Surface Treatment Accounting Calculations
These formulas apply to most surface treatment processes with non-zero cycle times. For exceptions, see Vibratory Finishing Formulas and Conveyor Abrasive Finishing Formulas.
Labor Cost = Labor Time * Labor Rate / Final Yield
Labor cost is a function of the following:
Labor time (see formula below)
Labor rate: this is the product of the following:
- Machine property Labor Rate
- Cost model variable laborRateAdjustmentFactor (1 in starting point Digital Factories)
- Machine property Work Center Labor Rate Factor (1 in starting point Digital Factories)
Final yield (see the formula above)
Labor Time = Cycle Time * Labor Time Standard * Number of Operators
Labor time is the product of the following:
Cycle time (see the sections on the individual processes, below)
Labor time standard (specified as a machine property). This value reflects the amount of time spent by machine operators in between machine cycles, including time performing maintenance and cleaning tasks as well as time pausing between tasks. The amount is expressed as a cycle time multiplier.
Number of operators (specified by the machine property Number of Operators)
Amortized Batch Setup = (Setup Time *
(Labor Rate + Direct Overhead Rate)) / Batch Size
Amortized batch setup depends on the following:
Setup time (specified as the machine property Setup Time)
Labor rate: this is the product of the following:
- Machine property Labor Rate
- Cost model variable laborRateAdjustmentFactor (1 in starting point Digital Factories)
- Machine property Work Center Labor Rate Factor (1 in starting point Digital Factories)
Direct overhead rate (see Direct and Indirect Overhead)
Batch size (specified in the Production Scenario screen of the Cost Guide, or—for some paint processes—by the PSO Painted Batch Size)