Análisis de Costos
Universidad Cuauhtémoc
Campus Aguascalientes
Source Cost Methodology
Maestría en Administración
Contents
ACCOUNTING STRUCTURE1
SOURCE COST2
FORECAST REVIEW3
COST CURVE4
Source Cost Methodology2
Profit & Cost Centers Structure
Source Cost Methodology
A well defined Accounting
Structure is key to manage the
transacti...
Account Groups
Source Cost Methodology
By categorizing the accounts in
a Source Cost structure, we can
assign ownership an...
Source Cost Ownership
Source Cost Methodology
Cost Category Owner
Direct Material Hugo
Pay & Benefits Moni
Depreciation Pe...
Cost Pareto
Circuits
20%
Metals
17%
Plastics
10%
Glue
8%
Packing
5%
Pay & Benefits
15%
Depreciation
7%
Spares
6%
Supplies
...
Source Cost Reporting
Source Cost Methodology
Actual results can be reviewed periodically
and compared against another per...
QUANTITY (KU)
Volume TREND
Volume is forecasted based on:
• Beginning Inventory
• Firm Demand
• Estimated Demand
• Ending ...
Direct Materials
UNIDADES 291,080 510,114 749,285 764,503 738,500 26,003 758,687 759,330 767,052 770,019
Act Act Act Act E...
Direct Materials
Cost Reduction Programs
• Price Negotiations
• Yield & Usage Improvement
• Process Improvement
• Develop ...
Labor & Overhead
Source Cost Methodology
UNIDADES 291,080 510,114 749,285 764,503 738,500 26,003 758,687 759,330 767,052 7...
Labor & Overhead
Cost Reduction Programs
• Productivity Improvement
• People fficiency
• Equipment efficiency
• Overtime C...
Act Act Act Act EST AP AP AP AP
1Q10 2Q10 3Q10 4Q10 4Q10 DELTA 1Q11 2Q11 3Q11 4Q11
Loadings:
UNITS 291,080 510,114 749,285...
14
1.400
1.170
0.922
0.868
0.893
0.871
0.911
0.994
0.951
0.988 0.976
0.60
0.70
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
0
5...
Variable Portion: 52%
Cost Curve View
Theorethical BEST - MODEL
Source Cost Methodology15
EXCEL SPREADSHEET
Source Cost Methodology
Finance Template
16
Análisis de Costos
Maestría en Administración
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9. Source Cost Methodology

  1. 1. Análisis de Costos Universidad Cuauhtémoc Campus Aguascalientes Source Cost Methodology Maestría en Administración
  2. 2. Contents ACCOUNTING STRUCTURE1 SOURCE COST2 FORECAST REVIEW3 COST CURVE4 Source Cost Methodology2
  3. 3. Profit & Cost Centers Structure Source Cost Methodology A well defined Accounting Structure is key to manage the transactions and monitor expenditures efficiently !! 3
  4. 4. Account Groups Source Cost Methodology By categorizing the accounts in a Source Cost structure, we can assign ownership and delegate responsibility for each category. This is very useful when reviewing actuals and defining forecast plans. 4
  5. 5. Source Cost Ownership Source Cost Methodology Cost Category Owner Direct Material Hugo Pay & Benefits Moni Depreciation Pepe Spares Ivonne Supplies Lety Utilities Armando Freight Abraham Others Rocio Owners are responsible for actuals and forecast figures 5
