Job Costing | August 2025 Masterclass
Masterclass
Job Costing | August 2025 Masterclass
Identity & metadata
Video title
Job Costing | August 2025 Masterclass
Date published
Set at publish
Duration
42:32
Video type
Webinar / Masterclass demo with Q&A
Audience
Operations leaders, production supervisors, estimators, and finance staff who reconcile labor, overhead, inventory, outsourced work,
and
margin views in Steelhead
and
margin views in Steelhead
Video summary
In one sentence
Drew D. on the Outcomes team walks through how Steelhead collects labor and station costs
with
timers, splits time across racks and parts, and ties those inputs to work-order and
sales-order margin
plus the Cost Labor and Operation insight report.
with
timers, splits time across racks and parts, and ties those inputs to work-order and
sales-order margin
plus the Cost Labor and Operation insight report.
What this video covers
Green play and red pause timers from the global control, clocking stations versus part accounts
and
racks, sales orders and maintenance, auto start and stop on work board moves, parts-per-rack
versus part-count
splits, and working versus staging nodes stopping timers when material leaves an operation.
It then opens
margin on completed work orders (revenue, part labor, station labor, station operation
overhead, inventory depletion to
batch, outsourcing through POs) and contrasts work-order margin with sales-order margin
when charges like expedites sit
on the PO but not on individual work orders. You
also see part-level margin history over
time, grouping by work order or station, the new
reporting insight Cost Labor and Operation for
facility rollups and rework filters, and extended Q&A
on station clock-in, idle timers, tank depletions, predictive
depletion, plating load splits, multi-station best practices,
credit notes, and labor rate precedence.
and
racks, sales orders and maintenance, auto start and stop on work board moves, parts-per-rack
versus part-count
splits, and working versus staging nodes stopping timers when material leaves an operation.
It then opens
margin on completed work orders (revenue, part labor, station labor, station operation
overhead, inventory depletion to
batch, outsourcing through POs) and contrasts work-order margin with sales-order margin
when charges like expedites sit
on the PO but not on individual work orders. You
also see part-level margin history over
time, grouping by work order or station, the new
reporting insight Cost Labor and Operation for
facility rollups and rework filters, and extended Q&A
on station clock-in, idle timers, tank depletions, predictive
depletion, plating load splits, multi-station best practices,
credit notes, and labor rate precedence.
Problem it solves
Teams need one coherent story from floor timers through burdened stations consumables outsourced steps and
invoiced
revenue so outliers like overnight timers or a single plating PO do not hide
inside facility
averages.
invoiced
revenue so outliers like overnight timers or a single plating PO do not hide
inside facility
averages.
Key capabilities shown
• Global timer affordance and contextual timer targets
• Work board moves that auto-start and auto-stop rack timers configured on stations
• Labor splitting rules using Parts Per Rack then quantity fallback
• Margin decomposition labels including station operation overhead and outsourced PO costs
• Part-margin-over-time pivot including station-grouped averages for repricing cues
• Cost Labor and Operation insight with customer PO and rework drill downs
• Work board moves that auto-start and auto-stop rack timers configured on stations
• Labor splitting rules using Parts Per Rack then quantity fallback
• Margin decomposition labels including station operation overhead and outsourced PO costs
• Part-margin-over-time pivot including station-grouped averages for repricing cues
• Cost Labor and Operation insight with customer PO and rework drill downs
How the demo flows
• Welcome, outcomes intro, mute and chat guidance for Zoom Q&A
• Timer placement across home work boards stations and maintenance
• Blast work board example with rack move into Blast Booth One and split math
• Completed-work-order margin explorer then sales-order expedite contrast
• Part margins link aggregates work orders stations and rework
• Reporting navigation to Cost Labor and Operation with filters
• Live FAQ on station-only clock-in idle time tank depletions prediction plating loads and credits
• Timer placement across home work boards stations and maintenance
• Blast work board example with rack move into Blast Booth One and split math
• Completed-work-order margin explorer then sales-order expedite contrast
• Part margins link aggregates work orders stations and rework
• Reporting navigation to Cost Labor and Operation with filters
• Live FAQ on station-only clock-in idle time tank depletions prediction plating loads and credits
Full transcript
Speaker
Drew D.,
Outcomes team,
Steelhead (primary);
Zoom host announcements at open and close
Transcript
[00:00] You're, if you're on and joining, we're gonna get started here. And, I'm Drew Davaa,
member of the outcomes team here at steelhead, and this webinar is gonna be on
job costing. So a little bit of what we're gonna cover today, we're gonna just
jump right into it. I'll give a demo. There will be a q and a
session at the end, so if you're on, please, stay on mute until the end,
and I'll be able to stay on
[00:23] and answer any questions and, and drop questions in the chat as you go, and
we'll remember to take a peek at those. All right, so jumping right into it,
steelhead has a, a relatively fresh update where what we want everybody to do with,
timers is we make this green big, play button available at various spots throughout the
platform here in the home screen. And if you're familiar with work boards,
[00:55] what the floor uses, it's, it's available there, it's available on stations, maintenance tasks, few
different areas. So jumping right into costing, one of the ways that we, we grab
cost is with labor or timers. And in the top right of any, screen that
you're in, in steelhead, there's a grid, big green play button. If you do not
have a timer running, if you do,
[01:20] it will be a red pause icon. So a few different things that we can
grab time on are a station. An example of a station would be like a
blast booth, for example, I wanna start accruing my time on the blast booth. I'm
gonna go work in the blast booth for eight hours today, and I wanna start
my timer now, and I'm gonna end it when I go to leave for the
day. Another example where we can collect time is a part
[01:47] account or rack. A part account is, a subset of parts, either on a, a
work order or a sales order. So an example, we don't say part number because
we could potentially have, say, a hundred parts. And, those a hundred parts are split
amongst two quantities of 51, quantity of 50 in booth A, another quantity of 50
in booth B. So that one part number may have two part accounts.
[02:16] We can also do it on a rack level where maybe a rack in our
blast booth contains 2, 3, 4, 10 part numbers on one rack. And I'm trying
to accrue my time towards that one rack, and it will split the cost of
my time across all of the parts on that rack. We can also put time
on a sales order. So this maybe would cover, administrative or overhead. If I'm doing
something on this sales order,
[02:46] and I do wanna track my time towards it, I can select any given sales
order and start putting my time towards the order, and maybe not necessarily towards any
one part or rack or station. We can also do the same with a maintenance
event where if I'm doing maintenance, I can start a timer, for myself on any
given maintenance task. So that's a little bit about
[03:11] timers there on the home screen. And what I want to jump into is work
boards. So this is the most common place for, any floor staff or operators to
be utilizing here in steelhead. Let's jump in, maybe we'll, we'll select a blast, work
board here, for example, where what we have are two steps where we start with
a ready for blast. And if I'm in the blast booth
[03:39] and I wanna start accruing my time, I can move parts into this booth, either
by swiping or moving. So what we see here is, is some racks that are
ready for blast. I can see that I do not have a, a timer started.
