Setup Work Center and Machine Center

Hi all, I doesn’t understand about setup work center and machine center. In direct unit cost of posting tabs both work center and machine center cards. What is different or same and what is caculate cost in program?and explain. Thanks, Amarit

Hi Where to start? [:D] Work centres could be considered an “area” of work which may include many machine centres, or none, but may contain machines, depending upon your requirements and set-up. Machine centres are generally thought of as machines or labour - I think Navision suggests you track bottle necks in this manner, but essentially you can use them how you like depending on you floor configuration and overall needs. These are then used in conjunction with routings to track and monitor progress and costs, not to mention of course capacity.

Hi, Steven If routine consist Mixing, Filling and Package. By Production Depatement is work center group. Work Center is Mixed Department, Filling Department, Package Department. By Mixed Department have machine center 2 center. Example In setup work center of Mixed Department and machine center 2 center. I essimate direct unit cost in posting tabs both work center and machine center. How calculate direct unit cost in program? explain. Thanks, Amarit

Hi The unit cost on the machine or work centre card is per individual unit processed. Navision then calculates Unit Cost = Direct Unit Cost + (Direct Unit Cost * Indirect Cost %) + Overhead Rate. To get the end cost of your item you require a costing analysis of each step. What fixed and variable resource, as well as overhead are used in teh physical costing of one item through each work or machine centre. Not sure I am answering your question but this is quite an in depth area.

Hi Thank you very much for answer. See you next question. Sawatdee, Amarit