  6. 6. Cost Pareto Circuits 20% Metals 17% Plastics 10% Glue 8% Packing 5% Pay & Benefits 15% Depreciation 7% Spares 6% Supplies 5% Utilities 4% Freight 2% Others 1% Direct Material 60% Labor & Overhead 40% Source Cost Methodology6
  7. 7. Source Cost Reporting Source Cost Methodology Actual results can be reviewed periodically and compared against another period of time. The monitoring of expenditures is necessary to aim a proactive decision making. 7
  8. 8. QUANTITY (KU) Volume TREND Volume is forecasted based on: • Beginning Inventory • Firm Demand • Estimated Demand • Ending Inventory Source Cost Methodology8
  9. 9. Direct Materials UNIDADES 291,080 510,114 749,285 764,503 738,500 26,003 758,687 759,330 767,052 770,019 Act Act Act Act EST AP AP AP AP $ 1Q10 2Q10 3Q10 4Q10 4Q10 DELTA 1Q11 2Q11 3Q11 4Q11 DIRECT MATERIAL COST CIRCUITS 1,680,796 2,532,507 3,705,718 4,268,617 4,120,000 -148,617 4,351,490 4,360,070 4,408,690 4,425,850 METALS 65,583 104,566 146,363 150,141 144,000 -6,141 167,310 167,310 168,740 170,170 PLASTICS 1,747,992 3,341,389 4,688,711 5,115,630 5,120,000 4,370 5,263,198 4,856,740 4,912,406 4,933,796 GLUE 419,226 706,873 1,064,684 1,071,945 1,025,000 -46,945 1,106,820 1,108,250 1,121,120 1,125,410 PACKING 321,870 566,187 811,232 822,087 790,000 -32,087 913,770 915,200 925,210 928,070 GAP TO GOAL 0 0 0 0 0 0 -19,865 -39,730 -59,595 -79,459 TOTAL 4,235,466 7,251,523 10,416,707 11,428,419 11,199,000 -229,419 11,782,723 11,367,841 11,476,571 11,503,836 $/UNIT CIRCUITS 5.77 4.96 4.95 5.58 5.58 -0.1% 5.74 5.74 5.75 5.75 METALS 0.23 0.20 0.20 0.20 0.19 -0.7% 0.22 0.22 0.22 0.22 PLASTICS 6.01 6.55 6.26 6.69 6.93 3.5% 6.94 6.40 6.40 6.41 GLUE 1.44 1.39 1.42 1.40 1.39 -1.0% 1.46 1.46 1.46 1.46 PACKING 1.11 1.11 1.08 1.08 1.07 -0.5% 1.20 1.21 1.21 1.21 GAP TO GOAL 0.00 0.00 0.00 0.00 0.00 -0.03 -0.05 -0.08 -0.10 TOTAL 14.55 14.22 13.90 14.95 15.16 1.4% 15.53 14.97 14.96 14.94 Source Cost Methodology9
  10. 10. Direct Materials Cost Reduction Programs • Price Negotiations • Yield & Usage Improvement • Process Improvement • Develop low cost supplier sources • “Think of out of the box to find cost opportunities” Source Cost Methodology10
  11. 11. Labor & Overhead Source Cost Methodology UNIDADES 291,080 510,114 749,285 764,503 738,500 26,003 758,687 759,330 767,052 770,019 Act Act Act Act EST AP AP AP AP $ 1Q10 2Q10 3Q10 4Q10 4Q10 DELTA 1Q11 2Q11 3Q11 4Q11 CLAM Cost PAY & BENEFITS 3,066,158 3,934,955 4,756,552 4,793,837 4,790,000 -3,837 4,946,034 5,084,395 4,828,810 4,955,321 DEPRECIATION 1,611,994 1,501,790 1,200,887 932,842 932,800 -42 973,115 982,410 994,565 1,009,580 SPARES 530,614 489,226 1,076,126 839,287 750,000 -89,287 1,038,752 1,033,275 946,088 921,349 SUPPLIES 223,570 665,316 899,360 1,248,005 1,205,000 -43,005 752,426 641,463 646,513 648,921 FREIGHT 6,165 6,288 8,373 11,457 12,000 543 8,580 8,580 8,580 8,580 UTILITIES 443,393 599,210 763,912 819,898 790,000 -29,898 802,326 751,515 796,113 808,473 OUTSIDE SERVICES 450,533 457,503 486,857 483,142 450,000 -33,142 478,270 478,270 478,270 