Operations Process Flow Analysis

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This is a small and simplified working sample of the Operations Process Flow template.
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Description of the Operations Process Flow Model

Below is a sample of the kind of dynamic (manufacturing or business) process flow that this model can simulate.
Not all features are available in the Basic Version.
Process Flow

Process 1

Process 2

Process 3

Finished
Goods A

Sales
Goods A
Market
Demand

Rework 2

Process 4

Finished
Goods B

Sales
Goods B

The process flow is described by a transition rates between processes that can vary with time.
The model tracks yield units and percent and scrap units and percent for each process stage.
Each process has capacity limits determined by the number of pieces of processing equipment.
Transition rates can vary with time. This particular model has transition rates that are constant over time.
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page 1 of 21

Operations Process Flow Analysis

You can input outsourced units into any stage in the flow.
(The model inserts outsourced units only in Process 1 and in finished goods inventory at the first time step.)
Tracks processing costs by process stage by type of cost input by time period.
Reports costs per unit in/processing/out and aggregate costs in/processing/out for each stage.
Allocate cost less salvage value of scrapped units to good output units at each processing stage.
Separate worksheets show costs with and without breakout of material/labor/captial expense/overhead.
Tracks accumulated cost of a good unit entering and exiting each stage by type of cost by time period.
Tracks units scrapped and cost of scrap at each process state by time period.
Reports costs and accumulated costs per unit, by cost type and by time period.
Cost of a good unit entering a process stage
Cost of a processing a unit at a process stage
Cost of a good unit exiting a process stage
Cost of scarpped units at each process stage
Allocates cost less salvage value of scrapped units to good output units at each processing stage.
Separate worksheets show costs with and without breakout of material/labor/captial expense/overhead.
Sales
Sales of Products A and B are driven by market demand and limited by available finished units.
You can sell the output of any process stage. (In this particular model, only output of two stages are sold.)
Financial results: Model include prices, revenue COGS, and gross margin for units sold.
Scenarios
Handles multiple scenarios to compare alternative processes.
This model has two scenarios in which Scenario 2 raises yields and increases input costs in Process 3.
The model includes Excel charts that provide graphical views of key variables. These charts are part
of the model, and they are included by default in exported Excel workbooks. You can add more charts,
import them, and the new charts will be included in exported Excel workbooks.
As you explore the model, we suggest that you
Read some of the Excel comments that are attached to Analysis Variables throughout the workbook.
These comments also appear in ModelSheet in convenient places.
View worksheet "Formulas" which shows the named variables and symbolic formulas of the model
in a compact and readable form. The symbolic formulas are not active in this Excel workbook, but they
give you some idea how the model works, and how it looks in ModelSheet.

Technical notes
These facts should help you understand how production units flow through the model.
At each process stage, units available for processing (UNITS AVAILABLE IN) are either sent for processing
(UNITS IN) or, if processing capacity is exceeded, sent to buffer inventory storage (UNITS BUFFER STOCK).

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page 2 of 21

Operations Process Flow Analysis

The Processing capacity (UNITS CAPACITY) of each stage is determined by the number of PROCESSING
STATIONS times the CAPACITY/STATION.
The units that enter each processing stage either emerge as good output units (UNITS OUT), or as scrap
(SCRAP UNITS). YIELD % of the units come out good and SCRAP % units come out as scrap.
At the end of each time period, good units are either sold (UNITS SOLD), or routed by the stage transition
matrix (TRANSITION %) to other processing stages for use in the next time period (UNITS AVAILABLE IN).
The number of units sold is the minimum of the units available for sale at the end of each time period
(UNITS OUT), and the amount of market demand (UNITS DEMAND).
The operation can purchase work-in-process units for any processing stage at the start of any time period
(PURCHASED UNITS IN). In this model, the operation purchases material inputs for stage one in each time
period, and it purchases finished goods in the first time period to fill the distribution channel.
The model has two scenarios (SCENARIO) that have different scrap rates and different processing costs
in process stage 3.
These facts should help you understand how the costs flow through the model.
The value of work in process inventory that enters each stage (WIP IN) plus the PROCESS COST equals the
value of good units out (WIP OUT) plus the value of scrap (SCRAP COST).
Worksheet UNIT COSTS shows cost allocated per production unit for each unit stock or unit flow
in the model.
The costs are presented in two levels of detail.
Worksheet COST FLOW shows the flow of costs with costs of all types aggregated together.
Worksheet COST FLOW DETAIL shows the flow of costs with material, labor, overhead, and allocations
of fixed expense broken out for each cost variable.

