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Basics of Manufacturing

  • 80views
  • February 7, 2024

Basics of Manufacturing

BizCentric offers comprehensive solutions tailored to meet the diverse needs of manufacturing businesses. It includes features for managing warehouses, workstations/machines, operations, finished goods, raw materials, bill of materials tracking, work order planning and execution, procurement, and various other functionalities essential for seamless operations.

1. Master Data

The Manufacturing module within BizCentric facilitates the management of warehouses (locations), workstations, operations, finished goods, and raw materials. In manufacturing, operations and their associated workstations play a vital role, and these can be configured based on the finished goods outlined in the bill of materials. Warehouses are utilized for storing both raw materials and finished goods. With BizCentric, users have the ability to create distinct warehouses for storing raw materials and finished goods separately.

More details are as below:

  1. Warehouse
  2. Workstation / Machine
  3. Operation
  4. Routing

2. Transaction Data

The Manufacturing module in BizCentric facilitates the management of multilevel Bills of Materials (BOMs) for your items. It aids in product costing, production planning, generating work orders for your manufacturing shop floors, creating job cards, and inventory planning by determining material requirements through BOMs, also known as Material Requirements Planning (MRP).

More details are as below:

  1. Bill Of Materials
  2. Work Order
  3. Job Card
  4. Production Plan

3. Types of Production Planning

Generally, there are three main types of Production Planning Systems:

  1. Make to Stock: Production is scheduled based on forecasts, and the items are subsequently sold to distributors or customers. Common examples include fast-moving consumer goods like soaps and packaged water, as well as electronics such as phones.
  2. Make to Order: Items are manufactured only after receiving a customer’s order, typically tailored to the specific requirements of each order. An example would be a customized wedding cake.
  3. Engineer to Order: Each sale is treated as a distinct project and requires design and engineering tailored to the customer’s specifications. This category includes custom business items like furniture, machine tools, specialty devices, and metal fabrication.

Most small and medium-sized manufacturing businesses operate on a make-to-order or engineer-to-order basis, which aligns with BizCentric’s approach.

For engineer-to-order systems, the Manufacturing module should be complemented with the Project module.

4. Manufacturing impact on Inventory

The status of a work order is determined by the stock transactions associated with it. In BizCentric, you can transfer the necessary raw materials from the Store to the Work In Progress Warehouse. Subsequently, the raw materials can be utilized from the Work-In-Progress warehouse through Stock Entry. You have the flexibility to either bulk consume the raw materials and add the finished goods or consume the materials first and then add the finished goods.