Plant Manager+™
Activity Based Costing (PMP-ABC)
A major problem for many manufacturers is that they do not use accurate project cost estimating tools for their jobs and manufacturing processes, and as a result, often under or over bid jobs. Even worse, many manufacturers do not know what each job order costs as it is shipped, nor do they have a detailed breakdown of estimated versus actual process costing. As a result, companies often lose money on repeat orders, when they could have the data to prepare accurate project cost estimation and present quotations on which they can actually make more money and win job contracts. Manufacturers often make 80% of their profits from 20% of their jobs, throwing the rest of it away on the other 80% of the jobs.
The Plant Manager+ Activity Based Costing module gives manufacturers and job shops a powerful tool for job order and process costing. Our comprehensive plant asset management and job scheduling software incorporates all the elements needed for making accurate predictions of man hours, materials, and expenses so that every project and process makes your business more profitable. This project planning tool is just another way that Plant Manager+ gives your company the edge on the competition. Following is a break down of the elements that make up the Activity Based Costing module.
Job cost estimation criteria
- Operations needed to make products.
- Labor required for operations.
- Materials required.
- Machine setup, run, and clean-up time required.
- Quantity being produced.
Actual cost computation criteria
- Actual labor used at loaded labor rates for each person.
- Actual material used, at purchased or made cost or standard cost, including scrap and wastage.
- Actual machine time used as well as setup, tear-down, and any down-time incurred at loaded cost per hour rates for the machine, when running and not running.
- Actual operation performed including rework.
Available PMP-ABC reports
- Effective project reports with estimate of costs, showing a complete breakdown by plant operations of labor, material, and machine times and costs for the quantity to be made.
- Actual project costs, showing a complete breakdown by operation of labor, material, and machine times and costs.
- Project cost management reports with comparison of planned versus actual cost, including the effect of unscheduled operations and use of alternate resources. In doing this, the module handles the effect of split batches and material flow over multiple operations at the same time. Our job order costing tool is robust and handles every warehouse and manufacturing environment contingency
The Plant Manager+ Job and Material Tracking System (PMP-JMTS) is a prerequisite for PMP-ABC, as is the machine tracking option (PMP-MTO) if machine costs are to be integrated into the estimates and costs. Working together, these project planning software modules create accurate cost estimation for even the most complex job processes. Contact TSI Automation to experience the Plant Manager+ advantage.
