Calculating CAMRO Interim Order Structure and Interim Order Costs -Key Exercises

Creating an CAMRO Interim Order Structure

Purpose: The purpose of this exercise is to create the required data that will be used in the Release MRO Interim Order Structure exercises.

1. Create an CAMRO Interim Order Structure.

2. In the table below, record the interim header id and serial number used in the creation of the order structure for later reference.

   Note: It is suggested users use a serial number that they can easily identify as their own creation in later queries, such as prefixing the serial number with their initials, or some other such method.

   Serial No

Initial exercise for creating an CAMRO Interim Order Structure

Initial Data For Cost Calculations

Purpose: The purpose of this exercise is to introduce you to the functionality for calculating costs for an MRO interim order.

Windows:
Inventory Part
CAMRO Interim Order Structure
Work Center
Manufacturing Labor Class

Steps: To complete this exercise, perform the following steps.

1. Open the Inventory Part window.

2. Query up part number 06C/7200, site 90. Click on the Costs tab. Note the Estimated Material Cost for this part.

3. Open the CAMRO Interim Order Structure window.

4. Query up the interim header ID recorded in the previous exercise. Click on disassembly order 1 in the Disassembly tab in the Tree Structure tab. Then click on the Operations tab in the Disassembly tab. Note the Work Center No and Labor Class column values (should be work center 1 and labor class 1 respectively for all operations) for each operation for this interim order.

5. Note also the Mach Run Factor, Labor Run Factor, Crew Size and Run Time Code for each operation.

6. Open the Work Center window.

7. Query up work center number 1, site 90. Click on the Cost tab. Note the Work Center Cost, Cost Unit and Overhead 1 column values for cost set 1.

8. Open the Manufacturing Labor Class window.

9. Query up labor class 1, site 90. Click on the Cost tab. Note the Labor Class Rate, Overhead and Overhead Unit column values for cost set 1.

Calculating and Viewing Estimated Costs For an CAMRO Interim Order

Purpose: The purpose of this exercise is to introduce you to the functionality for calculating and reviewing estimated costs for an CAMRO interim order.

Windows:
CAMRO Interim Order Structure

1. Open the Maintain Order Structure window.

2. Query up the interim header ID recorded in the previous exercise. Right-click in the header section of the form, then click on Calculate Costs, followed by Estimated Cost.

3. Click on disassembly order 1 in the Disassembly tab in the Tree Structure tab. Then click on the Costs tab. Observe the row corresponding to cost bucket ID 200, i.e. Labor Cost. Note the value in the Estimated Level Cost column which should be 375.00. This is calculated as follows: click back on the Operations tab. For operation 10, the labor run factor is 0.25, crew size is 1 and the labor class is 1. The labor run factor multiplied by the crew size, and this in turn multiplied by the labor class rate of 60 for labor class 1 gives a value of 15. Repeating this for operation 30, labor run factor 1 is multiplied by crew size 2, and this in turn is multiplied by the labor class rate of 60 for labor class 1 giving a value of 120. Repeating this for operations 40 and 50 gives values 120 and 120 again respectively. Totaling up all the values for operations 10 through 50 gives 375.00.

4. Observe the row corresponding to cost bucket ID 221, i.e. Labor Overhead Cost. Note the value in the Estimated Level Cost column which should be 250.00. This is calculated as follows: click back on the Operations tab. For operation 10, the labor run factor is 0.25, crew size is 1 and the labor class is 1. The labor run factor multiplied by the crew size, and this in turn multiplied by the overhead of 40 for labor class 1 gives a value of 10. Repeating this for operation 30, labor run factor 1 is multiplied by crew size 2, and this in turn is multiplied by the overhead of 40 for labor class 1 giving a value of 80. Repeating this for operations 40 and 50 gives values 80 and 80 again respectively. Totaling up all the values for operations 10 through 50 gives 250.00.

5. The estimated level costs for cost buckets 300 and 321 (machine cost and machine overhead cost respectively) can be similarly calculated using work center cost and overhead 1 column values in the Cost tab of the work center form for work center number 1. The estimated level cost for cost bucket 110 (estimated material cost) can be also similarly calculated using the estimated material cost in the Costs tab of the inventory form for part number 06C/7200.

6. The Estimated Accum Cost for disassembly order 1 is the sum of the Estimated Level Cost of all of the interim orders in the disassembly section of the order structure, i.e. all the interim orders shown in the Disassembly tab. However, the Estimated Accum Cost for disassembly order 13 is the sum of the Estimated Level Cost of interim orders 13, 28 and 29. Similarly, the Estimated Accum Cost for disassembly order 20 is the sum of the Estimated Level Cost of interim orders 20, 35, 36, 37 and 38. Similarly, the Estimated Accum Cost for assembly order 2 is the sum of the Estimated Level Cost of all of the interim orders in the assembly section of the order structure, i.e. all the interim orders shown in the Assembly tab.

