Batch and order costing is guessed, not measured
You know the sales price, but you don't know the true cost per good unit — so margin is a mystery.
The problem
Who feels it most
Finance/controlling, plant managers, and operations teams who can't explain cost variances.
How common is this?
Cost of poor quality and internal failure costs are significant in most manufacturing operations, implying meaningful variance when yield and rework are unmanaged.
Typical workaround today
Standard cost plus occasional variance analysis spreadsheets. Post-hoc explanations that arrive weeks after the batch was produced.
Why ERP / WMS doesn't solve it
ERP costing relies on standards and delayed postings. It doesn't automatically connect real-time yield loss, downtime, and labour to specific batches without heavy configuration.
Business impact
Margin erosion by product family that stays invisible
Wrong product mix decisions based on inaccurate cost data
Inability to identify which lines, shifts, or products are actually profitable
Operational batch cost per good unit from live production data
For each batch or order, compute cost per good unit from three components: material (standard or captured lots), labour (shift allocation or operator check-in), and yield (good/scrap from counters).
Dashboard shows top cost drivers per batch: downtime cost, scrap cost, giveaway cost, and speed loss cost — not just totals but breakdowns.
Compare cost per good unit across products, lines, shifts, and time periods — surfacing where margin is being lost.
Avoid full cost accounting complexity: start with 'operational cost' using readily available data, not theoretical allocations.
Export cost summaries for ERP reconciliation — optional integration, not a prerequisite.
Ready to solve this?
Book a demo and we'll show you exactly how Frontlink addresses this problem in your environment.