Documents that visualize the cost and inventory management of custom-made orders in numerical form.
It should be profitable, but it's in the red—are you able to grasp the cause with numbers, not just intuition?
In made-to-order production factories, there are persistent issues such as "projects that should be profitable ended up in the red during the financial closing," "despite a policy of not holding inventory, parts are piled up in the warehouse," and "while inventory is evaluated using the moving average method, the numbers become inconsistent with each return." This is not coincidental; it is a structural problem inherent in the made-to-order production model itself. Applying the theories of forecast production directly will inevitably lead to inconsistencies somewhere. 【One-point Advice】In the cost management and inventory management section, we will explain the concept of cost accounting that balances "preliminary figures" used for on-site cost reduction activities and "final figures" for financial closing, as well as management methods for materials, common parts, and semi-finished products that are unavoidable even under the principle of "not holding inventory," along with specific numerical examples. This book is packed with practical knowledge to help you break away from intuitive operations, including the correct calculation method for planned labor rates (a pitfall where calculating only direct labor costs results in lower-than-actual costs for work in progress) and how to choose inventory valuation methods (moving average method, weighted average method, last purchase method). Please download it from the catalog page of Improove Co., Ltd. and give it a read.
Inquire About This Product
basic information
[One Point Advice] The cost management and inventory management section is particularly useful for managers, production management personnel, and accounting personnel in assembly and parts processing industries that engage in make-to-order production and small-lot production of various items. It addresses companies at the stage of "costs being calculated roughly" and those lacking confidence in inventory valuation methods, as well as companies that want to improve accuracy. It covers themes directly related to management decisions, such as the allocation of manufacturing overhead and how to create an operational budget. Specifically, it includes the following eight themes: - How to balance "preliminary values" and "final values" in individual cost accounting - Cost variance allocation and how to choose from the five types of manufacturing overhead allocation criteria - A realistic operational flow for creating an operational budget with a 15% discount on order amounts - Calculation methods for three types of planned wage rates (individual, job-specific, and overall average) and machine rates for parts processing industries - Management points for materials, common parts, and semi-finished products - The effects of transferring from common parts inventory to semi-finished products and systematization - The advantages of operating with internal production numbers and often overlooked disadvantages - How to choose inventory valuation methods (moving average method, overall average method, last purchase method) This is a document that those who want to check the current state of their company's cost and inventory management should read first.
Price range
Delivery Time
Applications/Examples of results
There is a track record of supporting the introduction of 480 companies over 20 years for made-to-order production factories.
catalog（1）
Download All Catalogs![[Technical Document] Cost Management and Inventory Management One-Point Advice - Total of 10 Pages](https://image.mono.ipros.com/public/catalog/image/01/02e/386038/IPROS56166395353064752862.jpeg?w=120&h=170)
Company information
■Consulting services related to computer usage ■Sales and maintenance management of computer software ■Gifu Headquarters 〒500-8178 2nd Floor, Ishigure Building, 3-2 Kiyozumicho, Gifu City TEL: 058-263-5732 ■Tokyo Sales Office 〒142-0053 2nd Floor, Makita Building, 5-4-13 Nakanobu, Shinagawa-ku, Tokyo TEL: 03-6873-7235 ■Business Hours 9:00 AM - 6:00 PM (Closed on Saturdays, Sundays, holidays, and company-designated holidays)
