| 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 formula ERP 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, ERP LN applies the following formula to calculate the man hours: If the operation does not have a fixed duration, ERP LN applies the following formula to calculate the man hours: The formula ERP 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, ERP LN applies the following formula to calculate the machine hours: If the operation does not have a fixed duration, ERP LN applies the following formula to calculate the machine hours: 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 |