Article
Bill of Materials and Production Costing: Finding the True Cost of a Finished Product
How to build full product cost from a bill of materials: waste, labour and overheads under IAS 2, with a worked example and standard cost variances.
Production Management
Production orders follow sales demand and stock, and every order's consumption, cost and wastage is reported.
Production management software plans and controls manufacturing: what to make, with which materials and machines, and what each order really cost.
In HYP ERP, Production Management covers machines, work centers and production routes, Bills of Materials, planning documents, production requests, production orders and work orders, stock transfer requests and progress tracking, with consumption, cost and wastage reported by order, route and sales item.
HYP ERP
When planning lives in spreadsheets and execution in separate records, material shortages hold up production, work order status is unclear and actual consumption cannot be checked against the BOM. Wastage goes unmeasured and production cost arrives late.
Planners monitor sales orders, review stock availability and check reorder-level information before planning, so customer demand, available materials and stock gaps are known before production starts.
HYP ERP
Define machines, work centers and production routes to show where production happens, which resources are used and how a product moves through each stage. See Production Planning, BOM & Routing.
HYP ERP
Manage material BOMs and review BOM details: the materials, components and quantities behind each finished or semi-finished item, used for material planning, consumption tracking and production costing.
HYP ERP
Create and manage planning documents that align demand, materials, routes, work centers and operational readiness before execution begins.
HYP ERP
Move from demand to execution with production requests, production order networks, production order management and work order management, giving supervisors visibility of active orders, assigned work and follow-up.
HYP ERP
The Production Manager view and order progress documents show production status and progress, so supervisors see where work needs attention and planning and the shop floor stay coordinated.
HYP ERP
Raise production-related stock transfer requests and transfer details to move materials between storage locations, work areas and production locations, with each movement visible in inventory.
HYP ERP
Reports cover BOM consumption, consumption by route, consumption cost by order, consumption values by sales item, sales order production profiles and additional output or wastage, showing material usage, production cost, output performance and wastage trends.
HYP ERP
Product tour
A short walkthrough of Production Management in the live system.
Review sales orders, stock and reorder levels, then prepare planning documents.
Apply the BOM, route, machines and work centers to the product.
Issue production orders and work orders and transfer the materials they need.
Follow order progress in the Production Manager view.
Review consumption, cost, output and wastage by order, route and sales item.

Planners handle demand, materials and planning documents in one place; supervisors follow production orders, work orders and progress instead of tracking them manually with late shop floor updates.
Warehouse teams handle production-related material transfers tied to actual production needs, and finance reviews consumption cost and production impact by order rather than estimating it.
Quality teams support production inspection and issue control, maintenance teams help reduce machine downtime, and management monitors output, wastage and production performance from the same records.
Inside Production Management
Customer results
Qutoof (Al Qotuf Al Mobaraka Date Factory LLC) · United Arab Emirates
HYP has brought our core departments together on one cloud platform. We have a clearer view of operations and costs, and plan to build on this with Quality and Maintenance modules, followed by HYPOS when we open direct retail shops.
From the blog
Article
How to build full product cost from a bill of materials: waste, labour and overheads under IAS 2, with a worked example and standard cost variances.
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A simple factory quality process: where and how much to inspect, how to run a non-conformance report, and what ISO 9001:2026 auditors expect.
Read the articleYes. HYP ERP Production Management supports material BOM management and BOM details, defining the materials, components and quantities that each finished or semi-finished product requires.
Yes. HYP ERP Production Management defines production routes, machines and work centers, organizing production steps and operational flow so each order follows a standard path.
Yes. HYP ERP supports production requests, production order networks, production order management and work order management, and supervisors follow each order's progress in the Production Manager view.
Yes. HYP ERP Production Management reports BOM consumption, consumption by route, consumption cost by order, consumption values by sales item and additional output or wastage for management review.
Yes. HYP ERP production works alongside inventory, purchasing, sales, quality, maintenance and finance, so stock availability, material transfers and consumption share the same records as the rest of the ERP.
See a sales order become a planned, executed and reported production order in HYP ERP.