Role: Factory Absorption Manager

Role: Factory Absorption Manager

Location: Bothell, WA

Experience: 6+years

Job Description:

A Factory Absorption Manager typically refers to a professional responsible for tracking, managing, and optimizing manufacturing overhead absorption in a production facility. This role ensures that factory overhead costs (like utilities, indirect labor, depreciation, etc.) are properly allocated to products or cost centers an essential part of cost accounting and profitability analysis.

Key Responsibilities:

1. Overhead Absorption Analysis:

Monitor how overheads are absorbed into product costs.

Ensure alignment with standard costing or activity-based costing methodologies.

2. Costing & Budgeting:

Work closely with finance and operations to analyze variances in cost absorption.

Assist in budgeting factory overhead and tracking actual vs. planned absorption.

3. Efficiency & Utilization Monitoring:

Assess equipment, labor, and machine utilization rates.

Identify under-absorption due to inefficiencies or idle capacity.

4. Reporting:

Generate reports on absorption rates, variances, and factory productivity.

Provide insights to plant managers or financial controllers for decision-making.

5. ERP & Systems Management:

Use systems like SAP, Oracle, or other ERP tools to track and report absorption metrics.

6. Process Improvement:

Collaborate with operations and finance to improve cost accuracy.

Support lean manufacturing and continuous improvement efforts to reduce unabsorbed costs.