Work centers
A work center is where a production operation is performed, a machine, a line, or a group of people, with defined capacity and costing data. Work centers are key master data linking routings, scheduling, capacity and cost.
Work centers connect several PP functions: they drive scheduling (times), capacity planning (available capacity), and product costing (activity rates from the linked cost center).
- A work center models a production resource: it defines available capacity (for capacity planning), standard formulas and times (for…
- Capacity: available hours/shifts.
- Scheduling data: formulas using routing times.
- Watch out: Wrong capacity data, bad capacity planning.
What a work center represents
A work center models a production resource: it defines available capacity (for capacity planning), standard formulas and times (for scheduling), and links to cost centers/activity types (for costing). Routings assign operations to work centers, so the work center is where the "where" and "how much capacity" of production live.
Key data
- Capacity: available hours/shifts.
- Scheduling data: formulas using routing times.
- Costing: cost center and activity types/rates.
- Assignment to operations via routings.
Why it matters
Work centers connect several PP functions: they drive scheduling (times), capacity planning (available capacity), and product costing (activity rates from the linked cost center). Accurate work-center data is therefore essential for realistic schedules and correct manufacturing costs.
Common pitfalls
- Wrong capacity data, bad capacity planning.
- Missing costing link, wrong product costs.
- Inaccurate scheduling formulas/times.