Cost and time
Cost and time is the base for calculating the production cost of a production order. Cost and time should be planned for each product to be produced. Cost of goods, resource use and time for work time and operation time. This process may be called the estimation process.
This process may result in
Cost and time estimated for a new product.
Cost and time estimated for a modified product.
Cost and time estimated for a special production.
If new products up for production is created and scheduled, new estimations regarding time and cost will need to be implemented. There might be requirements regarding time and cost re-estimation in connection with modifying an existing product or any customization, which can be re-estimated case by case. If estimated cost differs from the real cost, there is a cost deviation. These will, for example, occur in instances where the resource use related to an operation is higher or lower than estimated.
Accrued expenses will be calculated continuously throughout the processes in the production and it is possible to assess these in relation to the estimated cost. This enables you to reveal and trace any cost deviations.
Tasks relevant for this process
Calculate estimated cost
Costs may be estimated based on experiences, drawings, user manuals, numbers from the purchase department and other indications.
Inspect real cost for active productions
By following up the status through reports and other tools, it is possible to follow the actual costs at any step in the production process.
Following up estimated cost related to real cost
By following up the status through reports and other tools, it is possible to find and fix any deviations and implement corrective measures.