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Entering production operations costs
Entering production operations costs

Calculate production operation costs in Katana based on resources and time.

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated over a week ago

Katana allows for precise entry of production operation costs, calculated by multiplying the cost per hour of a resource by the time taken to perform an operation. This guide outlines how to define these costs for different production steps, incorporating factors like labor, maintenance, and electricity costs.

The total cost of production operations are calculated as a sum of the cost of operations steps.

The cost of an operation step is calculated based on the average hourly cost and the duration of performing the operation step.

Cost = Cost per Hour x Time

Cost per Hour - The average hourly cost of performing a production operation step. Each step can use a different Cost per Hour. The cost typically includes salary (labor cost), and could also include the average hourly maintenance and electricity usage of a workstation. It should not include material costs.

When first entering the Cost per Hour for a Resource, the entered value will automatically be saved as the default Cost per Hour for that Resource. You can assign and edit the default Cost per Hour for Resources in Settings screen > Resources. The default Cost per Hour will automatically be populated to your Resource when you add to any Production operation steps.

Time - The duration of an operation step to produce one unit of a product. This can be edited on the manufacturing order if the actual time spent in production is different from the default value defined in the Production operations tab of a product.

The Cost cannot be manually inserted and can only be calculated based on the formula above.

Note: If you don't want to create step-by-step Production operations, but rather add production operation costs to the total manufacturing cost of a product as a single number. You can create a single step under production operations, add the desired cost to the Cost per hour field and 1 hour to the Time field.

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