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ERP: Manufacturing Module

Manufacturing is the process by which raw materials are transformed into finished products. The role of the ERP manufacturing module is to complete the inventory management by implementing the operations specific to a streamlined manufacturing process.

Manufacturing recipes management in ERP

The first phase of the process is represented by the entry of a project into manufacturing process and it involves the generation of recipes, based on which the final product will be created. In the ERP system it is named composed product and it can have one or more attached recipes. The recipe types are: promotion, manufacturing, composition, decomposition.

• A promotional recipe is used if there is no manual labor involved. Eg: if you buy 10 pencils you get a free sharpener. When such a promotional product is selected, the system automatically discharges the components.
• Composition, decomposition or manufacturing recipes are used in specific processes.

Each recipe can have one or more versions in order to avoid unnecessary overloading of product listings in case of small series or unique manufacturing.

Composition

It represents the process by which a compound product with an attached composition recipe is created. The workflow may look like this: issuing the composition order, generating the transfer of raw materials into the manufacturing location, issuing the entry and consumption bills associated to the composition order, transfer to the sales location.

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Decomposition

It’s the reverse process of composition. Specific for this process is the way in which the cost of the decomposed goods is transferred to the resulted products.

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Specific documents in the manufacturing process

Consumption note
It allows recording the consumptions of raw materials resulted in the manufacturing process.

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Service consumption note
The registration of the costs of services performed within the manufacturing process is realized in the Internal Operations module, through the service consumption note.

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Manufacturing order
It is used for highlighting the entry into production of the raw materials. On the manufacturing order only the products that have at least one active recipe attached can be attached.

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Entry note
This document is used to illustrate the entry into storage of the products resulting from the manufacturing process.

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The Wizards available in the ERP manufacturing module are:

The Wizard for distributing consumption notes on manufacturing orders.

It is used for distributing the consumption of raw materials recorded in the ERP on existing manufacturing orders. This wizard requires that the consumption notes are operated independently from the manufacturing orders, the consumption of materials being registered later. This wizard connects the consumption note with the manufacturing order according to the associated recipe.

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The Wizard for distributing service consumption notes on manufacturing orders.

The services to be included in the final price of the products are distributed in the production process through this wizard. It works the same as the previous Wizard, the difference being that the item is non stock (Eg. salaries, amortization, labor, energy, gas heat, etc.)

The Wizard for distributing entry notes on manufacturing orders.

It is used when the entry notes were created separately from the manufacturing orders and their distribution is required for monitoring the traceability of the entire process.

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The Wizard for generating manufacturing orders from entry notes.

This wizard will be used if the manufacturing order is created after the production process. In order to be used during the production, the entry notes for the obtained goods are created, and then the manufacturing orders are generated.

The Wizard for generating consumption notes from manufacturing orders.

It facilitates the rapid generation of consumption notes directly from manufacturing orders. Unlike the standard workflow through which the consumption note is created by taking the items from the recipe associated to the manufacturing order, through this wizard the generation of consumption notes is done bulk, with the possibility of editing the consumption in the wizard if it has different values.

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The Wizard for generating entry notes from manufacturing orders.
It is intended to establish the costs occurred in the manufacturing process starting from registered consumption notes and it provides an easy way to edit the information from the entry note. The entry price of an article obtained in the production process may be determined on the basis of the costs generated in this process or it can be one previously established. This Wizard allows you to select how the price will be determined from the cost of items obtained from own production.

Distribution of manufacturing costs.
This functionality covers a workflow where the estimated consumption differs from the actual consumption and/or the estimated production is different from the actual production.

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