And on any given station in steelhead, we can automatically start or stop timers upon
a movement into, that booth. So let's look at this titanium step rack two here
[04:08] for Boeing, where I have two parts, NPN 2 25 on this step rack. And
I can either choose to start my timer here, or I can move this rack
and select my blast booth one. If I wanted, multiple booths to be options here,
we would just have to configure multiple stations. This particular, process only has one option
for blast booth one, maybe I only have one booth in my shop.
[04:44] So upon moving these parts into that booth, we can see that, hey, I now
have my labor timer, accruing towards this titanium step rack two. And if I have
a, a labor, cost myself on, on user Drew Davilla of $50 an hour, and
there were multiple different parts on this, rack here, we need to split that, that
cost. And what steelhead does is it looks at a field on parts
[05:15] that we call parts per rack. So if I had five parts per rack on
part number one and three parts per rack on part number two, it would split
my, $50 an hour cost amongst those two part numbers based on their parts per
rack. If there is not that data available, steelhead looks at part count. So if
I had quantity 10 of, of part A and quantity five of part B, it
would split it,
[05:43] 66% towards part A and and 33% towards part B just based on the part
count that we have on that rack. So the same concept would go if I
were to clock into a station or a job, or anything of that matter that
has multiple parts. It, it looks at the data that we have to do a
percentage split, and if the data is not filled in or we do not store
that on, on the, in the fields
[06:10] that we have, we do the next best thing and we look at the part
count. So that's a little bit about work boards and timers there. And then when
I do move this eventually, I, I am done blasting, my titanium step rack two,
and I move it out, it will automatically stop my timer there on, titanium step
rack two. So we set up these working nodes and these staging nodes,
[06:39] to collect costs at the working node. And then once parts exit the, the working
node or operation, it stops all of my timers, upon when parts are removed from
that node or operation. All right, so let's look at, the backside where, what I
would call like margin analysis, where we can do this on a few different levels.
And I wanna start by maybe looking at any one
[07:09] particular work order. So what I'm gonna do here is I'm gonna navigate to my
completed orders, orders that I have already, processed through my shop. Maybe I wanna look
at orders, that were completed after the 11th of August, and I'm gonna show my
margins on these jobs. And maybe I'm gonna look for some sort of job here.
Not good enough data on this one. Let's bump it back a little bit
[07:45] and say, this job that has an 81% margin, I wanna look for a job
that maybe has a really low or really high margin for, for what I feel,
what should have taken place on the floor. And I'm gonna open this margin up
and look at how does steelhead even compute this margin in the first place. So
what we have at the, the very top is our revenue. So this would be,
essentially a, a calculation
[08:10] of the price of the parts multiplied by the part quantity to get the direct
revenue on this order. And we have different ways of collecting costs where we have
part labor costs. This is if my, cost was collected to a part or to
a rack, and we call that direct labor cost station. Labor costs were to be,
if I were to know that I was gonna go work in the blast booth
all day today,
[08:39] and I do not want to collect my time on any one given, job or
part individually, I can go clock into the station in the morning and then all
parts that move through that blast booth that I'm clocked into will have my time
accrued toward them. And the splitting will be, as I explained, with the parts per
rack or by part count. So that's the difference between part labor cost,
[09:05] which is like direct to that job and station labor cost is if, I were
to just clock into a station, move a bunch of jobs in and eventually move
them out, my time is just being accrued on the station level and distributed appropriately.
Station operation cost is, what we would say the overhead of the station. So this
is not the direct labor, this is the indirect cost
[09:34] of, say for a blast booth, you know, it, it takes in some sort of
pressurized air or electricity to run, the blast booth and whatever we factor, on that,
let's say that blast Booth one, for example, if I know, my operational cost on
to just run my booth, no labor is maybe $30 an hour for the, the
nozzles that I consume. The, material or, the cost of the equipment, things of that
nature,
[10:06] the electricity to run the equipment gas bill for ovens, for examples, things of that
nature, operation cost. So we want to bed, embed all of the overhead on our
stations into what we call the operational cost inventory is, say if I'm a powder
operation or a thermal spray or something of that nature, and I can directly attribute
how much of a consumable to any given job or part steelhead would take.
[10:38] when we deplete these, these items to a job or to a part, the cost
of that item, which would be, we trace that back from when we purchased it
and we receive it, and the purchase price of the powder is stored on a
batch level. And steelhead requires you to tell us which batch you are using on
any given job. And we take the price of that batch, and that is how
we grab the inventory cost of any given part
[11:06] or work order outsourcing. This would be if I were to, you know, maybe I
don't do blasting in-house and I just do the, the powder on these parts. If
this is a blasting powder operation and I create a PO and I outsource the
blasting, steelhead, has a way to, capture that cost through the po, tie it back
to our work order here, and attribute that cost of the outsourced work
[11:36] and factor it into our margin analysis. So when we sum up our total cost
here on this work order, it's $253 and 95 cents. In this scenario, I only
have operation costs and labor costs, and then we know that we've cleared a profit
of nearly $1,100 or 81% on this one work order. Now, we can also do
a margin analysis on the sales order level, and the difference there between sales order
[12:05] and work order margin would be work order margin is purely the price of the
parts where on a sales order, maybe I have something along the lines of a
expedite charge. So maybe what that would look like. As an example, if I want
to add an expedite quantity, well, excuse me, maybe I charge $500 for this particular
expedite. Now on this job, we can compute our margin
[12:38] and it would compute at a different percentage relative to the work order margin because
our expedite charge here is not directly tied to those parts. If we want to
do that, we certainly can. It is possible, this is just what most steelhead customers
opt to do, for button clicked optimization or it's, just a higher level of granularity
where we wanna store the expedite onto
[13:05] the sales order itself. Instead of the multiple work orders where maybe one po has
parts that need blast only and parts that need a blast and powder, those two
things are gonna be on two separate work orders, but maybe I only have one
expedite charge for the entire overarching po. So then that, margin on the purchase order
here that we see is 86%. This just factors in any, price that is not
[13:35] on a work order. And exhibit A is an expedite charge. So that's a little
bit about, about the margin analysis on sales orders and work orders. We can dive
pretty deep into this information on either page where we can see the margin by
part or by station, within these screens. So on, on this one sales order, I
do only have one part number. So we know the, the sales
[14:04] or the revenue from it, the dollar per part, what we actually ended up invoicing
and the labor cost operation cost, station labor outsourcing inventory, and we do factor in
the rework cost on this analysis. Then we get our total cost and we understand
our sales order margin and what we invoiced. So what I do wanna dive into
is another option for anybody that does repeat part numbers,
[14:36] and maybe we wanna look at the margin history of one particular part number over
time. In this example, I've got a part number here that has a a lot
of data, and I know I process this part many times and I'm gonna look
at, on the right hand side on a part number, I'm gonna look at the,
margin analysis over time. So I'm gonna click this margins link here. It opens up
and it knows, hey, you've ran this,
[15:06] this work order, or this particular part number, excuse me, on 10 different work orders
here. And we understand that each work order might have a different count, it might
have a different cost on each given work order, maybe on Tuesday. we were slow
and I had many people and we were really efficient on, on next week Thursday,
it was not the same story and parts cost us a lot more.
