Introduction
In many business scenarios, particularly in manufacturing industries such as oil production, a single raw material can be processed to generate multiple finished products. Empress provides a user-friendly way to manage this process, allowing you to gain clear insights into how your raw materials are utilized and how your finished goods are produced. In this guide, we will guide you on how to use the Item Master and Bill of Materials features to manage such situations.
1. Introduction to the Feature: Multiple Finished Goods from a Single Raw Material
The ability to create multiple finished goods from a single raw material is a crucial feature in Empress. It allows businesses to efficiently track the use of raw materials and the resulting production of finished goods. This feature is particularly useful within the oil industry, where crude oil is processed into various products like petrol, gas, diesel, and kerosene.
2. Creating an Item Master
The first step in this process involves setting up an Item Master. Here, you identify and categorize your raw material (e.g., crude oil) and the finished goods it can produce (e.g., petrol, gas, diesel, and kerosene). It’s important to note that each finished product can have a different Unit of Measure (UOM), allowing more precise tracking and management.
3. Creating a Bill of Materials
Next, you’ll need to formulate a Bill of Materials (BOM) for each finished good you intend to produce from the identified raw material. For instance, you might specify that 100 liters of crude oil are required to produce 25 liters of petrol. Any leftover or additional finished goods should be added to the Scrap section in the BOM.
4. Managing Work Orders and Back-flush Entries
Once the Work Order is complete, the Back-flush entry process comes into play. This process consumes the raw material and results in the production of the multiple finished goods identified in your Item Master and BOM.
5. Conclusion: The Business Benefits of this Feature
The ability to create multiple finished goods from a single raw material in Empress provides a powerful tool for businesses, particularly within manufacturing industries. By correctly setting up your Item Master and BOM, you can accurately track raw material usage and the production of finished goods. This can lead to more efficient production processes and improved inventory management.
For further guidance, please refer to Empress’s user-friendly resources or contact the support team.