Operation Calculations

Operations are the processes used to manufacture a product. In a broader sense they are all the elements you wish to charge for in a quote that are not materials

For each operation we need to assign a calculation method and the default values that will be used for quote calculations

An operation can be defined as either  Time Based or Flat Charges

Time Based charges are based around an hourly rate - we seek to determine how long a process will take to complete, and then charge out that time at our chosen price. 

Flat charges include any other costs we want to add into the quote - delivery costs and standard costs for incidentals are common examples


How long a process will take depends on the following elements
  • The quantity of items to be processed
  • How long it takes to setup the operation to process the first item   [SETUP TIME]
  • How many items can be processed in an hour  [RUN RATE]
The formula is therefore  [SETUP TIME] + (QUANTITY] / RUN-RATE]) - Determining the quantity is the most complicated element if the process is to be automated

Determining the Quantity

Depending on the process, the quantity can be a function of:
  • Order Quantity                    --->  a packing operation
  • Number of Worksheets        --->  a sheet fed printing operation
  • Lineal Metres                      --->  a roll digital printing machine
  • Square Metres                    --->  often used for digital printing
  • Number of Components       --->  an assembly operation
We must also consider how many times the operation will be performed on the quantity of parts. For instance a sheet fed printing machine might require that the batch is passed through the printing machine once for every printed colour, a digital printing machine may require a white to be processed as a separate pass

The options therefore are:
  • Number of Colours       --->  this value is inherited from the layout section
  • Manual                       --->  the user defines how many passes are required
  • Not Applicable             --->  only one pass is required

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