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Multiple finished goods with single raw material

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  • February 6, 2024

Multiple finished goods with single raw material

In many manufacturing industries, particularly in chemical manufacturing, a common scenario arises where one Raw Material (RM) is used to produce multiple Finished Goods (FG).

Let’s consider the example of an oil manufacturing industry, where Crude oil serves as the Raw Material, and various products like Petrol, Gas, Diesel, and Kerosene are derived from it.

  1. Begin by creating an Item master in BizCentric. Crude oil will be designated as the RM, while Petrol, Gas, Diesel, Kerosene, etc., will be categorized as FGs. Each FG can have its unique Unit of Measure (UOM).
  2. Next, establish a Bill of Materials (BOM) for any FG you plan to produce from Crude oil. For instance, create a BOM for Petrol, specifying a quantity of 25 liters and utilizing 100 liters of Crude oil as RM. Other FGs like Gas, Diesel, and Kerosene can be included in the Scrap section of the BOM.
  3. During BOM creation, operations can also be added to streamline the production cycle and manage Work Orders effectively.
  4. Upon completing the Work Order, during the Back-flush entry, the Raw material will be consumed, yielding multiple Finished Goods.