Manufacturing Implementation Tips

Managing Work Orders using Formulas and Routing can be complex for many businesses. Before fully committing to using the Work Order feature, it's important to explore alternatives like Kitting to simplify the process.

Key Considerations for Work Order Management:

1. Kitting:

   • Consider using Kitting if managing Formulas and Routing within Work Orders seems too complex for your operations. Kitting offers a simpler approach to assembling items without the detailed tracking required by work orders.

2. Formula and Routing Versions:

   • Using Formula Versions or Routing Versions adds an additional layer of complexity to Work Order processing and planning. Enable this feature only if it's essential to your business. These versions can be useful for managing variations in production processes but should be avoided if not necessary.

3. Outside Services:

   • If you use Co-Packers to manufacture goods and supply part of the raw materials, it's important to implement the Process Outside Services feature to ensure accurate inventory costing. This ensures that both raw materials and finished goods are properly accounted for in your inventory and cost calculations.

4. Batch Manufacturing:

   • For companies producing Batch Items, you will require a minimum of two levels of Formulas and Work Orders to handle the complexity. Contact a GoldFinch consultant to discuss optional Formula configurations and input/output bin configurations to help minimize transactions and streamline your process.

Managing Inventory Costs and Work Order Output

1. Processing Work Order Output Before Final Costs Are Available:

   • You can process and consume the output of a Work Order before the final inventory cost of raw materials is available. This can be helpful in fast-paced operations where delays in raw material costs shouldn't stop production.

2. Daily Adjustment Routine:

   • Once the raw material costs become available, the Daily Adjustment Routine will automatically update the inventory cost of the output. It will also adjust the cost of any subsequent consumption and outbound Cost of Goods Sold (COGS) to ensure that your financials are accurate.

Recommendations

• Simplify When Possible: Start with simpler processes like Kitting or basic Work Orders before introducing more complexity through formulas, routings, and versions. Only enable advanced features if they are critical to your business model.

• Leverage Outside Services: If you rely on external partners, make sure to implement the Process Outside Services feature to track inventory and costs accurately.

• Consult with Experts: If you're managing batch manufacturing or dealing with complex work orders, reach out to a GoldFinch consultant to help configure your system optimally. Proper setup can reduce unnecessary transactions and simplify the process.

By carefully considering these options, you can better manage the complexity of Work Orders and optimize your manufacturing process in GoldFinch.