SECTION III OVERHEAD COST PROGRAM III-1 GENERAL INFORMATION REVIEW Selection number one of the main menu is for General Information File Review. This is where you review the general information about your project. This information can then be used to head all the printouts that you call up in this program. There is also, other pertinent information not used in headers but necessary to document the project. The example below begins after selecting menu item number 1. If you need to edit this information, you must do it in the furniture and equipment program. Example: SCREEN KEYBOARD PRESS ------ -------- ----- 1. REVIEW GENERAL INFORMATION FILE 2. REVIEW FURNITURE & EQUIPMENT FILE 3. DEVELOP OVERHEAD COSTS 4. REVIEW OVERHEAD COSTS 5. PRINT SELECTED FILES 6. ANALYZE CUSTODIAL HOURS BY OPERATION 7. QUIT ENTER CHOICE 1 THROUGH 7: 1 ENTER CITY/STATE: ANYTOWN USA FACILITY: MYPLANT ADDRESS: 123 EASY ST. DATE: 01/15/89 PLANNER: I. M. PLANNING TELEPHONE: 202-736-5000 =---> Press any key when ready <---= ANY KEY At this point you will go back to the main menu, where you can continue your review or go on to develop overhead costs. 1. REVIEW GENERAL INFORMATION FILE 2. REVIEW FURNITURE & EQUIPMENT FILE 3. DEVELOP OVERHEAD COSTS 4. REVIEW OVERHEAD COSTS 5. PRINT SELECTED FILES 6. ANALYZE CUSTODIAL HOURS BY OPERATION 7. QUIT ENTER CHOICE 1 THROUGH 7: 2 ENTER III-2 SCREEN KEYBOARD PRESS ------ -------- ----- OPERATION OP.# ITEM NUMBER QUANTITY --------- ---- ----------- -------- RCVG DOCK R210 1070 5 RCVG DOCK R210 1075 15 RCVG DOCK R210 1920 1 =---> Press any key when ready <---= ANY KEY The review portions are there to allow you to reassure yourself that you in fact have all the data you need to develop overhead costs. If you find some area lacking, you will have to correct the data deficiency in the furniture and equipment program. Considerable time can be saved by answering all questions asked in their order, regardless of how unimportant they seem at the time. OVERHEAD COST INPUT This routine can be used to develop overhead costs chargeable to each operation. These costs are developed as straight line costs and no attempt is made at front or back loading. In regard to real estate or capital equipment no computation is made along a decay and obsolescence curve. The thrust of this study is to generate an awareness in the first line managers, of environmental costs impacting the efficiency of the operations they manage. Any effort beyond developing empirical trends is wasted. These costs are not intended to be used in an accounting sense. All costs requested are to be annualized. This allows the averaging of seasonal differences. Two categories are developed. They are Facilities and Process. Three cost areas are provided under each category. Under the Facilities category they are: Building Cost ( provided by furniture program ), Taxes ( provided by you ), Insurance ( provided by you ). Under the Process category the three provided by you are: Utilities, Housekeeping, Miscellaneous ( you can enter a consolidation of transportation, administration, etc. here ). There is a fourth item added to the Process category and that is the cost of furniture and equipment. If through the use of data from this routine, managers start insisting on clean work areas, energy efficiency, safe practices, etc, this routine has been successful in helping you achieve a more efficient operation. III-3 SCREEN KEYBOARD PRESS ------ -------- ----- 1. REVIEW GENERAL INFORMATION FILE 2. REVIEW FURNITURE & EQUIPMENT FILE 3. DEVELOP OVERHEAD COSTS 4. REVIEW OVERHEAD COSTS 5. PRINT SELECTED FILES 6. ANALYZE CUSTODIAL HOURS BY OPERATION 7. QUIT ENTER CHOICE 1 THROUGH 7: 3 ENTER YOU WILL DELETE EXISTING COST FILES. DO YOU WANT NEW COSTS Y/N: Y ENTER ENTER YOUR AVERAGE ANNUAL UTILITY COST FOR THIS FACILITY: 9790 ENTER ENTER YOUR AVERAGE ANNUAL HOUSEKEEPING COST FOR THIS FACILITY: 10500 ENTER HOW MANY USEFUL YEARS LEFT IN YOUR BUILDING? * 40 * ENTER ENTER YOUR ANNUAL TAXES ON YOUR BUILDING: 10400 ENTER * When your lease is quoted at an amount per square foot per year, and you have entered that amount in the furniture & equipment program, you should enter 1 year as the useful life. The routine goes through the list of operations allocating overhead costs by operation. It then displays the results on screen. Listed below is what is seen in the sample files included with the program. PERFORMING CALCULATIONS & SORTING FILES PLEASE WAIT ENTER YOUR ANNUAL INSURANCE CHARGES ON YOUR BUILDING: 9275 ENTER III-4 SCREEN KEYBOARD PRESS ------ -------- ----- ENTER ANY ANNUAL MISCELLANEOUS COSTS CHARGEABLE: 12555 ENTER TOTAL OVERHEAD COST BY OPERATION OPERATION OP# OVERHEAD COST RCVG DOCK R210 87.00 PROCESS 1 010 449.00 PROCESS 3 030 326.00 PROCESS 4 040 308.00 SHIP DOCK S210 85.00 PROCESS 2 020 514.00 =---> Press any key when ready <---= ANY KEY BUILDING OVERHEAD COST BY OPERATION OP# TAXES INSURANCE BUILDING R210 9.00 8.00 39.00 010 32.00 29.00 144.00 030 32.00 29.00 144.00 040 32.00 29.00 144.00 S210 9.00 8.00 39.00 020 41.00 36.00 183.00 =---> Press any key when ready <---= ANY KEY PROCESS OVERHEAD COST BY OPERATION OP# UTILITIES CLEANING MISCELLANEOUS EQUIPMENT R210 8.00 9.00 10.00 4.00 010 30.00 32.00 39.00 143.00 030 30.00 32.00 39.00 20.00 040 30.00 32.00 39.00 2.00 S210 8.00 9.00 10.00 2.00 020 38.00 40.00 49.00 127.00 =---> Press any key when ready <---= ANY KEY At this point, the routine is completed and takes you back to a menu for a selection. Menu selection number five takes you to the print routine where you are given options to print reports from: General Information, Overhead Cost, Work Station Unit Data File, Furniture & Equipment, Custodial Data File. You are given an opportunity to check your paper supply, and asked if you want an automatic page feed. III-5