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 Planning, BOM & Routing
BOMs, routes and work centers
Production Planning, BOM & Routing defines what each product needs before production starts: machines, work centers, routes, material BOMs and planning documents. Production orders then start from a complete, standard structure.
BOM, routing and planning capabilities
Many production problems start before the first order reaches the floor. An incomplete BOM, an unclear route, an undefined machine or an unchecked material position leads to delays, wastage and cost issues, and shortages are found too late.
Machine definition
Record the machines used in production, so planners know the available equipment and can link each operation to the resources it needs.
HYP ERP
Work centers
Organize production areas, departments or operational units as work centers, giving routes a defined place to run and each area clear responsibility.
HYP ERP
Production routes
Define the operational path to manufacture each product, standardizing the steps and tying each operation to a work center for consistent execution.
HYP ERP
Material BOM management
Set the components, raw materials, semi-finished goods and quantities needed for each finished item, giving control over material requirements and the basis for accurate production consumption.
HYP ERP
BOM details
Review the material structure behind each production item, so production, inventory and finance teams see required materials, expected usage and cost-related information, with better analysis of material usage, consumption cost and production efficiency.
HYP ERP
Production planning documents
Create and manage planning documents to confirm production readiness, review materials and coordinate operations before production orders run, drawing on stock availability, reorder levels and production-related stock transfers.
HYP ERP
What's included
What's included in Production Planning, BOM & Routing
The planning screens, inquiries and consumption reports in the Production module.
Planning setup
- Equipment and machines
- Work centers
- Production routes
- Materials BOM
- BOM details
- Planning documents
Inquiries
- Monitor sales orders
- Stock list
- Stock by reorder level
Reports
- Monitor BOM consumption
- Consumption by route
- Consumption cost by order
- Consumption values by sales item
- Monitor additional output and wastage
How production is prepared in HYP ERP
Define resources
Set up machines and work centers.
Build routes
Sequence the operational steps and link each to a work center.
Set the BOM
List the materials, components and quantities per item.
Plan
Prepare planning documents with a material review, ready for production orders.
Customer results
Proven in the region
Qutoof connects date production, stock and finance with HYP ERP
14warehouses with batch and expiry traceability
6modules live since September 2024
3months to implement
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
Guides on this topic
Production planning, BOM and routing FAQs
Can HYP ERP define machines and work centers?
Yes. HYP ERP Production Planning, BOM & Routing includes machine definition and work center setup, so production resources are structured before routes and orders are planned against them.
Can production routes be created in HYP ERP?
Yes. HYP ERP lets manufacturers define production routes that set the sequence of operations for each product and link every step to the work center where it takes place.
Does HYP ERP support bills of materials?
Yes. HYP ERP Production Planning, BOM & Routing supports material BOMs and BOM details covering the components, raw materials, semi-finished goods and quantities for each finished item.
Can production planning documents be managed in HYP ERP?
Yes. Users create and manage production planning documents in HYP ERP to confirm readiness, review materials and coordinate operations before production orders are executed.
Does production planning connect to execution in HYP ERP?
Yes. Planning data in HYP ERP Production Planning, BOM & Routing feeds production orders, work orders, consumption tracking, stock movement and production reporting in Production Management.
Give every product a complete BOM and route
See machines, work centers, routes and BOMs set up and turned into a production plan in HYP ERP.