For the backflush in repetitive manufacturing, a standard cost estimate is required to determine the costs of the production activities. When determining the production activities, the values from the standard cost estimate are used in proportion to the backflush quantity.
However, the standard cost estimate can only be saved per material. If a material is produced on several production lines with several production versions and, therefore, with several routings, then the costs are only determined as a proportion to one standard cost estimate. This means that when backflushing in such a situation, a certain unpreciseness cannot be avoided in the actual production activities.
The following problem may occur when carrying out a reporting point backflush in repetitive manufacturing:
Situation :
A reporting point material is produced on 2 production lines with different production versions with different routings and, thus, with different operations.
The standard cost estimate is created based on the data in the routing. If a reporting point backflush is then carried out for this material, with a reporting point (milestone operation) that is not recorded in the standard cost estimate as an operation, the system issues an error message as the production activities for this reporting point cannot be calculated using the standard cost estimate.
Procedure :
If a material is produced with different production versions and different routings, then the operation structure in both routings h should be identical. This means, that the reporting points should be defined in the standard cost estimate as operations.
The costing used as the basis cannot be stored based on the production version.
Additional key words
Repetitive manufacturing : Backflushing with activity confirmation
No comments:
Post a Comment