macs Product Costing

_{Manufacturing Cost Target/Actual Comparison – Profitability at a Glance}

Accurate calculation of manufacturing costs is crucial for a company's profitability. The target/actual comparison provides a transparent comparison of planned manufacturing costs (target) and actual production costs (actual). With preliminary costing (target values), you plan the intended costs, time expenditure, and material requirements for production. Post-calculation (actual values) enables precise determination of profitability not only at the item level but for each individual order. This visibility highlights processes and clusters, revealing optimization potentials. Transparency uncovers deviations—such as rising raw material prices, extended machine runtimes, or unexpected scrap rates in production.

Your Benefits
✔ Early identification of cost overruns
✔ Detection of deviations in lot size, scrap, price, process, etc.
✔ Foundation for realistic cost and budget control
✔ Informed decisions regarding order profitability
✔ Avoidance of unforeseen additional costs
✔ Continuous improvement of production processes

_{Planned Prices Instead of Averages – Up-to-Date Precision Costing}

ERP systems typically rely on historical data, such as rolling averages of past material prices, for their cost calculations. These values often lag behind current market conditions, leading to discrepancies. In contrast, our preliminary costing is based on up-to-date, contractually fixed planned prices from existing supplier agreements. This ensures that the data used accurately reflects the planning period, providing significantly greater precision in cost forecasting. This reliable data foundation enhances not only costing accuracy but also enables well-informed decisions in budgeting and production planning.

_{Bills of Materials & Routing Plans – Structured Manufacturing Processes}

Well-structured bills of materials (BOMs) and detailed routing plansare critical for efficient manufacturing. macs Product Costing supports the creation of multi-level BOMs, which are directly linked to comprehensive routing instructions. This serves as the backbone for the Material Requirements Planning (MRP) process, allowing you to precisely control material needs.

The module factors in not just primary components, but also semi-finished goods, purchased parts, and their associated efficiency metrics—such as scrap rates and yield percentages—offering a level of accuracy that delivers a distinct competitive edge. You can also utilize maximum BOMs to efficiently plan for all manufacturing variants of your products. This ensures full visibility over material requirements and allows for streamlined production control.

Your Benefits
✔ Automated material and production planning via MRP
✔ Accurate tracking of semi-finished goods, raw materials, and outsourced services
✔ Higher planning accuracy compared to conventional systems
✔ Detailed material planning for products with multiple configurations

_{Intercompany BOMs}

For businesses operating across multiple production sites, macs Product Costing enables the creation of Intercompany BOMs. Unlike traditional ERP systems that use site-specific BOMs, this functionality provides a consolidated view across the entire corporate group. It enables inter-site relationships, so you can easily determine whether materials are sourced from internal or external facilities. During the planning process, the BOM displays material and capacity requirements at other locations when sourcing semi-finished products. With the group-level BOM approach, there's no need to separately plan for each additional site, ensuring that your entire intercompany structure remains transparent and aligned.

Your Benefits
✔ Eliminate the need for complex planning versions for multi-site production
✔ Transparent overview of material and capacity needs across all sites
✔ Simplified demand and capacity planning

_{Material & Capacity Planning – Avoiding Bottlenecks}

A smooth production process hinges on accurate planning of material availability, workforce needs, and machine capacity. macs Product Costing automatically calculates resource utilization based on forecasted production volumes or sales data. This includes both short-term operational planning and long-term strategic forecasting—giving you total control even when deviations occur.

In sales forecasting, backward scheduling enhances precision in demand planning. This helps prevent bottlenecks, overproduction, and costly last-minute procurement. The system covers everything from raw materials to machine occupancy, personnel requirements, and outsourced capacities.

Your Benefits
✔ Minimize delays caused by material shortages
✔ Optimize machine utilization without overloads
✔ Efficient planning of both human and material resources
✔ Avoid stockouts and excessive inventory

_{Shopfloor Reporting – Automated Metrics for Daily Meetings}

Effective manufacturing relies on fast, transparent communication. macs Product Costing automatically captures all relevant production data and generates up-to-date reports overnight for your daily shopfloor meetings.

Issues such as machine breakdowns, quality deviations, or delivery delays are systematically recorded so teams and managers can take immediate action.

Your Benefits
✔ Automated generation of key production metrics
✔ Better decision-making for upcoming production days
✔ Increased transparency and faster issue resolution

_{Make-or-Buy Decision – Informed Procurement Strategies}

Should a component be manufactured in-house or purchased externally? This decision significantly impacts cost structures, operational flexibility, and delivery times. macs Product Costing supports this with a thorough make-or-buy analysis based on cost, capacity, and strategic business goals.

The system compares internal production costs, machine usage, supplier pricing, and associated risks to help you determine the most economically viable option.

Your Benefits
✔ Reduce production costs through optimized sourcing
✔ Increase supply chain flexibility and reduce vendor dependence
✔ Solid foundation for strategic investment decisions

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