Systems for making things.
WHAT A BILL OF MATERIALS IS
The list of components and quantities required to make a product.
WHY IT IS FOUNDATIONAL
Planning, costing and production all depend on it.
WHAT ROUTING DEFINES
The sequence of operations, and the resources each requires.
WHAT MATERIAL REQUIREMENTS PLANNING DOES
Calculates what to buy and make, and when, from demand and lead times.
WHAT IT REQUIRES
Accurate bills of materials Accurate stock Accurate lead times
WHY INACCURACY IS FATAL HERE
The calculation compounds errors across levels.
WHAT CAPACITY PLANNING ADDS
Checking whether the plan is achievable with available resources.
WHAT WORK ORDERS TRACK
What is being made, from what, by whom, and at what cost.
WHAT PRODUCTION COSTING CAPTURES
Materials, labour and overhead consumed.
WHAT VARIANCES REVEAL
Differences between expected and actual cost.
WHY THEY MATTER
They identify waste, inefficiency and mispricing.
WHAT QUALITY MODULES RECORD
Inspections, results, and disposition of failures.
WHAT TO IMPLEMENT FIRST
Bills of materials and work orders.
WHY
Planning built on inaccurate foundations produces confident wrong answers.
WHAT TO ESTABLISH
Whether your production is genuinely complex enough to need this.
