Calculating operation costs (labor and machine hours)
LN determines the labor and machine hours to calculate the operation costs.
For each operation found in the structure, LN determines the reference operation type.
The formula LN applies to calculate the labor hours depends on whether or not the operation has a fixed duration. If the operation has a fixed duration, LN applies the following formula to calculate the machine hours:
machine hours = ( setup time * number of machines ) + ( cycle time * number of machines / routing quantity)If the operation does not have a fixed duration, LN applies the following formula to calculate the labor hours:
labor hours = ( average setup time * labor occupation for setup ) + ( cycle time * quantity planned input * labor occupation for production / routing quantity)The formula LN applies to calculate the machine hours depends on whether or not the operation has a fixed duration. If the operation has a fixed duration, LN applies the following formula to calculate the machine hours:
machine hours = ( setup time * number of machines ) + ( cycle time * number of machines / routing quantity)If the operation does not have a fixed duration, LN applies the following formula to calculate the machine hours:
machine hours = ( setup time * number of machines ) + ( cycle time * quantity planned input * number of machines / routing quantity)Next, LN determines if the work center type is carried out at a main work center, a sub-work center, or a subcontracting work center.
If the work center is a main work center or a sub-work center, the costs are calculated as described in Calculating operation costs (labor, machine, overhead). If the work center is a subcontracting work center, the calculation is performed as shown in Operation subcontracting without material flow support.