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Cost Savings There are several ways in which CostCalc 4.4, as a costing system, generates savings - in preparing quotations, procurement, manufacturing and production control: 1. By automatic feedback of manufacturing yield data to the Bill of Materials order quantity information, inventory can be minimised and production delays arising due to the need to re-order are dramatically reduced. 2. The PYF (Progressive Yield Facility) generates the true yielded cost and quantity of materials in the BoM and thus highlights key target areas for cost saving. 3. The 'Top Three' table in the Sub-assembly Results sheet shows successively the three processes that are losing the most money through yield loss, those costing the most money and those having the greatest manufacturing capacity bottleneck potential - essential management data. 4. Using a controlled system for recording changes to materials, labour / machine costs or process yields, CostCalc 4.4 can monitor the cost effects of each change made and also records the cumulative effect of all changes. This does not affect the normal Change Note system, but the CostCalc 4.4 unified method of recording modifications to all spreadsheets on a single table can provide key data on the progress of cost-reduction programmes and also gives 'What if' cost data for use in Change Notes. These data can be used to justify or reject proposed changes. 5. Using the System Override facility, rapid cost estimating can save time and cost in preparing quotations. |
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