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To discuss your specific needs, please contact us at:
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This Excel workbook was generated by ModelSheet on July 11, 2010, except for this worksheet of comments.
Copyright 2009, 2010 ModelSheet Software, LLC
ModelSheet and the ModelSheet logo are registered trademarks of ModelSheet Software, LLC.

ModelSheet is a trademark of ModelSheet Software, LLC

page 3 of 21

Good Units Out During Last Time Period, by Process

Good Units Out During Model Time, by Process

Stage 3

Stage 3

Stages

Stages

Stage 2

Stage 2

Stage 1

Stage 1

Average Yield % During Model Time, by Process

Yield % During Last Time Period, by Process

Stage 3

Stage 3

Stages

Stages

Stage 2

Stage 2

Stage 1

Stage 1

0%

20%

40%

60%

80%

100%

120%

0.0%

20.0%

40.0%

60.0%

80.0% 100.0% 120.0%

0%

20%

40%

60%

80%

100%

Average Process Cost / Unit During Model Time,

by Process

Stage 3

Stages

Stage 2

Stage 1

0.0%

120%

20.0%

40.0%

60.0%

80.0% 100.0% 120.0%

Process Cost / Unit During Last Time Period,

by Process

Stage 3

Stages

Stage 2

Stage 1

Stage 1

$0

Stage 1

$0

$0

$0

$0

$1

$1

$1

$1

$1

$1

$0

$0

$0

$0

$0

$1

$1

$1

$1

$1

$1

Test Project
ABC, Inc.
Scenario 1
Inputs
Shaded cells are input cells. You can enter data in them.
Excel formulas in shaded cells are starting suggestions. You can overwrite them.
Company Name

ABC, Inc.

Project Name

Test Project

Scenario (1, 2 or 3)

Process Flow Transition Rates

Work Units Entering the Process and Processing Capacity
Processing Costs

Test Project
ABC, Inc.
Scenario 1
Transitions
Transition Matrix
Stage 1

Stage 2

Stage 3

Total

Transition %
Stage 1

0.0%

0.0%

0.0%

0.0%

Stage 2

0.0%

0.0%

0.0%

0.0%

Stage 3

0.0%

0.0%

0.0%

0.0%

Total

Process Yields
Jan 2011

Feb 2011

Mar 2011

Q1 2011

Apr 2011

May 2011

Jun 2011

Q2 2011

Jul 2011

Aug 2011

Sep 2011

Q3 2011

Oct 2011

Nov 2011

Dec 2011

Q4 2011

Yield %
Stage 1

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Stage 2

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Stage 3

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Stage 1

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Stage 2

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Stage 3

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Scrap %

Test Project
ABC, Inc.
Scenario 1
Units
Good Units Out
Jan 2011

Feb 2011

Mar 2011

Q1 2011

Apr 2011

May 2011

Jun 2011

Q2 2011

Jul 2011

Aug 2011

Sep 2011

Q3 2011

Oct 2011

Nov 2011

Dec 2011

Q4 2011

2012

Units Out
Stage 1

Stage 2

Stage 3

Total

Good Units In
Other Units Processed

Test Project
ABC, Inc.
Scenario 1
Utilization
Jan 2011

Feb 2011

Mar 2011

Q1 2011

Apr 2011

May 2011

Jun 2011

Q2 2011

Jul 2011

Aug 2011

Sep 2011

Q3 2011

Oct 2011

Nov 2011

Dec 2011

Q4 2011

Capacity Utilization %
Stage 1

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Stage 2

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Stage 3

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Total

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Total Capacity
Station Capacities

