Production process for Manufacturers

TEZ ERP® supports complete work-flow for Manufacturers. It has facility to define raw materials, semi-finished goods, finished goods along with quality parameters for each item. You can further define BOM (Bill of Materials) and use BOM of material requestion and production.


Accounting system for a manufacturing operation requires detailed inventory valuation based on the cost of goods consumed. These concepts are uncommon in other types of entities, or are handled at a more simplified level. A manufacturing business uses raw materials (RM) and Semi-Finished-Goods (SFG) as part of its production processes, and stocks at each level must be properly valued. This costing could be based on weighted-average method, FIFO or LIFO method. Costing could also include overhead costs such as labour, electricity etc. Factory overhead costs need to be aggregated into cost pools and then allocated to the number of units produced, which increases the recorded cost of inventory.

You might need to track machine-wise production, worker-wise production and you may need to use bar-codes or RFID tags to track this information. You should also be able to generate analytical reports like actual production v/s expected production and expected consumption of raw material v/s actual consumption.

BOM (Bill of Materials)

A bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies, subassemblies, parts and components, as well as the quantities of each, needed to manufacture a product. In a nutshell, it is the complete list of all the items that are required to build a product. You can also specify additional inputs, such as labour charges, electricity etc. to calculate the cost of finished goods. BOM can be used for generating indents (material requisition from warehouse for production against work order), for making production entries and for calculating the cost of finished goods.

Work Order

You can create work orders based on your Sales Order (Purchase Order received from customers). Work Orders can be subject to approval based on your work-flow settings. ERP helps you track pending work orders and completed work orders.

Indents (Material Requisition)

Indents can be created based on work orders. They can analyse pending items in the work order, compute raw-material required based on BOM and automatically create indents. You can track pending indents and details of raw material supplied against each indent.

Issue Slip (Stock Transfer)

Warehouse can see pending indents and issue raw-material against any indent. They could also create Purchase Order against pending indents or raise an indent for Purchase Department, if the sufficient stocks are not available.

Production Slips

Production department can create daily production slips based on work-orders. Standard consumption is automatically populated. Production manager could update actual consumption, along with the reason of variation. Bar-codes could be generated from work-orders and used as input for production entries.

Quality Control

You could specify quality control parameters for finished goods & semi-finished goods in material master. QC Parameters could be used evaluating the goods produced and test reading could be updated for each parameter. Goods could be approved or rejected based on QC parameters.

Finished goods stock

After QC testing, goods can be transferred to FG Stock at the warehouse using stock-transfer entries.


e-Business suite for SME

Sign up for a free Demo !