Estimate Operation

Form ID: (AM304000)

You can use this form to enter operation details for an estimate and must be used to add materials, overhead, and tools to an estimate operation. When you make changes on this form, the system adds records to the Estimate History tab and updates the estimate settings on the Estimate (AM303000) form.

Form Toolbar

The form toolbar includes only standard buttons. For the list of standard buttons, see Form Toolbar and More Menu.

Summary Area

In this area, you can view and edit settings for a selected operation.

The calculated costs for an operation are based on the work center standard rate per hour. You can edit the costs by selecting the Override check box to the right of the cost box and specifying the needed value. When you specify a cost, the total cost is recalculated.

Attention:

However, if the estimate is used to create a bill of material or production order, the cost overrides are ignored and the entered times are used to recalculate the operation costs using the standard work center rate.


Column	Description
Estimate ID	The estimate identifier.
Revision	The estimate revision.
Operation ID	The reference number of the operation in the selected estimate.
Work Center	The work center where the operation takes place.
Operation Desc	The description of the operation.
Setup Time	The time it takes to prepare to start the operation. Based on this time, the system adds a fixed labor cost to the cost of the produced item regardless of the size of the order. The system always backflushes the setup time for the first labor or move transaction to record the quantity completed.
Run Units	The number of units produced during the specified run time for the operation.
Run Time	The time required to produce the specified run units of the operation. If the number of run units is zero, then the system does not consider the run time in the production cost.
Machine Unis	The number of units produced during the specified machine time for the operation. You specify the value of this box if machines are involved in the operation.
Machine Time	The time required to produce the number of machine units specified for the operation. If the number of machine units is zero, then the system does not consider the machine time in the production cost. You specify the value of this box if machines are involved in the operation.
Queue Time	The time a semi-finished item has to wait in the work center before workers can start processing the item.
Finish Time	The time required for the semi-finished item to be prepared for the next operation when the current operation has been finished.
Move Time	The time for a semi-finished item to be moved from the work center where the current operation is performed to the work center where the next operation will be performed.
Backflush Labor	A check box that indicates (if selected) that the system backflushes the cost of labor hours spent for the operation. Attention: The system does not apply this setting to machine time, which is always backflushed.
Control Point	A check box that indicates (if selected) that the operation is a control point. If it is, for this operation, workers must record the quantity of completed items.
Fixed Labor Cost	Total operation fixed labor cost from setup time.
Var. Labor Cost	Total operation variable labor cost.
Machine Cost	Total operation machine cost.
Material Cost	Total operation material cost.
Tool Cost	Total operation tool cost.
Fixed Overhead Cost	Total operation fixed overhead cost.
Var. Overhead Cost	Total operation variable overhead cost.
Subcontract Cost	Total operation subcontract cost.
Total Cost	Total operation cost.
Ref. Material Cost	The costs for vendor supplied materials and are not included in the total cost.

Material Tab

Material are the components used to build the estimate inventory item and can be stock, non-stock, or non-inventory. You must however, convert non-inventory items to either stock and/or non-stock inventory items before you can use the estimate to create a bill of material or production order.

You can use the Create Inventory Items (AM507000) form to convert the non-inventory items to stock or non-stock inventory items.

Table 1. Table Toolbar
The table toolbar includes standard buttons and buttons that are specific to this table. For the list of standard buttons, see Table Toolbar. The table-specific buttons are listed below.
Button	Description
Reset Lines	Resets the Line Order column back to the original order by Line Nbr.

