Resource Group Burdens

I think you got the big hitters.. I caution a bit of judicious use with regards to machine utilization. There’s always been a bit of circular logic in calculating burden rates with regards to what your current sales are. It even rears it’s ugly head when you make process improvements and reduce cycle times yet do not fill those vacant hours with new sales and your applied overhead goes down, in effect raising the cost of your machine burden. It’s all based on the phallacy of estimated sales for the course of a period (typically a year). We usually assume a machine to be fully burdened and also weigh that along with what the market will bear. Your rates can sky rocket when you have a machine that has hours you’re not selling and then how many hours will you sell with an overly excessive burden rate?

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-4832
FAX: (715)284-4084
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From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of flowritecontrols@...
Sent: Wednesday, September 18, 2013 2:10 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Resource Group Burdens



looking for some feedback on how other companies have used Resource Group Burdens on those resources tied to specific machines; are you calculating an hourly rate of running the machine that is based on:

(machine depreciation+portion of rent cost+utilities+estimated maintaince cost) multipled by machine utilization % = machine hourly rate



would appreciate any suggestions



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

looking for some feedback on how other companies have used Resource Group Burdens on those resources tied to specific machines; are you calculating an hourly rate of running the machine that is based on:

(machine depreciation+portion of rent cost+utilities+estimated maintaince cost) multipled by machine utilization % = machine hourly rate

 

would appreciate any suggestions