[3537]

Production cost, online calculation

Date:
October, 2015
Prototype:
proto$ gen VIII mod 4E9329 (Ultima)
Customer:
Rosshokolad
The cost of end products usually becomes known once in a quarter or even a year but not for the current for the past period only. And this is how you can calculate it in real time by clicking one button and be free to interfere proactively.

What will come of a transoceanic voyage without a compass, sextant, or astrolabe?
Or without GPS, in the modern version?
- of course, unless you are James Cook?

And how manageable will be a business whose products" cost is not a calculated figure but an opinion?
A thought.
A product of intuition.
Or authority.
Or sheer luck.

Still, it is by diving into astral obscurity — and/or sucking one’s thumb — that most manufacturers in our blessed Motherland determine the cost of their finished items.

At least until they sum up their annual returns.
Somewhere at the end of the first quarter next year you will know how profitable your production/sales of individual items have been and how much your business has earned on the whole (if anything).
This will be possible if your accountants do excellent work.
And if their work is average (like everywhere), you will certainly never know it. The said profit rate will remain the object of feelings, guesswork and weather wisdom.

Rosshokolad Co. (before migration to dia$par) was far from being an exception.

The process charts for their products had existed as Excel files (their name is Legion). In theory.
In the practice, they had only existed in their minds of their wise process engineers.
Who are also humans (what a surprise!) — with all the entailments.

The actual cost of the items they were making couldn’t be figured out even theoretically.
So no one ever tried to: "Oh, the depth of the riches and wisdom and knowledge of God! How unsearchable are his judgments and how inscrutable his ways!" (Paul, Epistle to the Romans 11:33)

The process charts are now kept in dia$par.

The Process Chart

The material use standards for all the production stages are firmly established.
Materials write-off — according to the process charts only.
Product cost calculation is completely automated and based on the actual cost of the materials — full and honest FIFO.

The Cost of Manufactured Products

The wise process engineers" magic aura dissipated under the scorching skeptical rays of dia$par.
‘Saul became Paul", and now the manufacturing personnel know for themselves how much what to pour in at each individual moment.
?And, what is damn specific, quality only improved.

The product’s actual profitability is also visible online; we can see at once where things are OK, where we should rise the price, and where to alter product composition or to take an item off the price-list altogether.

The influence on net profit is as instant as it is dramatic.

To translate the drama into numbers seems impossible — for utter lack of written sources from the pre-historic era.

Being inside dia$par. Some stories
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