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20% of your jobs create 80% of your profit. Want to know which ones?
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It's a simple mathematical fact that if you replace (or convert to
higher profit) the other 80% of the jobs that only generate 20% of your
profit you would multiply profits by 400%. Than means $10,000 profit
becomes $40,000 for roughly the same amount of effort.
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Of course it involves a lot more than hitting a few keys on a
calculator, but knowing which jobs are which is the essential first
step. |
DHA Job Cost
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Profits ultimately come from generating margin
on each job and then doing enough work. Knowing what each job costs is essential
to effective pricing. If your prices are too high, you may lose otherwise profitable work.
Too low, the results are all to obvious. |
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The DHA Job Cost system tells you where
you stand on every job that goes through the plant. Which jobs make money. Which lose and
why. Where and when to adjust prices. How and when you can lower prices to gain
competitive advantage. |
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Total control over payroll costs. |
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Eliminate or re-price unprofitable jobs
without delay. |
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Job reports with estimated and actual
cost. |
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Indirect labor reports by function help eliminate wasted
and unproductive labor. |
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Establish accurate production standards to improve
estimating and scheduling. |
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52 week running history
report. |
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All production records available for
analysis whenever you want. |
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Review by job, machine, department, employee. |
Controlling Costs
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The heart of the Job Cost system is total control over
labor costs. Every penny of payroll is accounted for either in active billable jobs or in
non-productive work. History reports let you analyze costs by job, operation, employee, or
machine to make sure your price and time standards are correct. You get a clear picture of
the actual cost for each job compared to the estimate. |
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If direct labor cost are out of line, you see it
instantly. If indirect labor gets out of line, you see that just as quickly. You can spot
maintenance patterns that may suggest management action. You will discover any
inefficiencies in your current system that might yield additional margin. The key is to
control labor costs. There is no way for labor costs to get "lost" using DHA Job
Cost. |
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Job reports show estimated and actual costs with
variance in dollars and percentages. You can quickly see if the job is out of line with
the estimate. Production detail is available for in-depth analysis. |
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Buyouts and materials are shown with cost and selling
price. Every minute of labor is represented with comments where problems occur. |
Small investment. Big payoff
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Very little time is required to use Job Cost. Each daily
time card takes less than a minute to enter. Data Collection can even eliminate that. The
payoff is that all the information you need to control costs and profits are available
when you need it. No need to guess. |
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The system even generates payroll hourly totals to make
sure the labor on the cost sheet is the labor you paid for. |
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Cost reports
can be run any time to check job progress, and provide a tool to alert
customers to situations that may affect cost and prices. You avoid the
embarrassment of trying to explain billing surprises. |
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Each week a recap report shows average makeready and run
times for each machine and each employee. You can see at a glance where productivity is
coming from, and where attention is needed to increase output. |
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Over the course of 3 to 6 months you will have a complete
analysis of every operation in your plant. You will know exactly how
much each makeready cost on each machine, how many you sold, and how
long they took. Feed this information back into the Estimating system
and you can virtually eliminate jobs that lose money. |
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Knowing your true costs gives you greater flexibility in
quoting prices. |
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You will know where you can make competitive adjustments
whenever necessary without losing money. |
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Eliminating non-profitable work, or better yet, making
it profitable frees your plant for more productive jobs. Knowing your true costs lets you
actively manage profits. |
Details |
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Capacity: No limit on number
of jobs. |
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Analysis data limited only by disk
space. Files can be
stored on CD's for unlimited past history. |
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Input: From daily time
cards requires only about 1 minute per card or from Data Collection
terminals to provide real time update of Cost files. |
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Job information, inventory usage, and buyouts entered
daily or as needed. |
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Purchases are posted automatically
from PO'.s, manually
entered, or posted automatically from AP Reports. |
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Individual Job Report:
Estimated cost vs actual cost
Buyout detail cost and markup labor detail by task with cost and sell (by employee, dept,
operation). Remarks section highlights production problems. Department totals for time and
money. |
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Weekly Reports: Jobs booked with dollar totals. Jobs
billed with dollar totals Payroll hours (straight, OT, DT) Machine hours with productivity.
Recap machine/employee time & production. |
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History Report: Payroll hours (direct/indirect)
Machine hours, Jobs booked, Jobs billed, Production statistics by employee, machine, period,
etc. |
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Other Reports: Work in
process by job with labor and material cost and estimated billing. |
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Integrated Modules:
Estimating, Order Entry Docket writing, Cut Order, Stock Requirement,
Scheduling, Data Collection, Automatic Invoicing, Completely Integrated
Accounting. |
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