Our services include the analysis and understanding of existing manufacturing processes, costing systems and methodologies, and cost center hierarchies. We evaluate key data capture points in each process to enable best practice analytics and decision-making support. Additionally, we examine the timing and process of cost roll-ups, ensuring that cost roll-up assumptions are current to maintain accurate product costs, such as labor and burden rates, machine hours, material yields, and planned scrap percentages.
We also analyze the sources and root causes of significant Purchase Price Variances (PPVs) of manufacturing materials and ensure the accurate and timely updating of Bill of Materials (BOMs) and Routers, coordinating the engineering change process among Manufacturing, Engineering, Purchasing, and Finance.
Furthermore, we analyze the drivers of over-under absorption to maximize product cost transparency and facilitate pricing/gross margin analysis and related decision-making support. Finally, we develop a robust process for evaluating make vs. buy decisions for purchased parts or outside processing.