[15:32] So we can see our, our part number margin, specifically on each work order, and
then we can also see the global work order margin. Up top is, over the
past 10 work orders we see our average price, average cost, average margin. So then
down below here we have some more advanced stats or in depth, if you will,
of our station and labor costs based on the part count.
[16:01] So on work order number 2, 3, 4, 8 that we ran very recently in
July of 25, the parts went through receiving mask and plug blast booth, oven, and
inspect and pack where we can see, hey, this is the rough percentage of the,
of the total, dollar per part and relative total cost and our part count. So
an example here on Blast Booth one where it says, Hey, we only use blast
booth one on five of these 10 work orders
[16:36] where maybe five of 10 needed blasting. They came in, dirty or grimy, and the
other five came in fully prepped, ready to go. We did not need to blast
them. So that's why we list out the quantity of work orders that this, dollar
per part and percentage is coming from. And if I want, I can also group
this by station. So right now it is cutting this data by work order
[17:03] where I can see, the historical work orders 2348, which was July of this year,
another one July of this year. And if we keep going down, we can see,
hey, we had one in January of this year, November of the year prior and
so on, but maybe I don't care, to do a particular work order by work
order, I wanna see the cost of this part broken out by station overtime,
[17:26] where now this view looks at receiving in particular and the total cost of processing
this part through receiving over all 10 work orders. And the same with mask and
plug, where it looks like, Hey, on average mask and plug is costing us $3
and 75 cents. Maybe I go compare that to how I quoted or priced the
job and factor this into a repricing. Same thing with the, the blast booth,
[17:53] our powder booth, and maybe our oven. So this is again, just using the, the
powder, setup as an example. But this could be for any application, any station, any
processing setup for that matter. So now what I want to jump into is a
little bit of reporting where within, let's jump back from the home screen here, search
up reporting, let my items load in. And what we have here under our sales
[18:31] and finance insight section is a brand new insight, cost, labor, and operation. So within
this report, I can filter by all sorts of items, all sorts of dates. And
what this is doing is it's giving us our labor and operational cost across the
entire facility where maybe what I'm trying to do here in this particular, quarter is
look at my last 90 days and I wanna see, hey, all right, it looks
like July was,
[19:04] we were heavy on, on total cost where we had 1.6, almost 1.7, in total
cost where 91 of that was labor and 1.57 of it was just overhead or
cost to run our facility. And down below we see a makeup of the actual
data here where if I, expand and collapse, I can see the numbers based on
a, a monthly basis, and then my item of interest was July there, which was
my peak cost.
[19:37] I'm gonna expand that out, maybe dig in a little more on, who where is
this cost coming from, where it looks like BAE systems here, for example, has, much
higher cost than, than what, I would think we don't, maybe we don't run a
lot of BAE. How is their cost so high? I'm gonna expand out BAE and
dig in a little bit on, on the order level. So these are all the
work orders that we processed for BAE
[20:05] where this one here sticks out like a sore thumb of nearly 80 grand cost.
Let's expand out that work order, or that po rather, and look at, the transactions
of that part where we got, 68,000, dollars worth of costs on this plating operation
for work order 4 1 52. So what I would do there is, is maybe
we, we do a little study on work order 4 1 5 2, how do
we grab all this cost?
[20:34] Did somebody leave a labor timer running overnight? Many people may be left a labor
timer running overnight, things of that nature dive in, understand how, how did this job
accrue all this cost? the margin here is, is not what we want and we
gotta fix that. So this report is, is really useful with digging down into many
different levels of granularity. And we can also, filter this report.
[20:59] And maybe I wanna look at only my reworks within the last 90 days where
I can filter this, where we look at our work order types of rework, and
if I expand collapse, and I'm looking at my months, it looks like in July
specifically, we didn't have much rework cost at all. Where in August, on the other
hand, we had $3,476 in rework. And if I expand that out, I can see
that most
[21:24] of it is coming from H Tech. And within H Tech, we did have one
PO and one work order that we reworked and we did, some car rising on
this particular job that cost us this mu this, much in rework cost. So it's
a a quick high level overview. I'm gonna open it up for, for some questions
and we can dive in a little more here. If anybody has anything, I'm, I'm
more than happy to stay on.
[21:55] I know we went pretty quick there and please contact Steelhead and, and we'll be
happy to reach out and understand your particular cost situation and how we would want
to fit you, to grab the most accurate cost from your floor. Drew, do you
have, access to the q and a section on the bottom of your screen? Let
me pull it up here On the Zoom call. I do. Okay. It looks like
there's two
[22:30] in there and then one in the chat. All right, so we got a question.
How would you show you were clocking in as an operator to a station to
apply time to all the parts that they work on? How would you show, could
you show how you would do this from the work order or work board? Absolutely.
Let me, reshare here again. So what we would do to clock into a a
station, say I,
[23:02] I walk in for the day, I know I'm gonna be working at Blast Booth
one all day. I can do it from the work board. I certainly don't have
to from any given screen in steelhead. We could use this big green, timer here,
start it or select it for that matter and enter the station that I want
to, have my time accrue towards for the day today. So once I save that,
it knows that any job
[23:31] that gets moved in to, blast Booth one will have my time on it. So
these two jobs here that are in Blast Booth one right now are, are accruing
my time towards them for the entire duration that these parts are in blast Booth
one. So then while I move process bar seven into Blast Booth one, now my
time is being split across these three different jobs or, or three different racks for
that matter.
[24:01] It could be many different jobs on each rack. And then once I move process
bar seven back out of that booth, now my time is is no longer accruing
towards, process bar seven and now only rack four. And this ESP 9 0 5
part for Medtronic. So there's one other question here. I'm gonna, if an operator is
clocked into a station and there are no parts in that station, how does
[24:37] that report, if at all? great question. I I don't think it, the, your cost
would still go towards the station and we still do track that, but it would
not be, it would not affect the cost of any job if no parts are
moved in or out, we, we can dive in on the station level where from
the home screen, maybe what I want to do is look at my blast booth
one here, for example,
[25:14] and I can see my operation cost and labor hours breakdown. So on my labor
hours I can see, hey, drew Dillo was clocked in here. And on my operational
cost diagram, I can also see, this one would pertain directly to two parts that
are moved in and out. and then I can see that these two parts are
currently in, that this station being blasted. right now. We did have one more.
[25:55] How do you assign metal dollars deposited in the plating process as a direct expense?
So that's a, a great question. I believe what we're referring to is maybe a
tank style processing where, we do chemical additions or, or something to that tank where
maybe let's look at, tank number one as an example where we can add, what
we call inventory into a station or deplete inventory to a station.
