Skip to main content
Solved

Calculation of General Overhead in Disassembly Costing

  • January 29, 2024
  • 2 replies
  • 103 views
matt.watters
Ultimate Hero (Partner)
Forum|alt.badge.img+26

In the documentation for About Disassembly Cost Calculation, in the second example it states:

Gen OH = ((Mtrl1 Est Cost+ Mtrl2 Est Cost+ Mtrl2 Est Cost * Mtrl2 Del OH + Machine Cost+
MOH1+ MOH2+ Mtrl1 Est Cost * Mtrl OH) * OH factor) / (1 - Scrap factor).

To result with the values listed in the table for MK-DISASS1 and MK-DISASS2 of 351.94 and 234.63 you would need to use an OH Factor of 15% and 10%, respectively. These values, however, are not listed anywhere in the diagram.

What should be used for the OH Factor, highlighted in the equation above?

Best answer by mikrse

Hi Matt,

Thanks again for digging into these details. There was a missing Gen OH factor in the formula.

Gen OH = ((Mtrl1 Est Cost + Mtrl2 Est Cost + Mtrl2 Est Cost * Mtrl2 Del OH + Machine Cost+
MOH1+ MOH2+ Mtrl1 Est Cost * Mtrl OH) * Mtrl1 Gen OH) * OH factor / (1 - Scrap factor)

The values in the table are correct (except for that the title of the second column should of course be MK-DISASS2)

Documentation for 24R1 is updated.

If a response resolves your issue, please use "Best Answer" so that the thread can be closed and others can find solutions more easily. Regards - Matt

2 replies

D
Hero (Employee)
Forum|alt.badge.img+10
  • dameenda
  • Hero (Employee)
  • 213 replies
  • January 30, 2024

Hi Matt;

The applicable OH Factors are listed against the corresponding disassembly components.

 

M
Do Gooder (Employee)
Forum|alt.badge.img+1
  • mikrse
  • Do Gooder (Employee)
  • 2 replies
  • Answer
  • January 30, 2024

Hi Matt,

Thanks again for digging into these details. There was a missing Gen OH factor in the formula.

Gen OH = ((Mtrl1 Est Cost + Mtrl2 Est Cost + Mtrl2 Est Cost * Mtrl2 Del OH + Machine Cost+
MOH1+ MOH2+ Mtrl1 Est Cost * Mtrl OH) * Mtrl1 Gen OH) * OH factor / (1 - Scrap factor)

The values in the table are correct (except for that the title of the second column should of course be MK-DISASS2)

Documentation for 24R1 is updated.


Terms & ConditionsCookie settingsAccessibility statement