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Fraction ERP Support

Operations

The operations register in Fraction ERP is a list of all the production operations you perform in production. Examples of operations are cutting, machining, painting, inspection and packaging. The operations list can be found under the setting menus.

Creating New Operations

NAME: The standard name of the operation.

DESCRIPTION: Standard information that will become instructions on works order, this can be customised in each BOM.

SET-UP TIME: The amount of time in minutes it will take to set up the operation by default, this can be customised in each BOM.

RUN TIME: The time it takes to process 1 part in this operation by default, this can be customised in each BOM.

COST: This is the hourly cost of this operation. There are no fixed rules for what you use for cost, but two general models exist. Firstly you can use this as "charge out rate" being the total charge to your customers per hour of labour, so it includes direct wages and overheads. This is typically used in subcontract environments.
Secondly the hourly rate can be the direct cost of labour, this is used to determine total direct costs and then apply a gross margin that you wish to sell the products for.

WORKCENTER: This is optional, but you can set a default workcentre for the operation. It can of course be changed on the BOM and also later in the works order during production.