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Manufacturing

The real cost of every product… from your own books

Production orders with grades and by-products, process costing for brick and garment plants, a daily production report by mixes for blocks and feed, made-to-measure orders for doors and aluminium with deposits and staged deliveries, subcontracting and toll manufacturing, and factory overhead absorbed from the accounts at month end at normal capacity.

Real screens from the system

Monthly cost absorption from the accounts

How it helps

Cost from your books

Payroll, electricity and depreciation are recorded where they belong with the factory cost center; absorption reads them and spreads them by machine hours or units.

Idle capacity in plain sight

Fixed costs are absorbed only in proportion of actual work; the rest is a separate expense in the income statement.

Excess waste has a price

Normal waste is borne by the product; the excess is a separate loss at its value.

How Manufacturing works, part by part

Production methods

  1. Orders by recipe

    Recipe materials are reserved then issued with their entry, and the order closes with good and scrap quantities, grades and by-product — showing the real unit cost.

  2. Production by stages and grades

    For brick and garment factories: every stage with its output and cost, and the cost of each grade per thousand or per piece.

  3. Daily production report

    Mixes and piece-rate output for blocks and feed, and each worker’s count flows into payroll as piece-rate pay.

  4. Made-to-measure orders

    Doors, aluminium and kitchens: measurements and deposit, the workshop sheet, and delivery and installation in stages.

  5. Subcontracted production

    Materials go out to an outside workshop and come back as products with the processing cost, with the balance held at the workshop always visible.

  6. Toll manufacturing for others

    A customer’s materials held in trust and processed for a fee, never entering your stock.

Costing

  1. Monthly overhead absorption

    Salaries, electricity and depreciation from the accounts under the factory cost centre are absorbed into production by machine hours or units.

  2. Idle capacity and scrap

    Fixed costs are absorbed only at actual activity and the rest is a separate expense; scrap above normal is a separate loss at its value.

  3. Manufacturing reports

    Cost per order, grade and stage, daily output, worker performance — 14 manufacturing reports.

See Asab Al-Nizam on your business

Request a demo and we will walk you through the whole system the way your company works.