We try and are probably doing a better job at getting the correct information on the MOM.
When our engineering release a MOM, we have them do a cost roll up on that top assembly and verify that all the material has cost. If not they do a cost adjustment on the material. We previously had (and still do) many jobs with 0 material costs.
Last month we created ~1500 jobs, in one plant. From those 1500 jobs, ~1000 were unique part numbers. But we still have labor entry issues, not issuing material, or part numbers not setup correctly for backflushing.
We auto-close jobs here, but still have may jobs to review. Then we found out that in 702A the job closing parameters for Material and Operation do not work. So many of our jobs are closing with material or operations not completed.
Miguel A. Santillan
Compass Manufacturing Systems
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Monday, April 4, 2016 9:55 AM
To: vantage@yahoogroups.com
Subject: [Vantage] RE: Job Closing Review Process
We do what you do although we don’t bother with quoting…quoting is before the fact for us anyway.
Supply Chain will cost adjust all purchased items.
Engineering makes sure that BOOs are correct.
We run the cost roll up once a year with new labor and burden rates.
During a job, BEFORE we receive to stock we make sure all labor has been issued and approved and all materials have been issued.
In your process if you want to minimize the variances (I’m assuming you are Standard Costing), you have to make sure all material costs and labor are good BEFORE you receive to stock or BEFORE you ship off a job. If you don’t this, this will be the cause of your variances.
Everything you mention below really should be happening BEFORE you create jobs, but I understand that in the process of everything that will not always be the case.
Manasa
From:
vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Monday, April 04, 2016 12:36 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Job Closing Review Process
I need to understand how some of you close jobs. Who looks at what?
We have jobs with variances and we need to fix multiple areas.
We need to review jobs at completion (Labor and material were issued) (Production)
Then we need to fix the jobs due to material costs not being entered correctly and then close job(Planners)
Then if the MOM is incorrect we need to fix that ( Engineering)
Then if we need to update the Quote (Quoting)
How does your company process jobs?
Miguel A. Santillan
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