Production

By Maxim Izmaylov

• 9 articles

Creating and Editing Production

Production is the process of manufacturing products from materials. You can also create products from other products by enabling this option in settings (for more details on this feature, see [this article]). Adding a New Production Run There are three ways to add a production run: 1. Click the “Add” button to create a production run from scratch. 2. Copy an existing production run by opening any production and clicking “Copy.” 3. On the products page, select the desired products and click “Create production” in the bottom popup menu. To edit a production run, open it by clicking its number or name in the main list, then click the “Edit” button. Production Information Date The date of the production run. Name You can enter any information here that will be displayed in the production list for your convenience. This field can be left blank. Produced Products Specify which products and in what quantities you plan to manufacture. Notes You can leave any information in the notes that will be useful to you. Files You can attach images and other files to your production runs. Material Inventory Forecast When creating or editing a production run, you can immediately check if you have sufficient materials. To do this, click the “Show material stock forecast” toggle. A table will display all materials used in this production run, their forecasted values, and minimum values. The forecast is calculated based on current inventory, taking into account this production run and all other production runs with earlier dates that have been entered into the system. The “Only items below minimum level” toggle allows you to display only those materials where the forecasted value is less than the minimum stock level. If you use products to manufacture other products, the table will also show forecasted inventory levels of the products being used.

Last updated on Apr 01, 2025

Production Statuses

Every production run has a status. The production status can have the following values: Plan Production is initially created in the “Plan” status. Materials are not deducted and products are not added to inventory while the production is in “Plan” status. In Progress When production moves to “In Progress” status, all materials used for this production will be deducted from inventory. However, products will not yet be added. Completed When production moves to “Completed” status, all manufactured products will be added to inventory. To change the production status, click on the status icon and select the desired status. Before changing the production status, you'll see a calculation of the inventory changes for materials and products. You can also change the default status for new production runs in the settings. For example, if you set the default status for new production to “Completed” in the settings, any new production will be created with “Completed” status, used materials will be immediately deducted, and manufactured products will be added to inventory.

Last updated on Apr 01, 2025

Used Materials

When viewing a production record, you'll see a list of materials used in the production run. The quantity of used materials is automatically calculated based on the component list of the products being manufactured. You can switch between two display options for used materials: - a total summary for the entire production batch - or a breakdown by individual products.

Last updated on Apr 01, 2025

Production Cost

Production cost is the total value of all materials and resources used in the manufacturing process. The production details page displays the cost of manufactured products. This is calculated based on: - The product components specified at the time of creating or editing the production run - The actual cost of materials that were consumed from inventory for this production - The resource costs that were set at the time of creating or editing the production FIFO Method Since materials can be added to inventory at different prices, the FIFO (First In — First Out) method is used to calculate production costs. This means that materials are consumed in the order they were received in inventory: materials from earlier purchases are used first. Example Let's consider manufacturing chairs, where one chair requires one board. Material purchases: 1. First purchase: 3 boards at $10 each = $30 2. Second purchase: 3 boards at $20 each = $60 Production plan: three batches of two chairs each Cost calculation for each batch: 1. First batch: uses two boards from the first purchase - Cost per chair = $10 2. Second batch: uses one board from the first purchase and one from the second - Cost per chair = ($10 + $20) / 2 = $15 3. Third batch: uses two boards from the second purchase - Cost per chair = $20 Important: The “Chair” product details page will show a cost of $20 because it's calculated based on the price of the most recent material purchase. Difference Between Planned and Actual Cost 1. Planned cost (in the product details): - Calculated based on current material prices - Shows expected production cost 2. Actual cost (in the production details): - Calculated based on the prices of materials actually used - Reflects the real expenses incurred during production These values typically differ because material prices tend to increase over time. If prices remain constant, the planned and actual costs will match.

