Control Manufacturing Actual Cost
with mcframe ERP

Gain real cost visibility and manage profitability proactively with real time cost simulation for chemical manufacturing

 

 

Are these production and cost management challenges slowing down your chemical manufacturing operations?

  • Lack of visibility into actual manufacturing cost per product, making accurate business decisions difficult
  • No clear understanding of actual profit and loss by product, unclear profitability
  • Production progress cannot be tracked without manual follow up
  • Hard to simulate cost impact from fluctuating raw materials, fuel or exchange rates
  • No consolidated view of cost, sales, and profit across group companies
  • Cost management is limited due to dependency on current production and sales systems

 

Are these production and cost management challenges slowing down your chemical manufacturing operations?

  • Lack of visibility into actual manufacturing cost per product, making accurate business decisions difficult
  • No clear understanding of actual profit and loss by product, unclear profitability
  • Production progress cannot be tracked without manual follow up
  • Hard to simulate cost impact from fluctuating raw materials, fuel or exchange rates
  • No consolidated view of cost, sales, and profit across group companies
  • Cost management is limited due to dependency on current production and sales systems

How mcframe ERP Helps You Overcome These Challenges


Accurate actual cost calculation aligned with chemical production models

Actual cost calculation that aligns with the actual states of each product line / each department / each process

  1. Improves cost accuracy with accumulated manufacturing cost calculation from actual data.
  2. Enables accurate cost allocation that reflects actual business activities.
  3. Enables precise cost calculation for joint and by-product processes in chemical manufacturing.
  4. Enhances cost control through clear identification of cost drivers in operations.

Break down costs into fixed and variable costs using cost calculation by expense category

  1. Define cost categories and accumulate costs by category.
  2. Supports cost control with fixed and variable cost breakdown.
  3. Improves cost analysis with equipment depreciation recovery at the product level.
Multi-dimensional profit and loss analysis by product, customer, department, and marginal profit

Actual profit and loss analysis using actual cost calculation

  1. Improves cost transparency with actual cost and P/L calculation based on real operational data
  2. Enhances profitability analysis with P/L breakdown by product, customer, and department.
  3. Efficient management report creation with customizable aggregation conditions.

Marginal profit analysis for a comprehensive assessment of product profitability

  1. Supports profitability analysis with operating and marginal profit visibility
  2. Evaluates comprehensive product profitability to support strategic pricing and product portfolio planning.
Improves planning agility with short-cycle budget and cost simulation

Assess the impact of soaring raw material and Fuel prices and exchange rate fluctuations with cost simulations

  1. Simulates standard cost accumulation and full year budgeting based on sales forecasts.
  2. Supports profit simulation by product through sales forecast, Raw material price, exchange rate, and yield adjustments.
  3. Supports frequent multi scenario budget simulations to manage environmental changes.

Facilitate PDCA cycles for production improvement through cost variance analysis

  1. Performs cost variance analysis by comparing standard costs ( target costs) with actual costs.
  2. Supports detailed variance analysis including price, quantity, labor hours, machine time, and allocation rates.
  3. Evaluates KAIZEN improvement activities in procurement and production through variance analysis to drive cost reduction.
Centralized cost management across group companies to support global operations

Standardize and centralize group cost management for use in global operations

  1. Unifies cost calculation standards across group companies and centralizes cost management with mcframe ERP.
  2. Improves on-site operations while enabling group-wide cost information with consistent granularity.
  3. Promote global decision-making by visualizing cost and Profit &loss information from all locations.
  4. Replicates profitable strategies across sites and shares cost-reduction expertise group-wide.
A unique capability of the mcframe Cost Management module

Integrates with existing systems to enable advanced Cost calculation and improved cost management

  1. mcframe Cost Module can be implemented as an add-on.
  2. Cost calculation integrated with existing sales and production data.
  3. Enables advanced actual cost and profit & loss analysis as an add-on to an existing ERP system.

Trusted by Leading Chemical Manufacturers


mcframe ERP has been successfully implemented by a wide range of chemical manufacturing companies from large global brands to specialized producers helping them streamline operations, ensure compliance, and drive efficiency across the board.




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