Wondering why there are many companies using only small accounting software but not integrated manufacturing software ?
Because they have not aware of the availability of manufacturing software in the market and what is the software can do. many small companies are fully aware of the limitations of general accounting software and excel spreadsheets, but are busy and never find the time to upgrade to a manufacturing software package. they are also fear and are worry of manufacturing software might be too costly to implement, too difficult to implement, and too hard to use. Are you one of them ?
How are BOMs costed?
The Cost Rollup calculates a total estimated cost for the BOM parent. Each purchased component has an estimated cost from inventory. Each work center is given hourly rates for setup, labor, and manufacturing overhead which get applied to each routing sequence. Estimated costs for subcontract services are maintained in routing sequences. The Cost Rollup calculates all these costs up through all the subassemblies in the product structure to arrive at the total estimated cost for the BOM parent.
If the BOM includes secondary outputs, a portion of the parent item’s cost is allocated to each output on a percentage basis.
What is the BOM estimated cost used for?
BOM estimated costs are helpful for product pricing decisions. You also benefit by continuous monitoring of work center hourly rates, which keeps you in touch with your item labor and overhead costs.
Is the BOM estimated cost compared to actual job cost?
Not directly. When the job gets created from the parent item’s BOM, the program calculates an estimated job cost. If you modify the job’s BOM specifications, the estimated job cost gets changed accordingly. It is the estimated job cost that gets compared to actual job cost.
Vivienne @ www.mrp.com.my
So jobs also have BOMs?
Yes, each job has its own BOM. The parent item’s BOM is copied to the job and
its component usage quantities are multiplied by the job quantity. Once the
job’s BOM has been created, it can be modified for any special requirements.
What are the BOM "components?"
The BOM "components" are the subassemblies, purchased parts, and raw materials
that comprise the physical product.
How are BOMs used?
BOMs are used by the MRP screen to
generate Custom to make jobs for manufactured items in response to customer orders and your
desired stocking levels. MRP uses each item’s BOM specifications to create the
job’s routing and BOM.
Vivienne @ www,mrp.com.my
What is the BOM "routing?"
The BOM "routing" can be thought of as a "bill of labor." In the routing you define the setup, labor, and subcontract service sequences that comprise the manufacturing process.
Vivienne @ www.mrp.com.my