478,270 OTHERS 269,328 437,725 491,444 703,986 710,000 6,014 605,968 605,968 605,968 605,968 GAP TO GOAL 0 0 0 0 0 0 -55,000 -75,000 -100,000 -200,000 Total CLAM: 6,601,755 8,092,014 9,683,511 9,832,454 9,639,800 -192,654 9,550,471 9,510,876 9,204,906 9,236,462 $/UNIT PAY & BENEFITS 10.53 7.71 6.35 6.27 6.49 3.3% 6.52 6.70 6.30 6.44 DEPRECIATION 5.54 2.94 1.60 1.22 1.26 3.4% 1.28 1.29 1.30 1.31 SPARES 1.82 0.96 1.44 1.10 1.02 -8.1% 1.37 1.36 1.23 1.20 SUPPLIES 0.77 1.30 1.20 1.63 1.63 0.0% 0.99 0.84 0.84 0.84 FREIGHT 0.02 0.01 0.01 0.01 0.02 7.8% 0.01 0.01 0.01 0.01 UTILITIES 1.52 1.17 1.02 1.07 1.07 -0.3% 1.06 0.99 1.04 1.05 OUTSIDE SERVICES 1.55 0.90 0.65 0.63 0.61 -3.7% 0.63 0.63 0.62 0.62 OTHERS 0.93 0.86 0.66 0.92 0.96 4.2% 0.80 0.80 0.79 0.79 GAP TO GOAL 0.00 0.00 0.00 0.00 0.00 -0.07 -0.10 -0.13 -0.26 Total CLAM: 22.68 15.86 12.92 12.86 13.05 1.5% 12.59 12.53 12.00 12.00 11
  12. 12. Labor & Overhead Cost Reduction Programs • Productivity Improvement • People fficiency • Equipment efficiency • Overtime Control • Tight control on Discretionary Expendings • Be flexible. Adjust resources to demand levels • “Think of out of the box to find cost opportunities” Source Cost Methodology12
  13. 13. Act Act Act Act EST AP AP AP AP 1Q10 2Q10 3Q10 4Q10 4Q10 DELTA 1Q11 2Q11 3Q11 4Q11 Loadings: UNITS 291,080 510,114 749,285 764,503 738,500 26,003 758,687 759,330 767,052 770,019 P&L - Internal REVENUE 11,098,700 18,872,550 25,125,271 26,788,700 26,500,000 288,700 27,733,152 27,977,480 27,919,995 29,036,418 DIRECT MATERIAL 4,235,466 7,251,523 10,416,707 11,428,419 11,199,000 -229,419 11,782,723 11,367,841 11,476,571 11,503,836 LABOR & OVERHEAD 6,601,755 8,092,014 9,683,511 9,832,454 9,639,800 -192,654 9,550,471 9,510,876 9,204,906 9,236,462 TOTAL COST 10,837,221 15,343,537 20,100,217 21,260,873 20,838,800 -422,073 21,333,194 20,878,716 20,681,477 20,740,299 Internal PFO 261,479 3,529,013 5,025,054 5,527,827 5,661,200 -133,373 6,399,958 7,098,764 7,238,517 8,296,119 REVENUE / UNIT 38.13 37.00 33.53 35.04 35.88 -2.3% 36.55 36.84 36.40 37.71 DIRECT MTL / UNIT 14.55 14.22 13.90 14.95 15.16 1.4% 15.53 14.97 14.96 14.94 L&O / UNIT 22.68 15.86 12.92 12.86 13.05 1.5% 12.59 12.53 12.00 12.00 TOTAL COST / UNIT 37.23 30.08 26.83 27.81 28.22 1.4% 28.12 27.50 26.96 26.93 HEADCOUNT 2,850 3,160 3,220 3,218 3,220 2 3,225 3,225 3,225 3,225 13 Source Cost Methodology Financial Summary
  14. 14. 14 1.400 1.170 0.922 0.868 0.893 0.871 0.911 0.994 0.951 0.988 0.976 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 0 500 1,000 1,500 2,000 2,500 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EST 2011 AP PROD A PROD B UNIT COST Cost TREND QUANTITY (KU) COST ($/UNIT) Source Cost Methodology
  15. 15. Variable Portion: 52% Cost Curve View Theorethical BEST - MODEL Source Cost Methodology15
  16. 16. EXCEL SPREADSHEET Source Cost Methodology Finance Template 16
  17. 17. Análisis de Costos Maestría en Administración

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