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SAP Business One for Manufacturing

A crucial aspect for manufacturers would be to secure real time visibility into work order progress and ultimately managing production cost.  With SAP Business One, material requirement planning are well integrated with demand from sales orders & purchase orders for replenishment. Details from warehouse such as item masters, inventory levels, min/max, lead time & etc also supplements the production planning processes within SAP Business One.

Material Requirement Planning

The entire process is driven by production demand from the MRP. The MRP wizards helps you to plan and optimize leap time, when to produce, how much to produce and also how much materials to purchase shall it be insufficient. When making ideal production recommendations, SAP Business One takes into account of various internal supply and demand conditions. This includes current warehouse stock levels, existing purchase orders, committed sales orders, forecasted orders, lead times, minimum stock levels & etc.

By merging all relevant information and data in the planning stage, manufacturers are able to reduce cost by practising just-in-time management, reduce wastages and combining multiple orders for economies of scale.

Production Order & Costing

Production order may be created using predefined Bill of Materials (BOM) within SAP Business One. SAP Business One can also automate the creation of production orders derived from sales demand, forecast and stock level conditions. Once production has been completed, costing calculations are computed based on raw material components, overhead & variances if any. Finally, all the associated costs will be posted back to the accounting module in SAP Business One.

WIP Tracking & Production Status

SAP Business One may be configured to provide real time WIP tracking by production line, by order, by product or etc. With this information, production managers are able to monitor production progress and ensure timeliness to meet customer demands.