Unit Cost Calculation

Hi Folks,

We have a unit cost spreadsheet that was built in openoffice. I'd like to convert it to numbers and clean it up to be "numbers style" (i.e. not one gigantic table with a bunch of different sections). I'm having some trouble organizing this though. Here is what we have right now:

Row a contains things like the names of raw materials, types of packaging, & labor.

The first couple of column contain calculations on these like cost per KG of raw materials, cost per unit for packaging, etc).

The following columns contain each product. So each product has a column where you can enter in how much of each raw material, packaging, & labor are required to make it. The next column displays the cost for all of these things. At the bottom of this column is a summation of the total cost for this product. Then there is another spreadsheet that pulls these numbers to calculate margins and things of that nature.

I can accomplish all of this in numbers, separating all of the functional sections into different tables, but the problem is this: Say I go to add a new raw material or a new type of packaging, when I add a row, the rows in all the other tables become "off" by a row. That is, if I add a new raw material, then the table that has the product formulas no longer reflects the right amounts of each raw material because it's been thrown off by that row. Am I approaching this wrong, or is there some way to make numbers keep track of row/column additions & deletions across tables that reference each other? Thanks.

Macbook pro, Mac OS X (10.5.7)

Posted on Sep 7, 2010 9:53 AM

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11 replies

Sep 7, 2010 5:20 PM in response to HMayes

Hi HM,

I have taken a quick trip through a prototype of what I would do with your situation. Here's the screen shot:

User uploaded file

The only formulas involved are in the Product tables. I have illustrated one product table, "Product A". In column C of the product table is the expression:

=IFERROR(B*VLOOKUP($A,Raw Material :: A:B,2,FALSE), IFERROR(B*VLOOKUP($A,Packaging :: A:B,2,FALSE), IFERROR(B*VLOOKUP($A,Labor :: A:B,2,), "Not Found")))

The footer of column C has the simple expression: =SUM(C).

Hope this gives you some ideas.

Jerry

Sep 7, 2010 10:10 AM in response to HMayes

Cell references update with added/deleted rows/columns so your calculations should all stay the same when you add/delete rows unless the cell references are created by INDIRECT, ADDRESS, or OFFSET. Those functions are not typically used in most spreadsheets. But, then again, I am not quite grasping what your document looks like, what is contained in each of these tables, what is getting off by a row, and what formulas you are using.

If I was to approach this I would most likely have lookup tables to determine the cost of each component and use one of the lookup functions (LOOKUP, HLOOKUP, VLOOKUP) to pull the unit prices from the tables. You would add a new raw material and its price to the bottom of the raw materials lookup table and your product tables will use LOOKUP to find that unit price.

Sep 7, 2010 11:04 AM in response to HMayes

HM,

If you post a screen shot of your Tables, I'd bet that we could figure out your problem.

Part of your description is confusing to me and I don't know if it's my faulty interpretation, or if you may have said Row when you meant Column, or vice versa. If you read over your post and it still makes sense to you, then a screen shot would be valuable.

Jerry

Sep 7, 2010 11:32 AM in response to Jerrold Green1

Hi Jerry,

Thanks for the tip. I actually needed to clean the spreadsheet up and put bogus values in to comply with company policy. Anyhow, here is a sample of the spreadsheet

http://dl.dropbox.com/u/7499586/junk.png

Just imagine about 100 products and several hundred raw materials, a dozen types of labor and about 30 types of packaging. It's a monster spreadsheet.

The "units" under each product is the number of units per batch. You can see each product has two columns. One where you put in how much of a raw material, package type, and labor type go into each batch, the next calculates the cost for each item. Then it gets summed at the top for the total unit cost for that product.

Let me know if you have any other questions about it. Thanks so much for your help!

Sep 7, 2010 5:29 PM in response to Jerrold Green1

HM,

To continue. I know that I haven't tried to duplicate your example with all its elements. I just wanted to give you a concept to consider.

Each table has a Header Row. The Product table has both a Header Row and a Footer Row. In between the header and footer rows of the product table there is no variation in the formula so adding or deleting rows will not break the calculations or require any formula editing.

The formula in the body rows of column C checks each of the component tables in turn looking for a match. If it finds no match it returns "Not Found". For each item found, it multiplies the unit requirement by the unit cost.

This approach will require a separate table for each product. Another table could be constructed to list all the products and the total cost for each, by reference to the Total Cost cells.

Regards,

Jerry

Sep 8, 2010 4:56 AM in response to HMayes

HM,

The "big long formula" is really just a VLOOKUP repeated for each of the three component tables, wrapped in IFERROR statements to cause the sequencing through the tables. You could put all your components in one long table and simplify the lookup, but I felt that you would like the trade off of a longer formula for separate component tables that may be easier to manage.

I hope this solves your question for now.

Jerry

Sep 8, 2010 5:35 AM in response to Jerrold Green1

Yeah I had to modify the formula a little to fit our current component tables. It definitely makes sense for us to keep the components in separate tables though, because I can categorize them by type that way with different categories for each table. In any event thanks so much for you help with that. I really like the clean numbers approach vs the enormous single spreadsheet we had before. It's a lot easier to find the data you're looking for and your solution is extremely scalable which is important.

Thanks again!

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Unit Cost Calculation

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