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PCM^® CCS

The globalization of markets is increasing competition. Checking products profitability, by comparing revenue with production costs, is fundamental.  
 

PCM^® provides tools and methods to efficiently support companies in these analysis.

PCM^® is an effective and efficient tool to calculate and analyze manufacturing costs. It is based on architectures and methodologies consolidated from many successful installations.

It is the only product available and able to calculate actual manufacturing costs and variances comparing to standards.

It integrates with all management systems from which receives the necessary data.

Computing Architecture

Items are processed using the respective minimum level code, starting from the lower level to the final product. The system calculates the overall cost, for each item, by keeping it divided in different cost entries.
It is possible, through parameters managed by users, to define the aggregation of the elementary entries to the synthetic entries, expression of the overall and intermediate cost that needs to be analyzed.
The system allows unlimited valuations (average weighted price, LIFO, FIFO, last price, etc.), for each item and category that can be different according to the data supplied by the processing parameters.

Modules

• Standard Costs Calculation 
• Actual Cost Calculation 
• Real Cost Calculation 
• Automatic Variances Calculation 
• Costs Allocation Driver
• Budget Management
• Simulator
• Analysis and Comparison

Documentation

PCM^® CCS

Standard Cost Calculation

The process calculates product's standard cost by using the following parameters:

• items registry and BOMs,
• routing and assembling,
• manufactoring resources (work places, machineries) registry,
• raw materials and manufactoring resources registry (hourly costs for each cost center),
• direct costs for each item (help to automatically impute the undetermined cost components).

Product cost is obtained from summing cost entries (direct materials, external workmanships, direct labor, energy, depreciation, etc.).
The system allows to define any number of cost entries with the possibility of managing up to five levels of aggregation.

 

 

PCM^® CCA

Actual Cost Calculation

Costs are calculated using the same methodology of standard costs following market and product evolutions.
The system considers the variations of parameters that influence the cost (BOM, routing, material purchases cost, etc.)

 

 

PCM^® CCC

Real Cost Calculation

Real cost calculation module calculates the real cost incurred for the production of each product caIculating the followings:

• real consumption of materials and unfinished products 
• production waste
• raw material costs deducted from invoices or purchasing orders
• labor hours and associated costs established for each department (cost center)
• external workmanships costs deducted from invoices or subcontracting orders

Producing for commit: the system calculates the total cost of a single commit and "the cost to finish" based on the stage of progress.
Producing for stock: balance sheets are available for each production order or item, relative to a fixed time period.
The process also determines WIP and stock value using LIFO, FIFO or weighted average techniques, simulating the year-end for each process.

 

 

PCM^® CDV

Automatic Variances Calculation

The process automatically calculates company's mainly used variances:

• Price Delta, for purchases of materials and workmanships;
• Origin Delta, due to the choice of purchasing goods instead of producing them (or vice versa);
• Technology Delta, due to variations in the BOM or in the consumptions in production;
• Efficiency Delta, due to variations in the process or in the use of labor;
• Energy Cunsumption Delta, transport costs delta, etc.

It is possible to decompose, for each variance, the value of cost entries that compose it.

 

 

PCM^® DAC

Costs Allocation Driver

Intermediate and direct cost centers management.
For each intermediate cost center, an allocation driver that spreads costs to other intermediate or direct cost centers, can be defined.
Iterating the calculation, indirect costs are allocated to direct cost centers.
The system calculates the standard hourly rate for each indirect cost, dividing cost's portion allocated to the time budget.

PCM^® GDB

Budget Management 

Entering into system of the production (finished products) forecasts for the year. 
Calculation of production budget (resources requirement) and purchases (raw materials and external workmanships requirements), according to BOM and process.
The system calculates the time expected for the production of each item in the quantities indicated.
The time can be aggregated for each direct cost center.

PCM^® Analyzer

This application, which was developed in Windows to enable a high operation, gives the user an efficient tool to visulaize, analyze and compare the cost data that were generated from different processes.
You can:

• make a detailed analysis of product costs;
• compare between different versions of costs for the same product (for example: balance or actual costs with standard costs);
• analyze changes due to deviations between the standard values and those of in the final balance.

Tha data is always available with the desired detail level ( item, items homogeneus categories, product lines, divisions, production plants, etc.)