02.- PRODUCTION COST

GENERAL FEATURES

OBJECTIVES

The cost of a product is a complete description, detailing its decomposition of the pieces, components subcomponents cost as well as their characteristics and interdependence. The greater the number of components in a structure or set is the greater an cost complexity will be making the handling of information more difficult.

PURPOSE OF THE APPLICATION

The purpose of the application of Production cost is to provide a method to identify the unitary cost of each product, subset or operation based on the formulation of the components, being able to know the incidence if each material or process.

The application is used in planning, executing, validation, valuation of manufacture orders.

In the production environment, the list of materials defines which material is needed to produce an article. The Process as documentation complements the list of materials describing how the article is manufactured. The system of production tells the cost with which we will produce the article. It finances the operation and materials to be used by work centers in sequence

The system allows the user to use the following possibilities

                                                        .of all the articles:

                                                                                    .By item

                                                                                   .Of a given list

By applying Costs, the user possesses the capacity to establish an maintain the necessary costs to manufacture any product. At the same time, it generates information on each stage of the process in terms of knowing how much time and how much material is needed to accomplish it. The module of Production Costs properly installed constitutes a potent means of analysis and planning in any manufacture company.

SUMMARY PAGE