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 to view the order
cost estimates associated with the shop order. The costs for main products
and produced parts can be viewed separately.
- 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.