The global market for industrial control and factory automation is expected to surpass the $155 billion mark by the end of 2017 and move upward to more than $239 billion by 2023, according to research from MarketsandMarkets. Why is this sector experiencing so much growth? Manufacturers everywhere are actively embracing the core tenet of Industry 4.0: automation. An estimated 1.8 million industrial robots are in operation in factories around the world, according to the International Federation for Robotics. Analysts for the organization believe this figure will increase to more than 3 million within the next three years, as cutting-edge corporations here and abroad adopt automated workflows designed to bolster productivity.

Of course, robots do not drive progress in isolation. Businesses must automate ancillary industrial activities and processes to match the world-class efficiency these machines are capable of achieving. As a result, many firms are adopting advanced software meant to streamline everyday enterprise practices, including job costing. Manufacturers of all sizes use this methodology to right-size their operations and forecast the production expenses that come with each and every order, TechTarget reported. Manufacturing organizations on the path to adopting large-scale automated technology like robotic production equipment or simply exploring initial options should consider installing advanced software that automates the job costing process. These solutions not only represent the first phase in the journey toward complete industrial automation but also facilitate short-term operational benefits that can catalyze short-term gains. Here are some of the more immediate advantages that come with adopting automated job costing software:

Easing the administrative burden
Companies with traditional job costing operations rely on human-driven workflows. Employees drive these processes, which normally involve multiple steps, starting with job identification, according to BizFluent. During this phase, job costing personnel identify an upcoming order. With this baseline data in hand, they then determine the direct costs associated with the job – a figure that includes material, manpower and other variables. They then assess indirect expenses using an established allocation rate, and then calculate a final cost, along with a revenue projection. This process can take considerable time, especially when it involves manual practices.

Automated job costing software offers a streamlined, computer-driven workflow that emphasizes speed. Instead of navigating multiple systems or working out job costs manually, operational personnel can easily access the integrated financial data they need to offer sound job cost projections.

Improving accuracy
Accuracy is, of course, essential when it comes to job costing. Manufacturers must go into every project with reliable figures or risk drastically overspending. The manual processes do not facilitate the kind of fiscal precision required to effectively determine job costs, as they are human-driven and thus susceptible to human error. Automated job costing software takes this risk out of the equation, allowing industrial firms to assess project expenses with confidence via integrated, powerful accounting modules. 

Reducing costs
Businesses that adopt automated job costing software and manage to achieve the benefits described above normally also experience operating cost decreases. With their administrative burdens reduced, workers can reallocate their energy toward activities that grow revenue and away from non-value-adding practices, which can cost $2,400 per activity per year. Of course, increased job costing accuracy lays the groundwork for additional cost savings, as operational personnel can churn out reliable projections that offer correct materials, production and staffing figures. 

With the pace of manufacturing automation quickening, it is essential that firms in the industrial space do all they can to optimize their workflows, including those related to seemingly unremarkable tasks such as job costing.   

Is your manufacturing organization interested in putting into place software that supports these improvements? Connect with Accent Software today. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving industrial businesses the power to streamline their backend systems, boost productivity and bolster their bottom lines. Reach out to learn more about how our offerings can revolutionize your enterprise, from the back office to the shop floor.