Calculations
Calculate Unaccounted Loss
The value in the Unaccounted Loss column is not stored in the Production Data and is for display purposes only. The number that appears in each cell in this column is calculated using the following equation:
Unaccounted Loss = Short Range Plan - Losses - Actual
Where Short Range Plan, Losses, and Actual are displayed in the same row as the Unaccounted Loss value.
Calculate Unaccounted Loss
Assume that the following values appear in a single row on the Production Data workspace:
- Short Range Plan = 5,000
- Losses = 0
- Actual = 3,000
In this case, the value in the Unaccounted Loss column in that row will be calculated using the following equation:
Unaccounted Loss = 5,000 - 0 - 3,000
Unaccounted Loss = 2,000
Calculate Over Accounted Loss
The Over Accounted Loss value, which appears in the Production Data workspace for Production Losses, indicates the additional reconciled Production Losses when the Unaccounted Loss is 0. It is not stored in the Production Data and is used solely for the purpose of display. This value is calculated using the following formulas:
-
When the planned production is more than the actual production:
Over Accounted Loss = Total Loss − (Planned Production − Actual Production)
Note: The difference between Planned Production and Actual Production (Planned Production − Actual Production) is the production gap for a Production Data record. -
When the actual production is more than the planned production:
Over Accounted Loss = Total Loss
where:
-
Total Loss is the value that is stored in the Losses field. It indicates the total reconciled Production Losses for a Production Data record.
-
Planned Production is the value that is stored in either the Maximum Sustained Capacity field or the Short Range Plan field, as applicable. It indicates the planned production for a Production Data record.
-
Actual Production is the initial value that is stored in the Actual field. It indicates the actual production for a Production Data record.
-
Calculate Over Accounted Loss when the planned production is more than the actual production
Suppose that a Production Data record contains the following field values, where Short Range Plan is the basis for loss calculation:
- Short Range Plan = 50
- Actual = 40
- Losses = 15
Because the actual production gap, which is 10, has been reconciled, the Unaccounted Loss is 0. Therefore, the Over Accounted Loss is 5.
Calculate Over Accounted Loss when the actual production is more than the planned production
Suppose that a Production Data record contains the following field values, where Short Range Plan is the basis for loss calculation:
- Short Range Plan = 40
- Actual = 50
- Losses = 15
Because there is no actual production gap, the Unaccounted Loss is 0. Therefore, the Over Accounted Loss is 15, which is the total loss.
Calculate Cost of Losses
Cost of Losses Per Production Period = Losses x Margin
In the Production Summary workspace, in the grid, the Cost value is the sum of the cost of losses for all production periods in the plan.
In the Production Summary workspace, the Cost of Losses value is the sum of the cost of losses for all products in the plan.
The Cost of Losses value for a product is calculated using the values in the following fields in the Production Data that are displayed in the corresponding Production Data workspace:
-
Losses
Note: The Losses value is displayed in the Losses column in the Production Data workspace. -
Margin
Note: The Margin value is not displayed in the Production Data workspace.
Cost of Losses for a Product
The following example explains the calculation of Cost of Losses for a two products, Bottles and Caps. This value will appear in the Cost column in Production Summary workspace.
Consider the following table, which indicates the values that exist in the Period, Losses, and Margin fields in Production Data records for one product, Bottles. You can see that all of the records contain the same value in the Losses field and in the Margin field. Based on the formula to calculate Cost of Losses per day, the cost of losses per day for each is shown in the Cost of Losses column. In the last row, you can see the Total Cost for all days in the plan for Bottles. This value is displayed in the Cost column in the Production Summary workspace.
| Period | Losses | Margin | Cost of Losses Equation | Cost of Losses |
|---|---|---|---|---|
| 7/1/2016 | 10 | 5 | (10 x 5) | 50 |
| 7/2/2016 | 10 | 5 | (10 x 5) | 50 |
| 7/3/2016 | 10 | 5 | (10 x 5) | 50 |
| 7/4/2016 | 10 | 5 | (10 x 5) | 50 |
| 7/5/2016 | 10 | 5 | (10 x 5) | 50 |
| 7/6/2016 | 10 | 5 | (10 x 5) | 50 |
| 7/7/2016 | 10 | 5 | (10 x 5) | 50 |
| 7/8/2016 | 10 | 5 | (10 x 5) | 50 |
| 7/9/2016 | 10 | 5 | (10 x 5) | 50 |
| Total Cost | 450 | |||
Now, consider the following table, which indicates the values that exist in the Period, Losses, and Margin Value fields in Production Data record for second product, Caps. You can see that all of the records contain the same value in the Losses field and in the Margin field Based on the formula to calculate Cost of Losses per day, the cost of losses per day for each is shown in the Cost of Losses column. In the last row, you can see the Total Cost for all days in the plan for Caps. This value is displayed in the Cost column in the Production Summary workspace.
| Period | Losses | Margin | Cost of Losses Equation | Cost of Losses |
|---|---|---|---|---|
| 7/1/2015 | 10 | 4 | (10 x 4) | 40 |
| 7/2/2015 | 10 | 4 | (10 x 4) | 40 |
| 7/3/2015 | 10 | 4 | (10 x 4) | 40 |
| 7/4/2015 | 10 | 4 | (10 x 4) | 40 |
| 7/5/2015 | 10 | 4 | (10 x 4) | 40 |
| 7/6/2015 | 10 | 4 | (10 x 4) | 40 |
| 7/7/2015 | 10 | 4 | (10 x 4) | 40 |
| 7/8/2015 | 10 | 4 | (10 x 4) | 40 |
| 7/9/2015 | 10 | 4 | (10 x 4) | 40 |
| Total Cost | 360 | |||
Cost of Losses for the Plan
Continuing with the previous example, the Cost Of Losses in the Production Summary workspace is the sum of all the values in the Cost column in the grid. Based on the calculations for both products, bottles and caps, the Cost Of Losses is calculated using the following equation:
Cost Of Losses = Cost of Losses (Bottles) + Cost of Losses (Caps)
Cost Of Losses = $450 + $360
Cost Of Losses = $810
Based on this data, you would see $810 next to the Cost Of Losses label in the Production Summary workspace, as shown in the following image.
