Determine Your Cost Price Using BBO

New in MKG5 is BBO. Fully named: Budgeting, Monitoring, Optimizing. BBO helps you increase your insight into your company's financial situation and better enables you to determine your cost price. By budgeting your hours and costs now, your business expenses for the coming year are fully covered by the direct and indirect hours, maintaining the connection between the order result and the company result.




Tables and modules

In the 'BBO administration' table, you fill in the workable days and hours: the total number of hours an employee could work in a whole year. Does the employee's hourly rate still correspond to their job group? This becomes clear in the 'BBO employee labor costs' table once the labor costs per employee are entered. By also budgeting all your direct and indirect operations in the 'BBO operation budget' table, it becomes clear how many hours the machines run and how many man-hours are required.

The 'BBO occupancy and coverage plan' module contains two matrices. First, in the occupancy plan, you link your employees' hours to all operations. This generates the labor costs. In the coverage plan, you then distribute the remaining business costs over the operations. This results in the operation rates. In this way, all your indirect hours are covered by your direct operations.


Budget monitoring via dashboards

The 'BBO dashboard' module contains several standard dashboards that enable you to monitor your budgets. Currently, the dashboards 'BBO coverage and occupancy monitoring', 'BBO exploitation plan', and 'BBO employee plan' are available. Other dashboards are currently under development.


Curious about BBO?

Click the link below and watch our film about determining the cost price. You can also read several articles about how BBO works in Mijn MKG. Because BBO contains sensitive company information, the modules in MKG are protected and not readily accessible. If you want to start working with BBO, please contact your MKG consultant.

Watch our film