Have you ever wondered how to reduce your company's operating and process costs?
Management systems help a lot in reducing production process costs, combining efficiency, standardization, traceability, sequencing and accuracy of information in the generation of data for better decision-making, adjustments in industrial management and also for strategic planning.
In this series of 3 modules, we will discuss relevant topics in the area of INDUSTRIAL COSTS every fortnight, making use of the knowledge and experience acquired over 34 years working on the development and implementation of computerized systems for the productive area and related sectors of various textile, chemical and derivative industries.
Let's get started.
Industrial management systems in practice
With the support of an automated system, it is possible to monitor in an integrated, uniform and sequenced manner all industrial costs and expenses, from the entry of commercial orders, through product and process engineering, analyzing the costs of raw materials, the production process and packaging, and verifying the result by product, commercial order, customer or representative. In addition, it is possible to calculate the income statement for the year by business unit, already considering tax incentives. All in a single tool that connects information from various areas of the company.
The structure, behavior, attitudes, and way of operating are reflected in the costs of a company. The more structured and reliable information a company has, the better its cost management will be. Greater efficiency in this regard means an increase in net profit margin, business profitability and competitiveness in the market.
Costeio
This process in which production costs and expenses in a company are identified, analyzed, and controlled is called costing. By the way, defining strategic objectives when calculating costs is very important to structure a costing system. Normally the objectives are simple, the complexity lies in the treatment of the data. The common objective is to manage costs for management and accounting purposes, but it is possible to go much further than that and focus on profitability.
In a SPECIALIST computerized system it is possible to:
- Identify product and process costs;
- Form sales prices based on the desired profitability indices;
- Analyze the profitability and contribution margin of the products sold, generating visual alerts for underperforming items, when entering the order;
- Analyze the company's breakeven point;
- Simulate costs.
In practice, cost management from process engineering provides production process times for each product, and in product engineering, the system provides data on the raw materials of the products sold, with an automatically updated replacement price list.
The expected monthly expenses, with the costs and expenses to produce, and with the technical data sheet, are provided by the system, breaking down the cost per minute, by center of productive cost.
Automation provides a costing structure with consumptions/hours and a dynamic cost distribution matrix, which allows the distribution of general manufacturing expenses.
Operacional
Operacional systems have a complete technical sheet and costing structure, which, in addition to providing the actual process times and the raw materials consumed in production, allow us to analyze and compare sales costs and prices. The apportionment matrix of indirect production costs is configurable and dynamic, which provides a more accurate allocation of expenses. And the Statement of Income for the Year (DRE), which shows the formation of net income for a certain period of time, can be obtained with a few clicks. All of this in one tool.
Consulting in the process of implementing industrial management systems has the purpose of guiding user clients to get the most out of the solution. With technical knowledge and an innovative mentality, open to more efficient ideas, the consultants constantly update the system to adapt to business developments, and still comply with accounting standards and current legislation.
It will be easy for the manager to identify:
- The most profitable products that the company produces;
- The clients and representatives with the best profitability, who meet the company's expectations;
- The company's strengths and weaknesses, in relation to costs and expenses;
- The results of the business.
Maintaining the company's competitiveness
We live in globalized and highly contested markets, and competition has become even more fierce in these new times. And speaking here also of modernization and adaptation to the new, companies must inevitably seek the tools that will lead them to Industry 4.0, and the principle is to manage existing resources and structure with maximum efficiency.
To maintain profitability, managers must be aware of the REAL COST, to have maximum control over their expenses and maximum earnings.
It should also be remembered that our systems are prepared to meet all Block K demands.
See you later!
