Piece Cost

Piece Cost = Material Cost + Labor Cost +

Direct Overhead Cost + Logistics Cost + Setup Cost + Other Direct Costs

Piece cost is defined in the Site cost model global taxonomy module. Piece cost is the sum of the following per part costs:

• Material cost (result of aggregating material costs from the current node’s children)

• Labor cost (result of aggregating labor costs from the current node’s children)

• Direct overhead cost: see Overhead Costs per Part

• Logistics cost (result of aggregating logistics costs from the current node’s children)

• Setup cost: also known as “amortized batch setup”, this is the result of aggregating setup costs from the current node’s children.

• Other direct costs (see Other Direct Costs)