| Calculating operation costs (man and machine hours) |  |
| ERP LN determines the man and machine hours to calculate the operation costs. For each operation found in the structure, ERP LN determines the task type. The man and machine hours for a non-machine operation are calculated using the following formula:
                (setup time/order quantity) + (run time * routing unit) man hours =
    -----------------------------------------------------------------
                                           60
If the operation is a machine operation, the man and machine hours are calculated according to the formulas:
                    (setup time/order qty) + (run time/routing unit) machine hours =
    --------------------------------------------------------------
                                           60
Next, ERP LN determines if the work center type is carried out at a main work center, a sub-work center, or a subcontracting work center. If the work center is a main work center or a sub-work center, the costs are calculated as described in Calculating operation costs (labor, machine, overhead). If the work center is a subcontracting work center, the calculation is performed as shown in Operation subcontracting without material flow support. Related topics Calculating operation costs (labor, machine, overhead) Operation subcontracting without material flow support |