We have a setup rate in the resource which uses the same rate as burden. Some methods have a setup time on the method. Problem is, folks are not using setup in MES as a standard practice. I am not sure what they are even using that information for since we don’t use scheduling and folks use Production Activity.
Curious on how others manage setup.
- Does anyone use lot size in the part to assist with this?
- If we produce different quantities on the jobs, how should the setup time be managed? Its a one and done setup to run the quantity on the job. Do we have to take an average of the qty on the jobs in order to break that out to a per piece in the method?
- If no one logs setup and it goes to a positive manufacturing variance, won’t that have a false picture of what happened? I am learning more about the finance side but fuzzy on what that actually means at the end of the day for that BU if they continue to get positive MV’s. I suppose MV’s is a whole other topic.
Example: We have 1 hour for setup time. If it taken 1 hour to setup for the job, qty of 7, we don't want standard cost to reflect a cost of an hour for each part. it is really dependent on the job.