MAX Setup Calculations for Setup for MAX Cost Roll

Work Centers

Include Setup Checkbox:

If the “Include Setup” switch is set to yes (checkbox selected), Exact MAX includes Setup Time in Load

and Queue calculations. This flag does not affect the cost roll.

Overhead Rate:

The labor overhead at the selected workcenter. To calculate standard costs based on the part

Routing, specify this rate as a percentage. Default populated from System Manager > Activity > System

Configuration > Costing – Default Overhead Rate.

Labor Rate:

The standard labor rate at the selected workcenter. To calculate standard costs based on the part

Routing, specify this rate (per hour). Defaults to the value set in the System Manager > Costing > Labor Rate.

Setup Time

Average Order Quantity (AOQ) – BOM > Activity > Part Master > Inventory Part Data Tab (OPTIONAL)

This is an optional field that is used for allocating setup costs on the shop floor for parts with a setup type

of “O” – Order. If you want to include the average order qty in the calculation it can be used to factor in the average

The labor hours per unit are calculated for “O” Order:

Labor Hours Per Unit = Run Time\Qty Per + Setup Time\Qty Per * AOQ

Note: if AOQ is not used then setup time is essentially divided by zero which equates to the time entered on the part routing so if your setup time is 1 hour for the operation then that one hours is what is calculated for Setup Time.

Then multiply by the Labor Rate and Overhead Percentage at the work center to calculate standard cost at the operation.

B = Batch

For Batch setups, SFC calculates 1 setup per batch of size Quantity Per. For example, if Order Quantity is 90 and the Quantity Per batch is 15, there are 6 batches for the operation (90 / 15). If Planned Setup Time = 0.5 hours, Total Setup Time for the operation is 3 hours (6 x 0.5).

D = Daily

For Daily setups, SFC calculates 1 setup per day. This is based on the Planned Run Time per operation and the number of manned hours at the workcenter available per day. For example, if Order Quantity is 90 and Planned Run Time is 0.2 hours per unit, there are a total of 18 hours of run time required for the operation (90 x 0.2). If there are 12 manned hours per day at the workcenter, it will take 1.5 days to complete the operation (18 / 12). If Planned Setup Time is 0.5 hours, Total Setup Time for this operation is 1 hour (2 x 0.5) because it will take more than 1 day to complete the operation, and consequently, 2 set-ups.

U = Unit

For Unit setups, SFC calculates 1 setup per unit. For example, if Order Quantity is 90 and Planned Setup Time is 0.5 hours, Total Setup Time for the operation is 45 hours (90 x 0.5).

Note: If Operation Type is B (Batch), Setup Type cannot be U. If Operation Type is U (Unit), Setup Type cannot be B.