Production Orders

Introduction

The production module in Cashflow optimizes and controls the manufacturing process, breaking it down into two essential components: the Bill of Materials (or Recipe), which details the ingredients, labor, and costs needed for production, and the Production Order, which takes the Bill of Materials to the actual production phase, allowing you to select and multiply quantities based on the recipe. You can create a production order in two ways: directly or by using a previously defined Bill of Materials.

1. Direct Creation
   ‍If you choose to create a production order directly, you'll need to specify all the details yourself. This includes selecting raw materials, involved labor, and associated indirect costs. All of this is done directly within the production order, without reference to an existing Bill of Materials.
   
   To create a production order directly, in the main menu, go to Inventory, and then Production Order. In the listing, click the (+) button and then New Document.
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1. From a Bill of Materials
   ‍On the other hand, if you decide to create a production order from a Bill of Materials, the process is simplified. The system will automatically take all necessary elements (such as raw materials and labor) from the selected Bill of Materials. This means you won't have to manually enter these details as they will be copied directly from the Bill of Materials.
   
   To create a production from a Bill of Materials, in the main menu, go to Inventory, and then Production Order. In the listing, click the (+) button and then Copy From, choose the Bill of Materials from the dropdown list.
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In summary, the direct method gives you more control but requires more manual effort, while using a Bill of Materials can save time and minimize the possibility of errors by copying details automatically.

2. Creating a Production

The production process consists of two stages. First, you create a production order in the "Open" status. Then, upon completing the production, the status changes to "Closed." Let's go through both steps.

1) Creating a New Production Order

To create a new production order using a Bill of Materials, follow these steps:

• In the main menu, go to Inventory, and then click on Production Order.
• In the list of Productions, click the (+) button, and then select "Copy From" to choose the Bill of Materials.
• In the window that appears, select the Bill of Materials and the warehouse where the goods will be produced, and click Generate.
• On the Production screen, you will see the quantity of items to produce (this is a multiple of the minimum quantity), the status (Draft, Open), and the employee.
• In the Content section, you will find all the raw materials, labor, and indirect costs brought in from the Bill of Materials. Here, you can add or remove items or modify the labor cost if necessary.
• You can write additional notes related to this Bill of Materials in the Notes field.
• Click Save to save the document.

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2) Finishing Production

To conclude the production process and increase the inventory with the new products, follow these steps:

• In the main menu, go to Inventory, and then click on Production Order.
• In the list of Production Orders, find the one you want to finish.
• Click on the actions menu (three horizontal dots).
• Click on Complete. The status of the order will change to Closed.

2. Editing a Production

While a production is in the draft status, you can modify it. To edit a production order, follow these steps:

• In the main menu, go to Inventory, and then click on Production Order.
• In the list of Production Orders, find the one you want to edit.
• Click on the actions menu (three horizontal dots).
• Click on Edit.
• Make the necessary adjustments.
• Click Save to save the changes.

3. Voiding or Deleting a Production

To cancel or delete a production order, follow these steps:

• In the main menu, go to Inventory, and then click on Production Order.
• In the list of Production Orders, find the one you want to delete.
• Click on the actions menu (three horizontal dots).
• If the Production Order is in draft status, click Delete.
• If the Production Order is in open or closed status, click Void.
• Please note that you can only void a production if the product it produces is in stock.
• You will be asked to confirm the action.

4. Completing Production

To finish a production and increase your inventory with the new products, follow these steps:

1. Go to the main menu and click on Inventory.
2. Select Production Order from the menu.
3. In the list of Production Orders, find the one you want to finish.
4. Click on the actions menu (represented by three horizontal dots).
5. Click on Complete. The status of the order will change to Closed.

