Difference between order result and business result, how to prevent it?

Difference between order result and business result, how to prevent it?

The premise for this webinar: all costs are covered by direct hours. Insight into the hours and costs is therefore essential. You do this by first budgeting all man-hours per machine and all indirect hours, then distributing all (wage) costs, and finally determining the cost price based on the budgeted hours and (wage) costs. Periodically monitoring these budgets is no less important afterward, so you can intervene in case of significant deviations.

Who is this webinar for?

Determining the cost price and monitoring the budgets is done in MKG with the help of BBO: budgeting, monitoring, optimizing. The BBO modules are only found in MKG5 and are mainly intended for companies with multiple production employees and machines. If you are not yet working with BBO, this webinar might be interesting for you.

Setting up BBO

BBO helps you to increase your insight into your company's financial situation and enables you to better determine your cost price. Do you have knowledge of cost prices and are familiar with the BBO modules? In the Knowledge Center of Mijn MKG, you will find an article with a step-by-step plan to easily set up BBO. From this article, you are one click away from the following topics:

• Administrative settings for BBO
• How do you set up working days and hours?
• How do you distribute your budgets over the cost accounts?
• How do you determine the costs of the employees?
• How do you budget your operations?
• How do you use the BBO occupancy and coverage plan?

Monitoring budgets

Once BBO is set up, you can start monitoring the budgets. For this purpose, the various BBO dashboards are used:

• BBO coverage and occupancy monitoring (8000)
• BBO operational plan (8001)
• BBO employee plan (8002)
• BBO man-hours monitoring (8003)

Budget monitoring using these dashboards is central to this article. Additionally, some scenarios resulting from the BBO setup are discussed.

Questions asked during the webinar

How do you monitor the costs, is there an overview for that?

Costs can be well budgeted per general ledger account. The module My company contains the standard dashboard Result comparison general ledger account (8011). Here you see what is budgeted, what is realized, and what was realized last year.

Do you need an extensive financial setup for BBO?

BBO can be used perfectly in a Basic setup, where revenue and costs are booked directly. In an extensive setup, however, the order result and coverage result are also directly visible in the profit and loss account.

Can the man-machine ratio be changed?

The man-machine ratio is estimated when budgeting. You do this in the table Operations. This ratio is always adjustable within a calculation and at the order level.

How do you handle BBO if you only use one resource to book the hours?

To gain insight and be able to adjust if something goes wrong somewhere, it is more convenient in the context of BBO to differentiate and use multiple resources/operations.

How can you include machine setup hours in the required man-hours?

Setup hours are included in the man-hours. If you have a lot of setup hours, the average man-machine ratio will increase.

Is BBO also available for MKG3?

No. BBO is only available in MKG5.