Set up a Work Center – Setup

A work center card organizes the fixed values and requirements of the production resource in question, and thus governs the output of production performed in that work center.
Prerequisites
Capacity units of measure are set up.
  • At least one work center group is set up (under Capacities, Setup). A shop calendar is created
  • Gather all data about your production resources.
To Fill in the General FastTab
1. From the Work Center list page, click New to open a new, empty work center card.
2. In the No. field, number the work center (for example 100).
3. In the Description field, name the work center (for example Cutting).
4. Look up in the Work Center Group field and select the higher-level resource grouping that the work center is organized under.In the Blocked field you can place a check mark to define that the work center can not be used in any way by the system. This means, among others, that an item produced at the work center can not be posted from a production journal

To Fill in the Posting FastTab
1. In the Direct Unit Cost field, enter the cost of producing one unit of measure at this work center, excluding any other cost elements. This cost is often referred to as the “direct labor rate”.
2. In the Indirect Cost % field you can enter the general operation costs of using the work center as a percentage of the direct unit cost. This percentage amount is added to the direct cost in the calculation of the unit cost.
3. In the Overhead Rate field you can enter any non-operational costs, for example maintenance expenses, of the work center as an absolute amount.
4. The Unit Cost field contains the calculated unit cost of producing one unit of measure at this work center, including all cost elements. Unit Cost = Direct Unit Cost + (Direct Unit Cost x Indirect Cost %) + Overhead Rate.
5. In the Unit Cost Calculation field, define whether the above calculation should be based on the amount of time used: Time, or on the number of produced units: Units.
6. Place a check mark in the Specific Unit Cost field if you want to define the work center’s unit cost on the routing line where it is being used. This may be relevant for operations with dramatically different capacity cost than what would normally be processed at that work center.In the Flushing Method field, select whether output and process times at this work center should be calculated and posted manually; Manual, or automatically with either of the following methods:Forward to have the program automatically calculate and post consumption when the production order is released. Backward to have the program calculate and post consumption automatically when the released production order is finished.
Note: If necessary, the flushing method selected here and on the item card, can be overridden for individual operations by changing the setting on routing lines.
The Department Code and Project Code fields relate to the use of dimensions.
To Fill in the Scheduling FastTab
1. In the Unit of Measure Code field, enter the time unit in which this work center’s cost calculation and capacity planning are made.
2. In the Capacity field you can define whether the work center has more than one machine or person working at the same time. (If your Microsoft Dynamics NAV installation does not include the Machine Center granule then the value in this field must be 1)
3. In the Efficiency field, enter the percentage of the expected standard output that this work center actually outputs. If you enter 100, it means that the work center has an actual output that is the same as the standard output.
Note: The Consolidated Calendar field is only relevant if the installation includes the Machine Centers granule.
4. Look up in the Shop Calendar Code field and select a shop calendar.
5. In the Queue Time field you can specify a fixed time span that must pass before assigned work can begin at this work center. Note that Queue Time is added to other non-productive time elements such as Wait Time and Move Time that you may define on routing lines using this work center.
6. If you use the Queue Time field above then you must define a time unit of measure in the Queue Time Unit of Meas. Code field.

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