Part Costs on First Article Parts used in Production

We originally used a phantom labour entry called Development Claw Back
accruing costs through Back flush Labour. The idea was to loose the
development cost over the first so many units made and it would have
worked OK if every one was committed to it, but since dropped as too
much hassle!





Best Regards,



Paul Whittle

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of RSN
Sent: 18 July 2007 16:20
To: vantage@yahoogroups.com
Subject: [Vantage] Part Costs on First Article Parts used in Production



I would be curious to see how other engineer to order/make to order
shops cost parts manufactured as First Article parts and used in
production. We work with various/multiple machine shop suppliers to
create our first article parts conjointly and its feasibility and if
viable we use the first article in production. The total avg cost to set
up /program etc. this machined part and drawing etc. could range from
20K - 40K that includes in producing a First Article part and based on
its viability, we then order 30 -40 qty of production qty parts at about
$3500 -$4800 each. How do you cost the first article part appropriately.
The initial setup / programming / non-recurring engineering charges are
all overhead expenses and the first article part may also have been
received on the PO as an Other (stk-unkn,pur-UNKN category), at zero
cost, however we have to qty/cost adjust this first part into inv. to
issue it to a sales order fulfillment job.
Thanks for all comments in advance
RSN

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[Non-text portions of this message have been removed]
I would be curious to see how other engineer to order/make to order shops cost parts manufactured as First Article parts and used in production. We work with various/multiple machine shop suppliers to create our first article parts conjointly and its feasibility and if viable we use the first article in production. The total avg cost to set up /program etc. this machined part and drawing etc. could range from 20K - 40K that includes in producing a First Article part and based on its viability, we then order 30 -40 qty of production qty parts at about $3500 -$4800 each. How do you cost the first article part appropriately. The initial setup / programming / non-recurring engineering charges are all overhead expenses and the first article part may also have been received on the PO as an Other (stk-unkn,pur-UNKN category), at zero cost, however we have to qty/cost adjust this first part into inv. to issue it to a sales order fulfillment job.
Thanks for all comments in advance
RSN



____________________________________________________________________________________
Pinpoint customers who are looking for what you sell.
http://searchmarketing.yahoo.com/

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