“This page displays everything related to the cost of bill of materials, how to access the page, its concept, and its features.”
Instructions for Accessing the “Bill of Materials Costs” Page:
- Start by clicking on the “Manufacturing” section from the main menu in the system.
- Then, you will be directed to the manufacturing screen. Look for the “Raw Materials” window in the top toolbar of the page.
- Click on this “Raw Materials” window and then click on the link to the “Bill of Materials Costs” page.
Concept of “Bill of Materials Costs”:
- The cost of the bill of materials for a manufactured product is a concept used in manufacturing management to understand and analyze the costs related to the production of a specific product. This concept aims to estimate the total cost of manufacturing the product based on the cost of each main and subcomponent of the product.
- Components: A list that includes all the components and materials needed to produce the manufactured product. This list encompasses both the main and subcomponents that make up the product. The cost of each component is documented.
- Quantities: Determining the quantities of each component required to produce one unit of the specified manufactured product. These quantities can be specified in standard units such as kilograms, liters, or any other suitable unit for the product.
- Component Costs: Calculating the cost of each component based on the average price of the raw material. This is done automatically by the system used, where the price of the raw material is recorded, and the component’s cost is calculated automatically based on the quantity used.
- Total Cost: It also includes information about the quantity of each component multiplied by the number of units manufactured for the product. This helps in calculating the overall production cost of the manufactured product, where the quantity of each component is multiplied by the number of units produced to obtain the total.
Options and Features of the “Bill of Materials Costs” Page:
- Reviewing Bill of Materials Costs: Through this page, you can access a review of bill of materials costs available in the system for each specific product category. This allows you to control and access production cost details for each product easily by using a custom filter to select the desired category from the list available at the top of the page.
- Displaying Raw Material Information: The displayed table on the page allows for a detailed display of information about the raw materials used in the production of each manufactured product. This display includes the name and description of the raw material, as well as its location in the work center and warehouse.
- Component Quantities: The page provides accurate information about the quantities of each component required to produce one unit of the specified manufactured product. This helps in determining the quantity requirements for each component and ensuring the allocation of appropriate quantities during production.
- Average Cost: The table directly displays the average cost of each component based on the price of the raw material recorded in the system. This allows you to monitor component costs and estimate the overall cost of product production.
- Total Cost: The table also displays the total value of each component after multiplying it by the number of units required for production. In addition, the total production cost of the manufactured product is calculated in detail and clearly displayed below the table.
Using this page, you can understand and manage production costs more efficiently and make informed decisions based on the available accurate information.