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May 30, 2020 at 09:26 PM

Production Order Labor "Scrap" by Day by Cost Center

175 Views Last edit Jun 22, 2020 at 08:05 AM 3 rev

Assume that at the end of Day 1, the operation view in "Co03" looks like the image below:

So at the end of Day 1, Op. 2 was completed, and one part was scrapped at Op. 2. The labor that has been spent on that scrapped part is: 1 hr (processing time at Op. 1) + 1 hr (setup time at Op. 1) + 1 hr (processing time at Op. 2) = 3 hrs.

Assume that at the end of Day 2, the same operation view in "Co03" looks like the image below:

So at the end of Day 2, Op. 5 was completed, and one more part was scrapped at Op. 4. The labor that has been spent on the new scrapped part is: 1 hr (processing time at Op. 1) + 1 hr (setup time at Op. 1) + 1 hr (processing time at Op. 2) + 0.5 hr (processing time at Op. 3) + 1 hr (processing time at Op. 4) = 4.5 hrs.

Finally assume that the work centers are mapped to the cost centers in the image below:

Given a date range, is there a report that will return scrap costs due to labor per cost center?

For this example, assuming 1 hr labor = $100, that report would return the following:

Therefore, on Day 1, 3 hours of work was scrapped and that cost was incurred on Cost Center 10.

On Day 2, 4.5 hours of work was scrapped. 3 hours of that was incurred on Cost Center 10, 0.5 hours of that was incurred on Cost Center 20, and 1 hour of that was incurred on Cost Center 30.

I know "KSB1" returns a similar report, but it returns the total labor cost incurred by the cost center and does not separate the portion that was "wasted" on scrap.

Attachments

d1.png (6.6 kB)
d2.png (6.8 kB)
d3.png (2.1 kB)
d4.png (6.7 kB)