Overview Proplanner cost estimation allows the user to quickly compute the costs of assemblies and end items at a planning stage. There are two types of costing supported within Proplanner, Standard costing or Traditional cost accounting (TCA) and Activity based costing (ABC). TCA is a boundary or department level costing where as ABC is more detailed and is based on the exact locations and resources.
Cost Estimation Features
User Interface Overview The Cost Estimation module works off the mBOM tree. The module is displayed for all the part nodes and the operation nodes in the mBOM tree. The user defines cost related to a supplier for parts, for an operation the user needs to define a production rate.
1. Cost Details 2. BOM Quantity 3. Costing Method 4. Ignore Cost of Product Cost Estimation Instructions To calculate or compare costs for parts, select the part node and based on the type of node, mapped operations and supplier mapping , a list of costing programs are available to the user. Ignore Costs property: This check box is seen when a part node or an operation node is selected. Ignoring the cost of a part node, will also ignore the cost of all the descendant parts, whereas ignoring the cost of an operation will only ignore the cost of that operation and not the cost of all the descendant operations. While running the costing programs for any part, the ‘ignore cost’ information of that particular part is not considered. Buying Options Buying options essentially gives a report of all component-supplier mapping available for that part. This report is available by selecting ‘Buying Options’ from the drop down menu. The user can add, delete, change mapping ranks etc. from here. Please refer to the Component-Supplier mapping section for more details.
Standard Cost - TCA The Standard Cost calculates the cost of manufacturing a particular part considering the production rate of the operation, the cost of the boundary where the operation is performed (modified from the Factory Browser) as well as the costs of the purchased items and raw materials. Note that the cost of parts designated as ‘Items’ are not calculated. The Standard Cost item appears in the drop down menu only if there are mapped operations for that particular part. To run this program, select ‘TCA’ from the drop down menu and hit calculate. The report will list all the costs of all the parts in an indented Bill of Materials format.
1. Level - Indicates the level of the indented BOM 2. Is Cost Ignored - Checking this field ignores the cost of the entity 3. ID, Name: Entity Details 4. Type: Entity type - End Item, Assembly etc, refer to the Symbols section for details 5. QTY: Quantity of the entity 6. AQTY: Actual Quantity or the rolled up quantity (for e.g. if a bolt has a quantity 2 in an assembly and the assembly has a quantity 4 in the end item then the actual quantity of the bolt is 8) 7. Labor, Burden and G&A: Rolls up the costs of all operations and sub operations under that end item. These are the cost elements of the tasks that child parts are manufactured from. In TCA these costs are based on the production rate and boundary of the mapped operation. 8. Purchase Price: Rolls up the costs of all purchased items. 9. Raw Material: Rolls up the costs of all the raw materials
The production rate for operations can be defined by selecting the operation node. The interface is as shown in the diagram below.
Program Details
The costs for these parts are summation of costs of all operations (mapping operation as well as descendant operation) for that part.
Make vs Buy Analysis Any component in Proplanner can be mapped a supplier. This allows the user to have an option of running a quick comparison of manufacturing the part (using the TCA to compute costs) versus buying the part. This report can be generated by selecting “Make vs. Buy Comparison” from the drop down menu.
Activity Based Cost - ABC The activity based cost is a more detailed approach to costing. The user is now computing costs based on the locations and resources instead of the overall boundary. The cost in ABC depend on the time of the activity. The location and the resource costs are computed based on the time of the activity.
1. Level - Indicates the level of the indented BOM 2. Is Cost Ignored - Checking this field ignores the cost of the entity 3. ID, Name: Entity details 4. Type: Entity type - End Item, Assembly etc, refer to the Symbols section for details 5. QTY: Quantity of the entity 6. AQTY: Actual Quantity or the rolled up quantity (for e.g. if a bolt has a quantity 2 in an assembly and the assembly has a quantity 4 in the end item then the actual quantity of the bolt is 8) 7. Resource: Rolls up the cost based on the resources being used by the activities 8. Location: Rolls up cost based on the location of the activities 9. Purchase Price: Rolls up the costs of all purchased items. 10. Raw Material: Rolls up the costs of all the raw materials
Program Details
The costs for these parts are summation of costs of all operations (mapping operation as well as descendant operation) for that part.
Make vs Buy Analysis Any component in Proplanner can be mapped a supplier. This allows the user to have an option of running a quick comparison of manufacturing the part (using the ABC to compute costs)versus buying the part. This report can be generated by selecting “Make vs. Buy Comparison” from the drop down menu.
Reporting & Exporting Data Reporting and Exporting functionalities are available for all costing program from the ‘Reports’ menu from the main menu. There are two kinds of reports, Summary and Detailed.
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