Calculating and Viewing Actual Costs For an CAMRO Interim Order

Purpose: The purpose of this exercise is to introduce you to the functionality for calculating and reviewing actual costs for an CAMRO interim order.

CAMRO Interim Order Structure.

Windows:
CAMRO Interim Order Structure

Steps: To complete this exercise, perform the following steps.

1. Open the CAMRO Interim Order Structure window.

2. Query up the interim header id used in the previous exercise.

3. Click on disassembly order 1 in the Disassembly tab in the Tree Structure tab. Right click on this order, then click Release.

4. Click on the Supply Orders tab, right click on the supply order for this interim order, then click Shop Order. When the MRO shop order form comes up, right click in the header section of the form, then click Release. Verify that the state of the shop order changes to Released.

5. Right click again in the header section of the form, then click Report, which brings up the MRO shop order operations reporting form. At this point, you have two options for reporting operation times. Select all operations, right click, then click Report Time. This will report time based on the data for the machine and labor times found in the Operations tab for each of the operations. Alternately, you can manually enter values for the Mach To Report and Labor To Report columns for each operation and save the records. These columns initially contain values found in the Operations tab.

6. Right-click in the header section of the CAMRO Interim Order Structure window, then click on Calculate Costs, followed by Actual Cost.

7. Click on disassembly order 1 in the Disassembly tab in the Tree Structure tab. Then click on the Costs tab. Observe the row corresponding to cost bucket ID 200, i.e. Labor Cost. Note the value in the Actual Level Cost column. This is calculated as follows: click back on the Operations tab. For operation 10, the labor run factor is 0.25, crew size is 1 and the labor class is 1. If in step 5 you used the right mouse button method Report Time to report operations, then the labor run factor multiplied by the crew size, and this in turn multiplied by the labor class rate of 60 for labor class 1 gives a value of 15. On the other hand if you manually reported time by entering values for the Mach To Report and Labor To Report and saving the record, then the manually entered value for Labor to Report is used for the labor run factor. This is then multiplied by the crew size, and this in turn multiplied by the labor class rate of 60 for labor class 1 to give the value for the Actual Level Cost for cost bucket 200 (Labor Cost) for operation 10.  Repeating this for operation 30, labor run factor 1(or the manually entered time) is multiplied by crew size 2, and this in turn is multiplied by the labor class rate of 60 for labor class 1 giving the Actual Level Cost value . Repeating this for operations 40 and 50 and totaling up all the values for operations 10 through 50 gives the Actual Level Cost for cost bucket 200 (Labor Cost) for disassembly order 1.

8. The other cost buckets for the Actual level Cost column are calculated in a similar manner.

9. The Actual Accum Cost for disassembly order 1 is the sum of the Actual Level Cost of all of the interim orders in the disassembly section of the order structure, i.e. all the interim orders shown in the Disassembly tab. However, the Actual Accum Cost for disassembly order 13 is the sum of the Actual Level Cost of interim orders 13, 28 and 29. Similarly, the Actual Accum Cost for disassembly order 20 is the sum of the Actual Level Cost of interim orders 20, 35, 36, 37 and 38. Similarly, the Actual Accum Cost for assembly order 2 is the sum of the Actual Level Cost of all of the interim orders in the assembly section of the order structure, i.e. all the interim orders shown in the Assembly tab.

Viewing Accumulated Costs For an CAMRO Interim Order Structure

Purpose: The purpose of this exercise is to introduce you to the functionality for reviewing the accumulated costs, both estimated and actual, for an order structure as a whole.

Windows:
CAMRO Interim Order Structure

Steps: To complete this exercise, perform the following steps.

1. Open the CAMRO Interim Order Structure window.

2. Query up the interim header id used in the previous exercise.

3. Click on the Costs tab which is at the same level as the Tree Structure tab, not the Costs tab which is in the Disassembly and Assembly tabs of the Tree Structure tab.

4. Observe the values in the Estimated Level Cost and Actual Level Cost columns for the various cost buckets. These are the sum of the level costs of only the top-level disassembly and assembly orders, i.e. interim orders 1 and 2 in the respective cost buckets.

5. Observe the values in the Estimated Accum Cost and Actual Accum Cost columns for the various cost buckets. These on the other hand are the sum of the level costs of all of the interim orders in both sections of the order structure, i.e. disassembly and assembly.