5. Production and Options

The Production Orders module provides a list of all created production orders and a set of options in the action menu (represented by three horizontal dots) for each order, allowing you to easily manage and track each stage of the production process. The options in this menu include:

1. Preview
   ‍This option allows you to preview the production order as it would appear when printed.
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2. Edit
   ‍If you need to make changes to a production order, this option allows you to do so. You can only access this option if the production is in Draft status.
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3. Copy to Bill of Materials
   ‍With this option, you can copy all items from a production to a new Bill of Materials.
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4. Upload File
   ‍This option allows you to add files related to the production, such as supporting documents or attachments.
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5. Audit
   ‍The audit feature displays the changes made to the document, allowing for a detailed tracking of modifications.
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6. Complete
   ‍This option lets you close an open production and increase the inventory with the newly produced items.
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7. Delete
   ‍If you need to delete a production for any reason, you can do so using this option. You can only access this option if the production is in Draft status.
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These menu options are designed to streamline the management of your production orders and provide greater flexibility and control in handling your entire production process.

Tips & Best Practices

To make the most of Cashflow's production module and ensure an efficient and smooth production process, consider the following tips and best practices:

1. Plan Before Starting
   ‍Before creating a new production order, review and ensure that the quantities in the Bill of Materials are accurate. A preliminary review can prevent future errors.
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2. Quantity to Produce
   ‍When adjusting the quantity to produce, make sure you understand the multiplier for the base quantity. Remember that this is a multiplicative relationship, so any changes can have a significant impact on the total production quantity.
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3. Convert Production to a Bill of Materials
   ‍If you have a production that is repeated often, converting it into a Bill of Materials will save you time in the future as you can use this recipe repeatedly.
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4. Production Order States
   ‍Familiarize yourself with the different states (Draft, Open, Closed). Each state has its own restrictions, so it's vital to know when changes can be made and when they cannot.
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5. Attach Relevant Documents
   ‍Use the "Upload File" option to add any documentation related to the production. Keeping documentation organized and easily accessible can be of great help, especially during audits or reviews.
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6. Use the Audit Feature
   ‍Make regular use of the audit option. This feature is essential for tracking any changes and understanding who made them and when. It's a useful tool for maintaining transparency and accountability in your production process.
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7. Exercise Caution When Voiding
   ‍Before canceling a production order, always verify the availability of the product that the order produces. Ensure you do not generate negative inventory.
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8. Regular Review
   ‍Regularly review Bill of Materials to ensure they are current and accurately reflect current production processes and costs.
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9. Document Using Notes Field
   ‍Use the notes field to include additional information or specific instructions that may be helpful during production.
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10. Training and Communication
    ‍Ensure that everyone involved in the production process is well-trained and understands how to use the Bill of Materials module. Clear and effective communication is key to a smooth production process.

By following these tips and best practices, you will not only ensure that your production process is efficient but also that your team is well-informed and prepared to handle any challenges that may arise.

Common Issues

Here are some common problems with the sales modules and their solutions:

1. Incorrect Selection of Bill of Materials
   ‍Choosing the wrong Bill of Materials when creating a Production Order can lead to the production of the wrong item. To avoid this, always double-check the Bill of Materials before proceeding with production.
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2. Errors in Quantity to Produce
   ‍Entering an incorrect quantity in the "quantity to produce" field can result in overproduction or underproduction. Make sure you understand the multiplier for the base quantity to prevent these issues.
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3. Inability to Modify an Order in Open or Closed Status
   ‍The inability to modify a production order once it's in Open or Closed status can be frustrating. To avoid this, verify and confirm all details before changing the status of the Production Order.
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4. Voiding Without Inventory Verification
   ‍Cancelling a production order without verifying the product's availability can lead to negative inventory. Always check inventory levels before canceling an order.
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5. Inconsistencies in Bill of Materials
   ‍If the Bill of Materials does not accurately reflect current production costs, it can lead to discrepancies and production errors. Regularly review Bill of Materials to ensure accuracy and currency.
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6. Lack of Communication and Training
   ‍Insufficient training and clear communication among those involved in the production process can result in errors and unnecessary challenges. Proper training and effective communication are essential for a smooth production process.

By addressing these common problems and implementing the corresponding solutions, you can optimize your production process and avoid many of the obstacles and challenges that may arise. Attention to detail, regular review, and clear communication are essential for a successful production process in the Cashflow production module.