Manufacturing
Bookmarks:
Both a BOM and a kitset |
Non-stock or non-diminishing products |
An example of a typical production job |
Manufacturing unit conversion to another finished goods unit |
How to reverse a production job? |
Reverse manufacturing
In a snapshot, there are three steps in the manufacturing process:
- Create job
- Start
- Finish
The benefits include:
- Real-time raw material stock levels
- Simple process means efficiency
- Capacity to add complex logics
Watch the vide below for a simple manufacturing process
A product can be setup or configured as a BOM and a kitset.
A BOM consists of the raw material products that are required to manufacture one unit of the finished goods product. A BOM holds stock, cost and it can be sold and purchased.
A kitset consists of the products to be sold as a bundle. For example: A burger meal as a kitset that consists of a burger, chips and a drink. A kitset does not hold stock, cost and can be sold. When sold, the cost for the kitset is the sum of it's items costs. It's inventory level is the lowest available inventory from it's items.
This is a flexible way of creating a product that can be used in a production job as well as selling it with different units.
For example:
Product: ABCDE-GALLON
Manufacturing unit: GALLON
Selling unit: LITRE or multiples of LITRE
It is a BOM that consist of RM-X, RM-Y, LABOUR, OVERHEAD, CLEANTIME and so on.
It is also a kitset that consist of 3 units of ABCDE-LITRE
Create a new production job to make 100 ABCDE-GALLON
The result:
1. inventory level of ABCDE-LITRE is increased by 100 times 3 = 300 litres
2. sell one unit of ABCDE-GALLON, it comes with 3 units of ABCDE-LITRE, and the inventory level of ABCDE-LITRE is reduced by 3.
Non-stock or non-diminishing products
Non-diminishing products can be added to a BOM or a production job.
For example:
- Create a new product SKU "LABOUR", and set it to
- Non-diminishing
- The unit to HOUR (or similar)
- The labour cost into the "Last buy price" field
An example of a typical production job
- Setup a BOM for making a single bicycle
- Create a new production job to make 100 bicycles
- Based on the BOM, the system automatically calculates how much raw materials are required and add them into the job
- Raw materials can be edited, removed and added
- There are three main statuses of a production job:
- Open
- In progress
- Completed
- Once a job is completed, the system automatically;
- Reduces the raw materials stock
- Increases the finished goods stock by the "Production quantity"
- The total raw materials cost will be used to calculate the finished goods' unit cost for receiving into stock.
- If the finished goods product requires batch tracking, then a production batch number will be prompted and created.
Optional: a production stage for the production job can be recorded so that from the jobs overview page, you can see what stage each production job is at.
To import bill of materials in bulk, go to Products menu > Import data > choose "Bill of materials" from the data type dropdown, then click to download the data template. It requires just three columns, see below:
A. BOM SKU (mandatory)
B. BOM description (readonly)
C. Item SKU (mandatory)
D. Item description (readonly)
E. Quantity (mandatory)
Manufacturing unit conversion to another finished goods unit
Use this technique to create a resultant unit on a different product when the production unit differs from the intended production unit.
1: Setup:
- If not created yet, ensure both products have been setup for the larger and smaller units respectively. For example:
- Product (with the larger unit): LEMONADE-GALLON
- Manufacturing unit: GALLON
- Product (with the smaller unit): LEMONADE
- Each GALLON is around 3.785 LITRES
- Setup a new kitset
- Edit the larger unit product, in this example: LEMONADE-GALLON
- Click "Kitset" on the left
- Enter the smaller unit product, in this example: LEMONADE-LITRE
- Enter the conversion quantity, in this example: 3.785
- Click "Save & close"
2: Doing a production job for the larger unit product:
- Create a new production job
- Enter the larger unit product, in this example: LEMONADE-GALLON
- The system detects that this product has a kitset with a conversion unit, it displays something like the below:
- In the above example:
- We are making 1 gallon of lemonade
- When the job finishes, the system will write 3.7850 litre onto the smaller unit product, in this example: LEMONADE (unit is litre)
- The result:
- Inventory level of LEMONADE is increased by: 1 gallon = 3.785 litres
- The larger unit product can also be sold. For example: selling one gallon of LEMONADE-GALLON, it comes with 3.785 litres of LEMONADE, and the inventory level of LEMONADE will be reduced by this amount.
Sometimes a completed production job might need reversing, and to do this, follow the steps below:
- On the manufacturing production jobs list page, search or bring up the completed job that to be reversed
- Click "Reverse production"
This will create a reversal copy of the job and opens it up for final confirmation
- Once ready, click "Finish & complete" to commit the reversal
The reversal job is an exact reverse copy of the original job. It includes the following steps:
- Negative production (output) quantity
- Negative raw material/service (input) quantities
- Reversal of batch number entries for both raw materials and finish goods product
If you wish to discuss your requirements, please email help@zeablue.com
Reverse manufacturing
Doing a reverse manufacturing job is the same as doing a normal manufacturing job and it has the same process. The differences are:
- Enter a negative quantity number into the production quantity field: the negative number indicates a reverse manufacturing mode. When the job is completed, the system reduces the finished goods stock and increases the raw material items stock.
- The reversal cost of the finished goods product calculates from its FIFO cost
- The unit costs of the raw material items will be calculated from their respective last purchase order cost
