Integra ERP Production is a proven software for manufacturers of different verticals in small and medium segments. It is an advanced purpose-built solution by which companies can manage their complete operations, from raw material procurement to finished goods to market. Integra ERP provides material planning and cost control mechanism, easy production lining for semi finished and final product. Raw material stock and costing will automatically affect as per the standard consumption ratio when entering a production voucher. In each production line costing is most important factor for the manufacturing companies due to process involving various functionalities that incur additional cost in each stage. After each stage of production line, deriving a semi finished product or a work-in-progress product with added cost of consumables and factory overheads; thus will reach the final product and work out its cost of production without any manual costing calculation. More over at each production stage raw material related to the product will automatically update stock and any time stock position in raw material storage will be correct.
In a process oriented manufacturing industry, real time costing is an important element as it directly affects the profitability of the organization. Cost accountant has to gather enormous information on cost of raw materials involved in different levels of production line and has to calculate operational overheads in each stage to reach at the final product costing. This is not possible without proper automation through a reliable ERP solution and IT infrastructure. Integra ERP provides the flexibility in automated production costing addition throughout the production line and helps the management in formulating cutting edge pricing policy. Day to day or batch wise costing is an important element for deriving proper pricing policy and thus help maintain the margin ratio.
Raw material procurement is also a himalayan task for a manufacturing industry. Market search, product and price comparison, rejection ratio analysis, quality checking mechanism, stock level management, lean time calculation etc are the most important factors in material management department. Automatic vendor grading and finding preferred vendor for raw material considering various factors like deliverability, proper timing, low rejection ratio, credit and flexible payment conditions will be a helping hand to management.
Style and nature of production process will vary product to product, according to the nature of production process and management policies of the production unit. Market conditions and marketing policies need to be analyzed to take care for selecting suitable production process. Generally there are 4 types of production methods namely line production, batch production, job production and piece work production. In a purely process oriented industry especially where performing continuous production, normally select line or batch production method. Integra ERP has considered various production methods that can be flexibly configured according to the need of management. At the time of implementation considering the product lining, production and management process, we can derive which method has to be implemented.
Distribution management is a process of creating and developing product distribution network between the source (Producer) and end user (consumer). This process includes, determine distribution area, deployment of staffs, product delivery methodology, distribution channel or supply chain and warehousing.
►Flexible production process selection according to the work flow design of the company.
►Day to day analysis of standard cost and actual cost comparison and fast decision making power in pricing policy.
►Easily understand what’s happening in every corner of their process line and make smarter decisions.
►The clear and correct data of the business and across the functional activities.
►Control over inventory and financials.
►Production process controls.
►Ability to “tailor” or configure the system to better fit specific vertical markets.
►Integration and synchronization of all aspects of the manufacturing process and accommodates both short and long production runs in the following manufacturing environments.
►Providing quotes that are accurate and keep costs under control.
►Managing material, labour and scrap during work in progress.
►Minimizes manufacturing cost and maximizes resource utilization.
Flow production or mass production is called a continuous process or a continuous flow process because the materials, either dry bulk or fluids that are being processed are continuously in motion, undergoing chemical reactions or subject to mechanical or heat treatment. Producing a finished product or multiple finished product by mixing or adding multiple raw materials/components or combination of semi finished item with added materials/components. This type production style is mainly practiced by food and packaging industry and also called mass production.
►RM (BOM - Bill of Material) setup for a finished goods or semi finished goods.
►Automatic deduction of RM from stock in respect of production quantity.
►Provision for manual issue of raw material.
►Set standard cost (budgeted cost of each raw material and manufacturing expense to get the assumed cost of production).
►Analyse the cost variant to enable revision in price policy or sales equations.
►Provision to add manufacturing expenses and factory overheads to get exact cost of production of a single unit.
►Periodical costing statement and costing analysis.
Line production is also known as discrete production. Some industries like assembling units practice line production method to arrive at to the final product after a series of line or stage production processes. During each line some additional raw material or consumables will be added along with the cost addition such as factory overheads. Assembling units like bicycle, car plants, toys, plastic products are example for line production units. Once the production process started it will go through the entire production line till it become the final product for testing and quality checking. Work planning and the material planning are the most important elements of success in this of style of production. We should ensure raw material/parts availability on time otherwise the process will be obstructed and will result to complete disarray in the production lines.
We should carefully implement the ERP system to manage all the activities. Integra ERP ensure proper implementation strictly according to the flow chart of the production process.
►Provision for multi layer assembly lines.
►Provision for setting multiple assembly stages and define the process of each assembly stage.
►Lean time for each assembly stages and for the final production.
►Bill of Materials (BOM) for each assembly stages along with the manufacturing overheads.
►Provision for sub assembly and its BOM and costing.
►Final product costing and comparison with the actual cost.
►Line wise working progress analysis and costing.
►Production planning and setting production targets.
►Material planning and supply chain management.
►Line wise update of production status.
►Final production update and closing.
►Provision for finished goods testing and quality checking.
►Raw material quality management and reporting.
►Production planning and controls.
Job production is also called as jobbing or one-off production. Production planning and costing factors will vary from job to job according to the customers need and specification. Each job or set of jobs will be treated separately and work designing, raw material proportion and consumption, machine and labour cost will be calculated each time for a customer specification based job production. Single or more quantities of a product may be produced under this method for a specific customer. Machinery manufactures, fabrication units, vehicle body building units are examples for adopting such production methodology. Costing and profitability factors and proportions will be calculated for each job according to the specification and design of work assigned.
Batch production is a manufacturing method used where production has to be controlled and managed batch by batch. Process oriented manufacturing units in sector like pharmaceuticals, food, paints, FMCG and chemicals are mainly operating through batch production methods. Right from the batch planning, production process may involve different stages of operation in between starting to final stage, i.e finished goods. In each stage, production process may derive some semi finished product to which either additional raw material / ingredients or clubbing semi finished products together and then to next stage. This process will continue up to the finished goods. We can analyse the costing factors of each batch along with the raw material consumption. as in each stage of operation there may be cost additions such as material cost, machinery cost, factory overheads and man cost etc.
►Batch production planning and costing.
►Provision to start and end batch process.
►Batch wise material planning.
►Batch wise production entry and stock update.
►Batch number tracking.
►Batch volume and cost analysis.
►Batch production statement
.►FG grouping and packing process.
►Bar-coding facility for packed items.
►Supply chain management for raw material procurement.