Activity based should costing of in-plant activities

As a natural progression to our direct material cost related should costing solution, we also map our customer's in-house conversion activities happening at various plants and lines.
For this we map the flow of cost into -

Direct Material

Excel's flexibility can lead to inconsistent templates, hindering cost analysis and decision-making in should costing.

In House Parts

Excel's flexibility can lead to inconsistent templates, hindering cost analysis and decision-making in should costing.

All Assembly Processes

Excel's flexibility can lead to inconsistent templates, hindering cost analysis and decision-making in should costing.

Following schematic gives and idea of how  entire value add and its activity wise cost is mapped by Advanced Structures India using our xcPEP should costing platform.

In house conversion cost should costing

Cost driver mapping of assembly process

All input costs including machine, labour, power, space, interest etc are mapped by our team in your plant. This is then used to make a precise model of your manufacturing capability and a should cost of every conversion activity and corresponding cost drivers is mapped.

Machine Hour Rate

We map every machine's purchase, installation, maintenance, power, consumable, depreciation and space costs.

Labour Hour Rate

We map all types of man power and their corresponding costs for every process in your plant.

Inventory Carrying Cost

We also map amount of inventory, space required, cost of capital and other associated costs for every product line.

In House Part Should Costing

We perform a detailed should costing of all parts produced inside your own facility.

Feeder Lines

We map the activities on feeder lines providing inputs to the product assembly lines.

All Other Costs

All other overhead costs, power cost, solar cost etc are mapped.

And then we do a should costing of every manufacturing activity

xcPEP has both direct and indirect cost's should costing capabilities. Just like our BOM and part data mapping, we can also map immense amount of data from your plant in a relatively shorter period of time. This allows us to do a highly detailed should costing of every activity in your own plant.

Studies of such scale, detail and accuracy are not possible by your own team or your consultants due to the limit of data mapping and analysis in excel or access based software. xcPEP is designed from scratch for this scale.

activity based costing of manufacturing assembly processes in India

Assembly line activities

Since we have mapped LHR, MHR, Power, Consumable and all other parameters, our activity based should costing is highly automated.

Activities on all feeder lines

We also map all feeder lines and calculate their corresponding costs on product assembly lines.

Inventory Storage

We map all cost drivers related to your inventory handling, storage and carrying cost.

Overheads

We also calculate the impact of all your oveheads on these production lines.

How is this helpful?

Cost Reduction Potential

Since we can measure every cost, you can then find potential for cost reduction.

Crystal Clear Picture

You have a never before seen clear picture of cost inside your own plant.

Decision Making tool

With this data, you can make informed decisions, like whether to invest in this specific line for improved productivity.

Simulate & Optimize

Know your own costs as they differ between your own plants and with time.

Frequently Asked Questions

About our work in own plant conversion activity should costing activities of Advanced Structures India
We have many large factories. Can you map all of them?
Yes. Impact of xcPEP on such scale provides eye opening results, especially at scale.
Where should we start?
We typically start with one of your plants or one of your product lines as a first step.
What level of information do I need to provide ASI? What will ASI map by itself?
We will require access to your manufacturing plants for process mapping and financial data about machine cost, power cost etc. Data unavailable with you will be mapped by ASI in-situ.
We already have done such studies. How is yours different?
Scale and detail of such activities if done using legacy software or excel is limited and hence outputs are diluted and relatively unclear. xcPEP brings true digitalization to this part of your business.