[26:31] We're here if I'm trying to add, say some chemicals of let's just select, any
given, item here and I want to deplete from lot number 1, 2, 3, 4,
5, 6, 4, and we're gonna deplete this to our station in terms of gallons,
and maybe I have, I want to do the amount used, and I know I
dumped in a quarter gallon here today. it does look like we don't have any
of this
[27:03] inventory available to deplete. So a bad example there where again, we don't have any
of that inventory. there's no remaining gallons, so bad example on, on the depleting action,
but we can deplete it and it would deplete it directly to that station or
to the parts. we can trace back those parts that are in the station at
this time when we do deplete it or between depletion A and depletion B.
[27:39] So maybe I deplete, 10 gallons of the chemical, right now process a whole bunch
of orders through deplete another 10 gallons say next week. We can understand that, that
the 10 gallons, that I'm depleting today into that station, had these jobs in the
station and those jobs likely consumed that 10 gallons of chemical a between my two
depletions. So one more came in here if a part
[28:18] is in a station, but there are no operator working on that part, there are
no associated timers running. How does that affect the cost of the part? So that
would come down to another great question here. If we, let's go back to stations
and let's use my blast booth as our example here. Where on blast booth one,
I know that, hey, my, my labor rate here or my burden when somebody is
working on,
[28:56] on blast booth one, is $220 an hour. My operational rate kicks in, when parts
are in this station and no labor timers are active. So actually let's get off
of blast booth one and maybe into a scenario where this would apply like an
oven where on an oven, I do not have any labor since, since I'm not
gonna be in the oven working on the parts and rather the entire cost of
processing these parts
[29:24] is operational. Where my operation rate on this particular oven is 2 25 an hour,
and that is stored on, the station where we have the operational rate and the
labor rate here. So if I, I wanted to, maybe my 2 25 an hour
is, is no longer accurate and I want to up that to two 50 all
jobs, starting at 8 27, maybe I want to backdate this to the first of
the month.
[29:56] All jobs that were processed through this oven in August had now have that $250
an hour burden on the overhead or operation. So that's how we would accrue cost
if there's no labor on a station, but we still want to track cost of
parts sitting in that station, then it does look like we had a couple things
pop up in chat here and I display inventory cost transaction details on the sales
order
[30:30] or work order margin reports. I do not believe so Eric, but we do have
a, within reporting, I'm guessing what we're actually doing, go to a work order and,
and check it out here. I'm unsure if I will be able to find one
where I do have active, where I have inventory depleted against the job. Maybe let's
filter by batch powder coat process, where here when we have the inventory cost of
8 87 75,
[31:18] it does not look like it hyperlinks us to that batch. However, I could find
my way to that batch from this order. If we look at inventory, that consumed
to this order, it looks like the actual inventory item that was consumed has since
been archived, but when we're in inventory management, so from the home screen it's our
inventory tile. And if I go into our powder as an example
[31:55] and I want to filter and look at powder that was, to a particular work
order, probably not going to be able to find an example here, unfortunately, to work
order 3, 3, 3, 3, it looks like we did not consume any powder against
that particular job. Apologies for the the bad answer there. Let's jump in. There's a
few more. What was the screen that displayed the individual
[32:30] margin data per sales order? It was the screen that was right before the reporting
insight. So I believe what we were looking for there was on any given sales
order, if I jump in and maybe I only wanna look at my, closed sales
orders or maybe I, I go from, let's go from our work order page here,
look at a completed order for say this hardly Davidson, I'm guessing this was, this
was what we were referring to
[33:11] where from the margin, work order margin. And then if I jump back on this
particular order, it, it originated from this PO or this sales order and we wanted
to look at this where within this hyperlink, I'm analyzing the margin on the PO
level where we can see the, the margin by part on this order cost by
the station and then sum up the cost across the work order where maybe I
have a PO
[33:47] that has many work orders, many parts. we can look at it at those three
different levels of granularity where we're looking at the margin by part cost broken out
by station and then cost rolled up across our stations and summed to a particular
work order timers, inventory depletion, outsource pos, operational cost per station. Would those only be
checkpoints required
[34:24] to validate the quality of costing inputs I guess I, I'm not sure the, the
nature of the question there checkpoints required to validate, we do not force this. If,
if that's kind of what we're hinting at there. We do not force, something to
be depleted or, or for cost to be accrued, but rather we just track what
actually happened if we issue a credit note to the client
[35:03] because it delays problems, et cetera. Is there a way to capture that cost on
the sales order, work order within native accounting? Yes, there should be, a way to,
to allocate this to a particular sales order or po I do not believe we
can do it to the work order level. And if we assign labor rates to
users and also to stations, which labor rate will be considered.
[35:30] Great question. So if there is a labor rate on the station and on the
user, it will use the user's, operational cost or labor cost, excuse me, the user
will, will override or take precedent over the station cost. Is there anything I'm missing
here, Suzy? Oh yeah, we got some more coming in. Yeah, I've looked at a
predictive inventory. How would this play into the cost?
[36:09] So the predicted standpoint, this, this gives you a projection of cost. It doesn't actually
give you the true cost. Now what it does help you do is when you
deplete inventory, as an example, what we can do, if I want to jump into
my particular powder that I've used, let's say this, this RAL 70 45, and I
want to deplete this powder, I can deplete it into, on our work order level
[36:48] and say I want to deplete from our, recently worked on orders. We can have,
when you have predicted usage, configured or set up instead of depleting by part count,
we can deplete by a percentage of predicted. So if part A predicted, say I'm
trying to deplete a hundred pounds of powder here, part A, predicted 60 pounds, part
B predicted 40, when I have a hundred
[37:15] and I'm trying to deplete it, it would do the split 60 40. And if
I had 200, it would do the, it would double it up. So instead of
60 to part A, it would be one 20 to part A and instead of
40, it would be 80 to part B. So it would just break out that
depletion to these two parts or orders based on the percentage of predicted in an
automated plating Ryan running 10 loads an hour,
[37:52] how does the operational cost split between the individual loads? So that's a great question.
