Hi, there is one question which has long time confused me.
I am using BaaN IVC4, in maintain routings, we set task and run time for certain operation, and task was link to operation rate, and in the maintain routings , it clearly shows that man occupation
was 2, but when we calculate standard operation cost in Item master, its result is runtime * ( labor rate + machine rate + overhead rate ), it ignores the man occupation and machine occupation , I don't know which session's setting let BaaN calculate in this way.
What I believe the correct way is run time *
( man occupation * labor rate + machine occupation * machine rate + overhead rate )
Can anybody explain to me why BaaN do in this way ?

Regards

Hi Armstrong,

In Maintain Tasks (tirou0103m000), is your task type defined as Machine Operation or Non-Machine Operation?

Man occupation and machine occupation are only used in the calculation of man hours if the Task Type is a Machine operation. Otherwise they are ignored.

Scott

Dear Armstrong,

Is your man/machine ratio=1? This can happen for example when man occupation is 3 and machine occupation is also 3. The thing is, B5 calculates costs this way:

machine cost=machine hour*machine rate
labor cost=machine hour*man occ/machine occ*labor rate

Hence, if man/machine ratio=1 then machine cost=labor cost. It's a bit funny, but that's what we observed

Rgds,
Paul