If you have to start from the beginning and calculate a price, many companies follow the general process of:
- Listing the materials required
- Calculating how much of each material is required
- Adding a profit margin to the cost of these materials
- List the labour operations required
- Calculate how much time is required for each operation
- Charge out that time at an appropriate factory rate that covers overheads
- Add in some standard costs to cover incidentals
- Add the total cost of materials & time cost and add a further profit margin
The m-power quoting system follows the same principles as above however the process is automated by calculations that are assigned to each material and operation. We start with a template which contains three key elements
Layout is where common information is entered which may apply to all operations and materials in the quote - for instance the product dimensions, number of colours, the number of overs required. The layout section does not contain costings.
Each material is added to the quote list and inherits both the calculation method defined in the material profile, and the basic details inherited from the Layout screen.
We list each operation that is required to manufacture the product. For each operation the system inherits the calculation method defined in the operation along with the details from the layout section.
The system adds up the total cost of the materials and operations and a further margin can be added. When the total cost is copied to the grid, the system calculates a unit cost by dividing the total cost by the quantity
This process is covered in greater depth in the introduction to wizards. To complete a wizard it is important that the items and operations have their calculations correctly assigned. This is covered in sections on Materials Calculations and Operations.
These are the building blocks to the templates that are used in M-Power