14/10/2013

Production Management

Abacus ® Production
Before the ERP system, buyers were first facing distribution and retail. The manufacturer was away from the buyer. With ERP systems, the shipment chain has become more integrated and many manufacturers sell directly to buyers. Many problems with traditional systems were reported due to the lack of integration between the planning of production, sales, purchase and accounting. If the planned production is not linked to the expected sales level, then there will be insufficient goods to answer the market's needs. Consequently, customer demand is being reduced for this type of product. This is a great occurrence in industrial production, where customer priorities are modified. An incorrect production forecast can lead to inaccurate purchases (raw materials), supplies of raw materials and unposted products. Surplus supply affects the flow of money and business profitability, because it causes considerable cost. In order to minimize surplus inventory, production must be on the correct sales forecast. Production planning and production processes include operating level and management processes. Operational level processes govern daily activities. The processes are a purchase, reception, quality control and inventory management. The purchase feature has the purpose of servicing the exact amount of raw materials and purchases for production. In the entry function, the items were examined and received, and information about the status of the received items was passed. Management supplies information on the inventory level of production material, use of materials in manufacturing and material location. A material bill provides a list of building parts used for the final product, including raw materials, ingredients, and components. The cost calculation system collects and reports information used in the production process to determine the exact cost of production, including material costs, equipment and personnel.