{"id":588,"date":"2020-01-16T06:44:54","date_gmt":"2020-01-16T06:44:54","guid":{"rendered":"https:\/\/www.maskbc.com\/blog\/?p=588"},"modified":"2020-01-16T14:52:01","modified_gmt":"2020-01-16T14:52:01","slug":"better-manufacturing-process-with-sap-business-one","status":"publish","type":"post","link":"https:\/\/www.maskbc.com\/blog\/better-manufacturing-process-with-sap-business-one\/","title":{"rendered":"Better manufacturing process with SAP Business One"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_custom_heading text=&#8221;Better manufacturing process with SAP Business One&#8221; font_container=&#8221;tag:h2|font_size:25|text_align:left|color:%231e73be&#8221; google_fonts=&#8221;font_family:ABeeZee%3Aregular%2Citalic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_column_text]<\/p>\n<h3>Many small and medium-sized manufacturing companies operate multiple standalone systems:<\/h3>\n<ul>\n<li>\n<h3>An <a href=\"https:\/\/www.maskbc.com\/blog\/5-benefits-of-accounting-erp\/\"><span style=\"color: #3366ff;\">accounting solution<\/span><\/a> for finance,<\/h3>\n<\/li>\n<li>\n<h3>Add-on third party solutions for <a href=\"https:\/\/www.maskbc.com\/blog\/topic-sap-helps-inventory-holding-optimization\/\"><span style=\"color: #3366ff;\">inventory<\/span><\/a> purchasing and planning<\/h3>\n<\/li>\n<li>\n<h3>A separate solution for inventory management<\/h3>\n<\/li>\n<li>\n<h3>Manual processes and spreadsheets for production planning and management of the production process<\/h3>\n<\/li>\n<\/ul>\n<h3><\/h3>\n<h3>Whilst this might have worked when your business was smaller, as your business grows these islands of information will become increasingly difficult to manage and you will lose ground on your competition who have implemented ERP solutions to manage all aspects of their business from a single, unified platform.<\/h3>\n<h3>At the end of the day, we want improved customer service, better cash flow and happier team members. The achievement of these objectives is almost impossible unless you invest in technology to help drive decision-making and streamline processes.<\/h3>\n<h3>Imagine a phone call from a customer asking about the availability of a manufactured item. Without immediate access to inventory information, manufacturing lead times and available to promise reporting it will be almost impossible to provide great customer service.<\/h3>\n<h3>Let\u2019s consider <a href=\"https:\/\/www.maskbc.com\/blog\/cost-center-accounting-in-sap-business-one\/\"><span style=\"color: #3366ff;\">SAP Business One<\/span><\/a> manufacturing functionality that can lead to real business improvements and outcomes: a <span style=\"color: #000000;\">Bill of Materials<\/span>.<\/h3>\n<p>[\/vc_column_text][vc_single_image image=&#8221;596&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221;][vc_custom_heading text=&#8221;Bill of Materials(BoM) in SAP Business One supports better manufacturing outcome&#8221; font_container=&#8221;tag:h2|font_size:25|text_align:left|color:%231e73be&#8221; google_fonts=&#8221;font_family:ABeeZee%3Aregular%2Citalic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_column_text]<\/p>\n<h4><span style=\"color: #000000;\">A Bill of Materials (BoM) is an effective way for manufacturers to organise the critical information that underpins production processes.<\/span><\/h4>\n<h4><span style=\"color: #000000;\">What exactly is a Bill of Materials? It\u2019s essentially a list of the raw materials or components, quantities, time, and steps required to manage the production or assembly of finished goods.<\/span><\/h4>\n<h4><span style=\"color: #000000;\">A BoM supports better planning, inventory management, costing and production efficiency\u2014especially when they are created within a comprehensive Enterprise Resource Planning (ERP) solution.<\/span><\/h4>\n<h4><span style=\"color: #000000;\">SAP Business One is a\u00a0leading ERP for small to mid-sized Australian manufacturers\u00a0precisely because of its strong capabilities when it comes to planning production runs, including the management of BoMs, works orders and MRP<\/span><\/h4>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Here are the different types of Bill of Materials available in SAP Business One&#8221; font_container=&#8221;tag:h2|font_size:25|text_align:left|color:%231e73be&#8221; google_fonts=&#8221;font_family:ABeeZee%3Aregular%2Citalic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_column_text]<\/p>\n<h4>SAP Business One allows you to create three different types of BoMs:<\/h4>\n<h4>1.<strong>Production BoM:<\/strong>helps you to process a standard production order by turning various components or raw materials into a finished product by making use of machinery and labour.