MRP Production Cost

Deciding whether a production order was worth it means comparing two numbers that usually live far apart: what the bill of materials said it should cost, and what components and labour actually absorbed.

Who is it for

Manufacturers who want to check the margin order by order instead of once a quarter.

How it works

Each order shows the theoretical cost of its bill of materials for the quantity to produce.
It also shows the value of the finished goods at their standard price.
Once the order is completed, the cost actually absorbed by components and operations appears next to it.
The cost per produced unit is calculated automatically.
All four figures can be totalled and compared directly in the list of orders.

The result: The gap between what you planned to spend and what you spent, order by order.

More Information

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MRP Production Cost

BoM cost, product cost and actual production cost on manufacturing orders

Puts the theoretical and the actual cost of a manufacturing order side by side, on the order itself and in the manufacturing list view.

Features

BoM Cost – theoretical cost of the bill of materials for the quantity to produce, read from the BoM Structure report.
Product Cost – standard price of the produced product times the quantity to produce.
Total Production Cost and Total Cost per Unit – actual cost of components and operations, read from the manufacturing analysis once the order is done.
All four figures are stored, summable in the list view and shown in a Production Cost group on the Miscellaneous tab.

Demo data

A cabinet workshop: Demo Cabinet Module built from 3 MDF panels and 6 m of edge banding, so a BoM cost of 105.00 per unit.
One order of 4 units still to produce: BoM Cost 420.00, Product Cost 720.00, no actual cost yet.
One order of 2 units produced with its components consumed: Total Production Cost 210.00, Cost per Unit 105.00, read back from the manufacturing analysis.

Developed by STeSI Consulting — Francesco Moccia <moccia.f@stesi.consulting>