2012

Test Project
ABC, Inc.
Scenario 1
Unit Cost
Processing Cost/Unit
Jan 2011

Feb 2011

Mar 2011

Q1 2011

Apr 2011

May 2011

Jun 2011

Q2 2011

Jul 2011

Aug 2011

Sep 2011

Q3 2011

Oct 2011

Nov 2011

Dec 2011

Q4 2011

Process Cost/Unit
Stage 1

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Stage 2

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Stage 3

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Total

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Cost/Input Unit
Cost/Output Unit
Scrap

2012

Test Project
ABC, Inc.
Scenario 1
Cost Flow
Processing Costs
Jan 2011

Feb 2011

Mar 2011

Q1 2011

Apr 2011

May 2011

Jun 2011

Q2 2011

Jul 2011

Aug 2011

Sep 2011

Q3 2011

Oct 2011

Nov 2011

Dec 2011

Q4 2011

Process Cost
Stage 1

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Stage 2

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Stage 3

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Cost of Input Units

Cost of Output Units
Scrap

2012

Test Project
ABC, Inc.
Scenario 1
Unit Cost Detail
Processing Cost/Unit
Jan 2011

Feb 2011

Mar 2011

Q1 2011

Apr 2011

May 2011

Jun 2011

Q2 2011

Jul 2011

Aug 2011

Sep 2011

Q3 2011

Oct 2011

Nov 2011

Dec 2011

Q4 2011

Process Cost/Unit
Stage 1
Material

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Labor

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Fixed Exp

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

OH

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Total

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Material

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Labor

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Fixed Exp

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

OH

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Total

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Material

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Labor

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Fixed Exp

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

OH

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Total

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Material

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Labor

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Fixed Exp

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

OH

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Total

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Stage 2

Stage 3

Total

Cost/Input Unit
Cost/Output Unit
Scrap

2012

Test Project
ABC, Inc.
Scenario 1
Cost Flow Detail
Processing Costs
Jan 2011

Feb 2011

Mar 2011

Q1 2011

Apr 2011

May 2011

Jun 2011

Q2 2011

Jul 2011

Aug 2011

Sep 2011

Q3 2011

Oct 2011

Nov 2011

Dec 2011

Q4 2011

Process Cost
Stage 1
Material

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Labor

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Fixed Exp

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

OH

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Material

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Labor

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Fixed Exp

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

OH

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Material

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Labor

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Fixed Exp

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

OH

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Material

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Labor

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Fixed Exp

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

OH

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Stage 2

Stage 3

Total

Fixed Expense
Cost of Input Units
Cost of Output Units
Scrap

2012

Test Project
ABC, Inc.
Scenario 1
Formulas
Variable

Display As

Dimension Index

Capacity_Util_pct

Capacity Utilization %

Stages

Formula / Data

COGS

Cost of Goods

Stages, Cost_Types

COGS_per_U

COGS/Unit

Stages, Cost_Types

Company_Name

Company Name

Cost_per_U_Purchd_In

Cost/Unit Purch'd In

Stages

Data: preve(0)

Cost_Purchd_U_In

Cost Purch'd Units In

Stages

Data: Cost_per_U_Purchd_In*Units_Purchd_In

Fixed_Exp_per_Station

Fixed Expense/Station

Stages

Data: preve(0)

Fixed_Expense

Fixed Expense

Stages

Data: Fixed_Exp_per_Station*Stations

Gross_Margin

Gross Margin

Stages

Data: 0-COGS

Gross_Margin_pct

Gross Margin %

Stages

Ident

Ident

StagesY, Stages

Data: if(dimitemnum("Stages")=dimitemnum("StagesY"), 1, 0)

