Overview
A Labor Grade represents a dollar amount per hour that is associated with the time required to perform a particular operation. The term Labor Grade is used rather than a Labor Rate since the actual dollar amount represented by the record is not available to the shop floor personnel, but rather, is used as the basis for applying Labor Cost for cost roll-up (establishing standards).
Application
A labor grade is assigned to the Manufacturing User record and is also assigned to a routing operation for setup and run labor. The Manufacturing Labor Grade hourly rate could be viewed as a ‘standard’ labor amount for the operation, as opposed to using the employee’s actual hourly rate of pay. Labor Grades are used in performing cost rollup calculation.
Navigation
Manufacturing Labor GradeGo to List View of existing Manufacturing Labor Grades:
1. Select New Mfg Labor Grades Button to add a new record or Edit to access an existing record.
2. Enter Key DataFields
Division: This is the Manufacturing Division which this Labor Grade is associated with.
Labor Grade Number: A unique, user defined, identifier for this Labor Grade.
Description: A user defined description of this Labor Grade.
Hourly Rate Option: The selection determines the method by which the Standard Hourly Rate is Set.
- Manual Entry: Indicates that the system will NOT copy the Hourly Rate Simulated to Hourly Rate Standard during the “Set Standard from Simulated” Cost Update Program and that the Hourly Rate Standard will be maintained manually.
- Copy from Simulated: Indicates that the system WILL copy the Hourly Rate Simulated to Hourly Rate Standard during the “Set Standard from Simulated” Cost Update Program and that the Hourly Rate Standard will be display only, not maintainable by the user.
Sales Price per Hour: This is the billing rate per hour for this Labor Grade.
Hourly Rate Sim (Simulated): This is the simulated hourly dollar rate for this Labor Grade, set manually by the user. If the Hourly Rate Option is set to ‘Copy from Simulated’, this value is copied to the Hourly Rate Standard, during the cost rollup process, which is then used for calculating the standard labor cost. If the Hourly Rate Option is set to ‘Manual’, then this value is not copied to the Hourly Rate Standard. Instead, the Hourly Rate Standard is set and maintained manually.
Hourly Rate Std (Standard): This is the standard hourly dollar rate for this labor grade. Based on the Standard rate Option, the standard is set by the system, during the cost roll up process, or set manually by the user. This value is used only for calculating standard labor cost values. The computing of actual labor dollars on a work order is based on the employee labor rate times the labor hours reported, NOT the Hourly rate Standard.
Sim to Std Roll Date: Set by the system, displays the most recent date the Hourly Rate Simulated was rolled to Hourly Rate Standard.
3. Save the recordNotes and Attachments (Optional)
Notes and attachment can be associated to a record.
SEE ALSO
