Setting Up Work Centers
A work center identifies a group of resources (people, machines, production lines, and so on) that are capable of doing the same processes. Labor and burden rates are specified at the work-center level.
For more information on work centers, see
QAD Manufacturing User Guide.
Use Work Center Maintenance (14.5) to define labor and burden rates. The fields that are of particular importance from a costing perspective are the following:
Machines/Op
Used in calculating burden costs. This value indicates the number of machines at this work center that can work at the same time to process a given operation.The setup labor rate is multiplied by this number to determine the machine burden from setup cost.
Machine Burden Rate
Used in calculating burden costs. This is the burden rate per hour applicable to machine run time and setup at this work center. Standard machine burden cost at the operation is calculated as:
(Setup Time / Order Quantity * Routing Machines per Op + Run Time) * Work Center Machine Burden Rate
Setup Rate
The standard hourly labor rate for personnel who perform setup functions in the work center. Used in calculating labor and labor burden.
Labor Rate
The standard hourly labor rate for personnel who run operations at this work center. Used in calculating labor and labor burden.
Labor Burden Rate or Percentage
The labor burden rate or percentage per hour applicable to both setup and run time at this work center. Used in calculating labor burden.