NAV 5.0 SP1 - Setting up Work Centres - (CK-NAV 28-Apr-2009)

Hi Everyone,

I am in the process of setting up Work Centres and Routing for Produced Items. Here are a few questions base on the setup below.

Work Centre A:

Unit Cost $10.00

Unit Cost Calculation=Time

Unit of Measure=HOUR


Routing for Item A:

Work Centre=A

Setup Time=1HR


How can I best reflect that the routing of Item A has 1 Capacity for Setup and 2 Capacities for Run time? NAV only provides me with one field for Capacities in Work Centre.

Setup time is counted by Batch not by item. How can I set this up in the system? Currently in the production order NAV multiplies the Setup Time by the Output Qty.

What is the purpose of the Concurrent Capacities Field in the Routing Card Lines?

What are Fixed Scrap Qty, Scrap Factor Percentage in Routing and the Effeciency fields used for and how can they be setup?

What is the best practise of how I should setup overhead costs such as cleaning and maintenance for work centres?

Many questions- to many for me I am afraid at this time of night.

Okay setup time is not traditionally capacity based unless you divide this out in the routing it is a flat time attributable to the batch, therefore the capacity is run time specific, but I am not talking NAV here, as for the setup time by batch - what makes you say it is not by item? Try the lot size field on the item card [:D]

Concurrent capacities is used to reduce the production lead time, it really depends upon your setup but if you imagine having a machine that has a capacity that varies per item this factor would help you achieve this. Alternatively it is used to record the machines used, so if in the work centre there are 10 resources, and it takes 10 hours costing to achieve, then the run time is one hour from a scheduling perspective, but 10 from a costing one.

The scrap fields will affect planning, one is a constant figure, one is a percentage, depends upon what is appropriate, comes from machine centres only as standard. The efficiency states teh available hours of the resource, so if the calendar had 10 working hours a day and the efficiency of the resource was 80% then the actual planned hours for scehuling would be 8.

Overhead costs would be attributable to the work centre, however if you are referencing cleaning and maintenance then these would usually be absorbed as a general overhead non-attributable to items and therefore not costed in this manner, but you would need to speak to the accountant to see how they want it handled. The obvious place to start would be the machine centre overhead rate and indirect cost %

Thanks for the answers.

Your first answer on Lot Size answered my first question. After applying a Lot Size NAV divided the Setup Time by the Lot Size. Can NAV divide it by the Output Qty on the Production Order instead? Without customization?

Answers on Concurrent Caps and Scrap Fields also answered my questions.

Concerning Overhead Costs, are you saying that my two options are:

1 - Allocate a Indirect Cost% or Overhead Rate to every Work Centre for Cleaning.

2 - Setup a Cleaning Overhead Work Centre and apply it to all Routings that consume Cleaning.

Hence the questions:

Cleaning Work Centre is always consumed regardless of Item. How can I best reflect this Option 1 or 2?