diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index d1f6385..3f109d9 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -81,7 +81,7 @@
 		self.validate_operations()
 		self.calculate_cost()
 		self.update_stock_qty()
-		self.update_cost(update_parent=False, from_child_bom=True, save=False)
+		self.update_cost(update_parent=False, from_child_bom=True, update_hour_rate = False, save=False)
 
 	def get_context(self, context):
 		context.parents = [{'name': 'boms', 'title': _('All BOMs') }]
@@ -213,7 +213,7 @@
 		return flt(rate) * flt(self.plc_conversion_rate or 1) / (self.conversion_rate or 1)
 
 	@frappe.whitelist()
-	def update_cost(self, update_parent=True, from_child_bom=False, save=True):
+	def update_cost(self, update_parent=True, from_child_bom=False, update_hour_rate = True, save=True):
 		if self.docstatus == 2:
 			return
 
@@ -242,7 +242,7 @@
 
 		if self.docstatus == 1:
 			self.flags.ignore_validate_update_after_submit = True
-			self.calculate_cost()
+			self.calculate_cost(update_hour_rate)
 		if save:
 			self.db_update()
 
@@ -403,32 +403,47 @@
 		bom_list.reverse()
 		return bom_list
 
-	def calculate_cost(self):
+	def calculate_cost(self, update_hour_rate = False):
 		"""Calculate bom totals"""
-		self.calculate_op_cost()
+		self.calculate_op_cost(update_hour_rate)
 		self.calculate_rm_cost()
 		self.calculate_sm_cost()
 		self.total_cost = self.operating_cost + self.raw_material_cost - self.scrap_material_cost
 		self.base_total_cost = self.base_operating_cost + self.base_raw_material_cost - self.base_scrap_material_cost
 
-	def calculate_op_cost(self):
+	def calculate_op_cost(self, update_hour_rate = False):
 		"""Update workstation rate and calculates totals"""
 		self.operating_cost = 0
 		self.base_operating_cost = 0
 		for d in self.get('operations'):
 			if d.workstation:
-				if not d.hour_rate:
-					hour_rate = flt(frappe.db.get_value("Workstation", d.workstation, "hour_rate"))
-					d.hour_rate = hour_rate / flt(self.conversion_rate) if self.conversion_rate else hour_rate
-
-			if d.hour_rate and d.time_in_mins:
-				d.base_hour_rate = flt(d.hour_rate) * flt(self.conversion_rate)
-				d.operating_cost = flt(d.hour_rate) * flt(d.time_in_mins) / 60.0
-				d.base_operating_cost = flt(d.operating_cost) * flt(self.conversion_rate)
+				self.update_rate_and_time(d, update_hour_rate)
 
 			self.operating_cost += flt(d.operating_cost)
 			self.base_operating_cost += flt(d.base_operating_cost)
 
+	def update_rate_and_time(self, row, update_hour_rate = False):
+		if not row.hour_rate or update_hour_rate:
+			hour_rate = flt(frappe.get_cached_value("Workstation", row.workstation, "hour_rate"))
+			row.hour_rate = (hour_rate / flt(self.conversion_rate)
+				if self.conversion_rate and hour_rate else hour_rate)
+
+			if self.routing:
+				row.time_in_mins = flt(frappe.db.get_value("BOM Operation", {
+						"workstation": row.workstation,
+						"operation": row.operation,
+						"sequence_id": row.sequence_id,
+						"parent": self.routing
+				}, ["time_in_mins"]))
+
+		if row.hour_rate and row.time_in_mins:
+			row.base_hour_rate = flt(row.hour_rate) * flt(self.conversion_rate)
+			row.operating_cost = flt(row.hour_rate) * flt(row.time_in_mins) / 60.0
+			row.base_operating_cost = flt(row.operating_cost) * flt(self.conversion_rate)
+
+		if update_hour_rate:
+			row.db_update()
+
 	def calculate_rm_cost(self):
 		"""Fetch RM rate as per today's valuation rate and calculate totals"""
 		total_rm_cost = 0
@@ -975,7 +990,7 @@
 
 	if filters and filters.get("is_stock_item"):
 		query_filters["is_stock_item"] = 1
-		
+
 	return frappe.get_all("Item",
 		fields = fields, filters=query_filters,
 		or_filters = or_cond_filters, order_by=order_by,
diff --git a/erpnext/manufacturing/doctype/bom/test_bom.py b/erpnext/manufacturing/doctype/bom/test_bom.py
index 42b23f2..1f443fb 100644
--- a/erpnext/manufacturing/doctype/bom/test_bom.py
+++ b/erpnext/manufacturing/doctype/bom/test_bom.py
@@ -123,7 +123,7 @@
 		bom.items[0].conversion_factor = 5
 		bom.insert()
 
-		bom.update_cost()
+		bom.update_cost(update_hour_rate = False)
 
