Advantages of Follow Up Production Costs

Advantages of Follow Up Production Costs

Production Systems

  • Receives sales orders for the company’s product to be manufactured.
  • Includes a production cycle management module that:
    • Requests raw materials from warehouses or purchasing departments.
    • Directs materials into the production line.
  • Accurately calculates production needs including:
    • Costs
    • Labor
    • All necessary inputs for delivering a finished product to sales
  • Sales process is carried out through the following stages:
    • Entering and approving production orders
    • Defining work orders and production stages
    • Assigning required labor and associated expenses
    • Submitting work orders related to each production order
    • Accessing final products and verifying available stock for sales and warehouse operations
  • Tracks direct and indirect production costs in real time including:
    • Raw materials
    • Labor
    • Machine usage
    • Overhead
  • Automatically calculates actual vs. standard costs to:
    • Accurately assess product profitability
    • Identify areas of cost variance
  • Allows setting cost targets per production order and compares actual spending to budget.
  • Integrates with ERP modules including inventory, procurement, production, and finance to provide a complete and accurate cost overview.
  • Enables setting competitive and profitable pricing strategies based on actual production cost data.
  • Generates detailed cost reports to help managers evaluate:
    • Product lines
    • Production methods
    • Supplier efficiency
  • Identifies opportunities to:
    • Reduce waste
    • Cut scrap
    • Optimize resource usage