We have a department that has 1 operator per 2 machines producing different parts. We’ve adjusted our crew size to 0.5 and labor calculates as expected, but burden rates are still not cut by the crew size. Is this standard? How do you account for burden appropriately in this situation?
In the Resource Group for these machines, check the box that says “Burden = Labor”
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We tried that but burden was unchanged upon cost roll.
Are there any other settings that need adjusted to get burden to calculate correctly?
Is your goal to have your Standard Cost roll up correctly? If so, these checkboxes don’t help… they are only used by Data Collection (MES) at the time of labor entry.
There is a Job Costing Technical Reference manual that describes the cost roll procedure in more detail.
https://epicweb.epicor.com/doc/Docs/Kinetic_TechRef_JobCostingGuide_2024.1.pdf
This is for Kinetic 2024.1, and other versions are also available on EpicWeb.
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The goal is to see the correct burden cost in partcost or in the part tracker tab for costs. The labor works out correctly, but burden is still 100%
Are your operators using Data Collection (MES) to report their time and quantity?
No. We use kanban receipting which just takes the prod std at face value as a multiplier.
The Kanban Receipts functionality automates a LOT of stuff and ignores a lot of settings in its quest to do things as quickly as possible. It MAY be ignoring the Resource Group settings you are depending on.
As a test, manually create a job (in your PILOT or TEST environment) for this part, and manually issue the materials and enter the labor, complete the job and receive to stock. Check the Job and Part trackers and see how they look… if they are different then the Kanban Receipt process is ignoring something and a call to Support is certainly in order… at least so they can tell you EXACTLY how its working… which can then possibly point us toward a way to solve the problem.
From what I am reading in the posts, I understand that the concern is that the actual costs applied to the Job are half of the planned Labor and Burden and to do so that you are using a Crew Size of .5. I also see that you are not reporting labor via MES but are performing Kanban receipts. So to test I created a Part with a single Operation with a Production Standard of 50 pcs/hr. The Operation is assigned a Resource Group with Costing Burden and Costing Labor Rates of $50 and a Production Crew Size of .5. I completed a Kanban Receipt for 150 pieces. When I reviewed the Production Detail Report for the created Job, it displays Actual Costs of $75 for the Labor and Burden which is half of the Estimated Costs. Is this the desired outcome or did I misunderstand what was written in the post?
Kind of. What was your cost in part tracker for that part (burden and labor per piece)?
I currently have no costs on my part as I just created it for testing purposes. What method of costing are you using? What comparison are you looking to make between the Job and part costs?
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Great contributions Bruce.