Can we have accuracy on production cost calculation during sales stage?
There are many factors that build up the production cost and one of those is the effectiveness of assigning the correct operators for certain tasks.
- First, we need to know the process time required and then try to balance the line
- Second, look at the result of line balance with the idle of each process
- Third, compare the output target and our coast (direct, indirect and factory overhead) Last but not least, execute the best option that you have
The above task takes time, especially for production managers who are already busy with daily works to meet target. And, the next questions are:
- Is the target realistic to achieve?
- Does the line balance reflect the optimum result?
- Can we have this process much earlier to help during sales stage?
The last question is something we normally miss as we rely on sample room which most of the time cannot represent the real situation in production floor. So, less accuracy on CM cost calculation.
Skill-Math will help factories to calculate CM costs during style review, this will help Sales team to negotiate with buyers. For factories that have multi locations or subcontracts this will help to make decision which site or subcon can give better CM cost therefore make the business more profitable.