This is for, for platers where, in a particular, I'm gonna try to look up
a process tree to give the best answer here where maybe we have our, anodizing
type two is our example here. And within anodizing what we typically see for like
something like clean and prep here is a a node
[38:27] for each tank. And each tank here is considered a station where we can grab
costs. So when you're moving parts through these tanks, typically this is done in steelhead
using a digital scanner where we have a QR code on a rack and on
the tank or station itself, and we scan the parts through from soak clean into
rinse one, rinse two into the Diox Diox Rinse one, etch
[38:53] rinse one, two. And then maybe we have the ability to have more than one
rack in soak clean simultaneously. And what happens there if there's more than one rack
in a station that is accruing cost, is the cost is broken out, into the
two racks equally, and then into the either parts per rack or if that data's
not available into the part count on each rack. So if I had two racks,
maybe two part numbers on each rack,
[39:24] the cost could go 25, 25, 25, 25 to the end part numbers or if
they're weighted differently, maybe Part A had two x the parts of Part B, it
would split the 50% from rack a accordingly. So you can have multiple racks, multiple
parts in a station and have the cost be distributed amongst, so by individual load
there, I'm, I'm assuming, what we would use the, the terminology would be a rack
[39:59] in steelhead timers, inventory depletion, outsourced pos. So I got that one the credit note,
yes to the sales order. I'm unsure down to the work order level. I do
not believe so I do not believe we can go down to the work order
level and cost analysis. Yes, it does use the user rate. if the station and
user both have a rate, it will use the user rate. If I have a
process as a sequence of different stations,
[40:33] what is the best practice for getting an accurate time record? These users typically won't
be able to start a timer for every station they move into. So usually what
we would do there is say, I'm gonna keep this, this process tree as as
our example, and I wanted to track, my, my labor from my un wracking, my
handwork and my inspection separately. What I would likely do is have three different stations
tied
[41:04] to these processing steps and within that station I would, so let's just say on
on rack as an example, I have this unload station on this station we have
the option to auto-start a part or rack labor timer when parts are moved in
and or moved out of this station. So I would want to just make sure
that the, the steps that you want to track cost at have, have this turned
on
[41:34] and it does have a station on that step. And as long as it has
a station, every time a part moves in, it will start the timer there. Every
time that same part moves back out, it will stop it. Okay, it looks like
you got through all of 'em. And once again, if everybody, if anyone has further
questions, feel free to reach out to our support@gosteelhead.com email.
[42:05] And then I also wanted to do a reminder that next month will, there will
be no masterclass as we are hosting an in-person user conference called Revenue Riptide, where
we have, the option for hands-on training. So if anyone is interested in that, you
can check out revenue rip type.com. And thanks again Drew and everyone for joining today.
Thanks everyone. Hope to see you there. Bye.
member of the outcomes team here at steelhead, and this webinar is gonna be on
job costing. So a little bit of what we're gonna cover today, we're gonna just
jump right into it. I'll give a demo. There will be a q and a
session at the end, so if you're on, please, stay on mute until the end,
and I'll be able to stay on
[00:23] and answer any questions and, and drop questions in the chat as you go, and
we'll remember to take a peek at those. All right, so jumping right into it,
steelhead has a, a relatively fresh update where what we want everybody to do with,
timers is we make this green big, play button available at various spots throughout the
platform here in the home screen. And if you're familiar with work boards,
[00:55] what the floor uses, it's, it's available there, it's available on stations, maintenance tasks, few
different areas. So jumping right into costing, one of the ways that we, we grab
cost is with labor or timers. And in the top right of any, screen that
you're in, in steelhead, there's a grid, big green play button. If you do not
have a timer running, if you do,
[01:20] it will be a red pause icon. So a few different things that we can
grab time on are a station. An example of a station would be like a
blast booth, for example, I wanna start accruing my time on the blast booth. I'm
gonna go work in the blast booth for eight hours today, and I wanna start
my timer now, and I'm gonna end it when I go to leave for the
day. Another example where we can collect time is a part
[01:47] account or rack. A part account is, a subset of parts, either on a, a
work order or a sales order. So an example, we don't say part number because
we could potentially have, say, a hundred parts. And, those a hundred parts are split
amongst two quantities of 51, quantity of 50 in booth A, another quantity of 50
in booth B. So that one part number may have two part accounts.
[02:16] We can also do it on a rack level where maybe a rack in our
blast booth contains 2, 3, 4, 10 part numbers on one rack. And I'm trying
to accrue my time towards that one rack, and it will split the cost of
my time across all of the parts on that rack. We can also put time
on a sales order. So this maybe would cover, administrative or overhead. If I'm doing
something on this sales order,
[02:46] and I do wanna track my time towards it, I can select any given sales
order and start putting my time towards the order, and maybe not necessarily towards any
one part or rack or station. We can also do the same with a maintenance
event where if I'm doing maintenance, I can start a timer, for myself on any
given maintenance task. So that's a little bit about
[03:11] timers there on the home screen. And what I want to jump into is work
boards. So this is the most common place for, any floor staff or operators to
be utilizing here in steelhead. Let's jump in, maybe we'll, we'll select a blast, work
board here, for example, where what we have are two steps where we start with
a ready for blast. And if I'm in the blast booth
[03:39] and I wanna start accruing my time, I can move parts into this booth, either
by swiping or moving. So what we see here is, is some racks that are
ready for blast. I can see that I do not have a, a timer started.
And on any given station in steelhead, we can automatically start or stop timers upon
a movement into, that booth. So let's look at this titanium step rack two here
[04:08] for Boeing, where I have two parts, NPN 2 25 on this step rack. And
I can either choose to start my timer here, or I can move this rack
and select my blast booth one. If I wanted, multiple booths to be options here,
we would just have to configure multiple stations. This particular, process only has one option
for blast booth one, maybe I only have one booth in my shop.
[04:44] So upon moving these parts into that booth, we can see that, hey, I now
have my labor timer, accruing towards this titanium step rack two. And if I have
a, a labor, cost myself on, on user Drew Davilla of $50 an hour, and
there were multiple different parts on this, rack here, we need to split that, that
cost. And what steelhead does is it looks at a field on parts
[05:15] that we call parts per rack. So if I had five parts per rack on
part number one and three parts per rack on part number two, it would split
my, $50 an hour cost amongst those two part numbers based on their parts per
rack. If there is not that data available, steelhead looks at part count. So if
I had quantity 10 of, of part A and quantity five of part B, it
would split it,
[05:43] 66% towards part A and and 33% towards part B just based on the part
count that we have on that rack. So the same concept would go if I
were to clock into a station or a job, or anything of that matter that
has multiple parts. It, it looks at the data that we have to do a
percentage split, and if the data is not filled in or we do not store
that on, on the, in the fields
[06:10] that we have, we do the next best thing and we look at the part
count. So that's a little bit about work boards and timers there. And then when
I do move this eventually, I, I am done blasting, my titanium step rack two,
and I move it out, it will automatically stop my timer there on, titanium step
rack two. So we set up these working nodes and these staging nodes,
[06:39] to collect costs at the working node. And then once parts exit the, the working
node or operation, it stops all of my timers, upon when parts are removed from
that node or operation. All right, so let's look at, the backside where, what I
would call like margin analysis, where we can do this on a few different levels.
And I wanna start by maybe looking at any one
[07:09] particular work order. So what I'm gonna do here is I'm gonna navigate to my
completed orders, orders that I have already, processed through my shop. Maybe I wanna look
at orders, that were completed after the 11th of August, and I'm gonna show my
margins on these jobs. And maybe I'm gonna look for some sort of job here.
