Study of shop controlled parameters identification and information systems for key costs, control methodology; Mico Ltd. Bangalore

Abstract

A study of controllable costs revealed four key costs for control. and systems are required for study of the same. The system for one of the controllable costs. overtime is proposed to be maintained fortnightly and if possible weekly; the system envisages maintaining both cost and hourly data for each employee shop wise. The format for indirect hours is made monthly shop wise and employee numbers for each detail is maintained. The format for consumab1es and tools segregates 55110 items from the other types of items and maintains data for it separately. The same format is created for weekly requirements for both qty and values with monthly summary. A new method of efficiency variance is introduced instead of Rs/PSH factor to maintain shop and range efficiency. For scraps, a weekly maintenance of data with a monthly summary is introduced for each part no. in a shop. Both qty and values are maintained. For controlling repair costs, the format is proposed charged workshop wise. a column for operation DO. is introduced and monthly data for both no. of hours and value is maintained for the executing workshop.