Calculating manufacturing order and product real cost

Registered by Ana Juaristi Olalde

One of biggest problems of manufacturing companies is calculating real cost for their products. Fist thing to calculate should be the manufacturing order real cost.

For this there is 3 basis:

   .- Material cost
   .- Machine working cost
   .- People working on manufacturing order cost.

IMHO OpenERP has got all basis to calculate real cost, but I think they are not integrated so, little improvements should be done to have the complete cicle done.

   .- Material cost: On product form is possible specifying standar or medium cost, so data is there to make calculation.
   .- People cost: On hr there is a nice module hr_attendance where people can specify the analytic account where they are working on.
   .- Machine cost: On work center there is 2 fields linked with analytic accounts where we can specify the unitary cost. Operations are made on work center.

So basis are there. Now... I think there should be an analytic father account linked to a manufacturer order, as it is on projects. Exactly same way. For me manufacturing order could be perfectly a project and operations could be tasks. Same way projects are linked to analytic accounts, orders should be also linked.
So we could have a father analytic account for order containing 3 child analytic accounts: Materials, People and Machine.
   .- Materials cost: Make an analytic movement where the stock movement is done from stock to production virtual location.
   .- People cost: Make an analytic movement same time hr_attendance module makes it. Additionaly, on people services form should be able to planify people work not only on projects but in manufacturing orders.
   .- Machine cost: Make an analytic movement where each operation of an order is opened and finished. Additionaly, a machine cost per hour could be different for preparation hours, during production and after production. And preparation, production and after production tasks, could have different cicle or hour cost.

For all fields real cost could be different from planified, so this should be also contemplated someway. Planified cost should never change but real cost should be reflected by analytic movements of working time for materials, people and machines...

On an order there could be a report similar to report that is included on projects after installing analytic_analysis module where information about order planified cost and real cost could be shown.

If product cost method is set to medium, the manufacturing product cost should be recalculated on his form, each time final product is moved from production virtual location to stock location, taking in count last production order cost.

Standar cost and medium cost should not be set on same field to be selected, but in separate fields to have 2 different amounts, to calculate cost same time. Additionaly, last purchase cost for products to by and last manufacturing cost for production products should exists, as a separate field.

IMHO: This 3 different cost field could give much more information to analyze, detecting problems and comparing expected standar const with real cost for each product, or comparing last produced order cost with medium...

People and material management is not changing at all, only machines and analytic account link improvement is needed here,

Please tell me if you find it interesting.

Thank you:


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Ana Juaristi Olalde
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