Production Management

New production and information technologies are introduced continuously. Any one of these technologies might give you the ability to leapfrog your competition, or it might give your competitors the ability to squeeze you out of the market. It is important to track orders, shipments, and all steps in the production process.

The bill of materials is an important concept in manufacturing. It records the components that were used to manufacture a finished product. Data on it is used to trigger deductions in inventory of parts and signal the addition of the final product to finished inventory. These actions impact the accounting ledgers, so recording the proper amounts and time is important. Similarly, quality control measures are taken at several steps in the process—particularly with the receipt of supplies and the shipment of finished products. Detailed quality measures during the production process are used to identify processes, machines, and employees that need improvement.