00 hour run time to assemble the ultrasound.
Operation 20 (test) requires 0.5 hour setup time, and a run time of 0.2 hours.
Operation 30 (pack) requires 0.5 hour setup time, and 0.06 run time.