Customer Use Case – Cost Allocation

Customer Use Case

Using CRIBWISE Cost Allocation features to track cost per project/unit

Customer Profile

Company: Generic Machining Solutions – CNC machine shop with multiple machines and tooling stations

Background

Generic Machining Solutions is a custom project manufacturer specializing in CNC machining. Their shop floor is equipped with a range of CNC machines and tooling stations where they produce custom cutting tools for various industries. As their business has grown, they have faced challenges in tracking and managing their inventory effectively, especially when it comes to allocating costs to specific projects or jobs. They are now seeking an inventory management software solution that can help them streamline their cost allocation processes and improve overall efficiency.

Use Case Scenario

Generic Machining Solutions has recently implemented the CRIBWISE software system with cost-allocation features to enhance its operations. Here\’s how they leverage the software to streamline their cost allocation process:

1. Cost Allocation: The CRIBWISE Cost Allocation feature enables Generic Machining Solutions to assign costs to individual projects/jobs accurately. They can allocate the expenses related to materials and tooling, ensuring accurate tracking of spending for cost analysis and profitability assessment.
2. Automated Purchase Orders: When the inventory reaches the minimum threshold for a specific cutting tool or material, CRIBWISE can automatically generate purchase orders or restock reports. This feature ensures that the shop floor team never runs out of critical supplies and avoids delays in project timelines.
3. Inventory Optimization: The Stock Optimizer feature of the CRIBWISE software allows Generic Machining Solutions to identify slow-moving or obsolete inventory items. By analyzing usage patterns, they can make informed decisions about inventory optimization, reducing costs associated with excess stock and minimizing wastage.
4. Reporting and Analysis: CRIBWISE can generate comprehensive and customizable reports on project-based costs, including spending on materials, tooling, and other resources. These reports help Generic Machining Solutions analyze project profitability, identify areas for cost reduction, and make data-driven decisions to improve overall efficiency.

Benefits and Outcomes

By CRIBWISE with Cost Allocation features, Generic Machining Solutions achieves the following benefits:

a) Improved Cost Tracking: CRIBWISE enables precise cost allocation to individual projects, ensuring accurate tracking of expenses and enhancing project profitability analysis.

b) Enhanced Inventory Visibility: Real-time updates and centralized inventory tracking enable better visibility into stock levels, minimizing the risk of stockouts and optimizing material planning.

c) Streamlined Purchasing Process: Automated purchase order generation ensures timely procurement of critical supplies, reducing delays and improving overall production efficiency.

d) Data-driven Decision Making: Comprehensive reports and analysis empower Generic Machining Solutions to make informed decisions regarding inventory optimization, cost reduction, and resource allocation.

e) Increased Customer Satisfaction: Efficient cost allocation and streamlined inventory management translate into smoother project execution, shorter lead times, and improved customer satisfaction.

By leveraging the Cost Allocation features of CRIBWISE, Generic Machining Solutions can efficiently track project-related expenses, optimize inventory levels, and make data-driven decisions to enhance its competitiveness in the cutting tool industry.