🎓 What can I do here?
Learn how the cost breakdown tools works.
See how rates, times, quantities, and input items affect cost.
What is the Cost Breakdown Tool?
The cost breakdown tool lets you see how both labor and material costs affect the total cost of an item. You can access it by clicking on this button on a Make Item detail page.
What is on the cost breakdown screen?
The cost breakdown screen looks like this:
At the top, you have a high level overview where you can see the cost for a certain quantity of items:
By default, it shows you the cost for one item. By entering a different quantity, you can see how material costs, setup rates, and run rates impact the total cost.
Underneath it, you will see labor costs for the item. Each operation has a setup row and a run row:
Underneath the labor costs, you will see the material costs:
How are these values calculated?
Labor Costs
For each operation, there is a setup cost and a run cost. These are calculated by the following formulas:
📐 Setup Rate: setup time (unit time) * rate (cost / unit time)
Example: 3 hours * $30 / hour = $90
▶️ Run Rate: # of parts (part) * run time (unit time / part) * rate (cost / unit time)
Example: 3 parts * 1.5 hour / part * $30 / hour = $135
(Remember, rates can be set on the operation, the process, and the machine group, or will pull from the shop configuration default)
Material Costs
For buy input parts, the cost will come from the default vendor specified. If there’s no vendor, it will assume the cost to be 0.
For make input parts, the cost will roll up that item’s material and labor costs into a single line. To drill into that item further, visit its detail page.