Production Orders are one of Abel’s six core manufacturing styles that can be configured in different ways to meet different needs:
- Manufacturing Order
- External Manufacturing Order
- Production Order (this topic)
- Jobs Order
- Shop Order
- Make Order
Production Orders are mainly used for processes that produce many outputs from one input. e.g. Processing one ton of raw fish into multiple end products (fish fillets, fish oil, fertilizer).
- Production Orders can handle two bills of materials.
- There is an expected yield of each output for a typical quantity of the raw material input.
- They also have full batch tracking of inputs (raw materials) and outputs (finished goods).
This diagram shows a typical Production process workflow for manufacture to stock:
The Production process can also be used for Nesting. Abel provides the ability to view and select combinations of work orders that can be batched together in a single manufacture. The Production Planner can choose any combination of work orders to nest together based on their sharing a commonality such as the same raw material or the same work center.
Splitting costs across multiple finished goods
Costs can be split across multiple finished goods. Abel can also split the costs automatically using a ratio that you pre-define on the Bill of Materials. e.g. Finished good 1 – 80%, finished good 2 – 20%, finished good 3 – 0%.
This example shows the setup for an 80 / 20 split of costs over two of the items being produced:
That was a quick look at Abel ERP’s Production orders. Here are some more of our manufacturing blogs:
To find out more about Abel ERP and how it can help your business, please contact us.
Until next time.