Machine Cost Calculation (Valuation: *Calculate Cost Rate)

Calculate the Machine Cost Rate

Machine Acquisition Costs

Depending on your entries for Reference Location and Reference Date, the following properties are determined via the value rules of the machine:

• Purchase Value
• Installation Cost
• Incidental Acquisition Cost

The »Rate of Acquisition Cost Increase« property can be directly entered as percentage. This percentage has a direct impact on the replacement costs of the machine.

Investment Cost

The »Investment« group in the Details ► Calculation view schema (combobox) of the machine displays the number of required machines to cover the (gross) capacity. Further, this group calculates the investment value.

Investment Value = Required Machines * Acquisition Cost

Capacity & Utilization

The Gross Operating Time Capacity property equals the calculated properties »Gross Production Time Capacity« at should cost calculation level (under Details ► Assumptions view schema (combobox) ► Location Factors ► Shift Model. The »Gross Production Time Capacity« depends on

• the determined business days,
• the number of shifts, and
• the shift capacity.

Usable Operating Time Capacity = Gross Operating Time Capacity * Technical Availability

At a local machine, the »Technical Availability« can be entered directly. At a global machine, this value is provided by the master data and can be overridden using F12 .

»Is Specific Equipment« Checkbox

With this checkbox, you can determine whether a machine is process-specific (specific machine) or not. A specific machine is produced and adjusted in small quantities or individual items specifically for the production process.

When the checkbox is activated:

• the »Calculate Based on Capacity Utilization« allocation method is set
• the »Machine Cost Setup« is set to 0 (zero)
• the »Relevant capacity for Cost Allocation« is shown

Allocation Method

There are three ways to allocate the calculated costs of a machine to production per running hour:

• Machine Cost Rate Basis:

  • Calculate Based On Economic Capacity Utilization 100% (Default)

    The economic assumption is set to 100% by default. 100% of the utilizable capacity (net) is allocated to the machine cost rate.

  • Calculate Based On Economic Capacity Utilization

    You can also use an alternative economic assumption, such as 80%. 80% of the utilizable capacity (net) is allocated to the machine cost rate.

  • Calculation Based on Capacity Utilization

    The actual utilizable capacity (net) is allocated to the machine cost rate.

• »Relevant Capacity for Cost Allocation« is calculated depending on the selected machine cost rate basis.

Fixed Machine

In this group, you can enter the calculation parameters for the fixed machine costs. Use the following combobox to specify whether the machine has already been depreciated or is yet to be depreciated.

»Machine is Depreciated« selection

Selecting this option Relevant Imputed Depreciation Period allows you to define whether a machine is depreciated or not.

If a machine is yet to be depreciated, a Depreciation calculation is carried out and the respective properties are available.

If a machine already is depreciated, no further depreciation calculation is necessary.

»Use Depreciation over Production Lifetime« selection

The property Relevant Imputed Depreciation Period helps you define whether the production lifetime as defined on the should cost calculation level is used as depreciation period. The value for »Depreciation Period«, which is predefined at the machine, is set automatically.

The production lifetime of the should cost calculation is assumed in the »Relevant Depreciation Period« displayed at the machine under Details ► Calculation view schema (combobox) ► Fixed Machine Cost ► Fixed Machine Cost - Details.

The following values are calculated:

• Imputed Depreciation Cost
• Allocation Imputed Depreciation Cost

»Use Machine Depreciation Period« selection

Selecting an option of Relevant Imputed Depreciation Period allows you to define whether to use the depreciation already defined at the machine or not. The value for »Depreciation Period«, which is predefined at the machine, is set automatically. This value equals that of the »Relevant Depreciation Period«.

Method for Calculating the Imputed Depreciation

The default method is »Replacement Cost - Residual Value«. The different methods of the cost basis for imputed depreciation can be selected at the should cost calculation level under Details ► Calculation view schema (combobox) ► Overhead rates and scrap rates group.

The Fixed Costs are composed of the following costs:

• Imputed Depreciation Cost
• Imputed Interest Cost
• Floorspace Cost
• Fixed Maintenance Cost Based on Purchase Value
• Insurance Cost Based on Purchase Value

The Machine Cost Rate Fixed is composed of the following costs:

• Allocation Imputed Depreciation Cost
• Allocation Imputed Interest Cost
• Allocation Occupancy Cost
• Allocation Fixed Maintenance Cost
• Allocation Insurance Cost

Variable Machine Cost

In this group, you can enter the parameters for calculating the variable machine cost. The following shows a list of variable machine costs and their required entries.

• Electricity Cost

  • Connected Load
  • Electricity Utilization

  At a local machine, you can directly enter the value. At a global machine this value is provided by the master data and can be overridden using F12 .

• Variable Maintenance Cost

  • Share of Variable Maintenance Cost on Purchase Value

  is being determined via value rules and can be overridden using F12

• Operating Supplies Costs

  • Share of Operating Supplies Cost on Purchase Value

  is being determined via value rules and can be overridden using F12

• Water Costs (available only when »Consider Water Costs checkbox is activated)

  • Water Consumption

  At a local machine, you can directly enter the value. At a global machine, this value is provided by the master data and can be overridden using F12 .

• Gas Costs (available only when »Consider Natural Gas Costs checkbox is activated)

  • Gas Consumption

  At a local machine, you can directly enter the value. At a global machine, this value is provided by the master data and can be overridden using F12 .

• Compressed Air Costs (available only when »Consider Compressed Air Costs checkbox is activated)

  • Compressed Air Consumption

  At a local machine, you can directly enter the value. At a global machine, this value is provided by the master data and can be overridden using F12 .

• Miscellaneous Costs (available only when »Consider Misc Costs checkbox is activated)

  • Miscellaneous Cost 1 - 3 Description
  • Allocation of Miscellaneous Cost 1 - 3

  is being determined via value rules and can be overridden using F12

The Variable Costs are composed of the above-mentioned variable machine cost.

The Machine Cost Rate Variable is composed of the following costs:

• Allocation Electricity Costs
• Allocation Variable Maintenance Cost
• Allocation Operating Supplies Cost
• Allocation Water Cost
• Allocation Gas Cost
• Allocation Compressed Air Cost
• Allocation of Miscellaneous Cost 1 - 3

Total Costs

This group shows you the cost summary of the total costs.

Value Rules at a Machine

Via value rules at a machine, you can determine values according to your entries for the properties »Reference Location« and »Reference Date«.

For company-owned machines, you can additionally enter dimensions like »Operating Time« and »Machine is Depreciated« for the values »Share of Maintenance Cost on Purchase Value« and »Share of Variable Maintenance Cost on Purchase Value«.