Not good enough data on this one. Let's bump it back a little bit
[07:45] and say, this job that has an 81% margin, I wanna look for a job
that maybe has a really low or really high margin for, for what I feel,
what should have taken place on the floor. And I'm gonna open this margin up
and look at how does steelhead even compute this margin in the first place. So
what we have at the, the very top is our revenue. So this would be,
essentially a, a calculation
[08:10] of the price of the parts multiplied by the part quantity to get the direct
revenue on this order. And we have different ways of collecting costs where we have
part labor costs. This is if my, cost was collected to a part or to
a rack, and we call that direct labor cost station. Labor costs were to be,
if I were to know that I was gonna go work in the blast booth
all day today,
[08:39] and I do not want to collect my time on any one given, job or
part individually, I can go clock into the station in the morning and then all
parts that move through that blast booth that I'm clocked into will have my time
accrued toward them. And the splitting will be, as I explained, with the parts per
rack or by part count. So that's the difference between part labor cost,
[09:05] which is like direct to that job and station labor cost is if, I were
to just clock into a station, move a bunch of jobs in and eventually move
them out, my time is just being accrued on the station level and distributed appropriately.
Station operation cost is, what we would say the overhead of the station. So this
is not the direct labor, this is the indirect cost
[09:34] of, say for a blast booth, you know, it, it takes in some sort of
pressurized air or electricity to run, the blast booth and whatever we factor, on that,
let's say that blast Booth one, for example, if I know, my operational cost on
to just run my booth, no labor is maybe $30 an hour for the, the
nozzles that I consume. The, material or, the cost of the equipment, things of that
nature,
[10:06] the electricity to run the equipment gas bill for ovens, for examples, things of that
nature, operation cost. So we want to bed, embed all of the overhead on our
stations into what we call the operational cost inventory is, say if I'm a powder
operation or a thermal spray or something of that nature, and I can directly attribute
how much of a consumable to any given job or part steelhead would take.
[10:38] when we deplete these, these items to a job or to a part, the cost
of that item, which would be, we trace that back from when we purchased it
and we receive it, and the purchase price of the powder is stored on a
batch level. And steelhead requires you to tell us which batch you are using on
any given job. And we take the price of that batch, and that is how
we grab the inventory cost of any given part
[11:06] or work order outsourcing. This would be if I were to, you know, maybe I
don't do blasting in-house and I just do the, the powder on these parts. If
this is a blasting powder operation and I create a PO and I outsource the
blasting, steelhead, has a way to, capture that cost through the po, tie it back
to our work order here, and attribute that cost of the outsourced work
[11:36] and factor it into our margin analysis. So when we sum up our total cost
here on this work order, it's $253 and 95 cents. In this scenario, I only
have operation costs and labor costs, and then we know that we've cleared a profit
of nearly $1,100 or 81% on this one work order. Now, we can also do
a margin analysis on the sales order level, and the difference there between sales order
[12:05] and work order margin would be work order margin is purely the price of the
parts where on a sales order, maybe I have something along the lines of a
expedite charge. So maybe what that would look like. As an example, if I want
to add an expedite quantity, well, excuse me, maybe I charge $500 for this particular
expedite. Now on this job, we can compute our margin
[12:38] and it would compute at a different percentage relative to the work order margin because
our expedite charge here is not directly tied to those parts. If we want to
do that, we certainly can. It is possible, this is just what most steelhead customers
opt to do, for button clicked optimization or it's, just a higher level of granularity
where we wanna store the expedite onto
[13:05] the sales order itself. Instead of the multiple work orders where maybe one po has
parts that need blast only and parts that need a blast and powder, those two
things are gonna be on two separate work orders, but maybe I only have one
expedite charge for the entire overarching po. So then that, margin on the purchase order
here that we see is 86%. This just factors in any, price that is not
[13:35] on a work order. And exhibit A is an expedite charge. So that's a little
bit about, about the margin analysis on sales orders and work orders. We can dive
pretty deep into this information on either page where we can see the margin by
part or by station, within these screens. So on, on this one sales order, I
do only have one part number. So we know the, the sales
[14:04] or the revenue from it, the dollar per part, what we actually ended up invoicing
and the labor cost operation cost, station labor outsourcing inventory, and we do factor in
the rework cost on this analysis. Then we get our total cost and we understand
our sales order margin and what we invoiced. So what I do wanna dive into
is another option for anybody that does repeat part numbers,
[14:36] and maybe we wanna look at the margin history of one particular part number over
time. In this example, I've got a part number here that has a a lot
of data, and I know I process this part many times and I'm gonna look
at, on the right hand side on a part number, I'm gonna look at the,
margin analysis over time. So I'm gonna click this margins link here. It opens up
and it knows, hey, you've ran this,
[15:06] this work order, or this particular part number, excuse me, on 10 different work orders
here. And we understand that each work order might have a different count, it might
have a different cost on each given work order, maybe on Tuesday. we were slow
and I had many people and we were really efficient on, on next week Thursday,
it was not the same story and parts cost us a lot more.
[15:32] So we can see our, our part number margin, specifically on each work order, and
then we can also see the global work order margin. Up top is, over the
past 10 work orders we see our average price, average cost, average margin. So then
down below here we have some more advanced stats or in depth, if you will,
of our station and labor costs based on the part count.
[16:01] So on work order number 2, 3, 4, 8 that we ran very recently in
July of 25, the parts went through receiving mask and plug blast booth, oven, and
inspect and pack where we can see, hey, this is the rough percentage of the,
of the total, dollar per part and relative total cost and our part count. So
an example here on Blast Booth one where it says, Hey, we only use blast
booth one on five of these 10 work orders
[16:36] where maybe five of 10 needed blasting. They came in, dirty or grimy, and the
other five came in fully prepped, ready to go. We did not need to blast
them. So that's why we list out the quantity of work orders that this, dollar
per part and percentage is coming from. And if I want, I can also group
this by station. So right now it is cutting this data by work order
[17:03] where I can see, the historical work orders 2348, which was July of this year,
another one July of this year. And if we keep going down, we can see,
hey, we had one in January of this year, November of the year prior and
so on, but maybe I don't care, to do a particular work order by work
order, I wanna see the cost of this part broken out by station overtime,
[17:26] where now this view looks at receiving in particular and the total cost of processing
this part through receiving over all 10 work orders. And the same with mask and
plug, where it looks like, Hey, on average mask and plug is costing us $3
and 75 cents. Maybe I go compare that to how I quoted or priced the
job and factor this into a repricing. Same thing with the, the blast booth,
[17:53] our powder booth, and maybe our oven. So this is again, just using the, the
powder, setup as an example. But this could be for any application, any station, any
processing setup for that matter. So now what I want to jump into is a
little bit of reporting where within, let's jump back from the home screen here, search
up reporting, let my items load in. And what we have here under our sales
[18:31] and finance insight section is a brand new insight, cost, labor, and operation. So within
this report, I can filter by all sorts of items, all sorts of dates. And
what this is doing is it's giving us our labor and operational cost across the
entire facility where maybe what I'm trying to do here in this particular, quarter is
look at my last 90 days and I wanna see, hey, all right, it looks
like July was,
[19:04] we were heavy on, on total cost where we had 1.6, almost 1.7, in total
cost where 91 of that was labor and 1.57 of it was just overhead or
cost to run our facility. And down below we see a makeup of the actual
data here where if I, expand and collapse, I can see the numbers based on
a, a monthly basis, and then my item of interest was July there, which was
my peak cost.
