Basics of Manufacturing
Basics of Manufacturing
ERPNext includes batteries for all needs of a manufacturing company, including upkeep of warehouses, workstations and machines, operations, finished goods, raw materials, tracking of bills of materials, planning and execution of work orders, purchasing, and many other things.
1. Master Data
You can maintain Warehouses (location), Workstations, Operations, Finished Products, and Raw Materials with the aid of ERPNext's Manufacturing module. Operations and their corresponding Workstations, which can be set based on the Finished Products in the Bill of Materials, are crucial for manufacturing. Warehouses are important for storing finished goods and raw materials. Users of ERPNext can designate a separate warehouse to store finished goods and raw materials.
More details are as below:
- Warehouse
- Workstation / Machine
- Operation
- Raw Material / Finished Good
- Routing
2. Transaction Data
You may keep multiple Bills of Materials (BOMs) for your Items with the help of the Manufacturing module in ERPNext. By obtaining your material requirements via BOMs, it aids in product costing, production planning, establishing work orders for your manufacturing shop floors, creating job cards, and planning inventories (also called Material Requirements Planning or MRP).
More details are as below:
- Bill Of Materials
- Work Order
- Job Card
- Production Plan
3. Types of Production Planning
There are primarily three categories of production planning systems:
- Make to Stock: In these systems, the items are sold to distributors or clients after manufacturing is planned based on a projection. All quickly moving consumer goods, such as packaged water, soaps, and other items, as well as gadgets like phones, are created to be stocked in retail stores.
- Make to Order: With these systems, products are only produced if a consumer orders a specific quantity of them in accordance with their specifications. a wedding cake, as an example.
- Engineer to Order: Each sale in this situation is a unique project that needs to be developed and engineered to meet the needs of the customer. Any custom office furniture, machine tools, specialised gadgets, metal fabrication, etc. are typical instances of this.
The majority of small and medium-sized manufacturing companies, including ERPNext, rely on a make to order or engineer to order system.
The Manufacturing module should be used in conjunction with the Project module to allow engineers to place system orders.
4. Manufacturing impact on Inventory
The stock transactions that have been made against the work order will determine its status. You can move raw materials needed to manufacture finished goods from a store to a warehouse where work is being done in ERPNext. Raw supplies from the warehouse for work in progress might be used by stock entry. You can choose to either consume the raw materials in bulk before adding the finished product, or you can consume the materials first.