Sandy:
The logic when you change crew size is that the system takes the labor x
crew size, but since you are using the same about of resource time - burden
doesn't change. We've just had a discussion on it too, and although the
logic makes sense, we also have burden rates as a percentage of labor, so
the logic doesn't necessarily fit our costing "plan". We talked about
adjusting the labor & burden rates so the labor factor includes burden costs
like benefits, etc, and leave burden to include heating, lights, etc., but
decided that would confuse things even more. This mainly affects the value
of inventory, so our workaround is to take the labor value of the inventory
and multiply it by the burden factor and use that number instead.
HTH!
Julie Lehmann
Mercury Minnesota Inc.
The logic when you change crew size is that the system takes the labor x
crew size, but since you are using the same about of resource time - burden
doesn't change. We've just had a discussion on it too, and although the
logic makes sense, we also have burden rates as a percentage of labor, so
the logic doesn't necessarily fit our costing "plan". We talked about
adjusting the labor & burden rates so the labor factor includes burden costs
like benefits, etc, and leave burden to include heating, lights, etc., but
decided that would confuse things even more. This mainly affects the value
of inventory, so our workaround is to take the labor value of the inventory
and multiply it by the burden factor and use that number instead.
HTH!
Julie Lehmann
Mercury Minnesota Inc.
----- Original Message -----
From: "Sandy Morse" <smorse@...>
To: <vantage@yahoogroups.com>
Sent: Tuesday, May 24, 2005 2:58 PM
Subject: [Vantage] Burden not changing in cost
> I am trying to work with a part in Engineering Workbench and change the
> parameters in the methods file. When I change the crew size on the
> operation, the labor cost drops but the burden cost remains the same. I
> have the burden setup in the work center as a percentage so if my labor
> cost drops my burden cost should drop as well. No matter what I change
> the burden cost stays the same. Any ideas?
>
> Sandy Morse
> BVR Technologies Company
> 815-874-2471 x112
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