[19:37] I'm gonna expand that out, maybe dig in a little more on, who where is
this cost coming from, where it looks like BAE systems here, for example, has, much
higher cost than, than what, I would think we don't, maybe we don't run a
lot of BAE. How is their cost so high? I'm gonna expand out BAE and
dig in a little bit on, on the order level. So these are all the
work orders that we processed for BAE
[20:05] where this one here sticks out like a sore thumb of nearly 80 grand cost.
Let's expand out that work order, or that po rather, and look at, the transactions
of that part where we got, 68,000, dollars worth of costs on this plating operation
for work order 4 1 52. So what I would do there is, is maybe
we, we do a little study on work order 4 1 5 2, how do
we grab all this cost?
[20:34] Did somebody leave a labor timer running overnight? Many people may be left a labor
timer running overnight, things of that nature dive in, understand how, how did this job
accrue all this cost? the margin here is, is not what we want and we
gotta fix that. So this report is, is really useful with digging down into many
different levels of granularity. And we can also, filter this report.
[20:59] And maybe I wanna look at only my reworks within the last 90 days where
I can filter this, where we look at our work order types of rework, and
if I expand collapse, and I'm looking at my months, it looks like in July
specifically, we didn't have much rework cost at all. Where in August, on the other
hand, we had $3,476 in rework. And if I expand that out, I can see
that most
[21:24] of it is coming from H Tech. And within H Tech, we did have one
PO and one work order that we reworked and we did, some car rising on
this particular job that cost us this mu this, much in rework cost. So it's
a a quick high level overview. I'm gonna open it up for, for some questions
and we can dive in a little more here. If anybody has anything, I'm, I'm
more than happy to stay on.
[21:55] I know we went pretty quick there and please contact Steelhead and, and we'll be
happy to reach out and understand your particular cost situation and how we would want
to fit you, to grab the most accurate cost from your floor. Drew, do you
have, access to the q and a section on the bottom of your screen? Let
me pull it up here On the Zoom call. I do. Okay. It looks like
there's two
[22:30] in there and then one in the chat. All right, so we got a question.
How would you show you were clocking in as an operator to a station to
apply time to all the parts that they work on? How would you show, could
you show how you would do this from the work order or work board? Absolutely.
Let me, reshare here again. So what we would do to clock into a a
station, say I,
[23:02] I walk in for the day, I know I'm gonna be working at Blast Booth
one all day. I can do it from the work board. I certainly don't have
to from any given screen in steelhead. We could use this big green, timer here,
start it or select it for that matter and enter the station that I want
to, have my time accrue towards for the day today. So once I save that,
it knows that any job
[23:31] that gets moved in to, blast Booth one will have my time on it. So
these two jobs here that are in Blast Booth one right now are, are accruing
my time towards them for the entire duration that these parts are in blast Booth
one. So then while I move process bar seven into Blast Booth one, now my
time is being split across these three different jobs or, or three different racks for
that matter.
[24:01] It could be many different jobs on each rack. And then once I move process
bar seven back out of that booth, now my time is is no longer accruing
towards, process bar seven and now only rack four. And this ESP 9 0 5
part for Medtronic. So there's one other question here. I'm gonna, if an operator is
clocked into a station and there are no parts in that station, how does
[24:37] that report, if at all? great question. I I don't think it, the, your cost
would still go towards the station and we still do track that, but it would
not be, it would not affect the cost of any job if no parts are
moved in or out, we, we can dive in on the station level where from
the home screen, maybe what I want to do is look at my blast booth
one here, for example,
[25:14] and I can see my operation cost and labor hours breakdown. So on my labor
hours I can see, hey, drew Dillo was clocked in here. And on my operational
cost diagram, I can also see, this one would pertain directly to two parts that
are moved in and out. and then I can see that these two parts are
currently in, that this station being blasted. right now. We did have one more.
[25:55] How do you assign metal dollars deposited in the plating process as a direct expense?
So that's a, a great question. I believe what we're referring to is maybe a
tank style processing where, we do chemical additions or, or something to that tank where
maybe let's look at, tank number one as an example where we can add, what
we call inventory into a station or deplete inventory to a station.
[26:31] We're here if I'm trying to add, say some chemicals of let's just select, any
given, item here and I want to deplete from lot number 1, 2, 3, 4,
5, 6, 4, and we're gonna deplete this to our station in terms of gallons,
and maybe I have, I want to do the amount used, and I know I
dumped in a quarter gallon here today. it does look like we don't have any
of this
[27:03] inventory available to deplete. So a bad example there where again, we don't have any
of that inventory. there's no remaining gallons, so bad example on, on the depleting action,
but we can deplete it and it would deplete it directly to that station or
to the parts. we can trace back those parts that are in the station at
this time when we do deplete it or between depletion A and depletion B.
[27:39] So maybe I deplete, 10 gallons of the chemical, right now process a whole bunch
of orders through deplete another 10 gallons say next week. We can understand that, that
the 10 gallons, that I'm depleting today into that station, had these jobs in the
station and those jobs likely consumed that 10 gallons of chemical a between my two
depletions. So one more came in here if a part
[28:18] is in a station, but there are no operator working on that part, there are
no associated timers running. How does that affect the cost of the part? So that
would come down to another great question here. If we, let's go back to stations
and let's use my blast booth as our example here. Where on blast booth one,
I know that, hey, my, my labor rate here or my burden when somebody is
working on,
[28:56] on blast booth one, is $220 an hour. My operational rate kicks in, when parts
are in this station and no labor timers are active. So actually let's get off
of blast booth one and maybe into a scenario where this would apply like an
oven where on an oven, I do not have any labor since, since I'm not
gonna be in the oven working on the parts and rather the entire cost of
processing these parts
[29:24] is operational. Where my operation rate on this particular oven is 2 25 an hour,
and that is stored on, the station where we have the operational rate and the
labor rate here. So if I, I wanted to, maybe my 2 25 an hour
is, is no longer accurate and I want to up that to two 50 all
jobs, starting at 8 27, maybe I want to backdate this to the first of
the month.
