Determining Standard Hrs/Run time/Std labor costs for BPCS

[leanIE]

I’ve been asked to develop work measurement procedures that will invariably be used to determine standard hrs. for BPCS.

The way I see it Std. Hrs will have three major implications (I’m sure there are others):

1. Efficiency report (Earned Hrs. vs. Actual Hrs.)

2. MRP/Planning/Scheduling

3. Standard Costs

So, here are a few questions:

1. Are Run hrs (BPCS.....assuming that I’m not using mach. hrs) and std. hrs the same thing.


2. How would I reflect the Std. Hrs or run time in BPCS for an assy. process that has 4 oper. (4 workstations) w/ times of .011, .0108, .009, and .0068 respectively.

The flow time or max cycle time (w/ 1 oper.) is 0.0376. However, the Min cycle time (w/ 4 oper.) is .011….this is least amount of time that an operator can spend at a workstation. Thus, the total labor time is .011 x 4 oper. = .044 hrs/pc.

So, do I use 0.0376 as std hrs. and accept that the real total labor of 0.044 is 86% efficient ? The 0.0376 will never be obtainable as long as my bottle neck is 0.011. However, my true cost…..well my true labor time....is 0.044 labor hrs.

If this were your job how would you reflect Std. or run Hrs. in BPCS?

(Heck, should I just treat each workstation as a separate operation?)

 

[MechEng13]

LeanIE

As we use Standards at my company.

1. Run Hrs are different than Standard hours.

2. The std hors for the assy would be .044 hr/pc...due to your longest station is .011 hr/pc. You may even want to include an inefficieny percentage on your std...this will take into account bathroom breaks, restocking the line, etc.

You can only reflect each workstation as a separate operation if they will always have either one person/ operation or one person doing the entire job.

Another major implication you may want to consider is how many times per year do you plan to roll the standards to show cost changes based on improved or worsening run rates.



Alan M. Etzkorn
Manufacturing Engineer
Hoffco/Comet Industries Inc.

http://www.hoffcocomet.com

 

[leanIE]

Thanks Mech13! A few follow up questions.


"1. Run Hrs are different than Standard hours."

So what would your Run Hrs. for this part be?

"2. The std hors for the assy would be .044 hr/pc...due to your longest station is .011 hr/pc. You may even want to include an inefficieny percentage on your std...this will take into account bathroom breaks, restocking the line, etc."

Does BPCS have a field for std. hrs? All I've seen in the routings are set-up, mach., and run Hrs. (btw.. above times do reflect PFD allowance)

"Another major implication you may want to consider is how many times per year do you plan to roll the standards to show cost changes based on improved or worsening run rates."

Yes, very good point. Typically we roll costs annually, but we are considering doing this once monumental improvements have taken place in order to accurately reflect true costs and adjust absorption spending. What are your thoughts? thanks again.

 

[MechEng13]

In your case the Run hours would Ideally be at .044 hrs/pc...you want your standards and actuals to run within 2% of each other on any given run.

As for BPCS...I'm not familiar with that...is it an ERP system...we use Visual Manufacturing.

From your description it sounds liek they are using Run Hrs for your STD...that's the same way as Visual...however we inherently call them Standard rates for discussion purpose.

We also roll costs annually and I feel that it is far from often enough...Too many things can change over the course of the year for you to be able to know your true costs by just analyzing them once. We have started to look at rolling them more often also based on changes in the manufacturing end. It also tends to make a difference as how you define monumental changes. We have over 17k part numbers and that alone can be monumental. Unfortunately my only input on that is talking to my boss, and that's a rarity on due to he get's to spend most of every day in meetings.

I would say that it sounds like you are thinking along the right lines in my eyes...of course for the cost rolling that is only my opinion.

Hope this helps

Alan M. Etzkorn
Manufacturing Engineer
Hoffco/Comet Industries Inc.

http://www.hoffcocomet.com

 

[griffengm]

leanIE
1. Are Run hrs (BPCS.....assuming that I’m not using mach. hrs) and std. hrs the same thing.

Run hours should be the same as machine hours. It is the amount of time the job is going through the work center. Standard hours are the number of man hours needed. You need both in order to schedule labor and machines.


2. So, do I use 0.0376 as std hrs. and accept that the real total labor of 0.044 is 86% efficient ? The 0.0376 will never be obtainable as long as my bottle neck is 0.011. However, my true cost…..well my true labor time....is 0.044 labor hrs.
If this is in a single operator cell then the .044 is 100% but if you ever use multiple operators or batch process at individual machines then you need to use .0376.

If this were your job how would you reflect Std. or run Hrs. in BPCS?

(Heck, should I just treat each workstation as a separate operation?)

Unless you've already included personal/fatigue factors in the times you gave, you need to adjust for them.
My practice has been to break the times into the smallest practical operations so that if we wish to implement improvemants, we will have more clearly defined targets.
We ran a BCPS system here for 10 years or more. Went to an ERP system when acquired by a new owner. Generally, the ERP is easier to work with.

Griffy