Labor_Overhead_pct

Labor Overhead %

Global

Data: preve(0)

Proc_Cost_per_U

Process Cost/Unit

Stages, Cost_Types

Proc_Cost_per_U_Avg_plt

Process Cost/U (Avg)

Stages

Data: Proc_Cost_per_U

Proc_Cost_per_U_Last_plt

Process Cost/U (Last)

Stages

Data: Proc_Cost_per_U

Proc_Cost_per_U_Sc

Process Cost/Unit

Stages, Cost_Types

Roll-up: if(Units_Capacity=0, 0, Units_In/Units_Capacity)

Data: WIP_Out*if(Units_Out=0, 0, 0/Units_Out)
Roll-up: if(0=0, 0, COGS/0)

Roll-up: if(0=0, 0, Gross_Margin/0)

Roll-up: rollup("Cost_Types", rollup(Sum), , if(Units_In=0, Proc_Cost_per_U_Sc, Process_Cost/Units_In))

Data: if(Scenario=1, Proc_Cost_per_U_Sc1X, if(Scenario=2, 0, if(Scenario=3, 0, "error")))

Roll-up: ifm(isleafd("Stages"), sum(ranged("Cost_Types")), 0)

Proc_Cost_per_U_Sc1X

Process Cost/U

Stages, Cost_Types.OH
Stages, Cost_Types

@Jan 2011: Labor_Overhead_pct*Proc_Cost_per_U_Sc1X["Cost_Types.Labor"]

Data: if(diminfo("Cost_Types", 4)="Fixed_Exp", if(Units_In=0, 0, Fixed_Expense/Units_In), preve(0))
Roll-up: ifm(isleafd("Stages"), sum(ranged("Cost_Types")), " ")

Process_Cost

Process Cost

Stages, Cost_Types

Data: if(diminfo("Cost_Types", 4)="Fixed_Exp", var(Fixed_Expense), Proc_Cost_per_U_Sc*Units_In)

Process_Yield_avg_pct

Yield % (avg)

StagesX

Data: Process_Yield_pct

Process_Yield_Last_pct

Yield % (Last)

StagesX

Data: Last(Process_Yield_pct)

Process_Yield_pct

Yield %

StagesX

Data: if(Scenario=1, Process_Yield_pct_Sc1X, if(Scenario=2, 0, if(Scenario=3, 0, "error")))

Process_Yield_pct_Sc1X

Yield %

StagesX

Data: preve(1)

Project_Name

Project Name

Scenario

Scenario (1, 2 or 3)

Scrap_Cost

Scrap Cost

Stages, Cost_Types

Data: (WIP_In+Process_Cost)*Scrap_pct

Scrap_Cost_per_U

Scrap Cost/Unit

Stages, Cost_Types

Scrap_Net_Cost

Scrap Net Cost

Stages

Data: Scrap_Cost-Scrap_Salvage_Value

Scrap_Net_Cost_per_U

Scrap Net Cost/Unit

Stages

Data: Scrap_Cost_per_U-Scrap_Salvage_Value_per_U

Scrap_pct

Scrap %

StagesX

Data: 1-Process_Yield_pct

Roll-up: if(Units_Scrap=0, 0, Scrap_Cost/Units_Scrap)

Scrap_Salvage_Value

Scrap Salvage Value

Stages

Scrap_Salvage_Value_per_U

Scrap Salvage $/Unit

Stages

Data: Scrap_Salvage_Value_per_U*Units_Scrap
Data: preve(0)
Roll-up: if(Units_Scrap=0, 0, Scrap_Salvage_Value/Units_Scrap)

Stages_dim

Stages

Stages

Data: diminfo("Stages", 7, ", ")

Station_Capacity

Capacity/Station

Stages

Data: preve(1000)

Stations

Processing Stations

Stages

Data: preve(1)

