<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ti/onlinemanual/000000000000017" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Calculating operation costs (man and machine hours)</Title>
	</Header>
	<GeneralSection><Paragraph>SSA ERP determines the man and machine hours to calculate the operation costs.</Paragraph>
		<Paragraph>For each operation found in the structure, SSA ERP determines the task type. The man and machine hours for a non-machine operation are calculated using the following formula:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">
            (setup time/order quantity) + (run time * routing unit) man hours =
-----------------------------------------------------------------
                                       60

</Paragraph>
		</Formula>
		<Paragraph>If the operation is a machine operation, the man and machine hours are calculated according to the formulas:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">
                (setup time/order qty) + (run time/routing unit) machine hours =
--------------------------------------------------------------
                                       60

      </Paragraph>
		</Formula>
		<Paragraph>Next, SSA ERP determines if the work center type is carried out at a main work center, a sub-work center, or a subcontracting work center.</Paragraph>
		<Paragraph>If the work center is a main work center or a sub-work center, the costs are calculated as described in <Link href="/baanerp/ti/onlinemanual/000137" role="manual">Calculating operation costs (labor, machine, overhead)</Link>. If the work center is a subcontracting work center, the calculation is performed as shown in <Link href="/baanerp/ti/onlinemanual/000081" role="manual">Subcontracting</Link>.</Paragraph>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000137" role="manual">Calculating operation costs (labor, machine, overhead)</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000081" role="manual">Subcontracting</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
