This chapter explains the roles that work centers and machines play within bills of manufacturing and how they are properly set up.
What is a work center?
A work center is a unique machine, a set of interchangeable machines, or an assembly work area.
Each labor sequence is assigned to a work center
Within the Routing tab in the Bills of Manufacturing screen, each labor sequence is assigned to the work center in which it is performed. This enables work center rates for labor and manufacturing overhead to be applied to routing setup and cycle times to calculate sequence labor and overhead costs. This also lists the sequence in the Work Center Schedule screen when a job for a BOM parent is released to production.
Work centers are machine-based or worker-based
Work centers are machine-based or worker-based and should be set up in the Work Centers screen as follows:
Machine-based work centers
This type of work center is a unique machine or a set of interchangeable machines. A unique punch press, for example, would be set up as a work center with one machine assigned to it. A group of three identical molding machines, each of which can perform the same processes using the same tooling, would be set up as one work center with three machines assigned to it.
Worker-based work centers
This type of work center is used to perform non-machine processes such as assembly, welding, packaging, and shipping. Usually, each such work center is a physical area of the shop that is designated for a particular type of work.
Hourly Rates
Hourly rates for setup, labor, and manufacturing overhead are derived from shop rates and can be factored up or down for exceptions on the Detail tab in the Work Centers screen. Product costing is covered in detail in the WIP Accounting guide.
Standard Processes
Standard processes for commonly performed operations can be entered in the Processes tab in the Work Centers screen. See chapter 8, Standard Processes, for details.
Assign machines when applicable
If a work center is machine-based, enter the associated machine or machines in the Machines screen and assign those machines to that work center. This enables particular machines to be assigned to job sequences in advance or when jobs are in production. It also tracks production history by machine, which can be helpful for maintenance planning.
