Machine Set up Time Costing

> In addition, when you roll standards, you need to check the box called
> "Load Costing Lot Size". If your lots size is 100 parts, it will divide
> the setup cost by 100 and add that to your standard cost.

Alternately, you set the flag on the Plant's Cost ID in Plant Maintenance and
then you don't have to remember to check it. Forgetting to check does tend to
drive the accounting types wacko...

Mark W.
I recently posted a similar message but received no responses. I am
re-wording in hopes that perhaps the right individual(s) may see it
and respond. Basically I'm trying to work out a Methods Master to
include set up time and machine time where the set up time does not
skew the standard cost. In other words, it takes 1 hour to set up a
machine irrespective of whether 1 or 100 pcs are being machined. I
entered that time on a machining operation as "Set Up Per Machine".
And I also tried it as a separate operation with a "Production
Standard "FIXED hours". In both cases the set up time was included as
part of the standard cost. As a example, if set up cost $10, and
machining cost $10, then setting up and machining 1 pc would cost $20;
setting up and machining 10 pcs should cost $110; not $200. Has
anyone found a way to do this?

I am currently on Version 6.1 but will be going to 8.03 soon, so I
would be interested in a set up for either version.

Thanks!
If you go into the Inv/Purch tab of the Part record - you will see under Manufacturing - Costing lot size. We use this to enter our normal job run qty, and that splits up the setup cost per piece based on that quantity. So, if your typical job run is 100 pcs, it'll divide your $10 setup by 100 pcs.
(Version 6.1)

Hope that helps.
Julie
Mercury Minnesota Inc.

----- Original Message -----
From: stanchmura
To: vantage@yahoogroups.com
Sent: Monday, April 28, 2008 1:45 PM
Subject: [Vantage] Machine Set up Time Costing


I recently posted a similar message but received no responses. I am
re-wording in hopes that perhaps the right individual(s) may see it
and respond. Basically I'm trying to work out a Methods Master to
include set up time and machine time where the set up time does not
skew the standard cost. In other words, it takes 1 hour to set up a
machine irrespective of whether 1 or 100 pcs are being machined. I
entered that time on a machining operation as "Set Up Per Machine".
And I also tried it as a separate operation with a "Production
Standard "FIXED hours". In both cases the set up time was included as
part of the standard cost. As a example, if set up cost $10, and
machining cost $10, then setting up and machining 1 pc would cost $20;
setting up and machining 10 pcs should cost $110; not $200. Has
anyone found a way to do this?

I am currently on Version 6.1 but will be going to 8.03 soon, so I
would be interested in a set up for either version.

Thanks!




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[Non-text portions of this message have been removed]
Value your resource set up labor at $0/hr if you don't want set up to be part of std rolled cost (but do want to allocate the resource capacity to a scheduled job with significant set up).

Wash in set up costs (perhaps against all parts) as a fixed % overhead adder against std cost. Example: In our machine shop, set up time is always between 9.5-10.5% of all scheduled/reported monthly labor activity.

The true limit is the number of skilled set up people so the number will NEVER vary. No matter how much management dictates to drive down lot sizes, the reality of the resources keeps the rate constant. If set up reduction efforts prove effective, the number will still be the same (and we will just be running more, smaller lots).

If we chose, we could simply burden all our direct std costs by 10% and (overall) our costs would balance out and be accurate.

It also wouldn't make small lots look ridiculously costly.

Rob Brown

--- On Mon, 4/28/08, stanchmura <schmura@...> wrote:

From: stanchmura <schmura@...>
Subject: [Vantage] Machine Set up Time Costing
To: vantage@yahoogroups.com
Date: Monday, April 28, 2008, 2:45 PM






I recently posted a similar message but received no responses. I am
re-wording in hopes that perhaps the right individual(s) may see it
and respond. Basically I'm trying to work out a Methods Master to
include set up time and machine time where the set up time does not
skew the standard cost. In other words, it takes 1 hour to set up a
machine irrespective of whether 1 or 100 pcs are being machined. I
entered that time on a machining operation as "Set Up Per Machine".
And I also tried it as a separate operation with a "Production
Standard "FIXED hours". In both cases the set up time was included as
part of the standard cost. As a example, if set up cost $10, and
machining cost $10, then setting up and machining 1 pc would cost $20;
setting up and machining 10 pcs should cost $110; not $200. Has
anyone found a way to do this?

I am currently on Version 6.1 but will be going to 8.03 soon, so I
would be interested in a set up for either version.

Thanks!
















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In addition, when you roll standards, you need to check the box called
"Load Costing Lot Size". If your lots size is 100 parts, it will divide
the setup cost by 100 and add that to your standard cost.


[Non-text portions of this message have been removed]