Commonality Costing

Use this function to evaluate the reusability of components within product structures. You can do this for both manufactured and purchased part costs.

There are two parameters that have to be set:

Product family and product code must be set and calculated within the product structure. The parameters are set in IFS/Inventory Part, and calculated via Update Product Family and Product Code. Product family will give an identity to a family group at a high level. Product code gives an identity on a lower level. The next level is identity by part number.

The cost calculation at all levels:

Cost calculation gives information about manufacturing cost and purchase cost both in cumulated cost, as well as level cost. Parts at the same site will be measured for commonality/uniqueness when it comes to manufacturing cost, purchase cost, and number of parts, concerning both product family and product code identity.

Whenever Update Product Family and Product Code comes across a component part that belongs to more than one product structure, the following happens;

If, for example, the Product Family values of the different parent parts are the same, then nothing happens (the product family of the component part is considered Unique, and retains it's value, e.g., Men's bikes). If, on the other hand, the Product Family values of the different parent parts are not the same, the Product Family of the component part is considered Common, and is given the value * (asterisk). A person responsible for system changes can optionally have some other value represent Common components, but the system default is always asterisk.

The exact same rules also apply to product code.

The calculation excludes master schedule phantom parts, i.e., parts with planning method O or T.