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Adding Labor and Burden to Item Cost and W/O - Printable Version

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Adding Labor and Burden to Item Cost and W/O - agaluski - 02-14-2014 05:42 AM

I have read the manual but I am slightly confused. For Labor it appears that I should add a new Item Category for Labor, Setup a new Item in the Labor Category and set the cost as the cost to make the FG this labor item will be included in so that when the BOM rolls it will add this to the FG Cost.
I can see this works in the cost BOM Inquiry.

For Burden I see Burden/Hour on a Work Center but I d o not see anywhere in the BOM or W/O to enter time spent so it can use the per hour rate to get 1 unit. I would expect to see this. What am I missing?

Also,
I do not see my labor items on the costing screen. Shouldn't they be here?

Is my assumption that they should be set to Auto-Issue true? I don't see them available in the "Issue" Screen

Thank in advance. I keep finding more I like about this package and have a list of enhancements I plan on sharing with the project as soon as I complete them


RE: Adding Labor and Burden to Item Cost and W/O - phil - 02-14-2014 01:46 PM

Labour routings are not implemented - instead, labour type items can be added to a BOM - there is no labour recovery though this would need to be built into the cost of the labour item.


RE: Adding Labor and Burden to Item Cost and W/O - agaluski - 02-15-2014 12:18 AM

So just to confirm- I can add labor cost using a labor item but the Burden field is "for future code"?


RE: Adding Labor and Burden to Item Cost and W/O - phil - 02-15-2014 01:38 AM

Exactly


RE: Adding Labor and Burden to Item Cost and W/O - bigpower10 - 08-21-2018 09:40 AM

Sorry for posting to such an old response, but is it correct that Labor Routings are still not implemented? If so, are there plans to do so? I am a PHP developer and would be interested in contributing to this key feature. If labor routings are being explored, perhaps I can assist?


RE: Adding Labor and Burden to Item Cost and W/O - falkoner - 08-21-2018 05:25 PM

As far as I am aware nobody is currently working on this. My advice would be to fork the code on github (if you haven't already done so) and then write a page on the wiki on your repository detailing a specification and then link to it here for others to comment on it, and hopefully then people will also help implement it.

Tim


RE: Adding Labor and Burden to Item Cost and W/O - bigpower10 - 08-23-2018 03:16 AM

Just some thoughts on this:

Routings are a key feature in most ERP systems. They are the sequence of event that components and raw materials go through to become stockable items, containing the details of the Operations, Work Centers, Scrap, and Outside Processing steps. This is a feature that WebERP is currently lacking and would be super nice to have. Properly implemented, Routings (a singular example is sometimes referred to as a ‘router’ or ‘traveler’) provide a richer method for building up the actual costs associated with manufacturing than just assigning a standard cost at the part number level. Routings designate the standard amount of time needed for each operation at each work center. They can be implemented to break up a manufacturing operation into a SETUP stage and a RUN stage. Setup costs would be amortized equally over the batch quantity being produced. The Run costs are the incremental, variable costs associated with producing each item in the batch. The higher the batch/run quantity, the lower the Setup cost per item. Routings also provide a way to reserve work centers for the duration of the operation.

However, implementing Routings is easier said than done, as routings are highly interlinked with many aspects of a manufacturing firm’s accounting system. Apart from the routing-specific changes (create a Routings database table, web pages related to routing management, etc..) we would need to change the nature of work orders. It might be better to have the system automatically generate work order numbers using the 5000-series GL sections as the prefix, with a unique work order number as the suffix. Essentially, work orders would become temporary GL accounts which accumulate cost until they are closed out and their accumulated cost transferred to the Stored Inventory account awaiting sale. This would get into standard vs. actual costing issues, as well.

Beyond that, implementation of Routings would necessitate other non-existent features like LABOR RECORDING. After all, of what use would spending effort to create a manufacturing sequence be if someone were not actually performing and documenting the time and results of the steps. This might look like a screen for workers to log into, select available work orders and log on/off, documenting their completion of various operations.

