Capacity Cost

Capacity costs are the internal labor cost and machine costs. It can be setup in machine center and work center. The capacity cost also can be seperated into direct and indirect cost. Examples of direct capacity cost include building rental and insurance. Examples of indirect cost include lighting, heating and cleaning.To specify the capacity cost:

1) Open Machine Center Card (Manufacturing --> Capacities --> Machine Centers)

2) click on the Posting tab.

3) Enter direct cost in the Direct Unit Cost field. For example, $0.80

4) Enter indirect as percentage or fixed rate into Indirect Cost % or Overhead Rate field. Let's assume the indirect cost is fixed at $0.20, then we will need to enter 0.20 into the Overhead Rate field.

5) The Unit Cost field will be calculated automatically based on the value in the Direct Unit Cost, Indirect Cost % and Overhead Rate fields.

Routing Link Codes

Routing Link Codes is used to reduce inventory based on routing steps. Components in BOM can be linked to specific step in Routing with Routing Link Codes. This is very useful in long manufacturing process because material inventory can be reduced without waiting for the item to be completed manufactured. Inventory will be reduced while the item is being manufactured.
There are 3 types of flushing methods in Routing Link Codes:
1) Manual - Inventory is affected when user post consumption or production journal
2) Forward - Inventory is affected when routing step is started
3) Backward - Inventory is affected when routing step is completed

To link BOM components to Routings:
1) Open the Item Card for Item with value in Both Routing No. and Production BOM fields.
2) Open the Routing Card for the Routing No. selected.
3) Select a Routing Link Codes for each routing lines
4) Open Production BOM card.
5) Enter the same Routing Link Codes into the Production BOM lines. Lines will the same Routing Link Codes will be linked.

* My company does not use Routing Link Code

Enter Holidays in Shop Calender

Navision allow you to set Holidays in Shop Calender so that the production planning can takes holidays into consideration. to enter holidays:
1) Go to MANUFACTURING --> CAPACITIES --> SETUP --> SHOP CALENDAR.
2) Click on Shop Cal --> Holidays.
3) Enter the date, staring time and ending time for the holidays.

How to enter a Work Shift that span across midnight in Shop Calendar

You have to enter 2 lines per day for the shift.
- One line ending at 11:59:59 PM
- Next line begin at 12:00:00 AM

Both lines have the same value in the Day column and Work Shift Code column. The difference are the Staring Time and Ending Time.