Re: costing vs. capacity

[MacWheel99@xxxxxxx]

We are not making much use of CAP other than to see hours load.
Most of our planning is via MRP.
Our shop floor is managed by MRP JIT SFC INV
We use DRP purely within the PUR & ORD departments.

You are correct that 
costing veracity 
depends on correctly setting up a lot of engineering & other things,
and that
scheduling, so that we do not fall behind in production,
ansl
depends on correctly setting up a lot of engineering & accuracy in other 
areas,
so that work centers & other areas have to be setup to correctly meet 
multiple goals.

I could be sadly mistaken, but I think our labor cost comes from the labor 
rate of the employee in the CEM file.  We do use teams of workers on our shop 
floor, but we report them individually by employee clock number, rather than 
through the BPCS shift team option.  This leads to some extra clerical work 
hassles in how the labor is reported, since we use tons of add-on reports 
(mainly Query/400) to isolate patterns of scrap & inefficiency for rapid 
resolution, and re-quoting based on the actual rates achieved.

We used to have great granularity of work centers based on efficiencies & 
rates of the machinery being used, but our shop floor supervisors like to use 
the most efficient that is not in current use, rather than the one 
reccommended by the routings, so we have consolidated most of our work 
centers by department, irrespective of numbers of workers.

MacWheel99@aol.com (Alister Wm Macintyre) (Al Mac)


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