Do you actually know the cost of a job?Blogs
The general rule of thumb when it comes to running a manufacturing business is to make a profit. There are a few different approaches and theories when it comes to pricing up jobs. The most common approach is to use your costs and then apply a mark up in order to make money. This formula is very simple with only 2 general variables and is almost flawless once calculated properly. It all sounds so simple, but there is one common problem faced by many how much is that job costing me to manufacture?
Whether you do use the formula above, or any other for that matter, it is imperative to know how much a job is costing you to manufacture. With so many factors that can affect your base cost, it is always going to be something that changes over time. Whether it is due to a raise in material costs or even the fact that your new machine operator is a slower worker than the one before, the tracking of costs can have a detrimental effect if not traced properly.
MIETrak Pro offers many features that make this an easy process. For parts that are manufactured time and time again, we have a range of costing methods available at the click of a button. Users can choose from a standard cost, average cost, last cost, FIFO (first in first out) cost and landed cost. Each part made has its own costing tab that compares your estimated vs. actual. From here you can then pinpoint exactly where each cost is coming from. MIETrak has a built in production overview that uses a traffic light system to alert you the second a job on the shop floor is costing you more than you had estimated.
There may be instances where you quote jobs on certain machines or quote materials purchased from certain suppliers. If that quote then becomes an order, the system will remember the exact machine and supplier used, and then schedule and purchase accordingly. Long gone are the days of manually updating a spreadsheet and referring to different systems in order to keep on top of your ever changing costs.
If you would like any more information or would like to discuss your requirements in further detail then please either;
Email us: [email protected]
Call us: 01527 576 444