Inventory Manager Question:

☛ Policies and procedures?
☛ Bill of Materials (BOM)
☛ What is the process followed to establish a standard bill of materials?
☛ How does the process differ if a part is new or existing?
☛ Who approves the bill of materials?
☛ Who is responsible for entering the BOM into the system?
☛ What is the process for reviewing and monitoring variances between the standard bill of materials and the actual costs?
☛ How often are management reports prepared?
☛ Do the management reports contain the appropriate level of detail to identify root causes for the variance?
☛ Standard costs
☛ How are the standard labor hours by product determined?
☛ How are standard machine hours determined? Set up and run times?
☛ How are labor charges applied to the cost of inventory?
☛ How are the costs of labor checked for accuracy, completeness, etc?
☛ What is the process to update standard costs based on current procurement and production costs?
☛ How often are the standard costs updated?