Measuring Production Output and Efficiency Using Acumatica Manufacturing Suite
How does your business gauge production output efficiency? With Acumatica it’s easy to compare standard vs. actual production output by employee, supervisor, and work center. This makes it straightforward to identify areas that need attention.
The Bill of Material (BOM) defines the standard time for each operation, including both fixed and variable costs. In the example below for a laptop computer, the fixed setup time for the soldering operation is 30 minutes and the variable run time is 60 minutes to produce 20 units.
Capturing Actual Time
The BOM is then used to create a Production Order. Let’s enter a production order to build 100 laptops. The standard labor time is calculated based on the number of units being produced.
Labor transactions can be entered into Acumatica or scanned on the shop floor in real-time using the Manufacturing Data Collection module.
Comparing Standard vs Actual Time to Gauge Efficiency
As labor is recorded, the Totals tab of the Production Order tabulates the planned, actual and variance totals for a specific order.
Using the powerful reporting capabilities that are built into Acumatica, users can run an interactive report to slice and dice this information based on input parameters, for example to calculate an efficiency coefficient by employee, supervisor, or shift.
For more suggestions on how to monitor and improve production efficiency, check out more manufacturing blogs by Parallel Solutions. To discuss how we can help your organization, call 440-498-9920 or contact us.