| # Calculating operation costs (man and machine hours) LN determines the man and machine hours to calculate the operation costs. For each operation found in the structure, LN determines the task type. The formula LN applies to calculate the man hours depends on whether or not the operation has a fixed duration. If the operation has a fixed duration, LN applies the following formula to calculate the man hours: If the operation does not have a fixed duration, LN applies the following formula to calculate the man hours: The formula LN applies to calculate the machine hours depends on whether or not the operation has a fixed duration. If the operation has a fixed duration, LN applies the following formula to calculate the machine hours: If the operation does not have a fixed duration, LN applies the following formula to calculate the machine hours: Next, 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 |