Move Cost to DMR

One reason to keep the cost on the job (not move to DMR) would be to monitor the real cost of performing the job.  If you measure your SGM from job to sales order you might want to see a lower SGM due to quaility issues on the specific job. By moving cost from MFG-DMR then to fail you are removing the cost from the offending job.  This would show a higher SGM on the offending job as well as a higher, untrue sales gross margin.Â
Another case would be for companies that have not matured to the point of accurate / realtime labor reporting (do we ever? - different discussion). If timing of transactions or quantity reporting are issues a company has then the potential for pulling the wrong cost into DMR is high.Â
Both of these examples are primarily issues in an average / actual cost environment. I could see the potential for these being a problem in a standard cost environment, but with less overall impact. In that case move cost to DMR might be a good way to capture cost of quality.
Bruce B.
Â





Does anyone have a legit reason why NOT to use the move cost to DMR from
Non-Conformance?

Toby Boogerd
Information Systems

712.324.4854 | tboogerd@... <mailto:tboogerd@...>

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[Non-text portions of this message have been removed]
Does anyone have a legit reason why NOT to use the move cost to DMR from
Non-Conformance?



Toby Boogerd
Information Systems

712.324.4854 | tboogerd@... <mailto:tboogerd@...>


NOTICE: This email may contain confidential and proprietary information
of Rosenboom Machine & Tool, Inc. By opening any enclosed files, the
recipient agrees not to use, reproduce, disclose, or manufacture its
contents, in whole or in part, without prior written consent of
Rosenboom Machine & Tool, Inc.

Please consider the environment before printing this email.





[Non-text portions of this message have been removed]
There are a couple of approaches on non-conformance and job cost.

One view is to leave the nonconformance cost on the job and push it to COS
to give a true reflection of what it took to create the job. You will still
have the quantity to deal with in DMR so you can still take corrective
action from that.

The other is to remove the job cost in to nonconformance and have a 'pure'
job cost and then look at the nonconformance dollars separately.

Should Gross Margin reporting show process inefficiency or not?

Ross

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Toby Boogerd
Sent: Friday, June 19, 2009 1:09 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Move Cost to DMR

Does anyone have a legit reason why NOT to use the move cost to DMR from
Non-Conformance?



Toby Boogerd
Information Systems

712.324.4854 | tboogerd@... <mailto:tboogerd@...>


NOTICE: This email may contain confidential and proprietary information
of Rosenboom Machine & Tool, Inc. By opening any enclosed files, the
recipient agrees not to use, reproduce, disclose, or manufacture its
contents, in whole or in part, without prior written consent of
Rosenboom Machine & Tool, Inc.

Please consider the environment before printing this email.





[Non-text portions of this message have been removed]



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The only other twist I can think to add that is RMA's and how you are
approaching that whole scenario. At times some customers may not want a
debit note and if you accept the parts received back to a job for rework
and subsequent return, you may not want to see the 'original' costs
added to that particular job particularly in the instance when your
shipper will go back out at 0 dollars price. Granted your margin will
show negative just from the rework costs, but at least it won't add the
old COS on top of it.



From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Ross Hughes
Sent: Friday, June 19, 2009 1:21 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Move Cost to DMR





There are a couple of approaches on non-conformance and job cost.

One view is to leave the nonconformance cost on the job and push it to
COS
to give a true reflection of what it took to create the job. You will
still
have the quantity to deal with in DMR so you can still take corrective
action from that.

The other is to remove the job cost in to nonconformance and have a
'pure'
job cost and then look at the nonconformance dollars separately.

Should Gross Margin reporting show process inefficiency or not?

Ross

-----Original Message-----
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf Of
Toby Boogerd
Sent: Friday, June 19, 2009 1:09 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Move Cost to DMR

Does anyone have a legit reason why NOT to use the move cost to DMR from
Non-Conformance?

Toby Boogerd
Information Systems

712.324.4854 | tboogerd@... <mailto:tboogerd%40rosenboom.com>
<mailto:tboogerd@... <mailto:tboogerd%40rosenboom.com> >

NOTICE: This email may contain confidential and proprietary information
of Rosenboom Machine & Tool, Inc. By opening any enclosed files, the
recipient agrees not to use, reproduce, disclose, or manufacture its
contents, in whole or in part, without prior written consent of
Rosenboom Machine & Tool, Inc.

Please consider the environment before printing this email.

[Non-text portions of this message have been removed]

------------------------------------

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must
have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder
and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
<http://groups.yahoo.com/group/vantage/files/>
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/linksYahoo! Groups Links





[Non-text portions of this message have been removed]