Assembly and kitting

The bill of materials describes an output product and component quantities per explicit output basis. Routings order operations with instructions and labor or overhead bases. Work orders freeze the selected recipe, routing, output standard and planned quantity when released. A printing or packaging company can use this flow for stocked kit or repack work where those product and component records fit its process.

Warehouse Manager reviews release evidence before a work order becomes Released. Material reservations and issues remain linked to work order components. Assigned operations have planned start and end dates; The production log records actual good quantity, scrap and labor hours. Production completions record accepted terminal output and its allocated work-in-progress cost. Closing the order requires the residual variance to be addressed through the reviewed decision.

• Source. Keep the responsible entity, original document and current revision attached to the transaction.
• Decision. Send material releases and exceptions to the named reviewer with the exact scope and reason.
• Result. Record actual quantities and financial effects separately from plans and instructions.

Agree on base units, recipe versions, material issue locations and the operation that represents terminal output. Set standard cost and posting profiles before first production. Assign a responsible manager and confirm who records actual operation evidence.

Choose one output product, its base unit and a current recipe and routing. Define which operation is terminal output and who records actual issues, returns, good quantity, scrap and labor. Warehouse Manager releases the frozen work order; Finance Manager reviews a residual cost variance at close. Try each decision with ordinary accounts.

Release a small kit run from a frozen bill of materials. Issue part of the required components, record good output and scrap at the assigned operation, and post a partial completion. Compare remaining material, work-in-progress cost and planned output before closing. Repeat the completion request and check that it cannot allocate the same cost source twice.

Warehouse Manager should explain planned output, accepted completion and the unfinished remainder. Warehouse Operator should find the assigned operation and its actual material and labor evidence. Accountant should trace the work-in-progress cost used by the partial completion; repeating the same completion must not consume it twice.

• Work orders awaiting release — Work orders waiting for release with output product, recipe and planned quantity.
• Work order schedule — Released and active work by planned start and end dates.

Follow the related process and review the data model.