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Calculation of General Overhead in Disassembly Costing

  • 29 January 2024
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matt.watters
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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?

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Best answer by mikrse 30 January 2024, 11:54

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Regards - Matt

2 replies

D
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Hi Matt;

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

 

M
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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.

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