Master Data Controlling and Production Planning
Read the following interviews to complete the task for step 2 of the Production Process: Master Data Controlling and Production Process.
The head of the accounting department, Mr Sarzin talks to the trainee (in an internship program).
Mr. Sarzin: "The cost center have now been implemented. I suppose you have understand why these cost center are necessary. You should always be aware that calculation is in the main point in our thoughts. Of course, we have to know what the costs are of our products.
You have already learned that in order to measure our costs we have to measure times and sequences/operations. Please imagine that our computers are rather "stupid" and don't know automatically in which unit of measurement the sequences shall be gathered. There could be minutes, there could be hours, days or even kilotons or a number of goods. The unit of measurement is implemented in the SAP-system as so called activity types.
For the table, we are producing, we have two different activity types, as you already might have seen in/during the production:
We calculate with the wage hours of the human workforce and the machinery hours. In order to be able to calculate the different activity types separately, we measure them separately as well, even if they both are measured in hours and minutes.
Have a look at the activity types in your systems, please. I will try to make that clear by showing you an example of the activity type for the wage hours."
Trainee (in an internship program): "How can we calculate what the production of a table costs - except the costs for the materials?"
The machine we use for the production of the tables costs 156.000,00 EUR and we can use it for an average of 8 years. The machine "works" on 260 days a year. It produces 7,5 h daily. That means: one hour of machine work costs 10,00 EUR. (In ZAR 1.732000,00ZAR, the machine costs are at 110 ZAR an hour).
For an hour of labour we calculate 30,00 EUR. (In ZAR 330,00) So we have to inform the SAP-system how high the costs for the machine as well as the labour costs are. In the SAP-system we say: These prices have to be implemented in the system.
We have already implemented the activity types. That's why the system knows in which unit (of activities) it has to calculate. Now we will implement the parameters for an activity unit, here we have an hour."
Trainee (in an internship program): "You have explained which data I have to enter in "Controlling". I still have difficulties, to understand how all the single data are created."
Let's start with the calculation or cost accounting. Then you can see, that the unit price of the material is taken from the standing data. In the production order/the order of our output activity 80 tables are planned to be produced, so we have to multiply the amount of all components of the table by 80 and sum them up.
In "Controlling" we had fixed the kinds of activity types (hours and minutes) as well as the costs per hour for the workforce and the machinery. But you still have to inform the system how much time is calculated for each operation - of both manpower and machinery. That is not necessarily always an hour - 60 minutes. There is a Rooting for it. Have a look at the inscriptions on transparency "Number 1." You can see the exact duration of times for each operation - again of both man-power and machinery.
Furthermore there is another column we haven't talked about yet:
You have already been told that computers are entirely "stupid" and we have to provide them everything. So it must be described somewhere for how many hours work center is available. Otherwise it is extremely hard to calculate, how many tables can be produced in a day. Therefore you have to create the Work Center to fix the capacities - of course after you have installed the data for the "Controlling." Only then you have managed to gather all the necessary data for the Rooting and the cost accounting.