Production Cost Increases

  • Your legacy system is not integrated.
  • Data is being re-keyed from the production software into the financial software causing possible transportation errors.
  • Unknown how many people are designated for this function.
  • Unknown time it usually takes for an order to be placed into production.
  • This causes you to have to purchase material at a higher cost.
  • You are paying excessive freight & handling charges for these rush orders.
  • You don’t have incomplete data capture.
  • You are not capturing all labor cost on a Production Order.
  • Direct & Indirect Labor.
  • When consuming components, your system is not accurately recording material cost on the finished goods.
  • You have the need to override standard quantity during the flushing process.
  • Your current system is not capable of recording all material and labor costs.

About the Author: AJ Amjad Khanmohamed

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