Hi All,
Is there a way in Kinetic 11.3.200.7 to set labor transactions NOT to pro-rate when an operator is logged into more than one Job / Operation?
Context: We’re a printer, and it’s very often that we will have situations where an operator will setup a press for a 2-3 hour run, and then can do something else while the printer is printing. What we’re seeing is that the system is taking their labor rate, and splitting it between the 2 jobs, so at a $50 labor rate, each job receives $25. I want the system to NOT split that labor cost, but instead apply $50 to each job.
Concern: I fear that down the line, we’re going to roll standards, where actual costs are taken into consideration, and a new standard will be created, and a new sales price will be set which assumes that our operators are doing 2 things at once. This concerns me because I’ll be understating the cost to produce, and could lose my shirt if we lower costs. Our ability to work on multiple jobs concurrently is really demand driven / circumstantial, meaning it’s not every time we’re able to do this.
History: We went live July 1, and our busy time is in Q4, so Q3 was “Learn the system” and Q4 was “Hold onto your butts”. Now we’re looking at the way we just the system rather than just managing through the challenges.
Am I understanding this correctly, that it will take the proration form 50/50 and base it on the estimates? In the example there, it didn’t bill 9 hours of labor to each of the jobs, it did 6+3.
What I’d like to have happen is that the full labor amount is put to each of the jobs, so that if I’m reviewing costs, I’m not short changing the sales price of the product because I’m pro-rating labor. There will be times when I have to run that part alone, and I don’t want to show a loss because the product cost assumes my operator is doing two things at once.
I believe you would just uncheck the box if you want the full hours charged to both jobs, but I am not positive. Probably best to prove it out in your pilot environment to confirm, or maybe somebody else here knows for sure.
You want Burden = Labor to be selected. That will force the Labor time to be 100% of the Burden (machine) time.
Also, unless you’re doing standard cost calculations outside of Epicor, the standard cost rollup process will use the BOM/Method and resource labor costs to calculate unit labor costs. It will not use your historical average costs or assume you’ll split labor when costing the parts.
That’s similar to our process. When we compare estimated cycle times to actual, we use Burden Hours to calculate since we do split labor costs.
For example, if someone is clocked into two jobs for 8 hours each and makes 80 parts on the first job and 40 parts on the second job, their “actual rate” as well call it would be 10 EA/hr and 5 EA/hr, respectively. That is true even though the labor hours for that operator’s day are split in half to each job.
Something else to keep in mind from a Finance side, too, is that if you “double up” on your labor hours/costs if someone works multiple jobs at once, your Applied Labor and WIP Labor will be higher than your actual payroll labor costs, and that difference will end up as a Manufacturing Variance when you close the job.
Not saying that’s good or bad, but if you’re analyzing closed jobs for manufacutring variances then it will come up.
