Bill of materials
What each finished item is made of, in what quantity, with versions when a formulation changes.
- Multi-level BOM
- Version history
- Yield and wastage allowance
06Manufacturing · ERP
Manufacturing ERP for Production, Materials and Finished Goods
Raw materials, production runs, finished goods and warehouse stock tracked in one system — so you can see what was consumed, what was produced, and what it cost. Built for manufacturers running real production floors in Sri Lanka.
- Bill of materials
- Material issue and usage
- Production batches
- Finished-goods stock
Where manufacturing loses money quietly
Manufacturing losses rarely arrive as one large event. They accumulate in the gap between what was planned, what was issued and what came back as finished goods.
- Material issued to the floor is recorded on a slip, so usage against a batch is reconstructed later — if at all.
- Wastage is known by the supervisor and by nobody else.
- Finished goods reach the warehouse before the paperwork does, so stock is wrong for a day or a week.
- Costing is done on standard rates because actual consumption per batch is not available.
- Purchasing buys raw material on gut feel, then holds too much of one item and runs out of another.
A manufacturing client told us the change was being able to monitor production, material usage, finished goods and warehouse stock in one place — which is exactly the gap above, closed.
A production run through the system
Each step records a stock movement, so cost and quantity stay attached to the batch that produced them.
Plan the run
A production order is raised for a quantity of a finished item, exploding its bill of materials into required raw material.
Check material availability
Required material is checked against stock, and shortfalls are visible before the floor starts rather than mid-run.
Issue material
Raw material is issued against the production order, moving stock out of stores and onto the run.
Record production
Output is recorded against the batch, along with wastage and any rework, so actual usage is captured at source.
Receive finished goods
Completed output moves into finished-goods stock and becomes available to sell — immediately, not after paperwork.
Cost the batch
Actual material consumed against the batch gives a real cost per unit rather than a standard assumption.
Modules a manufacturing implementation covers
Scope depends on how many stages your process has and whether you sub-contract any of them.
Production orders
Planned runs with required material exploded, tracked from release through to completion.
- Run planning
- Material requirement
- Status per order
Material issue and return
Issue against a run, return of unused material, and full traceability of what went where.
- Issue against batch
- Unused material return
- Batch traceability
Finished goods
Output received into stock and available for sale, with batch identity retained.
- Batch-wise finished stock
- Warehouse locations
- Available-to-sell position
Wastage and rework
Recorded at the point it happens, so it becomes a number instead of a rumour.
- Wastage per run
- Rework tracking
- Wastage trend reporting
Warehouse and dispatch
Storage locations, transfers and dispatch to customers or to a distribution arm.
- Location-wise stock
- Internal transfers
- Dispatch documents
Production reporting that survives a management meeting
Every figure traces back to a recorded movement, so it can be defended line by line.
- Planned versus actual material consumption per production run.
- Wastage by item, run and period.
- Actual cost per unit produced, based on material actually issued.
- Finished-goods stock by batch and location.
- Raw material coverage — how long current stock supports planned production.
How the implementation runs
The sequence is the same across industries — what changes is the detail captured in the first step.
We start with a free requirement study on your site, produce a written scope with a fixed quotation, then build in phases with a demo at the end of each one. Masters and opening balances are migrated and reconciled before go-live, staff are trained on their own data, and support continues after handover. The full implementation process is set out on the main ERP page.
Manufacturing ERP questions answered
Does the system handle bills of materials?
Yes. Each finished item carries its bill of materials, which is exploded into required raw material when a production order is raised. Multi-level BOMs and version history are supported where the process needs them.
Can we track wastage per production run?
Yes — wastage and rework are recorded against the run at the point they happen, which is what makes wastage reporting meaningful rather than an end-of-month estimate.
Does it cost each batch using actual material used?
Yes. Because material is issued against the production order, cost per unit is calculated from what was actually consumed rather than from a standard rate.
Can it cover both manufacturing and distribution?
Yes, and several of our clients run both. Finished goods flow from production into the warehouse and out through the distribution process without a second data-entry step — see our distribution ERP page for that side.
Related ERP pages
Put your production floor on the same system as your stock
Describe your production process — stages, materials, wastage points — and we will map it to a production module and quote the implementation in writing.