This module is essential if you are using an Activity Based Cost (ABC) methodology for managing the production floor. The information entered here forwards to Production Work Center/Activity Setup. And both setups are used in the manexSQL Capacity Planning module.
If your company is employing Activity Based Cost (ABC) methodology, for managing the production floor, then both Activity Costing and Activity Volume Type Description setup are required. The Activity Costing and Activity Volume Type Descriptions are used in Production Work Center/Activity setup to assign Activity Costs and Activity Volume Types to a production Work Center/Activity. The Activity Volume Type Description is a pre-requisite for Production Work Centers & Activities/Activity Setup & Run tab.
It is beneficial to become knowledgeable with the principles of ABC, prior to using Activity Costing and Activity Volume Type Descriptions. Activity Cost and Volume types allow the users to define the costs and capacity for individual activities within a work center (WC). It is used in the Capacity Planning module to determine available and required capacities. It is also used to assign costs of operation. For example, there may be several machines that can do the same job in a WC. However, one may have a higher operating cost, but with greater capacity. Thus, both machines can be displayed as a resource. Moreover, the selection of the machine is performed in the routing and capacity modules.