Transition_pct

Transition %

Stages, StagesX

Data: if(Scenario=1, Transition_pct_Sc1X, if(Scenario=2, 0, if(Scenario=3, 0, "error")))

Roll-up: ifm(isleafd("StagesX"), sum(ranged("Stages")), " ")

Transition_pct_Sc1X

Transition %

Stages, StagesX

Roll-up: ifm(isleafd("StagesX"), sum(ranged("Stages")), " ")

Units_Avail_In

Units Available In

Stages

Data: preve(0, matmult(Units_Out-0, Transition_pct, "Stages", "StagesX"))+preve(0, Units_Buffer_Stock)+Units_Purchd_In

Units_Buffer_Stock

Units Buffer Stock

Stages

Data: Units_Avail_In-Units_In+preve(0, Units_Buffer_Stock)

Units_Capacity

Units Capacity

Stages

Data: Station_Capacity*Stations

Units_In

Units In

Stages

Data: min(0.5*(preve(0)+Units_Capacity), Units_Avail_In)

Units_Out

Units Out

Stages

Data: matmult(Ident, Process_Yield_pct, "StagesY", "StagesX")*Units_In

Units_Out_Last_plt

Units Out

Stages

Data: last(Units_Out)

Units_Out_plt

Units Out

Stages

Data: matmult(Ident, Process_Yield_pct, "StagesY", "StagesX")*Units_In

Units_Out_tsum_plt

Units Out

Stages

Data: Units_Out

Units_Purchd_In

Purch'd Units In

Stages

Data: preve(0)

Units_Scrap

Units Scrap

Stages

Data: Units_In*matmult(Ident, Scrap_pct, "StagesY", "StagesX")

WIP_Avail_In

WIP Available In

Stages, Cost_Types

Data: preve(0, Matmult(Transition_pct, WIP_Out-COGS, "StagesX", "Stages"))+if(diminfo("Cost_Types", 0)="Material", var(Cost_per_U_Purchd_In*Units_Purchd_In), 0)

WIP_Buffer_Stock

WIP_Buffer Stock

Stages

Data: if(Units_Avail_In=0, 0, (Units_Avail_In-Units_In)/Units_Avail_In)*WIP_Avail_In+preve(0)

WIP_In

WIP In

Stages, Cost_Types

Data: WIP_Avail_In*if(Units_Avail_In=0, 0, Units_In/Units_Avail_In)

WIP_Out

WIP Out

Stages, Cost_Types

Data: WIP_In+Process_Cost-if(WIP_Avail_In["Cost_Types"]+Process_Cost["Cost_Types"]=0, 0, (WIP_Avail_In+Process_Cost)/(WIP_Avail_In["Cost_Types"]+Process_Cost["Cost_Types"])*Scrap_Salvage_Value_per_U)*Units_Scrap

WIP_per_U_In

WIP/Unit In

Stages, Cost_Types

Roll-up: if(Units_In=0, 0, WIP_In/Units_In)

WIP_per_U_Out

WIP/Unit Out

Stages, Cost_Types

Roll-up: If(Units_Out=0, 0, WIP_Out/Units_Out)

Test Project
ABC, Inc.
Scenario 1
Labels
Model Start

1/1/2011

Variable

Display Label

Comment

Capacity_Util_pct

Capacity Utilization %

Percentage of processing capacity utilized for each stage, by time period

COGS

Cost of Goods

Cost of units sold as finished goods from out put of each stage, segmented by cost factor
(material, labor, fixed expense, overhead), by time period

COGS_per_U

COGS/Unit

Cost per unit of units sold as finished goods as output of each stage, segmented by cost
factor (material, labor, fixed expense, overhead), by time period

Company_Name

Company Name

Cost_per_U_Purchd_In

Cost/Unit Purch'd In

Cost per unit of purchased input units entered into each state, by time period

Cost_Purchd_U_In

Cost Purch'd Units In

Cost of purchased input units entered into each state, segmented by cost factor (material,
labor, fixed expense, overhead) by time period

