Mike on Manufacturing

Respect the Bill of Material!

By Mike Hart

The bill of material (BOM) is the foundation of any manufacturing system.  If you disrespect the BOM, you severely limit your efficiency potential.   

Disrespecting the BOM

You "disrespect" the BOM  when you don't give it center stage in your manufacturing processes.  Instead of using the BOM as the driver of MRP, purchasing, material issues, and costing, companies disrespect the BOM when they relegate it to the "cleanup" function of "backflushing" component inventory at the end of a job.

"Light Manufacturing" Is a Lot of Work!

By Mike Hart

Many small manufacturing companies choose to operate with a light manufacturing software package, believing that it is easier to use than full-featured manufacturing software. 

A "light manufacturing" system offers a basic bill of material that enables you to calculate an assembly's cost and deduct component parts from and add finished items to inventory in a single or two-step process. 

Don’t Limit Your Potential with a Light Manufacturing System

 

By Mike Hart

 

Many general accounting systems, including QuickBooks and Peachtree, offer the ability to allocate and deduct a set of kit components or a bill of material.   I refer to this type of software solution as a “light manufacturing” system. 

 

Is a light manufacturing system a good solution for an ultra-small manufacturing company, meaning one with well under 100 employees that only needs 5, 10, or 15 computer users?  Is a QuickBooks or Peachtree type system a good solution for a startup company?