<\/h4>\n<h4><strong>2.Sales or Assembly BoM:<\/strong>allows you to group individual sales items in stock to sell a \u2018parent\u2019 product composed of multiple components which are then issued from the inventory once the order is dispatched. Both BoMs are for a fixed combination of items, but you\u2019d use a Sales BoM if the customer needs confirmation of each component or wants to alter quantities.<\/h4>\n<h4><strong>3.Template BoM:<\/strong>Creates a list of items brought together for sale at the same time and gives you the flexibility to change the quantities, swap and delete items to customise a sales order.<\/h4>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;SAP gives you greater control over production with multi-level BoMs and routing&#8221; font_container=&#8221;tag:h2|font_size:25|text_align:left|color:%231e73be&#8221; google_fonts=&#8221;font_family:ABeeZee%3Aregular%2Citalic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_column_text]<\/p>\n<h4>You can configure BoMs to match your\u00a0production processes\u00a0using SAP Business One, including creating a single BoM with multiple stages with routing instructions.<\/h4>\n<h4>For example, Leverage Technologies helped a customer that makes products using aluminium sheeting to configure a multi-level BoM that was relevant to their specific processes. Cutting the aluminium sheet was one route, which mostly involved machine time but also some labour: a person to move the sheet in and remove the cut pieces.<\/h4>\n<h4>The next stage, bending the sheets, was virtually automatic and only included machine time. While the third stage\u2014trimming edges on the sheets\u2014required additional labour and clear instructions about how to complete the task.<\/h4>\n<h4>Managing production BoMs in SAP Business One also includes the ability to:<\/h4>\n<ul>\n<li>\n<h4>Add text as a line item so you can provide detailed instructions on techniques and methods.<\/h4>\n<\/li>\n<li>\n<h4>Group line items based on your process flow so you can break up the BoM by stages.<\/h4>\n<\/li>\n<li>\n<h4>Apply mass updates to BoMs and add or remove lines for easier maintenance.<\/h4>\n<\/li>\n<li>\n<h4>Create user-defined fields in BoMs that automatically carry over to production orders.<\/h4>\n<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;A better manufacturing process from SAP helps you understand and improve profitability&#8221; font_container=&#8221;tag:h2|font_size:25|text_align:left|color:%231e73be&#8221; google_fonts=&#8221;font_family:ABeeZee%3Aregular%2Citalic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_column_text]<\/p>\n<h3 style=\"background: white; margin: 0cm 0cm 15.0pt 0cm;\"><span style=\"font-size: 13.5pt; font-family: 'Arial',sans-serif; letter-spacing: .15pt;\">Costings can be included in BoMs, which rolls up within the system to give you a clearer picture of how much products actually cost to make.\u00a0<\/span><\/h3>\n<h3 style=\"background: white; margin: 0cm 0cm 15.0pt 0cm;\"><span style=\"font-size: 13.5pt; font-family: 'Arial',sans-serif; letter-spacing: .15pt;\">You can allocate a static cost for the set-up time of machines and a standard per minute\/hour cost for run time. You can then split those costs across multiple GL accounts, perhaps if you wanted to recoup the cost of investing in a new machine via a different expense account.\u00a0<\/span><\/h3>\n<h3 style=\"background: white; margin: 0cm 0cm 15.0pt 0cm;\"><span style=\"font-size: 13.5pt; font-family: 'Arial',sans-serif; letter-spacing: .15pt;\">It\u2019s possible to globally maintain prices within BoMs using SAP Business One. Each component item has a price, which is often based on its cost price. The system can keep track of the last cost price and the moving average cost for an item.\u00a0<\/span><\/h3>\n<h3 style=\"background: white; margin: 0cm 0cm 15.0pt 0cm;\"><span style=\"font-size: 13.5pt; font-family: 'Arial',sans-serif; letter-spacing: .15pt;\">Because BoMs in SAP Business One allows for precise costings, when you review your operation, you might decide the margin on production for some products is too low. It\u2019s straightforward to implement price increases (e.g., a 10% increase) based on the criteria you enter and apply this to all relevant BoMs.<\/span><\/h3>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Tie BoMs to planning, inventory management and purchasing for complete visibility&#8221; font_container=&#8221;tag:h2|font_size:25|text_align:left|color:%231e73be&#8221; google_fonts=&#8221;font_family:ABeeZee%3Aregular%2Citalic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_column_text]<\/p>\n<h3 style=\"background: white; margin: 0cm 0cm 15.0pt 0cm;\"><span style=\"font-size: 13.5pt; font-family: 'Arial',sans-serif; letter-spacing: .15pt;\">A production BoM is a useful \u2018shopping list\u2019 to guide manufacturing processes. Yet an accurate BoM is contingent on having clarity in other aspects of your operation such as understanding demand, lead times and stock availability.