Below are the formulas (listed alphabetically by formula name) that aPirori uses for all process groups to calculate direct and indirect overhead rates. For overhead cost per part see Overhead Costs per Part. Note that the user can override formula values—see Displaying and Overriding Overhead Values.

This section covers the following formulas:

Annual depreciation depends on the following:

See also Annual Depreciation and Annual Direct Overhead.

Annual earned machine hours is the product of the following:

See also Overhead Rates, Energy to Run Machine, and Support Services Cost.

Annual energy usage is the product of the following:

This value contributes to Energy to Run Machine and Annual Direct Overhead.

Annual maintenance is the product of the following:

See also Annual Maintenance and Annual Direct Overhead.

Annual rent depends on the following:

This value contributes to Facilities Cost and Annual Indirect Overhead.

Direct overhead cost is the sum of the following:

By default, facilities cost (see formula) is not included in direct overhead cost, but VPE administrators can override the default and specify that such costs are to be counted as part of direct overhead—see Facilities Cost.

See also Annual Direct Overhead.

Direct overhead rate depends on the following:

If the VPE variable Use Computed Overhead Rate is false, this formula is not used; instead, direct overhead rate is taken directly from the machine property Direct Overhead Rate.

See also Overhead Rates.

Energy to run machine is the product of the following:

See also Energy to Run Machine and Annual Direct Overhead.

Engineering support cost is the product of the following:

This value contributes to Support Services Cost and Annual Indirect Overhead.

By default, facilities cost is included in indirect overhead rather than direct overhead. VPE administrators can override the default by setting the VPE variable Add Facility Cost to Direct Overhead to true. Facilities cost is the sum of the following:

See also Facilities Cost and Annual Indirect Overhead.

Imputed interest is the average value of the machine over time, which is assumed to be midway between the initial value and the salvage value. It depends on the following:

See also Imputed Interest and Annual Direct Overhead.

Indirect overhead cost is the product of the following:

See also Annual Indirect Overhead.

Indirect overhead rate depends on the following:

If the VPE variable Use Computed Overhead Rate is false, this formula is not used; instead, indirect overhead rate is taken directly from the machine property Workcenter Indirect Overhead Rate.

See also Overhead Rates.

Installation cost is the product of the following:

This value contributes to Annual Depreciation, Imputed Interest, and Annual Direct Overhead.

Insurance cost depends on the following:

This value contributes to Facilities Cost and Annual Indirect Overhead.

Maintenance support cost depends on the following:

This value contributes to Support Services Cost and Annual Indirect Overhead.

Purchasing support cost is the product of the following:

This value contributes to Support Services Cost and Annual Indirect Overhead.

Quality support cost is the product of the following:

This value contributes to Support Services Cost and Annual Indirect Overhead.

Salvage value is the product of the following:

This value contributes to Annual Depreciation and Annual Direct Overhead.

Support services cost is the sum of the following:

This value contributes to Annual Indirect Overhead.

Tool crib support cost is the product of the following:

This value contributes to Support Services Cost and Annual Indirect Overhead.

Total cost of machine is the sum of the following:

This value contributes to Annual Depreciation, Imputed Interest, and Annual Direct Overhead.

Utilities cost depends on the following:

This value contributes to Facilities Cost and Annual Indirect Overhead.

Work center capacity is the product of the following:

This value contributes to Annual Earned Machine Hours and Support Services Cost.

Work center footprint includes the machine footprint plus extra area around the machine, for example, for safety, gas lines, and so forth. It is the product of the following:

This value contributes to Facilities Cost and Annual Indirect Overhead.