Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 9 · Work Areas, Work Centers and Resources
The costing connection
Lesson 93 of 188 · 2 min
Resources carry rates, configured in the cost planning module. Every hour charged to a resource on a work order becomes cost. Work centers carry overhead — work center overhead rates, also cost planning — absorbing indirect cost onto production based on activity at that center. Here is the consequence, and it is the reason this lesson exists. The granularity you chose determines the granularity of your cost analysis forever. If the controller wants cost by machine and you modelled by cell, they cannot have it. Not "it is harder" — they cannot have it. The cost was charged to a cell; there is no machine dimension in the data, and there never will be for anything already transacted. Ask the controller before finalizing the shop floor model. This is the second time this course says get the controller in the room early, and it will not be the last —…
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order, with a certificate on completion and a fourteen-day refund window.