Specific to your business
Cost estimating products that are produced using a different print application are diversified, therefore different cost estimating processes need to take place. The different processes are logged by the user on the same Cost Estimation tool, according to the selection of the product type by the user. This provides the advantage that the user can utilize the same environment on all print applications, while at the same time each cost estimation works specifically for the business.
Core of the MIS system
Cost Estimation is the core of the MIS system, which gathers information from multiple sources within the system, namely Master Data, Job Specs, the Warehouse module, and Equipment. Through this, a detailed job analysis document is assembled combining multiple parameters and cost centers such as materials, imposition, production, manual labor processes, customer-specific price lists, etc.
Costing can be set up in different ways, either to facilitate time-based industrial cost estimation or activity-based cost estimation. Multiple price lists are possible on each occasion, in which every piece of equipment may hold a different cost price per hour, each product may hold a different price per ordered quantity or supplier, etc.
How detailed cost analysis works
The system will estimate the cost of materials and services as well as the set-up /production times needed to produce every product that needs to be quoted as per the customer’s request. All standard and variable costs are considered and calculated based on the job criteria. In addition, further information will be calculated such as the estimated waste material, the availability of resources in equipment and operators.
The Detailed Cost Analysis is by default made in different multitudes of quantities, since specifically a label product may be quoted differently when quantities vary i.e. for 100.000, 500.000, or 2.000.000 pieces. The Cost Estimation provides a comparison table for each Product, depicting the Detailed Cost Analysis in different quantities, and what’s more, it also provides a Production Proposal that will provide the calculation of the optimum and cost-effective production method. This feature is highly appreciated when both conventional and digital printing can be used to produce a label.
Reviewing your Actual Production Costs
Having estimated, quoted, and produced a job order, it remains to confirm the estimated costs by calculating the actual costs incurred. This is easily made possible through different channels within Overprint MIS. Actual production costs can be reviewed separately per job ticket or in an overall production report under the Business Intelligence & Reporting module.
On each job ticket, after the end of production, the users can access the Production Cost Analysis report. This provides a detailed cost analysis of estimated and actual production costs, allowing the comparison in a table view or bar charts. This view provides separately the services costs, material costs, labor, outsourcing, and equipment costs each one in detail for each task it includes. In addition, the user can review the quantities used at the consumption of materials and the duration of each task.
Machine Learning in Cost Estimation
When a Job Order is created, the Job Ticket containing all the specifications for producing a Product is feeding the Machine Learning engine. The ML engine is in turn calculating all the historical data for each specification, material, and equipment used, and provides a forecast for the set-up and production times, the amount of waste material, etc. This is feeding the Cost Estimation engine making the cost estimation process much more accurate than what it would have been calculated by just theoretical forecasting. The most complex theoretical forecasting will never be as accurate as the forecasting based on historical data.