How production works in OLY ERP
Read this page first if you are new to manufacturing in OLY ERP. It shows the documents you use to turn raw materials into finished products, and how stock moves at each step.
The documents you use
| Document | What it is | Who uses it |
|---|---|---|
| Item | Each raw material, packaging material and finished product | Store, production |
| BOM (Bill of Materials) | The recipe: what goes into one batch of a product | Production manager |
| Work Order | An instruction to make a quantity of one product | Production manager |
| Stock Entry | Moves materials to the line and records what was produced | Store, production |
| Job Card | Records the work at each step (only if you use operations) | Line supervisors |
| Quality Inspection | Records a quality check and its result | Quality staff |
| Batch | A lot of goods with its own number and expiry date | Everyone |
The production flow step by step
- Set up the items. Create the raw materials (corn grits, oil, cheese seasoning), packaging (printed film, cartons) and finished products (for example "Corn snack 50 g, cheese").
- Write the recipe. Make a BOM for each finished product. It lists every ingredient and packaging item for a fixed quantity.
- Plan the run. Yonas creates a Work Order for the quantity he wants to make. OLY ERP reads the BOM and lists the materials needed.
- Issue materials. Abebe sends the materials from the store to the production floor. This is a Stock Entry of type Material Transfer for Manufacture. Stock moves from "Raw Materials - EF" and "Packaging - EF" to "Work In Progress - EF".
- Record production. When the run is done, Yonas records the quantity made. This is a Stock Entry of type Manufacture. The materials are used up and the finished packs go into "Finished Goods - EF" with a new batch number.
- Check quality. Quality staff record a Quality Inspection for incoming raw materials and for finished goods, if your setup asks for it.
- Sell. The finished goods are now available for the sales team to deliver.
How stock and cost move
- After step 4, the materials are still yours, but they sit in "Work In Progress - EF".
- After step 5, the materials are gone and the finished goods appear. OLY ERP gives the finished goods a cost based on the materials used (and operating cost, if you use it).
- So the value of finished goods follows the real cost of what went into them.
Good to know
- Your OLY ERP consultant sets up the default warehouses for production during onboarding.
- If you make several products for many sales orders, a Production Plan can create the work orders and material requests in one go. Ask your consultant whether you need it.
- Job Cards and Workstations are optional. Many food factories start without them and only use BOM, Work Order and Stock Entry.
- Never move materials to the line by hand with a plain transfer. Always use the work order buttons, so the work order knows what was issued.
Related
Last updated 1 week ago
Was this helpful?