Operation rates

An operation rate is a rate determined by labor costs, machine costs, or overhead costs. Operation rates are defined in the Operation Rates (ticpr1150m000) session, where these rates are linked to a price calculation code and an operation rate code. The operation rates are registered by means of cost components of the Operation Costs type.

Four types of operation rates exist:

  • Labor (average costs of one hour of labor).
  • Machine (average costs for a machine for one hour).
  • Overhead on Man Hours (indirect costs for one hour of labor).
  • Overhead on Machine Hours (indirect costs for a machine for one hour).

For operation rate lines sequence numbers are defined, which allows for multiple operation rate lines. You can define a maximum of 999 lines for each operation rate.

The operation rate code with accompanying operation rates is linked to a work center in the Work Centers (tirou0101m000) session, and/or to a work center/task relationship in the Task Relationships (tirou0104m000) session. Whether the operation rates linked to the work center or to the work center/task relationship are used for cost price calculation depends on the setting of the Type of Operation Rates field in the Cost Price Calculation Parameters (ticpr0100m000) session.