Fixed_Exp_per_Station

Fixed Expense/Station

Fixed expense per processing station, for each stage, per time period

Fixed_Expense

Fixed Expense

Fixed expense for each stage, per time period

Gross_Margin

Gross Margin

Gross margin amount (revenue - cost of goods) for finished goods sold as output from each
stage, by time period

Gross_Margin_pct

Gross Margin %

Gross margin percent = gross margin / revenue

Ident

Ident

An "identify matrix" that switches index variables, enabling matrix multiplication of 2-index
variables using function matmult. Used in definitions of variable Units_Out and Units_Scrap.

Labor_Overhead_pct

Labor Overhead %

Overhead rate on labor expense, by process stage, by time period

Proc_Cost_per_U

Process Cost/Unit

Processing cost per unit at each stage, segmented by cost factors (material, labor, fixed
expense, overhead) and by time period. Computed as (total processing cost)/(total units
processed).

Proc_Cost_per_U_Avg_plt

Process Cost/U (Avg)

Processing cost per unit at each stage, averaged over the total time range

Proc_Cost_per_U_Last_plt

Process Cost/U (Last)

Processing cost per unit at each stage, in the last time period

Proc_Cost_per_U_Sc

Process Cost/Unit

Processing cost per unit at each stage, segmented by cost factors (material, labor, fixed
expense, overhead), by time period

Proc_Cost_per_U_Sc1X

Process Cost/U

Processing cost per unit for units processed at each stage, segmented by cost factors
(material, labor, fixed expense, overhead), by time period, for scenario 1

Process_Cost

Process Cost

Processing cost at each stage, segmented by process stage, by time period

Process_Yield_avg_pct

Yield % (avg)

Percentage of input units that exit as good units for each processing stage, averaged over
time periods. Unit that require rework are counted as good units (until scrapped in a later
process stage.

Process_Yield_Last_pct

Yield % (Last)

Percentage of input units that exit as good units for each processing stage, averaged over
time periods. Unit that require rework are counted as good units (until scrapped in a later
process stage.

Process_Yield_pct

Yield %

Percentage of input units that exit as good units for each processing stage, by time period.
Unit that require rework are counted as good units (until scrapped in a later process stage.

Process_Yield_pct_Sc1X

Yield %

Pecentage of input units that exit as good units for each processing stage, by time period, for
scenario 1

Project_Name

Project Name

Scenario

Scenario (1, 2 or 3)

Specifies which scenario to use in the model. Affects assumptions for processing costs per
unit, transition probabilities, and yield rates.

Scrap_Cost

Scrap Cost

Cost imputed to scrap at each stage, segmented by cost factor (material, labor, fixed expense,
overhead) by time period

Scrap_Cost_per_U

Scrap Cost/Unit

Cost per unit imputed to scrapped units at each stage, segmented by cost factor (material,
labor, fixed expense, overhead) by time period

Scrap_Net_Cost

Scrap Net Cost

Cost of scrap less salvage value of scrap at each stage, segmented by cost factor (material,
labor, fixed expense, overhead) by time period

Scrap_Net_Cost_per_U

Scrap Net Cost/Unit

Cost of scrap less salvage value of scrap at each stage, segmented by cost factor (material,
labor, fixed expense, overhead) by time period

Scrap_pct

Scrap %

Percentage of units input that become scrap at each stage, by time period

Scrap_Salvage_Value

Scrap Salvage Value

Salvage value of units scrapped at each stage, segmented by cost factor (material, labor,
fixed expense, overhead) by time period

Scrap_Salvage_Value_per_U

Scrap Salvage $/Unit

Salvage value per unit of units scrapped at each stage, by time period

Stages_dim

Stages

The names of the items in dimension 'Stages' stored in an Avar. Used in graphs.

