The optional Kitting and Manufacturing module of EBMS is used primarily to manufacture products or create assemblies to distribute or sell. The amount of inventory items are increased using the manufacturing process rather than by purchasing items through an expense invoice. This module should be used in the following situations:
To create inventory products from raw materials.
To assemble inventory kits or assemblies before the sale of the item. Review the Components and Accessories > Components and Accessories Overview section for assembly instructions at the time of the sale.
To determine the costs for an item or batch of products.
To compile a materials list needed to manufacture an item or items.
The manufacturing process within EBMS can be accomplished using three different methods:
A simple manufacturing process can be used if the costs are derived solely by a predetermined list of raw materials and fixed labor costs entered in the inventory component list.
A more complex method can be used to create finished goods if the materials consumed list is not consistent. This approach to manufacturing should be used if the materials consumed are scanned or entered into EBMS at the time they are removed from inventory.
The combination of the Job Costing and the Manufacturing modules should be used to track a more varied source of actual costs. This EBMS tool can be used to record and analyze the costs of a specific item, batch of products, or a specific line of products. The job costing combination must be used if some of the costs are derived from expense invoices and payroll timecards.
The Manufacturing module loses much of its usefulness if the user does not maintain perpetual inventory and track the total count of inventory items in stock.
The Manufacturing module and the Inventory Component feature can accomplish the same thing, but they differ in a number of ways. For example, if the user is creating complete tool kits using the inventory component feature, the inventory count is tracked on each tool component at the lowest level. In the example below, inventory count would be tracked for the Hammer, Philips Screwdriver, Large Straight Screwdriver, Small Straight Screwdriver, Toolbox, 2 in wrench, and ½ in. wrench. No inventory counts would be tracked for the Tool Kit, Screwdrivers, and Wrench Set items if the Inventory Component feature is used. If the user wishes to track the counts of total assembled tool kits or wrench sets, the manufacturing module should be used. As tool kits are "manufactured" or assembled, the tool kit count is increased and the counts of all the components are decreased.
In summary, if the user wishes to assemble the tool kits at the time of the sale, the Inventory Components feature should be used. If the user wishes to assemble the kits prior to the sale at a predetermined date, the Manufacturing Module should be used. Review the Components and Accessories > Components and Accessories Overview section for more details on using the Inventory Components feature.
The manufacturing process is done in batches. The user is required to enter the list of items that were manufactured as well as the date and other information. If the user enters information in the Manufacturing window and does not process the batch, the inventory counts are affected in much the same way as entering items in a sales or purchase order and not processing the order into an invoice.
Continue with the next sections for more details on entering and processing a manufacturing batch as well as useful reporting and purchasing options.