Re: BPCS Cost-related Question

Dana,

I'm not sure I understand your user's statement of the problem. Set-up time
IS a constant for any routed operation. It does not change when the lot
size is changed. What DOES change is the setup time per unit of production,
which will (and should) affect costs, but not capacity planning. Setup
hours and completions can be reported for an operation independent of
reporting units complete.





"DANA M. BUKER 992-4724" <Dana.M.Buker@dupontpharma.com> on 09/27/99
10:53:44 AM

Please respond to BPCS-L@midrange.com

To:   bpcs-l <bpcs-l@midrange.com>
cc:    (bcc: Robert Abhalter/GR/CroweChizek/US)
Subject:  BPCS Cost-related Question




One of our Finance users asked the following:

We are having problems keeping the set-up time constant when we change
the lot size of an item.  This not only costs the item incorrectly, it also
messes up capacity planning data.  The coding options for costing and
reporting
labor in work centers are all based in some form or fashion on the number
of
units produced.  Set-up time does not relate to the lot/batch size, it's
constant.

Are there any BPCS users who may have a work-around for this?



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