Operations

The preliminary costing process for a production file may include parts, operations, equipment, and external operations. The section below explains how operation costs are calculated in Isah.

For preliminary operation costs, Isah uses the rates specified for the capacity group entered on the operation line. These rates are multiplied by the number of preliminary hours (for both the setup/adjustment time and the cycle time):

• (Number of machine hours * Machine rate) + (Number of labor hours * Labor rate) + (Number of machine hours * Overhead rate) + Contributions