TEKOA
Software: The Path Through Inventory Management
Routing Steps Through Your Manufacturing Floor
Every single product that is made by a company has a route that it must complete before fully becoming the promised product. The TEKOA ERP makes it easy to route the exact steps necessary to complete a product. In addition, it also allows you to calculate the totals for the production costs.
Fixed Cost
To create a
fixed cost step, click on the fixed cost option. For this example, the fixed
cost will be the employee salaries for producing item x. To create the fixed
cost step, select the type of the cost, whether it is automatically occurring,
or manual. Enter a step code and a title for the fixed cost step for
identification purposes. Add the hours it takes to complete the step, and the
cost associated with the route step. Select the GL account that is affected by
the step, in this case it would be salaries expense since we are dealing with
manufacturing line employee’s salaries. One you have entered the correct
information, click “Create Step” to create the route step.
Variable Cost
To create a Variable cost step, select the Variable Cost button. In this example, our variable cost will be the cost to repair a machine that is essential for production. To create a variable cost step, select the type, whether the cost is automatically occurring or manual, enter a step code and title to identify the step, enter a description, enter the hours it took to complete the step, in this case it took 3 hours to repair the machine, and enter the cost associated. Set the step quantity per scan to 1 because the machine only broke down and was repaired once. If the cost is associated with each unit in the order quantity, then select order quantity instead. Once you have completed this step, click “Create Step” to conclude the variable cost step creation process.Material Issue
Select the Material Issue Step from
the route step selection menu. Creating this type of step lets the user issue
material to be used in the manufacturing process. Enter a step code and title
so that the step can be identified in the system. Enter the hours it takes to
complete this particular step. You can add multiple components to the issue by
clicking the “List” button. Select the component from the prepopulated drop
down list. The user can add as many components as is needed to complete the
issue. Once the correct components have been selected, Click the “Finish
Button”. Specify what ware house the issue of materials is coming from, as well
as the step quantity per scan. For this step it will most likely be order
quantity, but there are always exceptions. Once you are satisfied with this
click “Create Step”.
Material Transfer
The material transfer step is for
transferring materials from one internal warehouse to another to be used in the
manufacturing process. Click on the materials transfer button in the route step
selection menu to begin this process. Set the type, whether the process is
automatic or manually occurring, create a step code and title so that the step
can be identified in the system. Input the number of hours required to complete
this step and the component that is being transferred from one warehouse to
another. Select the form warehouse and the to warehouse for the materials
transfer. The step quantity per scan can either be order quantity or 1 unit
depending on the situation and materials needed. Click the “Create Step” button
to finalize this process.
The print step simply allows the
user to print a report of the process. As before, select whether this is an
automatically occurring process or manual. Create a step code and a tile for
the print step. Enter the number of hours and input the URL of the report that
is being used. After you have successfully completed these steps, click on the
“Create Step” button to finish up.
Production Labor
The production labor is used to keep
track of the labor hours used to manufacture the item in question. To add a production labor route step, click
on the production labor route step tile. As with previous steps, be sure to
specify the type, give the step a step code, and create a title and description
for the step. Specify the about of hours it took total to complete the item.
The step location will be the manufacturing area in which the production labor
took place (i.e., SEW, WELD) and the step tool is the tool used to complete the
production labor step. Below is an example of what the step should look like
when it is filled out. Click “Create Step” to finalize this route step.
Complete Production and Close Order
Complete Production is the route step used when the manufacturing process is complete and the item is ready to be shipped out. I before, enter the type, the step code, the title, and the description. Enter the hours that are necessary to complete this step. Select the destination warehouse, the warehouse that the finished item will be shipped to. Enter the step quantity per scan. Click “Complete Step” to complete the process. The Close Order route step is similar used to close out the order. In the close order step the user will enter the type, step code, title, description, hours for the order, and rather or not to ignore at roll up. “Click Create Step” to finish the route step process.
In conclusion, the inventory route is a complex process. By better managing it, it can be made more efficient. This is what the Tekoa ERP does for you. Simply input the routs and costs, and it does the rest. For more information, visit the TEKOA ERP for Manufacturers.
Comments