Station_Capacity

Capacity/Station

Units processing capacity for each stage per station per time period

Stations

Processing Stations

Number of processing stations at each processing stage, by time period

Transition_pct

Transition %

Percent of good units output from stage A (on the left) to stage B (on top) for the next time
period, for all pairs of processes A and B, by time period.
These transition rates specify the process flow, because only units with positive transition
rates are connected in the flow.

Transition_pct_Sc1X

Transition %

Percent of good units output from stage A that goes to stage B for the next time period, for all
pairs of processes A and B, by time period.
These transition rates specify the process flow, because only units with positive transition
rates are connected in the flow.

Units_Avail_In

Units Available In

Good units available to enter each processing stage, by time period. Includes buffer stocks if
input units that may have been built up in previous time periods.

Units_Buffer_Stock

Units Buffer Stock

Good units in buffer stock available to ente each processign stage, by time period

Units_Capacity

Units Capacity

Units processing capacity for each stage, per time period

Units_In

Units In

Good units input to each processing stage, by time period

Units_Out

Units Out

Good units output from each processing stage, by time period. Unit that require rework are
counted as good units (until scrapped in a later process stage.

Units_Out_Last_plt

Units Out

Good units output from each processing stage in the last time period. Used only for plotting.

Units_Out_plt

Units Out

Good units output from each processing stage, by time period. Used only for plotting.

Units_Out_tsum_plt

Units Out

Good units output from each processing stage in the total time range. Used only for plotting.

Units_Purchd_In

Purch'd Units In

Work-in-process (WIP) units purchased externally as input to each stage, by time period

Units_Scrap

Units Scrap

Units scrapped during processing at each stage, by time period

WIP_Avail_In

WIP Available In

Value of work-in-process (WIP) inventory available to enter each processing stage,

segmented by cost factor (material, labor, fixed expense, overhead) by time period

WIP_Buffer_Stock

WIP_Buffer Stock

Value of units in buffer stock available to enter each processing stage, segmented by cost
factor (material, labor, fixed expense, overhead) by time period

WIP_In

WIP In

Value of units of work-in-process (WIP) inventory that enter each processing stage,
segmented by cost factor (material, labor, fixed expense, overhead) by time period

WIP_Out

WIP Out

Value of units of work-in-process (WIP) inventory that exit each processing stage as good
units, segmented by cost factor (material, labor, fixed expense, overhead) by time period

WIP_per_U_In

WIP/Unit In

Value per unit of work-in-process (WIP) inventory that enters each processing stage,
segmented by cost factor (material, labor, fixed expense, overhead) by time period

WIP_per_U_Out

WIP/Unit Out

Value per unit of work-in-process (WIP) inventory that exits each processing stage as good
units, segmented by cost factor (material, labor, fixed expense, overhead) by time period

Dimension (item)

Display Item As

Total As

Level As

Comment

Cost_Types

Cost Types

Total

Cost_Types

A list of the types of costs that are tracked separately in the analysis.
Cost of purchased input units are assigned to "Material".
Fixed overhead costs aer assigned to "Fixed_Exp".

Material

Material

Labor

Labor

Fixed_Exp

Fixed Exp

OH

OH

Stages

Stages

Stage_1

Stage 1

Stage_2

Stage 2

Stage_3

Stage 3

StagesX

StagesX

Stage_1

Stage 1

Stage_2

Stage 2

Stage_3

Stage 3

StagesY

StagesY

Cost_Types

Total

Stage

A list of the process stages in the process flow

Lvl 1

Total

ProcessX

A duplicate list of process stages in the process flow. This list is needed so that some
variables can have two dimensions consisting of process stages, because ModelSheet does
not permit the same dimension to be used two times in a variable.

Lvl 1

Total

ProcessY

A duplicate list of process stages in the process flow. This list is needed so that some
variables can have two dimensions consisting of process stages, because ModelSheet does
not permit the same dimension to be used two times in a variable.

Stage_1

Stage 1

Stage_2

Stage 2

Stage_3

Stage 3

Lvl 1