Cost to Make
Bill-of-Materials + Routing Management
The combination of bill-of-materials (BOM) and production routing details describes how each manufactured product is made. Both BOMs and routings are key to calculating the unique cost of your product. As complexity in manufacturing processes increases – multiple BOMs or recipes, material or equipment substitutions, and geographically diverse production locations – improving profitability requires accurate, detailed cost answers.
Even with ERP systems in place, finance teams are challenged with effectively managing BOM and routing information. You need a way to connect data from operations, engineering, quality, purchasing, and manufacturing to develop cost results that drive decisions around plant loading, materials purchasing, staffing requirements, and more.
ImpactECS can leverage production, alternate, planning, what-if BOMs, and routing data from existing systems or serve as the system of record to establish the solid foundation of data necessary to deliver granular, actionable answers.
Manage your materials, recipes, crewing, and manufacturing processes with ImpactECS
- Centralize Bill-of-Material information: Import existing and new BOMs or recipes from ERP or PLM systems – or use ImpactECS as your BOM system of record.
- Generate multi-level BOM costs: Create, view, and analyze multi-level BOMs and gain transparency and traceability of your cost build-up from raw materials to semi-finished goods to finished good items.
- Maintain BOM changes: Create, simulate, and maintain primary and alternate BOMs and routings for each unique product to calculate more accurate cost values.
- Simulate cost values: Simulate and evaluate material, machine, and labor substitutions to compare cost results and determine feasibility of production plans.
- Analyze yield performance: Compute, manage, and simulate yield rates to determine costs associated with waste and scrap.
- Evaluate costs for outsourced materials: Calculate and track costs for subcontractor and third-party manufacturing and handle make vs. buy decisions for manufactured or purchased materials and components.
Product Costing for Modern Finance Teams
With 93% of organizations currently engaged in, or planning programs, to improve the quality of their cost information, it’s no surprise that finance leaders are keenly focused on the effects of product costs on their overall performance.
Check out this recorded discussion featuring forward-looking finance leaders that have made a positive impact on their organization’s performance by understanding the rules, tools, and data necessary to make informed tactical and strategic decisions.
Resources
Raw Material Spending and Your Budget
Read the Article >Costing in Changing Business Environments
Watch the Discussion >Improve SAP Costing with ImpactECS
Learn More >Guide to Implementing Cost Systems
Watch the 30-min Q+A >Daily News for Finance Leaders
Read The Ledger >Ready to see ImpactECS in action?
Get a glimpse of how we help companiesunderstand their costs and profits