In Stage 4, we use the simulation results from Stage 3 to predict the part cost/piece. The numbers in Stage 4 will only make sense if the flexibility plan developed in Stage 3 produces the entire production demand.
Workcenter and Labor Cost Card
The Workcenter and Labor Cost card contains inputs that will be used to assign costs to the simulation results.
- Workcenter Cost/Year: The cost/year for each workcenter is the depreciation cost of a single station. The cost/year is multiplied by the number of stations, scaled to the project horizon, and then divided among the parts according to their simulated use of the station.
- Cost/Operating Hour: The cost/hour for each workcenter is the cost of operating a station for an hour. The simulated time that a part uses the station is multiplied by the cost/hour. The cost/hour can include electricity, consumables, or even an average tool cost.
- Wage/Hour: The wage per hour per operator is the total cost of a single operator for one hour. The simulated time that a part spends at a station which requires labor is multiplied by the wage rate to determine the labor cost of the part.
- Automated Handling Cost/Year For manufacturing strategies which use an automated handling system, the cost/year of the handling system is the depreciation cost of the entire handling system. The cost is scaled to the project horizon and then divided among the parts according to their simulated use of the automated handling system.
The parts card contains the predicted cost of each part. These predictions use the simulation, so there is a "Start Forecast" button that will start the simulation. The simulation runs in the cloud and for most flexibility plans the simulation completes in a couple of seconds (for some complex projects the simulation takes longer to run). Once the simulation completes, the results will appear on the Parts card. Also, the "Start Forecast" button will disappear until a change in the projcet is made.
Material Cost The material cost column is an input you can enter. The cost entered here is simply added to the total cost/piece.
Parts Produced The total number of parts produced during the simulation. This quantity is used as the denominator when converting total costs such as station costs to a cost/piece.
Station Cost/Part The station cost per part takes the workcenter costs from the Workcenter and Labor Cost card and combines that with the simulated use the stations. Note that total costs are scaled to the specified horizon. For example, if the project horizon is 6 months, you still enter the station cost per year in the Workcenter and Labor Cost card but when calculating the station cost per part, SeedTactic: Planning will scale the cost per year to 6 months (by dividing it by 2).
Labor Cost/Part The labor cost per part takes the labor wage rate per operator, multiples it by the total horizon, and then divides the cost among all the parts produced according to their simulated use. Note this cost therefore takes into account not just the time the operator spends on the specific part but also the overhead of idle time.
Automation Cost/Part The automation cost per part takes the automation cost from the Workcenter and Labor Cost card, scales it to the project horizon, and then divides the total cost among all the parts according to their simulated use of the automated handling system.
Cost/Part The final column is a total of the costs in the other columns. It is the sum of the material cost, station cost, labor cost, and automated handling cost.