Table 2. TableThe table lists all of the materials associated with the operation.
Column	Description
Inventory ID	The identifier of the material. You can select an existing stock item or non-stock item. You can also type the new identifier, which does not exist in the system, that is, specify a non-inventory item.
Subitem	The subitem of the inventory item. This column is visible only if the Inventory Subitems feature is enabled on the Enable/Disable Features (CS100000) form. Important: The Inventory Subitems check box has been removed from the Enable/Disable Features (CS100000) form because the functionality associated with the Inventory Subitems feature will be phased out. If you have this feature enabled in your system, the associated functionality remains available. To disable the feature, contact your MYOB support provider.
Description	The description of the material.
Qty Required	The quantity of the item required to produce one parent item. If you need to enter a by-product of the operation, you specify the negative value in this column.
UOM	The unit of measure for the inventory item. The system copies the default value from the Stock Items (IN202500) form. You can specify another UOM is needed.
Batch Size	The quantity required per batch. A batch is the production order quantity to produce. If zero (0) the Qty. Required is fixed per order If one (1), the Qty. Required is multiplied by the Batch Size. If greater than one (1), the Qty. Required is divided by the Batch Size. This column is hidden by default.
Total Required	The calculation uses the Batch Size as follows: If the batch size is zero (0), Qty. Required x (1 + Scrap Factor) If the batch size is not zero (0), Qty. Required x (1 + Scrap Factor) x (Qty. to Produce on the production order / Batch Size). In both cases, the quantity will be rounded up if the Qty. Round Up is selected.
Unit Cost	The planned unit cost for the item, which the system uses when calculating the cost of the parent item before the material transaction is created for the production order. The value of this box is updated by the cost roll process. When you add a new material item the system copies the default value from the Item Warehouse Details (IN204500) form if the item is stored in multiple warehouses or from the Stock Items (IN202500) form is the item is stored in one warehouse.
Material Type	The type of the material. You can select one of the following options: Regular (default): The material is either a finished item or a subassembly (if it has a bill of material assigned). Phantom: The material is a phantom subassembly. Subcontract: The material is supplied to a subcontractor if the operation is outsourced.
Subcontract Source	The source of the material. The column is available only when Subcontract is selected in the Material Type box. You can select one of the following options: None: The default option for materials of the type other than Subcontract. If the material type is Subcontract, you cannot select this option. Purchase: The material is to be purchased by using a standard purchase order. You select this option for a material row that represents a vendor service. Each outside processing operation must have at least one material row with this source. When you select this option, the check box in the Mark for PO column is selected automatically for the material line in a production order on the Production Order Details (AM209000) form. Drop Ship: The material is sent directly to the vendor. You can select this option for informational purposes. Vendor Supplied: The material is supplied by the vendor. You can select this option for informational purposes. Attention: Vendor-supplied materials are not included in the production order cost. Ship to Vendor: The material is shipped to the vendor by using a vendor shipment, which you create by using the Vendor Shipments (AM310000) form. Purchase and Move: The material (subcontractor services) is to be purchased by using a standard purchase order and then immediately moved to the next operation. When you release the purchase receipt for the purchase order line, the system will automatically create and release a move transaction for the outside operation. You can add only one material line with this option per operation. When you select this option, the Mark for PO and Backflush Materials check boxes are selected automatically. To ensure that the Total Required quantity of such a material line equals Qty to Produce of the outside service operation, the system inserts the following settings in the line and makes them non-editable: Batch Size: 1 Qty Required: 1 Scrap Factor: 0 Qty Round Up: Cleared
Phantom Routing	An option that indicates whether the routing of the phantom component will be added to the production order or ignored. One of the following options can be specified: Before (default): The operations of the phantom component will be included on the production order and positioned in the production order before the parent operation. The time it takes to make the phantom is not included. After: the operations of the phantom component will be included on the production order and positioned in the production order after the parent operation. Excluded: none of the phantom operations will appear, only the material components contained in the phantom will appear on the production order. This column is hidden by default.
Backflush Materials	A check box that indicates (if selected) that the system should backflush the material.
Warehouse	The warehouse from which this material should be issued.
Scrap Factor	Scrap or shrinkage factor for the material required. Enter 10% as `0.1`, 5% as `0.05`. Both MRP and production management will scale up the quantity required.
Non-Inventory	A check box that indicates (if selected) that the material is a non-inventory item, that is, the item not existing in the system.

Steps Tab

On this tab, you can view, add, or change the work instructions for the estimate operation whose node is selected. You can print the instructions by using the Production Ticket (AM625000) report.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.


Element	Description
Description	The description of the step in the work instruction.
Line Order	The order number of the step that is defined by the sequence of steps in the operation.

Tools Tab

On this tab, the user can specify tools needed in the production of the finished good at each operation, if necessary. Tools are included in the cost of an item. Tools are defined by using the Tools (AM205500) form.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.


Column	Description
Tool ID	The identifier of the tool that will be used in the operation and must already exist.
Description	The description of the tool which will default in based off of the tool ID entered.
Qty Req	The quantity required of the tool that is needed to produce the finished goods.
Unit Cost	The unit cost for the tool which will default in from the Tools table.

Overhead Tab

On this tab, the user can specify overhead required during production of the finished good at each operation, if necessary. Overhead is included in the cost of an item. Overheads are defined on the Overhead (AM202500) form.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.


Column	Description
Overhead ID	The overhead rate code to apply to this operation and it must exist.
Description	The description of the overhead rate selected.
Type	The type, Fixed or Amount, will be pulled from the Overhead table and cannot be changed of this form.
Overhead Cost Rate	The cost rate that the system uses to calculate the overhead cost for the operation. By default, the system copies the cost rate from the Overhead (AM202500) form.
Factor	Factor assigned by the user that will be used to determine the cost. This factor will be multiplied by the cost rate in the Overhead table to determine the overhead cost associated with the work center.
WC Flag	A check box that indicates (if selected) that the system copied the overhead from the settings of the work center assigned to the operation.

Outside Process Tab

On this tab, if the operation is specified for an outside process of a work center, you can specify the Vendor and Location.


Element	Description
Outside Process	A check box that indicates (if selected) that this operation is performed by a vendor. The default state of this check box is copied from the work center.
Drop Shipped to Vendor	A check box that indicates (if selected) that the operation quantity is shipped from a previous source or vendor.
Vendor	The vendor that will be doing the outside process.
Location	The specific vendor purchase from and deliver to location. This can only be specified if the Business Account Locations feature is enabled on the Enable/Disable Features (CS100000) form.

Side Panel

By using the side panel, you can continue viewing the estimate operation that you have opened on the form while simultaneously viewing information related to the operation.

The side panel has one tab, which you can view by clicking the tab's icon. This tab is described below.


Tab	Description
Estimate	The Estimate (AM303000) form, which displays information for the estimate ID copied from the current estimate operation.