I’m new to a company and been asked to examine profitability for our various product lines. As I’ve started looking through our manufacturing operations, I’ve noticed that “Crew Size” is set at 0-3.
Does this affect the costing for a particular job?
It seems to me that common sense would say that the number becomes a multiplier, in essence telling the system that 1 to 3 people are being scheduled to work on that operation, there by multiplying the labor accordingly?
You’re correct. Crew size will affect the ESTIMATED labor cost for a job: this value is the “average” number of operators expected to work on this operation at the same time, so Epicor will multiply the estimated labor cost by this factor to determine the total estimated labor cost for the operation. If crew size is zero, I think Epicor just considers it as one (1), but I haven’t confirmed that.
The ACTUAL labor cost will be determined by who actually logs into and applies labor hours against the operation. If you have an operation with a crew size of 3 but only one person ran the operation, your actual labor costs will be lower than your estimate (assuming they did not have to spend 3 times as long on the operation since they’re working alone).
If you’re looking at profitability and costing information, I would suggest downloading the Job Costing Technical Reference guide from EpicWeb. It’s dry, but it goes through how Epicor calculates estimated and actual costs for jobs and standard-cost parts.