Customer needs 100,000 of quantity, and the system manufactures 1000,000 for the particular customer.
To maintain Finish Good stock
Company decides to manufacture and keep pre-manufactured stocks
Customer Order
The Customer places an order mentioning his requirements. E.g. Height, Width, Gazette, Colours, Thickness
Pre – Costing - Before confirming the Order, the system allows the cost price to be decided using Pre-Costing. This pre-costing captures the customer’s requirements and calculates the cost which could be the manufacturing cost and allows entering profit margin to decide the ‘Selling Unit Price’.
Job - If customer agrees with the Selling Price, the System generates a JOB for each item to be manufactured. One job for one manufacturing item
Bill Of Material - When creating BOM, it decides what raw material is to be used for the job and their consumption. This consists of 5 main parts. Main Material consumption (E.g. LLDPE,PP) Mixing Material consumption (E.g. LDP) Lamination material Consumption (E.g. Adhesive, Hardener and Solvent) Printing material consumption (E.g. Ink, Solvent) Master Batch material consumption
Pre-Monitoring for a Job - This generates a report including the required raw material consumption for the job and required raw material stock in hand.
Material Issuing (From Stores to Factory Floor) - If the decided on-hand Stock of raw material is not enough, system allows to select substitute item of enough quantity in hand. Partial issuing is allowed.
The issuing quantity can’t be more than the quantity decided at BOM. When you want to issue extra quantities (more than BOM quantity) of Raw material, the system allows this option under approval. Raw material which are not identified at BOM level, but are required to be issued, can also be issued from the system, again under proper approval.
System generates reports of BOM issue consumption, Extra issue consumption and Out of BOM issue consumption
WIP Stock Maintaining
Material Returning - If there is any raw material remaining after finishing the manufacturing of the total item quantity, it will be transfer from the Factory floor to the Stores. It will help to calculate pure raw material consumption for the job.
Two types of Returns
Pure raw material return: - The Cost does not change
Mixing Material return: - E.g. (Ink + Solvent) Cost is reduced
Labour Cost Monitoring - Monitoring hours as OT hours or normal hours done machine wise for calculating the cost. At this stage capturing Wastage of the particular item is also performed. Labour and wastage reports are generated job wise, employee wise and machine wise
Finish Good Transfer - Manufactured Items are transferred to Stores from the Factory floor. Partial transfer is allowed. At this time, Raw Material Stock at the WIP for the particular job is reduced.
Overhead / Power consumption - Maintains a fixed percentage
Post-Costing - Calculate actual cost for the manufactured item using following
