Product Cost Analysis - Calculations

A.   Housekeeping

1.   Literals and underlines are formatted.

2.   Work fields are defined and initialized.

3.   The company name record (COMNAM) is obtained from the System Control file (CT100M) for output on the System Error report (CT010X).  If this information is not available, a message is sent to the system operator, and the program continues processing.

4.   A check is made to determine if control was passed to this program from another program.  If control was passed from the Product Costing Transaction Entry program (PC310E), command key F9 is displayed on the select screen to allow the user to return to that program.

5.   The date format (category 049) is retrieved from the Reference file.  If the information is not available, MM/DD/YY is the default value, a message is sent to the system operator, and processing continues.

6.   The user authorization (category 409) is retrieved from the Reference file.  If no records are found for the user ID, the user is authorized to all plants.

7.   The workstation defaults (category 428) are retrieved from the Reference file.  The default plant is obtained from this record.  If no record is found, the user must enter the plant on the select screen.

B.   Function Select Screen

1.   Initial validation is performed on the input fields.  Part number is checked for blanks or all nines.  Cost type and display format are checked for blanks or any value other than X.  If any fields are in error, the error messages are displayed on the select screen.  If all fields are valid, processing continues.

2.   The Part Master file (DE100M) is accessed using the part number.  If the part is on the file and is active, processing continues.  If the part is not on the file or is inactive, an error message is displayed.

3.   Processing of the information entered on the select screen continues according to the display format requested:  material, labor, or summary.

4.   Command key F4 allows the user to view the valid values for the selected field.  Plant is selectable in new plant mode.  Part number is selectable only if not in new plant mode.

C.   Material Screen

1.   The part master record for the part number is retrieved and the part type code is checked.  If the part is not a manufactured, planning, or build-thru part, an error message is displayed on either the select screen or the material screen, depending upon which screen was used to select the part number.

2.   The cost error fields for the part are checked and their values are saved.  The Product Structure file (DE120M) is read for bill of material information for the part.  The Part Master file is accessed for each component part's cost information.  The costs are multiplied by the Quantity of Component Per Parent and divided by 1 minus the product structure Scrap Factor values.  The material screen is displayed with the calculated cost information.

3.   The user may select the display of material cost information for any component part displayed by entering an X to the right of the desired component line and pressing the ENTER key.  The selected component part is treated as a parent part and the processing described in steps 1 and 2 above is repeated.

4.   Command keys allow the user to request return to the previously displayed level of the bill of material or to the level of the bill of material originally requested.

D.   Labor Screen

1.   The part master record of the part number is accessed to check the part type code.  If the part is a manufactured part, processing continues.  For any other part type, an error message is displayed on the select screen.

2.   The cost error fields on the part master record are checked and their values are saved for display.

3.   The Routing file (ME120M) and Workcenter file (ME100M) are accessed.  Alternate, master and comment routing records, as well as non-effective primary routings, are not displayed.  For all other operations, the following calculations are performed.

MRP Parts:

a.   If the piece rate is in pieces per hour, it is inverted to give hours per piece.  The labor cost is the labor rate multiplied by the calculated labor hours per piece.

b.   For a machine-paced operation the labor hours per piece is calculated by multiplying the piece rate (machine hours per piece) by the number of persons per machine.

c.   For a crew operation, the labor hours per piece is calculated by multiplying the piece rate by the crew size.

d.   For all other operations except fixed time and miscellaneous cost or outside processed operations, the labor hours per piece is the piece rate.

e.   The overhead cost is the sum of the labor-based burden cost and the machine-based burden cost.

JIT Parts:

a.   The labor cost is the labor hours multiplied by the labor rate.

b.   The overhead cost is the sum of the labor-based burden cost and the machine-based burden cost.

Fixed Time Operations:

a.   For fixed-time operations with batch sensitivity equal to no (N) (operation types 6, and 7), the labor hours and machine hours are used in calculating labor and overhead costs.  The labor cost is the labor rate multiplied by the labor hours.  The overhead cost is the sum of the labor-based burden cost and the machine-based burden cost.

b.   For fixed time operations with batch sensitivity equal yes (Y) (operation types 6, 7, and 8), the labor hours per batch, the machine hours per batch and the calculated number of batches are used in calculating labor and overhead costs.  The number of batches is calculated as follows:

The labor cost per batch is calculated by multiplying the labor hours per batch by the number of batches and by the labor rate.  The labor cost is determined by dividing the result by the average order quantity.  The labor-based burden per  batch is calculated by multiplying the labor hours per batch by the number of batches and by the labor-based burden rate.  The labor-based burden cost is determined by dividing the result by the average order quantity.  The machine-based burden per batch is calculated by multiplying the machine hours per batch by the number of batches and by the machine-based burden rate.  The machine-based burden cost is determined by dividing the result by the average order quantity.  Finally, the overhead cost is the sum of the labor-based burden cost and the machine-based burden cost.

Miscellaneous Cost Operations:

a.   For miscellaneous cost operations (workcenters with workcenter number greater than or equal to 900), the rate code and total cost are retrieved from the Miscellaneous Cost Header file.  The rate code is checked to determine whether the cost is fixed per order or variable (fixed per unit) and which type of cost (material, labor or overhead) it is.  For fixed per order costs, the miscellaneous cost is divided by the parts average order quantity for variable (fixed per unit) costs.  The miscellaneous cost is used directly.

4.   The user may select the display of operation detail cost information for any operation displayed by entering an X to the left of the desired operation line and pressing the ENTER key.  If the workcenter is a miscellaneous cost operation (that is, if the workcenter number is greater than or equal to 900), the Miscellaneous Operation Detail screen is displayed.  If the workcenter is a "normal" workcenter (with a number less than 900), the Operation Detail screen is displayed.

E.   Cost Elements Screen

1.   The part cost record(s) for the part number is retrieved.

2.   The following information is displayed on the cost elements detail screen:  cost element code, cost element description, appropriate cost (either current, standard, or simulated selection), and cost element type (machine or labor).

F.   Operation Detail Screen

1.   This screen can only be viewed by selecting a normal operation on the labor screen. 

2.   The displayed data is retrieved from the Workcenter Rates file (ME105M).  For each rate code of the selected workcenter, a cost is calculated.  If the rate code is labor-based, the cost is the standard labor hours multiplied by the burden rate.  If the rate code is machine-based, the cost is standard machine hours multiplied by the burden rate.

3.   The user must press ENTER to return to the labor screen; otherwise, the command keys allow the user to request another select option.

G.   Miscellaneous Operation Detail Screen

1.   This screen can only be viewed by selecting a miscellaneous cost operation on the labor screen.

2.   The detailed cost records for the part and workcenter are retrieved from the Miscellaneous Cost Detail file (ME160M2).

3.   For fixed material, labor, or overhead costs, the total miscellaneous cost is divided by the average order quantity to give the operation's per part cost.  If the cost is not fixed, the miscellaneous cost is the same as the per-part cost.

4.   The user must press ENTER to return to the labor screen; otherwise the command keys allow the user to request another select screen.

H.   Summary Screen

1.   The Part Master File record for the part number is retrieved.  The cost error fields are saved for display.  The total and this-level costs are formatted and displayed.

2.   If overflow occurred when calculating total at this-level cost, then a warning message is displayed on this screen.  This message will indicate that amounts printed in the report might have been truncated due to overflow.

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