Best of all it is “Interactive“. That means you can play “What If”; and then decide if you want to send the recommended adjustments back to your production system. I got so excited about this new feature I just had to record a 14 min movie showing how to use this great tool.  By the way, we include the Time Line Visualization at no charge when you purchase our Manufacturing Plus Database.

Enjoy the show:

Time Line Visualization is a post from: Cost Control Software

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1. Tree Map Visualization

Yet is seems so simple: Receive into Inventory and the Qty goes up. Sell out of Inventory and the Qty goes down. So what is the problem? 99.9% of the time it is a human problem.

Potential errors:
a. Wrong Items are entered. (+ or -)
b. Wrong quantities are entered.
c. Receiving to the wrong Location or SKU.
d. Item Usage not being recorded.
e. Location Transfers not getting entered.

If you are doing “write down” of Inventory each year, the real problem is that usage is not getting recorded as you go.  So at the end of the year during a physical a big discrepancy is discovered and COGS takes a big one time hit to make it right. I submit to you, it is better to catch it early and fill the leak.

If you are doing “Cycle Counting”, let me recommend Cost Control’s “Automatic Cycle Counting” Granule. This Granule will enable you to spot problems much earlier. Don’t wait until year end, do a weekly quick count of the next 40 items. Let Auto Cycle Count tell you what items need to be counted, do the count, record the adjustment, and then try to figure out why there were any discrepancies.

Inventory Accuracy with Automatic Cycle Counting is a post from: Cost Control Software

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1. True cost of a Job

If the entry is going to push the actual cost over the estimated cost, make the entry! Don’t run and adjust the budget either. You need to know. You can’t fix a problem if you don’t know you have a problem.

Example: A construction company needed 10 loads of Stone delivered to a Job Site. They were using their truck to pick the stone, but only the Invoice for the Stone was getting charged to the cost of the Job. What about the use of their Truck? What about the Driver? What about the wear and tear on the truck?

The typical reason the cost of the truck does not get charged to the job is that it is hard to do. Who is responsible to make the entry and verify it gets posted to the Job Ledger? Same for the truck driver. He doesn’t want to take his time to fill out a Time Allocation Ticket to 8 Jobs each day.  So the true cost of the job is light, and revenue opportunities are left on the table.

Solution: Build a “culture” in your business that tracks the details.  Empower all employees to post their time and anything else they feel is appropriate to the cost of the job.  If Job Profitability starts to fall apart, you are getting a truer picture of the job. Future jobs can be priced more appropriately based on better history.

True cost of a Job is a post from: Cost Control Software

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2. Cost Control at Directions 2011 Conference

You can set up planning lines for each job task on the job. If you have agreed with your customer that he should pay one total amount for the entire job, regardless of the usage on the individual job tasks, you only have to set up one job planning line of type Contract for the entire job.

Only planning lines of type Contract or Both Schedule and Contract can be invoiced. Planning lines of type Schedule are regarded as not chargeable.

The confusing part is that a “Planning Line” can have multiple uses:
a. BOM
b. Task Cost Estimate Details
c. Billing information

We recommend to our Project/Job customers that you setup lines as either Schedule (Estimate) or as Contract (Price), but not both. Both is too confusing, make two separate entries to make it easier to track.

To assist in the process we recommend you setup tasks for each type of work that you do, to further separate the job allocations. Example: Welding, Painting, Installing, Developing, Training, CNC, or Demolition. Under each of these tasks add your “Planning Lines” to hold the detail estimate of that task.

If your business is project/job oriented you can view a video that shows how a well placed task line can clarify your work breakdown structure.

Job Planning Lines is a post from: Cost Control Software

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1. Manufactruing Tip: MPS or MRP?

•    MPS is defined as the calculation of a master production schedule based on actual demand and the production forecast. The MPS calculation is carried out for end items that have a forecast and/or a sales order line. These items are called “MPS items” and are identified dynamically when the calculation starts.

•    MRP is defined as the calculation of material requirements based on actual demand for components and the production forecast on the component level. MRP is calculated only for items that are not MPS items. The overall purpose of MRP is to provide time-phased formal plans, by item, to supply the right item at the right time, in the right place, in the right quantity.

The planning algorithms used for both MPS and MRP are identical. The planning algorithms concern netting, reuse of existing replenishment orders, and action messages. The planning system process looks at what is needed or will be needed (demand) and what is on-hand or expected (supply). When these quantities are netted against each other, the program provides action messages. Action messages are suggestions to create a new order, change an order (quantity or date), or cancel an order already on order. The term “order” includes production orders, purchase orders, and transfer orders.

Proper planning results depend on the set up done on Item Cards, Production BOMs, and Routings. When you are first setting up NAV,test the effects of changes on the item card’s parameters as it relates to the results of the planning worksheet’s recommendation.

Manufactruing Tip: MPS or MRP? is a post from: Cost Control Software

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1. Job Planning Lines