Automating actual costing in a manufacturing company
Without actual costing you only learn after the year-end whether an order made money. With actual costing you see per order and per operation where your estimate differs from reality.
Automating actual costing means the actual data arises by itself on the shop floor instead of being entered afterwards. In Digital WorkMate operators start an operation from their work list, which registers the hours automatically, and they book material consumption and good and scrapped quantities with a scrap reason. You then see planned versus actual and the cost per good piece, next to the estimate that follows from the BOM.
What to look for when choosing
- Do hours, consumption and scrap arise on the shop floor itself, without double entry?
- Is actual data recorded per operation and not only per order?
- Does the estimate follow directly from the BOM, so you compare the same structure?
- Do you see planned versus actual and the cost per good piece, including scrap?
- Can you record scrap with a reason, so you can trace the cause?
Hours without filling in afterwards
Starting, parking and completing from the work list registers the time automatically. Operators log in at a fixed workstation with PIN, QR badge, NFC or phone.
Consumption and scrap per operation
From the shop floor you book material consumption and good and scrapped quantities with a scrap reason, with confirmation steps where needed.
Estimate and reality side by side
The estimate follows the BOM; planned versus actual and the cost per good piece show where an order deviated.
What Digital WorkMate offers for this today
For each part you can see whether it is fully or partially available.
- Cost estimatingAvailable
Cost estimates based on the BOM; one action per component to reserve stock, create a purchase demand or a production order.
- Hours, progress and actual costingAvailable
Actual times, consumption and scrap per operation; planned versus actual and the cost per good piece.
- Operator work listAvailable
Operations by priority per operator; start, park and complete with automatic time registration.
- Consumption, good/scrap and confirmationsAvailable
Book material consumption and good and scrapped quantities with scrap reason from the floor, with confirmation steps where needed.
- Shop floor terminalsAvailable
Fixed workstations with login by PIN, QR badge, NFC or phone, linked to operations and stock locations.
- Attendance and timesheetsAvailable
Clocking in and out, timesheets with approval and leave requests.
Actual costing in production: frequently asked questions
What is actual costing?
Actual costing is comparing the real cost of an order (hours worked, material used, scrap) with the estimate made beforehand. That shows whether your quote prices and standard times are right.
Do operators have to enter anything extra?
No, the hours arise from starting, parking and completing from the work list. Only consumption and good/scrap are booked by the operator, in the same place.
Does Digital WorkMate have a full financial cost accounting system?
Actual costing is production-focused: hours, consumption and scrap per operation. The own general ledger (Finance) is still flagged as experimental; you can keep using your own financial system.
Related pages
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