Processing data in Manufacturing

Before processing data, you must set up the system for your company.

Processing information through Manufacturing follows a series of logical steps. These reflect the way events happen in a company. The processing sequence you use depends upon your business and how you intend to use your Manufacturing software. You can adapt the checklist as not all of the listed topics will be applicable.

The following table is an example of a typical processing sequence.

Processing Steps		Where	For more information
1.	Add BOM A stock assembly and process costing system, which provides facilities to specify the structure of finished items in terms of sub-assemblies and components.s, (if you work in a repetitive batch environment).	Bill of Materials	Creating a BOM
2.	Add estimates Forecast project costs, based on expected costs of labour, machinery and operation times. In Manufacturing, estimates are produced for one-off items or non-repetitive batches., (if you work in a one-off jobbing environment).	Estimating	Creating an estimate
3.	Enter sales orders Documents that state the quantity, description and price of goods and services ordered. They also specify agreed payment terms and discounts, delivery details and other agreements pertinent to the sale and its supply. and allocate existing stock to the order.	Sales Order Processing	Creating sales orders Allocating stock
4.	Add make to stock Items that are not required for sales. items, (if you are planning to build items to add to stock).	Make to Stock	Creating a Make to Stock item
5.	Add sales forecasts The best estimate of future requirements. This is used as input to the MPS (Master Production Schedule). Forecast orders received should be subtracted from the forecast to leave a residual forecast in the master schedule. Total demands can then be calculated as orders plus residual forecast for each time period., (if you are planning to build stock, based on sales forecasts).	Sales Forecasts	Creating a sales forecast
6.	Plan production. (This is based on sales order shortfalls plus items to be made for stock.)	MPS	Reading demands
7.	Ensure sufficient resources are available to meet the production plan.	MRP	Running MRP
8.	Take necessary action where shortfalls occur.	MRP	Actioning recommendations
9.	Raise purchase orders.	MRP Purchase Order Processing	Running MRP Creating purchase orders
10.	Raise works orders.	MRP Works Orders	Running MRP Works order records Works order records
11.	Allocate raw materials The base materials from which sub-assemblies, components and finished goods are made. against works orders.	Works Orders	Allocating stock
12.	Print picking lists In accounts modules, this is a list that can be printed to support the sales order despatch process. The list details the stock items and where they are stored. In manufacturing modules, this is a list that shows the components required for a build. It shows the quantity required, and the bin location of the components. It is used in the warehouse to assemble the components required for production., route cards, job cards and operation cards as required.	Works Orders	Printing works order documents
13.	Receive goods.	Purchase Order Processing	Confirming goods received
14.	Issue components Raw materials used to manufacture finished goods./raw materials The base materials from which sub-assemblies, components and finished goods are made. stock.	Works Orders	Issuing stock
15.	Put finished goods Top level BOM. Contains raw materials and/or components. into stock.	Works Orders	Closing works orders
16.	Despatch goods (by raising a despatch note A note that is issued to the customer along with any goods that have been ordered.).	Sales Order Processing	Despatching goods
17.	Raise invoice.	Sales Order Processing	Preparing sales invoices