Consequently, this may imply a PLANNING feature so that work orders are optimally sequenced by a planner who releases them to the work floor.
Labor Recording also assumes that the worker has a Pay Rate of some sort, which means we would need a HUMAN RESOURCES module to manage employees, pay rates, and roles. Not every employee is a direct worker, some are managers, inspectors, office personnel and the like. Their work is normally not directly associated with particular work orders, but get amortized over the whole business in various Overhead Accounts. So, our HUMAN RESOURCES module would need to allow for both Direct and Indirect employee types. Probably also want to make it handle Salaried, Salaried, Non-Exempt and Hourly worker types as well. A way to handle this might be to implement salary levels or grades, each of which have a rate. Employees can then be assigned a grade for use in COGS calculations.

The Accounting functionality of the system would also need to be extended to allow for the creation of various overhead rates. Perhaps a new module/section could be created for General Accounting. In this module, in addition to calculating and setting overhead and labor rates, we might have the ability to review the actual COGS as calculated by closed work orders during the period. We might be able to compare the actual COGS to the current Standard Costs for each part number and choose whether to update (a.k.a. ‘roll’) the standard costs. Such an action usually happens when the sales volume of a part changes drastically, usually during a program ramp up (going from prototypes to normal production) or ramp down (end of life)

So, while ROUTINGS may seem simple to implement at first, we see that it gets complicated really fast. We’ve identified the following additional functionality which may need to be implemented to make ROUTINGS work correctly:
- Labor Recording (logging on/off work orders)
- Planning (work order releases)
- Human Resources (employee types, salary grades)
- General Accounting (centralized rate management, standard cost changes over time, etc…)

Additionally, the following functions might be nice to have:
- Quality Control (SPC, scrap analysis, MRB, internal rework routings & approvals, etc…)

I did start an area PHP user group way back in the day, attain my Zend certification and work as a professional PHP coder from about version 3 - 5, so this is within my capabilities - as soon as I get back up to speed (it's been about 6 or 7 years since I've done serious coding). At the moment, though I'm trying to get a manufacturing business up and running (using WebERP) so the time for coding this is going to be hard to find. I think what I can do is flesh this out a bit - leveraging my experience in accounting, operations, contracts/business and marketing at a Fortune 250 engineering and manufacturing firm - to create a detailed development plan and start eliciting community help for coding.

This sure is a lot of talk, now to see if I can back it up...


RE: Adding Labor and Burden to Item Cost and W/O - VortecCPI - 08-23-2018 03:58 AM

Not simple at all. I am in the process of dealing with a lack of Routing-, MRP-, and MPS-related features on a system on top of AS/400. The company was originally a buy-one-sell-one, pick-and-ship entity (i.e., distributor) but now has several ETO/MTO divisions. Needles to say they have big trouble in that context due to a lack of these features.

While I agree 100% this functionality would be great to have in webERP it would be quite a serious amount of work.

Since we are a dreaming a bit here... A Product Configurator would also be very nice...

What is the context of your manufacturing business? Are you an owner?


RE: Adding Labor and Burden to Item Cost and W/O - bigpower10 - 08-23-2018 04:04 AM

I have a full-time job at a Fortune 250 company which has given me intimate experience with several enterprise MRP systems.

But the business I'm starting is my side gig (sole proprietor at this point). I have a couple suppliers and outside service vendors, and will be doing some precision CNC woodwork. Would love to tell more about it but I'm holding off until some thing are worked out. I expect to add a shiny new link to the website in my signature before too long Smile

I do like the product configuration idea, ala 'Enovia'. I'm using opendocman (http://www.opendocman.com/) for this now, but a product configuration suite would do a little more, I think. Part numbers and routings should be revision controlled.


RE: Adding Labor and Burden to Item Cost and W/O - VortecCPI - 08-23-2018 04:25 AM

We used this for many years for national collaboration: https://sourceforge.net/projects/owl
http://www.doxbox.ca

Very good system but author has shut it down. Started setting up SeedDMS but never finished...
https://www.seeddms.org/index.php?id=2

I am currently working on a Product Configurator for one of my customers. Very abstract and full OO design in context of Division, Product, Config Group, etc. UI driven almost completely by DB...