Re: FOD Costs

[Zzbpcs@xxxxxxx]

Al writes:

"Machine Load codes should come with valid machine rates & 0 labor rates
Labor Load codes should come with valid labor rates & 0 machine rates
Hours should be reported in concert with the type of work center loading.
If reported against the wrong kind, then there should be an error message to 
block input of the wrong kind."
and
"why can't the 600 program take the fact of R or M user input 
& just get the right code from work center & plug it in without harrassing 
the data entry person?"

I have a client who needs all 3 kinds of hours in the Routing File ( Setup, 
Run, Machine) and has different dollars per hour in the Workcenter File for 
each type of hour. ( Someone sets up the machine, someone else runs the machine 
for "awhile", then the machine runs unattended overnight). BPCS Cost system 
properly handles this.
The "problem" arises because the Capacity Load Codes do not allow all 3 kinds 
of hours to be accumulated for calculating the load on a workcenter.We are 
forced to choose which types of hours are most important to count when 
determining our capacity for work in the workcenter. But the Capacity Load 
Codes (page 1 of the workcenter maintenance) do NOT have to match the Cost Load 
Codes on page 2. In fact, you can have a routing operation with all 3 kinds of 
hours but only cost 2 of those kinds of hours and capacity plan the 3rd. Or any 
combination. This allows the planning folks to put in "how long does it usually 
take (in 1/2 day increments perhaps)for scheduling purposes" and allows the 
cost accountants to put in "how many human-hours
at 27.25 an hour does this operation take".
We all know that the accountants & the planners OUGHT to be using the same 
hours ( "just tell the system the truth for crying out loud ! " )....but...

This is a case where the system's "flexibility" may have led to 
misunderstanding and confusion.

And on a broader philosophical note....
Why do we still need to enter Actual Hours per operation? Many companies have 
gone to backflushing labor as well as material. As one CFO asked "Why are we 
spending money to track the cost of labor ? Don't we know what our labor costs 
are ??"
 
Jim Barry
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