 		# test amounts in selected currency
 		self.assertEqual(bom.items[0].rate, 300)
diff --git a/erpnext/manufacturing/doctype/routing/routing.py b/erpnext/manufacturing/doctype/routing/routing.py
index 8312d74..ece0db7 100644
--- a/erpnext/manufacturing/doctype/routing/routing.py
+++ b/erpnext/manufacturing/doctype/routing/routing.py
@@ -4,14 +4,24 @@
 
 from __future__ import unicode_literals
 import frappe
-from frappe.utils import cint
+from frappe.utils import cint, flt
 from frappe import _
 from frappe.model.document import Document
 
 class Routing(Document):
 	def validate(self):
+		self.calculate_operating_cost()
 		self.set_routing_id()
 
+	def on_update(self):
+		self.calculate_operating_cost()
+
+	def calculate_operating_cost(self):
+		for operation in self.operations:
+			if not operation.hour_rate:
+				operation.hour_rate = frappe.db.get_value("Workstation", operation.workstation, 'hour_rate')
+			operation.operating_cost = flt(flt(operation.hour_rate) * flt(operation.time_in_mins) / 60, 2)
+
 	def set_routing_id(self):
 		sequence_id = 0
 		for row in self.operations:
@@ -21,4 +31,4 @@
 				frappe.throw(_("At row #{0}: the sequence id {1} cannot be less than previous row sequence id {2}")
 					.format(row.idx, row.sequence_id, sequence_id))
 
-			sequence_id = row.sequence_id
\ No newline at end of file
+			sequence_id = row.sequence_id
diff --git a/erpnext/manufacturing/doctype/routing/test_routing.py b/erpnext/manufacturing/doctype/routing/test_routing.py
index 6a38dcf..92f2694 100644
--- a/erpnext/manufacturing/doctype/routing/test_routing.py
+++ b/erpnext/manufacturing/doctype/routing/test_routing.py
@@ -7,9 +7,7 @@
 import frappe
 from frappe.test_runner import make_test_records
 from erpnext.stock.doctype.item.test_item import make_item
-from erpnext.manufacturing.doctype.operation.test_operation import make_operation
 from erpnext.manufacturing.doctype.job_card.job_card import OperationSequenceError
-from erpnext.manufacturing.doctype.workstation.test_workstation import make_workstation
 from erpnext.manufacturing.doctype.work_order.test_work_order import make_wo_order_test_record
 
 class TestRouting(unittest.TestCase):
@@ -48,7 +46,53 @@
 		wo_doc.cancel()
 		wo_doc.delete()
 
+	def test_update_bom_operation_time(self):
+		operations = [
+			{
+				"operation": "Test Operation A",
+				"workstation": "_Test Workstation A",
+				"hour_rate_rent": 300,
+				"hour_rate_labour": 750 ,
+				"time_in_mins": 30
+			},
+			{
+				"operation": "Test Operation B",
+				"workstation": "_Test Workstation B",
+				"hour_rate_labour": 200,
+				"hour_rate_rent": 1000,
+				"time_in_mins": 20
+			}
+		]
+
+		test_routing_operations = [
+			{
+				"operation": "Test Operation A",
+				"workstation": "_Test Workstation A",
+				"time_in_mins": 30
+			},
+			{
+				"operation": "Test Operation B",
+				"workstation": "_Test Workstation A",
+				"time_in_mins": 20
+			}
+		]
+		setup_operations(operations)
+		routing_doc = create_routing(routing_name="Routing Test", operations=test_routing_operations)
+		bom_doc = setup_bom(item_code="_Testing Item", routing=routing_doc.name, currency = 'INR')
+		self.assertEqual(routing_doc.operations[0].time_in_mins, 30)
+		self.assertEqual(routing_doc.operations[1].time_in_mins, 20)
+		routing_doc.operations[0].time_in_mins = 90
+		routing_doc.operations[1].time_in_mins = 42.2
+		routing_doc.save()
+		bom_doc.update_cost()
+		bom_doc.reload()
+		self.assertEqual(bom_doc.operations[0].time_in_mins, 90)
+		self.assertEqual(bom_doc.operations[1].time_in_mins, 42.2)
+
+
 def setup_operations(rows):
+	from erpnext.manufacturing.doctype.workstation.test_workstation import make_workstation
+	from erpnext.manufacturing.doctype.operation.test_operation import make_operation
 	for row in rows:
 		make_workstation(row)
 		make_operation(row)
@@ -61,12 +105,14 @@
 
 	if not args.do_not_save:
 		try:
-			for operation in args.operations:
-				doc.append("operations", operation)
-
 			doc.insert()
 		except frappe.DuplicateEntryError:
 			doc = frappe.get_doc("Routing", args.routing_name)
+			doc.delete_key('operations')
+			for operation in args.operations:
+				doc.append("operations", operation)
+
+			doc.save()
 
 	return doc
 
@@ -91,7 +137,7 @@
 	name = frappe.db.get_value('BOM', {'item': args.item_code}, 'name')
 	if not name:
 		bom_doc = make_bom(item = args.item_code, raw_materials = args.get("raw_materials"),
-			routing = args.routing, with_operations=1)
+			routing = args.routing, with_operations=1, currency = args.currency)
 	else:
 		bom_doc = frappe.get_doc("BOM", name)
 
