RE: costing vs. capacity

["Damon, Mitch" <MDamon@xxxxxxxxxxxxxxxxx>]

I would suggest setting up a third work center with no labor requirements
then route both items through this work center to capture capacity.

Mitch Damon, CPIM
Planning Systems Manager
Agrilink Foods, Rochester NY
(716) 383-1070 ext. 250


-----Original Message-----
From:   Beth Norris [SMTP:BNorris@wittern.com]
Sent:   Wednesday, July 25, 2001 4:49 PM
To:     BPCS-L Mailing list (E-mail)
Subject:        costing vs. capacity

New question...

We are trying to set up standards for items that use the same work center.
The catch is that if we are building item A it requires 2 people, if we
build item B it requires 3 people (remember this is the same physical work
center).  The routing holds the pieces per hour that we can produce based on
the number of people required to do the job.  The work center holds the
labor rate for that work center used for computing the standard cost.

We were told to set up 2 different work centers so that the standard labor
rates could be loaded differently based on the number of people.  Work
center 1 would have the labor rate for 2 people and work center 2 the labor
rate for 3 people.  Item A routing would use work center 1 and Item B
routing would use work center 2.  Now when we run capacity gen...the system
sees this as 2 separate fully capable work centers (we have basically
doubled the capacity of this physical work center, when in fact we can't run
both at the same time.)  

How can we satisfy the requirements for the standard cost roll-up by item
without affecting the capacity?
Any ideas?

Beth A. Norris
Production Control Manager
Fawn Engineering
Des Moines, IA
bnorris@wittern.com

+---
| This is the BPCS Users Mailing List!
| To submit a new message, send your mail to BPCS-L@midrange.com.
| To subscribe to this list send email to BPCS-L-SUB@midrange.com.
| To unsubscribe from this list send email to BPCS-L-UNSUB@midrange.com.
| Questions should be directed to the list owner: dasmussen@aol.com
+---
+---
| This is the BPCS Users Mailing List!
| To submit a new message, send your mail to BPCS-L@midrange.com.
| To subscribe to this list send email to BPCS-L-SUB@midrange.com.
| To unsubscribe from this list send email to BPCS-L-UNSUB@midrange.com.
| Questions should be directed to the list owner: dasmussen@aol.com
+---