ERPNext Manufacturing Module | Features | Process | Tutorial

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Manufacturing Module of ERPNext offers you with various features and process that is designed to streamline and optimize Production processes, ensuring efficiency and transparency across all stages of your organization. ERP Next, is an open-source Enterprise Resource Planning software, that has gained popularity for its modular functions that cater to various industries.

In this blog post, we’ll understand the tutorial and base process related to ERPNext’s Manufacturing Module, as well as how it integrates seamlessly with other apps for a holistic business solution.

Features of ERPNext Manufacturing Module

The Manufacturing application is loaded with features that make it an ideal choice for small to medium-sized businesses. Here’s a list of its core functionalities:

1. Bill of Materials (BOM):

The Bill of Materials is the foundation of any manufacturing process. ERPNext allows you to create detailed BOMs with all the necessary components, raw materials, and sub-assemblies required to manufacture a finished product. Features include versioning, cost analysis, and multi-level BOMs for complex products.

ERPNext Bill of materials — 2. Work Order Management:

Easily create and manage work orders for specific production tasks. Work orders are linked to BOMs, ensuring all required resources are accounted for.

ERPNext Work Order Management — 3. **Production Planning Tool:**

ERPNext offers a production planning tool that helps in planning production schedules based on available resources, pending sales orders, and inventory levels.

Generate MRP reports to ensure raw materials and components are available for production. This feature minimizes delays and helps maintain optimal inventory levels.

5. Capacity Planning:

Optimize machine and labor utilization through capacity planning. This feature ensures you do not over- or under-utilize resources.

6. Job Cards:

Create job cards for individual tasks or processes within a work order. This ensures clarity in assigning tasks to employees and tracking their completion.

7. Stock Entries :

Record stock movements related to raw material consumption and finished goods production. This keeps inventory updated in real time.

8. Quality Inspections:

Conduct quality checks at different stages as the system allows you to define inspection parameters and ensure only high-quality products move forward.

9. Subcontracting:

Manage subcontracted operations effectively by providing raw materials to vendors and tracking their production.

10. Integration with Other Apps:

Other apps seamlessly integrated are – Inventory, Sales, Purchase, and Accounting, ensuring end-to-end visibility and control.

How Manufacturing Process works in ERPNext ?

The production process in ERPNext is systematic and user-friendly, allowing manufacturers to manage every aspect of production. Below, we outline the key steps involved:

STEP 1. Create a Bill of Materials (BOM):

Navigate to the Manufacturing Module and select “Bill of Materials.”
Define the finished product, its components, quantities required, and any operational costs.
Save and submit the BOM.

STEP 2. Plan Production with the Production Planning Tool:

Access the Production Planning Tool to evaluate production schedules based on sales orders or forecasts.
Ensure that all raw materials required for production are available in stock.

STEP 3. Create a Work Order:

Generate a Work Order by selecting the Bill of Materials and specifying the quantity to be produced.
Assign the Work Order to a production floor or team.

STEP 4. Issue Raw Materials:

Once the Work Order is approved, raw materials are issued to the shop floor.
ERPNext automatically creates a stock entry for material transfer.

STEP 5. Record Job Cards:

Job Cards are created for specific operations or tasks within the Work Order.
Track the progress of each operation, record time spent, and assign workers or machines.

STEP 6. Perform Quality Checks:

Quality Inspections are conducted during or after production.
Any defects or rejections are recorded, and corrective actions are initiated if needed.

STEP 7. Record Finished Goods:

After completing the production process, record the finished goods in inventory through a stock entry.
The system automatically updates raw material consumption and finished goods stock.

STEP 8. Monitor Costs and Analytics:

Reporting tools helps you to analyze production costs, resource utilization, and overall efficiency.

How the Manufacturing Links with Other Modules

The strength of ERPNext lies in its interconnected modules, and the Manufacturing app is no exception. Here’s how it integrates with other key applications:

Inventory Management:

Raw materials and finished goods are automatically updated in the inventory during the production process.
Batch and serial numbers can be tracked for better traceability.