Last updated on Apr 01, 2025

More About Cost Calculation

Before reading this article, we recommend familiarizing yourself with the basics of FIFO cost calculation method. How Material Prices Are Determined in Production Cost Calculation When calculating production costs, material prices are determined using the FIFO method from inflow transactions — operations that increase material inventory levels in storage. In Controlata, there are six types of inflow transactions: - Initial material creation - Purchase - Production (for products only) - Positive stock adjustment - Inventory audit with surplus - Transfer between storage locations Each inflow transaction calculates material prices differently. Let's examine each of these operations in detail and see where material prices come from. Initial Material Creation The price is entered manually when creating a material. If you want to change the price you specified when creating a material, you can do this by clicking on the “Material creation” line in the history of that material. Purchase In purchases, the material price is explicitly specified when creating them, and you can always change it by editing the purchase. Production This is relevant only if you use products as components in other products. In production, the cost of manufactured products is calculated based on the total cost of that production run. Positive Stock Adjustment When adjusting material stock level upward, the price is taken from the material details at the time of the adjustment. If you want to change the material cost for an adjustment, specify the desired price in the material details, then re-save the adjustment by clicking on that adjustment in the material history and pressing “Save.” Inventory Audit with Surplus Similar to an adjustment, the price is taken from the material details at the time of the audit. If you want to change the material cost for an audit, specify the desired price in the material details, then re-save the audit by clicking “Edit” and then “Save.” Transfer Between Storage Locations When transferring material, it is removed from the first location, and the cost of the removed material is calculated using the FIFO method. The material is added to the second location at the same cost that was calculated when removing it from the first location, and this cost cannot be changed. How to Set the Desired Material Price in Production To do this, you need to change the price in the inflow transactions that we listed above. There is also a quick way to change the material price in production cost calculation: 1. Change the price in the material details. 2. Note the current stock level. 3. Adjust the material stock level to 0 (zero). 4. Adjust the material stock level back to the actual value you just noted. 5. Re-save the production by clicking “Edit” and then “Save.” The material price in the production components will be updated.

Last updated on Apr 01, 2025

Production Forecast

When you have production runs with “Planned” status, you can check if you have enough materials to complete these planned productions. To do this, click the “Check Forecast” button at the top of the production screen. In the dialog that opens, you'll see projected inventory levels and minimum stock requirements for materials on each date where planned production is scheduled. How to read this report This report shows all dates that have production runs with “Plan” status in the system. For each date, it displays: - Projected inventory levels for materials, accounting for planned production runs and upcoming purchases - Materials with projected levels below minimum are highlighted in red - The “Only with forecast below minimum” toggle filters to show only materials where projected inventory falls below the minimum threshold. You should restock these materials by placing orders with suppliers. If you use products as components in other products (subassemblies), the dialog will also show projected inventory levels for these component products.

Last updated on Apr 01, 2025

Subassemblies

Subassemblies are intermediate products used in creating other products. They allow you to organize multi-stage production by breaking down complex processes into simpler steps. If your production cycle consists of several stages, using subassemblies will make your workflow more efficient. This feature is available on selected pricing plans and can be enabled in system settings. Once enabled, you can include other products in a product's component list. This allows your production process to flow through multiple stages: Materials → Products → Products → ... → Products Example 1. "Dough" subassembly: - Made from materials (flour, yeast, and other ingredients) - Set up as a separate product - Recommended: assign a "Subassembly" category for easier organization 2. Final product "Pie": - Contains the subassembly (dough) and other materials (apples, potatoes, etc.) This production organization allows you to: - Break down complex processes into logical stages - Track costs at each production stage - Flexibly manage your production process

Last updated on Apr 01, 2025

Make-to-Stock vs. Make-to-Order

What are MTS and MTO? Make-to-stock (MTS) and make-to-order (MTO) are two fundamental production strategies used across various industries. Let's explore each approach and how to implement them in Controlata. Make-to-Stock In a make-to-stock (MTS) strategy, products are manufactured in advance based on demand forecasts and stored in inventory until sold. Finished products are available for immediate shipping to customers when an order is received. This approach offers clear advantages: fast product delivery and reduced order fulfillment time. However, it also carries risks: potential excess inventory, product obsolescence, and losses from unsold items. Setting Up in Controlata When creating sales, select “From inventory” fulfillment. With this setting, your production runs will replenish your product inventory, and sales will deduct from this inventory. Make-to-Order With a make-to-order (MTO) strategy, the company begins manufacturing only after receiving a customer order. Each order is fulfilled individually, taking into account the customer's specific requirements. This approach provides high flexibility and customization, but may require more time to fulfill orders and increase production costs. Setting Up in Controlata When creating sales, select “Made to order” fulfillment. In this case, a dedicated production run is created for each sale, and manufactured products don't enter inventory but are immediately allocated to the sale. Additionally, you can set the default production status to “Completed” in system settings. With this configuration, materials will be deducted from inventory immediately when a sale is created. Combined Approach In practice, many companies use both strategies depending on product type, season, or order specifics. Controlata allows flexible fulfillment management: for each sale, you can choose the appropriate option — from inventory or made to order. This gives you the ability to effectively combine the advantages of both approaches within a single business.

Last updated on Apr 01, 2025

Production Export

Exporting Production Lists You can export a list of your production runs in CSV or XLSX format. To do this, click the three dots near the “Add” button and select “Export.” Then choose your preferred file format. The export will include all production runs currently displayed on screen. If you need to export only specific production runs, you can filter them first, then proceed with the export. Exporting Products and Materials You can also export the list of manufactured products and used materials for a specific production run. From the production details card, click the three dots in the upper right corner. Then select “Export” and choose your preferred file format.

Last updated on Apr 01, 2025