How can we input setup time for manufacturing parts? The option is available when creating a Bill of operation during the operation entry. After running a job and posting it, we found that the cost for setup labor was multiplied by the job quantity.
While this may be standard functionality, it doesn’t seem logical, as setup time should remain the same regardless of whether we run 1 unit or 100
At the part label you have consider batch size. Batch size will allocate setup time according to that number. If you don’t setup a batch size, the default is 1 creating a cost estimate for the full setup for each part.
Batch size means are you referring the Costing lot size?
Yes, costing lot size
Thank you. IF I do not mention the costing lot size then the setup time multiplies to the job quantity, correct? In our MOM set up hour 0.05 and production standard is 32 that means 0.05*35 = 1.75.
Would mind giving some simple examples?
The other way around if your Setup time is 60 Min and your Costing Lot Size is 10 pieces, then your setup time by part is 6 min (60min/10pieces)
Assumes that no matter what, the size of the job is irrelevant for this, you need to do a setup of 60 min for 1 piece or 10 pieces.
The costing lot size is used when you do a cost roll.
A good way to test this is to enter a quote with quantities of 1, 10 and 100.
Enter in just a setup time of 10 hours at a cost of $100 for labor.
Then look at the worksheet to see how the cost per part changes.
Where the costing lot size is very important is when you are pulling in subassemblies into the costing workbench. Make sure to check the costing lots sizes on the manufacturing costs card - far right hand column.
When a job is created, it just takes the setup time as a fix rate. When the estimate is calculated, it will pull in the fixed rate.
The unit cost will just divide out the setup by the production quantity,
