Manufacturing and Production workflows vary greatly according to the industry and required outcome. Items may be:
• Manufactured to order or stock
• Assembled from inventory stocks, purchased components, or sub assemblies
• Modified or repaired
• Produced from raw materials received
Each separate process must be costed correctly to enable the manufacturing or production departments to assess their performance whether employing profit or breakeven accounting. To satisfy the costing process, raw materials, inventory stock, related
expenses, labor and machine can be controlled through various requisition and capture processes, part and final completion processes, back flushed, direct cost purchase, or any combination of these
Work In Progress is captured in real time and is supported by additional collection means such as RF units’ barcodes, time clocks, touch screens etc. Part and final completions transfer out of WIP in real time, either to an associated production process, to inventory stock, or directly to the customer dispatch process where the transferred time and materials or budgeted cost will be used for cost of goods sold. Variances are generally retained within the production department but can be consolidated if required.