Question

Disassembly Cost Calculations for Parts Manufactured Internally

  • 31 January 2024
  • 3 replies
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matt.watters
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I have a buildable manufacturing structure/routing and a buildable disassembly structure/routing for one part number, MW-M-103.

The manufacturing structure uses these component parts:

The disassembly structure produces these disassembly component parts (each inventory part type is Disassembly Component):

I have calculated the standard manufacturing costs for MW-M-103 in Cost Set 2 and copied to Cost Set 1 using the standard template M-110.

Each Disassembly Component has cost template D-110, with Use Distribution Cost 'on', attached in all Cost Sets.

When I performed the Disassembly Cost Calculation for MW-M-103 in Cost Set 2, no material costs from bucket 110 were distributed to the components, only operation costs. Should these material costs have been distributed to the Disassembly Components?

From the documentation:
The disassembly cost calculation is performed by Disassembly Cost Calculation. Before calculation of disassembly cost it is important that the cost for the disassembled products and input components are correctly calculated. This means that a traditional cost calculation should be performed prior to the disassembly cost calculation.

  • Q: How, and for which part(s)/structures should this be performed?

The disassembly cost calculation will look for any part, according to the selection criteria, that has a valid (buildable or plannable) disassembly structure on the effective date. For each structure found, the calculation will be performed in a top-down manner. This means the cost for the parent and other components plus operation costs according to the routing plus defined overheads according to the parent’s cost template will be distributed to the disassembled components according to the distribution factors. Only components that have a cost template with Use Distribution Cost set will be updated.

  • Q: How to get material costs distributed?
Regards - Matt

3 replies

matt.watters
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In the above:

  • The standard manufacturing cost for MW-M-103 in Cost Set 1 consists of 12.00 material cost in bucket 110 and 20.00 work center cost in bucket 300.
  • The Disassembly Components have no estimated material cost assigned.
  • The Disassembly Routing has work center cost of $50.00.
Regards - Matt
M
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Hi Matt,

Answering late from Sweden…

First, when cost are exploded down in the structure, it uses the Disassembly Structure only, so the components (if any) that you use (issue) to tear down the part you are going to disassemble, are the ones that you specify in your disassembly structure. 

And when I have played around with this, my top top part that I am going to disassemble is typically purchased. But I have created a Disassembly Structure for the purchased part, and entered some components like “sandpaper” and “polishing material”. For this purchased part I have connected a “Make and Buy Cost Template (essentially I have combined M-110 and P-110 into a new one).

I create a disassembly routing for the purchased part that I am going to disassemble.

Okay...

I also enter an estimated material cost for my top part that I am going to disassemble (the core)

Then I perform a normal cost calculation, and check that my core, sandpaper and my polish material gets the correct cost.

Then for my disassembled components I make sure that I connect them to a parent part in Part Cost / Produced Part Cost Base and enable Base for Cost Calculation toggle. In my case the purchased Core.

After that I run the disassembly cost calculation.

If properly setup, it will distribute the operation and material cost to the disassembled components.

As said, I usually test this with a purchased top part, that I disassemble.

Should work for manufactured part as well…. But perhaps a bit strange scenario where we manufacture a product and then disassemble it.

Please forgive me that my answer is not perfectly structured.

Cheers,

Mats

 

M
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Userlevel 6
Badge +12

Hi again,
If I quote you:
"When I performed the Disassembly Cost Calculation for MW-M-103 in Cost Set 2, no material costs from bucket 110 were distributed to the components..."

Now when I read and think a little bit more, I assume you mean from your top manufactured part, you got material cost distributed for you machine- and labor cost buckets, but not for cost bucket 110.

I can see a potential problem in RnD code here :-(

Perhaps it is not the most common use case, but it should work.
Please log a ticket and we will try to fix it.
Thanks for testing
-Mats

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