Sales Management (Selling):

This Module is tightly synchronize with the Sales to plan production based on confirmed sales orders.
Sales forecasts can also influence production planning.

Purchase Management:

Material requirements from the Manufacturing trigger purchase requisitions in the Purchase Module.
This ensures raw material availability for uninterrupted production.

Accounting & Finance:

Costs related to raw materials, labor, and operations are captured in the Accounting.
It also handles invoicing for subcontracted operations and cost of goods sold.

Human Resource Management:

Link employee attendance, payroll, and productivity to the manufacturing process.
Assign job cards to employees and track their performance.

Quality:

Quality inspections are integrated into the out of the box workflow, ensuring that only compliant products are moved to the next stage.

Projects Management:

For large or complex tasks, you can integrate the Manufacturing Module with the Projects Management to track timelines, budgets, and milestones.

Advantages & Benefits of ERPNext Manufacturing Module

Enhanced Efficiency: Automate and streamline production processes, reducing manual effort and errors.
Real-Time Tracking: Monitor production status, raw material consumption, and finished goods in real time.
Cost Control: Analyze production costs and identify areas for optimization.
Better Resource Utilization: Ensure optimal use of labour and machinery through capacity planning.
Improved Quality Assurance: Implement quality checks at every stage of production to maintain high standards.
End-to-End Integration: Connect manufacturing operations with sales, inventory, purchase, and accounting for a holistic view.

Step-by-Step Tutorial for ERPNext Manufacturing Module

Step 1: Setup Basic Configuration

Go to the Manufacturing settings and configure default workstations, operations, and warehouses.

Step 2: Create BOM

Navigate to “Bill of Materials” and create a BOM for your finished product.
Add raw materials, operations, and costing details.

Step 3: Generate Work Order

Select the BOM and specify the quantity to be produced.
Assign the Work Order to a specific workstation or team.

Step 4: Issue Materials

Use the “Stock Entry” feature to issue raw materials to the production floor.
Ensure all materials are accounted for.

Step 5: Record Production

Track each step of the production process using Job Cards and update progress in the system.

Step 6: Conduct Quality Inspections

Perform quality checks and record results in the Quality Inspection tool.

Step 7: Transfer Finished Goods

Once production is complete, record the finished goods in stock and update the Work Order status to “Completed.”

Conclusion

The ERPNext Manufacturing app is a powerful tool that empowers businesses to manage and optimize their production processes. From creating detailed BOMs to conducting quality inspections and integrating with other apps, it offers a seamless and comprehensive solution for manufacturers. By leveraging this module, businesses can achieve greater efficiency, cost savings, and improved decision-making. If you’re planning to implement ERPNext for your Production operations, now is the time to harness its full potential. With its user-friendly interface, robust features, and interconnected modules, It can transform how you manage your production workflows.

About Globalteckz :

Globalteckz is your ERPNext implementation partner with extensive experience in providing tailored solutions for manufacturing industries worldwide. Our expertise spans across countries such as India, the USA, the UK, the UAE, and Europe, delivering comprehensive Enterprise Resource Planning implementations that cater to the unique requirements of manufacturers.

We specialize in streamlining manufacturing workflows through customized ERPNext solution, ensuring efficient production planning, material management, and resource utilization. Our team has successfully implemented solutions for diverse sectors, including textiles, chemicals, machinery, and food production.

At Globalteckz, we go beyond standard implementations by offering custom development services to address specific operational challenges. Whether it’s integrating third-party tools, developing advanced reporting dashboards, or creating bespoke functionalities for unique processes, our solutions are designed to drive productivity and profitability.

Our end-to-end support includes consultation, implementation, customization, training, and ongoing maintenance. Clients benefit from our proactive approach, ensuring smooth transitions and long-term system optimization. By partnering with Globalteckz, manufacturing companies can leverage ERPNext’s robust capabilities while enjoying tailored solutions that align perfectly with their business needs. Ready to transform your Production operations? Contact us on sales@globalteckz.com