Re: Cost Roll-Up

["Chick Doe" <Cdoe@xxxxxxxxxxxxxxxxxxxxxx>]

the first point about costs not being cleared when you change a part from make 
to but, or vice versa, is absolutely true! we've also run into this!

chick doe 
barton insrument systems

>>> MacWheel99@aol.com 11/13/00 11:59PM >>>
An opportunity to mess up our costs is when we have an item that could be 
manufactured or could be purchased ... a decision to switch is driven by 
economies of quantities needed how soon ... such a transition can have 
adverse effects on BPCS costing if there is debris left in the cost master 
that was relevant to the old protocol.

If the part used to be purchased, it had this-level costs for buckets not 
used when it is a manufactured part, such as material cost & material burden 
cost.  Now we add routings & overlook zeroing out what is not relevant to us 
any more, but is taken into consideration by BPCS costing, leading to bucket 
0 not agreeing with CST300.

Another opportunity to mess up our costs is CST940 ... we make some products 
in some facilities that are like raw materials in other facilities, in which 
there is not a one-to-one correspondence of buckets.  For example we use 
plastic molding compound & raw metals to extrude wire & plastic blocks.  This 
cost & machine & overhead detail where it is made needs to be totalled up & 
represented as material only in the facilities that use the parts, and 
ideally we should only be transferring costs for selected item classes & 
types, but the software does not offer that option.

Alister William Macintyre 
Computer Data Janitor etc. of BPCS 405 CD Rel-02 on 400 model 170 OS4 V4R3 
(forerunner to IBM e-Server i-Series 400)  @ http://www.cen-elec.com Central 
Industries of Indiana--->Quality manufacturer of wire harnesses and 
electrical sub-assemblies

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