\u00a0<\/span><\/h3>\n<h3 style=\"background: white; margin: 0cm 0cm 15.0pt 0cm;\"><span style=\"font-size: 13.5pt; font-family: 'Arial',sans-serif; letter-spacing: .15pt;\">When you select a production BoM in SAP Business One you can include the product in the Materials Requirement Planning (MRP) run, to gain high-level visibility of supply and demand, materials and capacity constraints.<\/span><\/h3>\n<h3 style=\"background: white; margin: 0cm 0cm 15.0pt 0cm;\"><span style=\"font-size: 13.5pt; font-family: 'Arial',sans-serif; letter-spacing: .15pt;\">The SAP Business One MRP wizard provides you with incredibly useful recommendations about how to juggle your stock, initiate production orders and generate purchase orders to meet future demand. That\u2019s the beauty of an integrated, enterprise-wide solution that caters specifically to small and mid-sized manufacturers.<\/span><\/h3>\n<h3 style=\"background: white; margin: 0cm 0cm 15.0pt 0cm;\"><span style=\"font-size: 13.5pt; font-family: 'Arial',sans-serif; letter-spacing: .15pt;\">Whether your business involves discrete, process or assembly manufacturing, you need an ERP solution that handles Bill of Materials, works orders, MRP and kitting and contributes to better planning. SAP Business One makes it easy to manage materials, processes, and overall profitability.\u00a0<\/span><\/h3>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<h3><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.maskbc.com\/\"><strong>MASK Business Consultancy Pvt. Ltd<\/strong><\/a><strong>.<\/strong><\/span><strong><span style=\"color: #3366ff;\">\u00a0<\/span>\u00a0is \u00a0a\u00a0<\/strong><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.maskbc.com\/blog\/small-business-erp\/\"><strong>SAP ERP<\/strong><\/a><\/span><strong>\u00a0consulting and Intelligent Enterprise Solution provider having strong presence in <a href=\"https:\/\/www.maskbc.com\/blog\/sap-partners-in-mumbai\/\"><span style=\"color: #3366ff;\">Mumbai<\/span> <\/a>, <a href=\"https:\/\/www.maskbc.com\/blog\/sap-partners-in-pune\/\"><span style=\"color: #3366ff;\">Pune<\/span><\/a> and Gujarat<\/strong><strong>.\u00a0<\/strong><strong>MASK Business Consultancy Pvt. Ltd.\u00a0commitment\u00a0<\/strong><strong>to quality of service and expertise in IT has earned us the reputation as a preferred technology partner to many respected\u00a0<\/strong><strong>organizations.<\/strong><\/h3>\n<h4><\/h4>\n<h4>MASK Business Consultancy Pvt. Ltd. \u00a0confident that SAP Business One will \u00a0\u00a0help clients streamline all the processes and challenges such as changing customer demands, planning, Costing, Quality Control, real-time access to critical information, intense competition, real time inventory tracking, and co-ordination with suppliers and increase the revenue of your company. SAP Business One is an ideal ERP solution for SME\u2019s \u00a0that helps in maintaining a sustainable profit margin in a market.<\/h4>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_custom_heading text=&#8221;Better manufacturing process with SAP Business One&#8221; font_container=&#8221;tag:h2|font_size:25|text_align:left|color:%231e73be&#8221; google_fonts=&#8221;font_family:ABeeZee%3Aregular%2Citalic|font_style:400%20regular%3A400%3Anormal&#8221;][vc_column_text] Many small and medium-sized manufacturing companies operate multiple standalone systems:<\/p>\n","protected":false},"author":1,"featured_media":599,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[547,19,107,108,265,525,526],"yst_prominent_words":[565,568,571,570,566,28,26,552,555,541,226,25,24,549,237,230,567,27,32,569],"class_list":["post-588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-maskbc","tag-sap","tag-sap-b1","tag-sap-business-one","tag-sap-partners","tag-sap-partners-in-mumbai","tag-sap-partners-in-pune"],"_links":{"self":[{"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/posts\/588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/comments?post=588"}],"version-history":[{"count":8,"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/posts\/588\/revisions"}],"predecessor-version":[{"id":600,"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/posts\/588\/revisions\/600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/media\/599"}],"wp:attachment":[{"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/media?parent=588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/categories?post=588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/tags?post=588"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.maskbc.com\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}