Analyze Shop Order Costs
Explanation
This activity is used to analyze shop order costs. This ensures that the
costs generated from the manufacturing process can be followed up and compared
against the planned cost. When a shop order is created, the system automatically
calculates the costs, based on the order-specific data.
Note: When a shop order is in the Planned status or Released status,
the part cost buckets added on the Cost Template in Cost Set One page
can be updated by clicking Calculate Order Cost on the Shop
Order Costs page. The order cost estimates will not be automatically
calculated after an order has reached the Started status, but it is
possible to calculate the order cost estimates for an order in the Started status
via the Shop Order page, by clicking Costing then
Calculate Order Estimated Cost.
Using the Shop Order Costs page:
- Use the Overview Unit Cost tab to view the cost per unit of a specific part.
The sigma sign at the bottom of the table allows for an overview of all
costs, both actual and estimated.
- Use the WIP Status tab to view the status of the work
in process (WIP) account for the shop order. This can be queried
at any time in the manufacturing process. The data fields displayed are
connected to the accounting system, showing the totals calculated for a
specific shop order. At any given point in time, it is possible to view
the actual costs derived from production of a part, together with the
relevant postings made in the accounting system.
- Use the Order Cost Estimates tab to view the order
cost estimates associated with the shop order. The costs for primary and
by-product manufactured parts can be viewed separately. You can view a
summation of each column in the row at the bottom of the table denoted
by the sigma symbol.
- Use the Estimate Details tab to view the order cost
estimates associated with a specified shop order operation, cost bucket
and cost source. The costs for each component is specified on a separate
line.
- Use the Shop Order Costs
tab to view the standard costs associated with the operations of a
specified part or part family.
- Use the Actual Cost tab to view the actual costs
associated with the operations of a specified shop order part.
- Use the Cost Variance tab to view the variance of the
different cost buckets from standard cost calculations, order cost
estimates and the actual costs. There are six different variances using
both level and accumulated costs, resulting in a total of twelve
variances presented. The variances are presented both as factors and
figures with a sum total at the bottom of the table. The summation,
denoted by the sigma sign at the bottom of the table, allows for an
overview of all cost variances for the specified shop order.
- Use the Order Details tab to view details related to
the shop order, including information on structures and routing. You
also can view where the demand for parts originates, either within the
company or from an outside supplier.
- Click Order Details and then Actual Cost Details to
view actual costs on a more detailed level. Costs are shown on
transaction level, and this page includes inventory, machine, scrap and
labor transactions as well as general overhead transactions.
- Click Order Details and then Costed Operations to view
the operations associated with a specific shop order.
- Click Order Details and then Project Cost Analysis to
view planned and committed cost and hours as well as the used cost and
actual hours per project cost element for a specific shop order. This
tab will only contain data if the shop order is connected to a project.
The costs and hours in this tab are the source of information when
system is calculating costs and hours for the connected project
activity. Please note that only material that is standard planned is
included in the calculation of material cost. Material cost for material
that is procured by the project is not included since this material cost
will be captured/calculated through other supply orders.
Use the Shop Orders Costs page to get a summarized overview
for the costs per shop order.
Prerequisites
- Cost calculations must have been performed and copied to cost set 1
for a specific part intended to be processed with a shop order.
- Aggregate shop order costs should have been calculated using
Aggregate Shop
Order Costs per Shop Order.
System Effects
As a result of this activity, the system displays shop order costs for the
part.