Business Central for Manufacturing Companies
Manufacturing companies are unique in that they both manufacture and distribute their products. Therefore, an ERP system for manufacturing companies must be strong in both manufacturing and distribution. You can read about Business Central for Distribution companies here as this is applicable to manufacturing companies.
Business Central contains key functionality for manufacturing companies including: bills of materials, , routings, production planning, production orders, recording consumption and output and finishing production orders.
Routings are defined as the steps necessary to produce a particular product. Routings give the ability to predict how long production will take and thus schedule production orders. The other key feature of routings is the ability to include labor and overhead in the cost of your manufactured products.
Production planning suggests what to produce, when and suggests the acquisition of raw materials needed in the production process. Demand Planning Forecasts can be utilized to predict future sales and get ahead of future production demands.
Shop Floor is an available extension of the standard BC functionality, where kiosks or workstations can be place strategically on the production floor where users can clock in or clock out and thus record time, consumption of raw materials and output of sub-assemblies and/or finished goods.
The key to a successful manufacturing implementation is understanding the production process and configuring the system to parallel the process and record all inputs and outputs along the way. The end result is properly costed product, leading to accurate gross margin calculations.
Business Central has strong web capability and can be connected to scales and/or machines to read data and record data in BC. This can lead to streamlined processes and improved data capture and accuracy.
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