[29:56] All jobs that were processed through this oven in August had now have that $250
an hour burden on the overhead or operation. So that's how we would accrue cost
if there's no labor on a station, but we still want to track cost of
parts sitting in that station, then it does look like we had a couple things
pop up in chat here and I display inventory cost transaction details on the sales
order
[30:30] or work order margin reports. I do not believe so Eric, but we do have
a, within reporting, I'm guessing what we're actually doing, go to a work order and,
and check it out here. I'm unsure if I will be able to find one
where I do have active, where I have inventory depleted against the job. Maybe let's
filter by batch powder coat process, where here when we have the inventory cost of
8 87 75,
[31:18] it does not look like it hyperlinks us to that batch. However, I could find
my way to that batch from this order. If we look at inventory, that consumed
to this order, it looks like the actual inventory item that was consumed has since
been archived, but when we're in inventory management, so from the home screen it's our
inventory tile. And if I go into our powder as an example
[31:55] and I want to filter and look at powder that was, to a particular work
order, probably not going to be able to find an example here, unfortunately, to work
order 3, 3, 3, 3, it looks like we did not consume any powder against
that particular job. Apologies for the the bad answer there. Let's jump in. There's a
few more. What was the screen that displayed the individual
[32:30] margin data per sales order? It was the screen that was right before the reporting
insight. So I believe what we were looking for there was on any given sales
order, if I jump in and maybe I only wanna look at my, closed sales
orders or maybe I, I go from, let's go from our work order page here,
look at a completed order for say this hardly Davidson, I'm guessing this was, this
was what we were referring to
[33:11] where from the margin, work order margin. And then if I jump back on this
particular order, it, it originated from this PO or this sales order and we wanted
to look at this where within this hyperlink, I'm analyzing the margin on the PO
level where we can see the, the margin by part on this order cost by
the station and then sum up the cost across the work order where maybe I
have a PO
[33:47] that has many work orders, many parts. we can look at it at those three
different levels of granularity where we're looking at the margin by part cost broken out
by station and then cost rolled up across our stations and summed to a particular
work order timers, inventory depletion, outsource pos, operational cost per station. Would those only be
checkpoints required
[34:24] to validate the quality of costing inputs I guess I, I'm not sure the, the
nature of the question there checkpoints required to validate, we do not force this. If,
if that's kind of what we're hinting at there. We do not force, something to
be depleted or, or for cost to be accrued, but rather we just track what
actually happened if we issue a credit note to the client
[35:03] because it delays problems, et cetera. Is there a way to capture that cost on
the sales order, work order within native accounting? Yes, there should be, a way to,
to allocate this to a particular sales order or po I do not believe we
can do it to the work order level. And if we assign labor rates to
users and also to stations, which labor rate will be considered.
[35:30] Great question. So if there is a labor rate on the station and on the
user, it will use the user's, operational cost or labor cost, excuse me, the user
will, will override or take precedent over the station cost. Is there anything I'm missing
here, Suzy? Oh yeah, we got some more coming in. Yeah, I've looked at a
predictive inventory. How would this play into the cost?
[36:09] So the predicted standpoint, this, this gives you a projection of cost. It doesn't actually
give you the true cost. Now what it does help you do is when you
deplete inventory, as an example, what we can do, if I want to jump into
my particular powder that I've used, let's say this, this RAL 70 45, and I
want to deplete this powder, I can deplete it into, on our work order level
[36:48] and say I want to deplete from our, recently worked on orders. We can have,
when you have predicted usage, configured or set up instead of depleting by part count,
we can deplete by a percentage of predicted. So if part A predicted, say I'm
trying to deplete a hundred pounds of powder here, part A, predicted 60 pounds, part
B predicted 40, when I have a hundred
[37:15] and I'm trying to deplete it, it would do the split 60 40. And if
I had 200, it would do the, it would double it up. So instead of
60 to part A, it would be one 20 to part A and instead of
40, it would be 80 to part B. So it would just break out that
depletion to these two parts or orders based on the percentage of predicted in an
automated plating Ryan running 10 loads an hour,
[37:52] how does the operational cost split between the individual loads? So that's a great question.
This is for, for platers where, in a particular, I'm gonna try to look up
a process tree to give the best answer here where maybe we have our, anodizing
type two is our example here. And within anodizing what we typically see for like
something like clean and prep here is a a node
[38:27] for each tank. And each tank here is considered a station where we can grab
costs. So when you're moving parts through these tanks, typically this is done in steelhead
using a digital scanner where we have a QR code on a rack and on
the tank or station itself, and we scan the parts through from soak clean into
rinse one, rinse two into the Diox Diox Rinse one, etch
[38:53] rinse one, two. And then maybe we have the ability to have more than one
rack in soak clean simultaneously. And what happens there if there's more than one rack
in a station that is accruing cost, is the cost is broken out, into the
two racks equally, and then into the either parts per rack or if that data's
not available into the part count on each rack. So if I had two racks,
maybe two part numbers on each rack,
[39:24] the cost could go 25, 25, 25, 25 to the end part numbers or if
they're weighted differently, maybe Part A had two x the parts of Part B, it
would split the 50% from rack a accordingly. So you can have multiple racks, multiple
parts in a station and have the cost be distributed amongst, so by individual load
there, I'm, I'm assuming, what we would use the, the terminology would be a rack
[39:59] in steelhead timers, inventory depletion, outsourced pos. So I got that one the credit note,
yes to the sales order. I'm unsure down to the work order level. I do
not believe so I do not believe we can go down to the work order
level and cost analysis. Yes, it does use the user rate. if the station and
user both have a rate, it will use the user rate. If I have a
process as a sequence of different stations,
[40:33] what is the best practice for getting an accurate time record? These users typically won't
be able to start a timer for every station they move into. So usually what
we would do there is say, I'm gonna keep this, this process tree as as
our example, and I wanted to track, my, my labor from my un wracking, my
handwork and my inspection separately. What I would likely do is have three different stations
tied
[41:04] to these processing steps and within that station I would, so let's just say on
on rack as an example, I have this unload station on this station we have
the option to auto-start a part or rack labor timer when parts are moved in
and or moved out of this station. So I would want to just make sure
that the, the steps that you want to track cost at have, have this turned
on
[41:34] and it does have a station on that step. And as long as it has
a station, every time a part moves in, it will start the timer there. Every
time that same part moves back out, it will stop it. Okay, it looks like
you got through all of 'em. And once again, if everybody, if anyone has further
questions, feel free to reach out to our support@gosteelhead.com email.
[42:05] And then I also wanted to do a reminder that next month will, there will
be no masterclass as we are hosting an in-person user conference called Revenue Riptide, where
we have, the option for hands-on training. So if anyone is interested in that, you
can check out revenue rip type.com. And thanks again Drew and everyone for joining today.
Thanks everyone. Hope to see you there. Bye.
Taxonomy tags
Steelhead product area
Job costing; timers; work boards; stations; margins; reporting insights
Feature / module
Labor timers; rack and part-account timing; maintenance timers; Parts Per Rack; margin analysis work order
and
sales order; part margin over time; Cost Labor and Operation insight; predictive depletion
and
sales order; part margin over time; Cost Labor and Operation insight; predictive depletion
Workflow category
Cost capture; variance review; rework analysis; outsourced processing; quoting feedback loops
Topics covered
Station versus part labor; operational burden rates; ovens without operators; expedite pricing on POs; BAE
rework
example drill down; plating multi-rack splits; Native Accounting credit notes scoped to PO
rework
example drill down; plating multi-rack splits; Native Accounting credit notes scoped to PO