Copper Wire Industry – How to implement

sonvdb

Hi all, please help... ](*,)

The company has two Casting machines named Cast1, Cast2 and one machine named BreakDown machine which break/pull wire into smaller form.

The Cast1 machine can produce let say two products named Wire11 and Wire12 at the same time. Example by month end we have 500 kg Wire11 and 1000 kg Wire12

Given 1 kg copper (cost about 2000) go through Cast1 machine will produce 1 kg Wire11. 1 kg copper go through Cast1 machine will produce 1 kg Wire12. The qty per is 1

Electricity is considered as cost of Wire11 and Wire12 that can allocate to Wire11, Wire12 by first determine the electricity consumed by machine Cast1 (attached galvanometer) example the galvanometer show 1500kw, and 1kw cost about 1000

Then 1 kg of output (Wire11&Wire12) consume about: 1500 / (500 Wire11 + 1000 Wire12) = 1kw

The cost of 1kg Wire11 = Cost of 1kg copper + Cost of electricity go into 1kg
= 2000 + 1000 = 3000

The cost of 500 kg Wire11 = 500 * 3000 = 150000

The Wire11, Wire12 then go through BreakDown machine…

The problem is that the electricity cost only knows at the month end.

Question:
1, Do you think which costing method is suitable?

2, How do we allocate electricity if 500 kg Wire11 come from more than one Prod. Order?

3, The Casting machines run 24h/day, 365day/year, how do we do planning and control daily operation?

4, Do you think Navision (SP2) is suitable for this industry?

Any advice/comments will be a big help.

darshanm

Question:
1, Do you think which costing method is suitable?
=> You can use the costing related fields on individual Machine Card.
on Posting tab

2, How do we allocate electricity if 500 kg Wire11 come from more than one Prod. Order?
=> You have to customise the Output Journal, so that while
posting the output against Prod Order, user can enter
the meter reading against every machine.

When Output is posted, meter reading will posted in capacity ledger
entry table. These entries you can user for Reporting purpose.

3, The Casting machines run 24h/day, 365day/year, how do we do planning and control daily operation?

4, Do you think Navision (SP2) is suitable for this industry?
=> it is suitable for every industry if you implement it with proper
way and customisation.

Denis_Petrov

4. I would use Global Dimensions for this purpose - works fine if you have 2 or 200 machines, houses or cities.

sonvdb

Thanks darshanm and Denis Petrov very much! I am checking your comments!