Activity Based Culture from the Beginning
For over 30 years, Metalex has used activity based costing to ensure we are an efficient, cost-conscious and accountable company. By continuously using actual performance data to identify best practices, benchmark performance and opportunities for improvement, Metalex is committed to ensuring our customers receive excellent quality at the best possible value.
How Metalex Activity Based Costing Works for our Customers
All Metalex, employees record their daily effort in detail including job number, activity code and operation. Every day, the labor entered into our database is verified by the independent Kronos system, by comparing actual hours worked with recorded time, ensuring time allocated to each job is accurate. This detailed reporting system allows Metalex to monitor quoted vs actual performance at job or operation level, during any point in the manufacturing process and immediately correct disconnects before they impact our customers’ quality, cost or on-time delivery. In addition to disconnects, our system identifies benchmark performance. When a Metalex teammate completes an operation, if the actual hours are lower than the estimated and or historical run times, the system will set a benchmark that all teammates will be expected to reach in the future.
How Using Actual Activity Data Supports Accuracy In Our Quotation Process
Metalex activity based system is the foundation for our quotation process. For repeat jobs or similar parts, Metalex uses actual historical benchmark data to estimate cost. This process ensures that Metalex estimates are based on our best performance, not a historical average of mediocre or less competitive performances on the same or similar part or job. For first time prototype development jobs, all labor and cost estimates included in the quotation are used throughout the entire manufacturing process as a guide and performance indicator.
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Using The Interaction Without Boundaries Process To Achieve Affordability For All Of Our Customers
The Interaction Without Boundaries process gives every teammate the opportunity to identify and correct significant disconnects between estimated vs. actual hours in an environment where all teammates are accountable and no teammate stands alone. When a significant disconnect is identified at any point in the manufacturing process, the project engineer organizes a small team meeting with all the required teammates and completes the “Affordable Supplier worksheet” shown below. This worksheet requires teammates to review the quote cost vs actual cost, actual per unit benchmark cost if there is a quantity of more than one and the affordable which is the best competitive cost, based on actual data and market analysis.
Using this simple process to keep the scoreboard visible for all to see and constantly challenging teammates, cells, and areas to perform at their very best, Metalex ensures lasting value for our customers. At the same time, we provide our employees with the opportunity to be the best they can be and elevate their marketability status.