flexiBake Tutorial 1

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• Publié par: Onkou
• Nombre de lectures: 88
• Langue: English

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flexiBake Tutorial 1
Tutorial 1: Calculating business overheads and defining default business
settings.
Business Overheads
When pricing a product (recipe) it is not adequate just to price competitively and assume that your
business has the same costs as your competitors. It is important to take into account the cost of
ingredients, labour, packaging as well as a portion of the cost of the business overheads (i.e. the
expenses involved in running the business). Overhead cost is an important factor in calculating the
cost of a recipe and is frequently ignored by bakeries.
flexiBake provides a convenient and easy means of calculating the Overhead Cost Per Person Per
Hour for your company. This is the average cost to the business of each person involved in the
production of the product. flexiBake uses the Overhead Cost Per Person Per Hour to calculate the
overhead cost associated with each recipe you enter.
For example, if a particular recipe calls for 30 minutes labour and the overhead rate has been
calculated at $12.00 per hour then the overhead cost applied to the recipe will be $6.00 (i.e. $12.00 /
hr x ½ hr).
With flexiBake determining the Overhead Cost Per Person Per Hour is simply a matter of entering all
the expenses incurred by your business annually to support production i.e. all your fixed costs, rent,
utilities, interest, cost of office staff and management, repairs, delivery vehicle and staff expenses,
advertising etc. These expenses should not include the production staff wages, or ingredient and
packaging costs. You can find all these expenses on your company’s financial statements or from
your company accountant. flexiBake provides appropriately named fields for you to enter these
values and in addition provides three custom fields to be used as required for your business.
Follow the steps below to navigate to the overheads window.
1. From the Activities menu select the
Setup Company option.
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2. Click on the Preferences
Tab and then click the
Calculate button.
3. The overheads window will be displayed as shown below.
Average Operating Days Per Month: This is the number of days on average that your plant
operates in a month, e.g. if you operate your plant 5 days per week, then the average operational
days per month would be 21 days and can be calculated as follows: 5 days x 52 weeks ÷ 12 months
= 21.67 days (you should round the value down to 21 days rather than up to 22 days since this will
cause your overhead cost to be slightly higher and result in a more conservative or safer calculation
of recipe costs).
Number Of Shifts Per Day: This is simply the number of shifts you run per day, generally 2 for 16-
hour operations or 3 for 24-hour operations.
Number Of Hours Per Shift: Enter the number of hours in each shift.
Average Number Of Production Personnel Per Shift: This is a somewhat subjective value, since
the number of production staff on the floor at any one time can fluctuate widely during different shifts
and at different times of the month or year. However, experience or a check of time sheets should
enable you to arrive at a figure that is representative of your operation. A typical figure for a smallish
bakery might be 5 (1 chef, 2 preparers, 1 packer and 1 casual staff member).
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Exercise: Create a new flexiBake Data file for your business. Then enter your business costs to
determine your overhead cost per person per hour.
To create a new data file,
select the New flexiBake
Data File option from the
Activities menu.
Choose a folder and
decide on a name for your
data file.
From the File menu you can easily open the data file you have created for your business or you can
choose to open the sample data file.
The name of the datafile you currently
have open will be displayed in the
window title bar.
Once you have entered these details, flexiBake will have arrived at a figure for your company’s
Overhead Cost Per Person Per Hour. Clicking on the OK button will save the data you have entered
and return you to the Setup Company Details window (Preferences Tab) where you will find the
Overhead Cost field populated with the value flexiBake just calculated.
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Enter your company’s average hourly wage for Chefs, Preparers, Packers and Casual Labour. These
figures are used to calculate the labour component of your recipe costs.
Recipe Waste Factor – this is the average percentage of total input ingredients wasted in the
production of a recipe. This value is used by flexiBake as the default Recipe Waste Factor for all new
recipes that are added. The default Recipe Waste Factor may however be overridden for a particular
recipe should the Recipe Waste Factor for that particular recipe be significantly lower or higher than
the average.
Packaging Waste Factor – this is the average percentage of total packaging material wasted in the
packaging of a recipe. This value is used by flexiBake as the default Packaging Waste Factor for all
new recipes that are added. The default Packaging Waste Factor may however be overridden for a
particular recipe should the Packaging Waste Factor for that particular recipe be significantly lower or
higher than the average.
Default Ingredient Cost Percentage – Your company’s average ingredient cost as a percentage of
total recipe cost. This value is often used in “rule of thumb” calculations to arrive at a selling price for
a recipe and is generally in the 35% to 40% range. flexiBake will use the value you enter here as the
default Ingredient Cost Percentage for all new recipes that you added. The default Ingredient Cost
Percentage may however be overridden for a particular recipe if necessary.
Default Retail Target Net Profit % - This is the percentage of profit that your company would like to
make based on the retail-selling price of the recipe. Whatever amount is entered here in the setup
screen, will become the default amount for every recipe. The amount will appear in the Profit Analysis
screen of every recipe. This default amount however can be overridden in the Profit Analysis screen
for a particular recipe if it is necessary.
Default Wholesale Target Net Profit % - This is the percentage of profit that your company needs
to make based on the wholesale price of the recipe. Whatever amount is entered here in the setup
screen, will become the default amount for every recipe. The amount will appear in the Profit
Analysis screen of every recipe. This default amount however can be overridden in the Profitn for a particular recipe if it is necessary.
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Display Packaging In Recipes – Check this box if you would like the packaging required for a recipe
to appear on the recipe printouts.
Clicking the OK pushbutton saves the values you entered on this Tab.
Company Details Window
Click on the Company Details
Tab.
Filling out the fields on the
Company Details Tab is
largely self-explanatory and
simply consists of entering
your company’s Address,
Telephone and Fax numbers
and Email and Web Site
Addresses into the applicable
fields. The Universal Product
Code (UPC) field can be filled
in if the company has applied
for a UPC. Entering the UPC
here enables the program to
automatically generate the
code in the Recipe Details
screen of flexiBake. Any fields that do not apply can simply be left blank.
Important Note: You cannot enter data into the Name field because your Company Name is associated
with your flexiBake license and is entered when you enter your serial number.
Recipe Format Window
Click on the Recipe Format
Tab.
From this screen you can
choose the recipe layout that
you want the printed recipe to
appear in. Choose between
the pastry/cake recipes and
bread/percentage recipes. In
Style choose from the three
choices that the dropdown
offers. As you click on each
one you will see a preview of
the layout in the image next to
the text box. When you have
chosen the one you want, click
on OK and all the information
will be saved.
End.
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