Re: BPCS Cost-related Question

[Zzbpcs@xxxxxxx]

You wrote:
<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.

Allow me to respond:
The Set-Up time in the routing is a fixed amount of time regardless of the 
shop order quantity. It is a fixed amount of time to 'set-up' the operation 
everytime
the item is made. For Capacity reports, it is always a fixed amount of time.
The 'Problem' usually occurs when you you try to apply the cost
of setup to the unit cost of the item being produced. BPCS takes the total 
setup dollars and divides it by the 'usual' or 'standard' or average' 
quantity produced.
This quantity is known as the Lot Size and is either the one in the Item 
Master
or in the Item/Facility if running by facility. When a shop order is 
closed/costed,
the setup time is divided by the quantity produced ( not by the lot size).
Why are you changing the standard Lot Size ?
Jim Barry
ZZBPCS@AOL.>COM
413-283-9912
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