A Brief Definition of Time in Microsoft Dynamics NAV Manufacturing

In order to set up Routings in Dynamics NAV and understand their Cost Accounting effects, one needs to know how time is defined.

In a Routing there are ‘Value Added Times’ and times just for scheduling purposes. 

Value Added Times

Setup Time– The time to set up a machine or to get ready to produce

Run Time– The time it takes to produce a part in a Work or Machine Center

Non-Value Added Scheduling Times

Queue Time– The time a lot (Production Order) typically waits to be worked on in a Work or Machine Center (some would call this ‘Buffer time’).

Wait Time– The time at the end of a production operation that the item(s) need to wait before being moved to the next operation or to stock.  This might be cooling time, curing time, or paint drying time.

Move Time– The time that it takes to move the lot (production order) to the next operation’s Work Center.

Figure 1 – Showing the various Routing times in Microsoft Dynamics NAV

When NAV rolls up Standard Cost, it only uses Setup time and Run Time. When time is recorded in the NAV Output Journal, only Setup Time and Run Time are recorded. The other times are used only for scheduling and do not contribute to the product’s cost.

For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.