Calculating Technology calculation mode

Technology for manufacturing processes mode enables you to calculate cost elements in FACTON based on user-defined criteria. In the process, a cost element is defined through an activity type which is assigned an output parameter.

In addition, the calculation of individual possible cost elements is given.

Labor Cost

The cost element is calculated for output parameters of activity type "Worker activity".

If the costs for the cost element are calculated using multiple parameters, then the results are added.

The costs are calculated for each output parameter using the following rules:

• The type of activity of the parameter exists in the assigned cost center of the process. In the cost center, only valid cost rates are used for the activity of this type. The costs are derived from the cost rate for the activity in the cost center, multiplied by the value of the parameter.

• The activity for the parameter does not exist in the assigned cost center of the process in the project, or the process does not have an active, linked cost center. The costs are derived from the sum of the cost rates of the workers assigned to the process in the project, multiplied by the value of the parameter.

Machine Cost

The cost element is calculated for output parameters of activity type "Machine activity".

If the costs for the cost element are calculated using multiple parameters, then the results are added.

The costs for a parameter are calculated using the following rules:

• The type of activity of the parameter exists in the assigned cost center of the process. In the cost center, only valid cost rates are used for the activity of this type. The costs are derived from the cost rate for the activity in the cost center, multiplied by the value of the parameter.

• The activity for the parameter does not exist in the assigned cost center of the process in the project, or the process does not have an active, linked cost center. The costs are derived from the sum of the cost rates of the machines assigned to the process in the project, multiplied by the value of the parameter.

Setup costs

The cost element is calculated for output parameters of activity type "Setup activity". If the costs for the cost element are calculated using multiple parameters, then the results are added.

The costs for a parameter are calculated using the following rules:

• The type of activity of the parameter exists in the assigned cost center of the process. In the cost center, only valid cost rates are used for the activity type. The costs are derived from the cost rate for the activity in the cost center, multiplied by the value of the parameter.

• The activity for the parameter does not exist in the assigned cost center of the process in the project, or the process does not have an active, linked cost center. The costs are derived from the sum of the setting-up cost rates for the machines assigned to the process in the project, multiplied by the value of the parameter.

• If the activity for the parameter does not exist in the assigned cost center of the process in the project and the process does not have an active, linked cost center and if no workers or machines are assigned to the process in the project, then manufacturing costs are calculated directly. In doing so, only those output parameters are used in the calculation whose unit is a time unit. The costs are the sum of the values of the individual output parameters, multiplied by the setup cost rate of the process.

Miscellaneous Cost

The cost element is calculated for output parameters of activity type "other activity".

If the costs for the cost element are calculated using multiple parameters, then the results are added.

The costs for a parameter are derived from the cost rate for the activity of this type in the cost center, multiplied by the value of the parameter.

Direct manufacturing costs

Generally speaking, the manufacturing costs are calculated by adding the wage, machine, setting-up and other costs.

If the activity for the parameter does not exist in the assigned cost center of the process in the project and the process does not have an active, linked cost center and if no workers or machines are assigned to the process in the project, then manufacturing costs are calculated directly. In doing so, only those output parameters are used in the calculation whose unit is a time unit.

The costs are the sum of the values of the individual output parameters, multiplied by the manufacturing cost rate of the process.

Additional cost calculation

The costs are derived from the sum of the output parameter values.