A good month on paper
The accounts show a decent month. The presses were busy, overtime was high, and a big catalogue job went out on time. But when you ask whether that catalogue made money, nobody can say. It was estimated with a certain number of hours on the press and a certain spoilage. It ran over a weekend with two unplanned wash-ups, a paper problem and a second pass through the folder. Did it cost twice what was estimated, or roughly what was expected? The answer is a shrug.
Why actuals never meet the estimate
Estimates are precise because they are calculated. Actuals are vague because nobody records them at the point they happen. Operators are busy running the machines, and recording feels like paperwork.
- Press time is recorded per shift, not per job, if at all.
- Makeready, wash-ups and plate remakes are not separated from run time.
- Paper used is assumed from the estimate, not counted.
- Finishing time is shared across jobs in a way nobody tracks.
- Outwork costs and courier charges arrive later and are not added back to the job.
Pricing in the dark
Without actual costs, pricing drifts. Jobs that always overrun keep being quoted the same way. Customers who look profitable because they spend a lot may be the ones whose jobs are always difficult. Products that you think are bread and butter may be loss leaders once finishing is counted. None of this shows up in the monthly accounts, which only give the total. It shows up as a busy factory that somehow does not make the margin it should.
Capturing actuals without burying the floor
- At each station, operators start and stop jobs on a screen or tablet, choosing makeready, running or a problem reason. It takes seconds.
- Sheets used and spoilage are recorded at the end of each step, or read from press counters where the machine exposes them.
- Outwork costs from matched supplier invoices and courier charges are added to the job automatically.
- Each completed job gets a cost sheet: estimated against actual for press time, finishing time, paper and bought-in items.
- Reports roll these up by customer, product type and machine, showing where the estimate is consistently optimistic or generous.
- Estimators see the actuals for similar past jobs when they price new work, so the feedback reaches the people setting prices.
| Cost line | Estimated | Recorded from |
|---|---|---|
| Makeready | Estimating rule | Station start and stop |
| Run time | Speed times quantity | Station time or press counter |
| Paper and spoilage | Allowance | Sheets issued and counted |
| Finishing | Machine rate | Finishing station time |
| Outwork | Supplier quote | Matched supplier invoice |
Knowing, not guessing
After a few months you can see which types of job overrun, which customers' work is harder than it looks and which machines lose most time to makeready. Estimators adjust their rules based on evidence. Sales conversations change: you can talk to a difficult customer about artwork or late changes with a record in hand. The monthly accounts start to make sense, because you can see which jobs made the number.
We keep it honest: recording only works if it is quick for operators, so we design the screens with them and start with the stations that matter most.
Does this describe your costing?
- You know monthly margin but not job margin.
- Nobody compares estimated hours with actual hours.
- Some customers feel unprofitable but you cannot prove it.
- Spoilage is assumed rather than counted.
- Estimating rules have not changed in years.