Use operation types to accurately capture production costs and improve planning.
What are operation types?
Manufacturing a product often involves a variety of tasks — some are time-based, others are setup-based or fixed in cost. To help calculate costs more accurately, Katana offers four distinct operation types. These allow you to tailor your cost structure to match your workflow.
Note: Available only with the Advanced Manufacturing add-on.
Note: Available only with the Advanced Manufacturing add-on (Standard plan or higher).
Why use different operation types?
By categorizing your operations, you can:
Get more accurate production costing
Improve manufacturing efficiency and planning
Avoid under- or overestimating setup or labor time
Track non-time-based costs like fixed or unit-based operations
The four operation types
You can choose an operation type when setting up Production Operations on a product card.
Process
Best for when products are individually built and time drives the cost.
Example: Assembling a product where labor time varies per unit
Cost depends on the duration of the task
Setup
Used for machine or workstation setup before production starts.
Cost is fixed, regardless of production quantity
Great for tasks like warming up machinery or calibration
Per unit
Ideal when the cost is based on how many units are produced, not time.
Example: Labeling items or placing screws
Cost is tied to the number of finished items
Fixed cost
Useful for expected extra charges that don’t vary with time or quantity.
Covers miscellaneous or overhead costs
Applies a set cost per operation regardless of scope
How costs and time are calculated
Katana uses the selected operation type to calculate planned costs and times differently:
Process & Setup: Calculated based on time and hourly cost rate
Per Unit: Based on cost per item produced
Fixed Cost: Applies a single fixed amount to the total cost
These calculations feed directly into your manufacturing order costs and scheduling logic.
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