diff --git a/erpnext/manufacturing/doctype/workstation/test_workstation.py b/erpnext/manufacturing/doctype/workstation/test_workstation.py
index c6699be..9b73aca 100644
--- a/erpnext/manufacturing/doctype/workstation/test_workstation.py
+++ b/erpnext/manufacturing/doctype/workstation/test_workstation.py
@@ -1,16 +1,19 @@
 # Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors and Contributors
 # See license.txt
 from __future__ import unicode_literals
+from erpnext.manufacturing.doctype.operation.test_operation import make_operation
 
 import frappe
 import unittest
 from erpnext.manufacturing.doctype.workstation.workstation import check_if_within_operating_hours, NotInWorkingHoursError, WorkstationHolidayError
+from erpnext.manufacturing.doctype.routing.test_routing import setup_bom, create_routing
+from frappe.test_runner import make_test_records
 
 test_dependencies = ["Warehouse"]
 test_records = frappe.get_test_records('Workstation')
+make_test_records('Workstation')
 
 class TestWorkstation(unittest.TestCase):
-
 	def test_validate_timings(self):
 		check_if_within_operating_hours("_Test Workstation 1", "Operation 1", "2013-02-02 11:00:00", "2013-02-02 19:00:00")
 		check_if_within_operating_hours("_Test Workstation 1", "Operation 1", "2013-02-02 10:00:00", "2013-02-02 20:00:00")
@@ -21,6 +24,58 @@
 		self.assertRaises(WorkstationHolidayError, check_if_within_operating_hours,
 			"_Test Workstation 1", "Operation 1", "2013-02-01 10:00:00", "2013-02-02 20:00:00")
 
+	def test_update_bom_operation_rate(self):
+		operations = [
+			{
+				"operation": "Test Operation A",
+				"workstation": "_Test Workstation A",
+				"hour_rate_rent": 300,
+				"time_in_mins": 60
+			},
+			{
+				"operation": "Test Operation B",
+				"workstation": "_Test Workstation B",
+				"hour_rate_rent": 1000,
+				"time_in_mins": 60
+			}
+		]
+
+		for row in operations:
+			make_workstation(row)
+			make_operation(row)
+
+		test_routing_operations = [
+			{
+				"operation": "Test Operation A",
+				"workstation": "_Test Workstation A",
+				"time_in_mins": 60
+			},
+			{
+				"operation": "Test Operation B",
+				"workstation": "_Test Workstation A",
+				"time_in_mins": 60
+			}
+		]
+		routing_doc = create_routing(routing_name = "Routing Test", operations=test_routing_operations)
+		bom_doc = setup_bom(item_code="_Testing Item", routing=routing_doc.name, currency="INR")
+		w1 = frappe.get_doc("Workstation", "_Test Workstation A")
+		#resets values
+		w1.hour_rate_rent = 300
+		w1.hour_rate_labour = 0
+		w1.save()
+		bom_doc.update_cost()
+		bom_doc.reload()
+		self.assertEqual(w1.hour_rate, 300)
+		self.assertEqual(bom_doc.operations[0].hour_rate, 300)
+		w1.hour_rate_rent = 250
+		w1.save()
+		#updating after setting new rates in workstations
+		bom_doc.update_cost()
+		bom_doc.reload()
+		self.assertEqual(w1.hour_rate, 250)
+		self.assertEqual(bom_doc.operations[0].hour_rate, 250)
+		self.assertEqual(bom_doc.operations[1].hour_rate, 250)
+
 def make_workstation(*args, **kwargs):
 	args = args if args else kwargs
 	if isinstance(args, tuple):
@@ -34,9 +89,10 @@
 			"doctype": "Workstation",
 			"workstation_name": workstation_name
 		})
-
+		doc.hour_rate_rent = args.get("hour_rate_rent")
+		doc.hour_rate_labour = args.get("hour_rate_labour")
 		doc.insert()
 
 		return doc
 	except frappe.DuplicateEntryError:
-		return frappe.get_doc("Workstation", workstation_name)
\ No newline at end of file
+		return frappe.get_doc("Workstation", workstation_name)
diff --git a/erpnext/manufacturing/doctype/workstation/workstation.py b/erpnext/manufacturing/doctype/workstation/workstation.py
index 3512e59..f4483f7 100644
--- a/erpnext/manufacturing/doctype/workstation/workstation.py
+++ b/erpnext/manufacturing/doctype/workstation/workstation.py
@@ -39,7 +39,8 @@
 
 	def update_bom_operation(self):
 		bom_list = frappe.db.sql("""select DISTINCT parent from `tabBOM Operation`
-			where workstation = %s""", self.name)
+			where workstation = %s and parenttype = 'routing' """, self.name)
+
 		for bom_no in bom_list:
 			frappe.db.sql("""update `tabBOM Operation` set hour_rate = %s
 				where parent = %s and workstation = %s""",
@@ -71,7 +72,7 @@
 def is_within_operating_hours(workstation, operation, from_datetime, to_datetime):
 	operation_length = time_diff_in_seconds(to_datetime, from_datetime)
 	workstation = frappe.get_doc("Workstation", workstation)
-	
+
 	if not workstation.working_hours:
 		return