Learn about the production process in today's businesses
The production process plays an important role in creating finished products to meet business requirements. In the article below, let's learn with 1C Vietnam what the production process is as well as the steps to implement the above process effectively.
>>>> MORE REFERENCES: 1C:Company Management software - Management of manufacturing enterprises
1. What is the production process?
A production process is a series of jobs and tasks performed in a specific order to create valuable products on the market. This process includes a combination of manual labor from humans and the support of modern machinery and equipment.
2. Production process in the enterprise
The production process of an enterprise goes through many different stages. Below are the basic stages that most manufacturing processes today have.
2.1 Production planning
Planning is a basic requirement of every production process. This stage helps businesses clearly define the purpose and how to achieve production goals in the right way. There are 3 main tasks that need to be completed in this step including:
1. Determine production needs
This step will help businesses make a rough sketch of the number of products that will be produced in a certain period of time. The estimate can be made based on the production plan prepared by the responsible production department for each period (week/month/quarter/year). Or based on the business plan of the enterprise or orders placed according to customer requirements.
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2. Build production norms
In a corporate manufacturing environment, the product research and development department is responsible for setting production norms when there is a requirement to produce new products. Norms in the product manufacturing process include:
- Raw material norms need to be calculated accurately to ensure enough raw materials and avoid shortages or excess goods during the production process.
- Scrap norms help measure and complete scrap output generated after product production. This also helps manage the production process and optimize material usage.
- Production cost norms are the determination of costs related to the production process. By recording and accounting for these costs, businesses can evaluate the economic efficiency of the production process and analyze profits.
3. Planning raw material needs
To be able to calculate the need to use materials and components necessary for the production process, each business needs to perform 3 important problems. First, businesses must quantify the raw materials needed, then inventory existing materials and components and finally determine which materials and parts need to be supplemented.
2.2 Production requirements
Once you have accurate plans for production needs, you need to break those numbers down and establish production requirements for each department and workshop. Production requirements can be fulfilled by the enterprise itself or by an outside outsourcing unit.
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2.3 Production orders
Placing a production order in the production process will include specific instructions on the quantity of goods to be produced, raw material needs as well as product delivery time for each department and workshop.
2.4 Approve production orders
Once the work order is established, it will be forwarded to the board of directors or senior management for approval. If the order is approved, production information will be allocated to each relevant stage/line/department to undertake and implement. On the contrary, if the order is not approved, the production department will make corrections for approval a second time.
2.5 Purchasing raw materials and goods
From the raw material norms determined above, managers need to compare with the current inventory to quantify the amount of raw materials needed to purchase and proceed with the purchasing process.
2.6 Manufacturing and processing
This is an important stage in the production management process because it is the time period during which the product is created. From the previously established production order, production managers will allocate resources to each department to produce the correct quantity and time. Throughout the production process, managers monitor and adjust order progress and finished product quality.
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2.7 Quality inspection
This is the process of evaluating and comparing the actual product produced with the requirements set out during the planning stage to ensure quality, as well as identify any flaws or errors that need to be addressed. .
2.8 Complete production
When the product has met the given requirements, the production order will be closed. Related records in the production process will be stored. Warehouse managers carry out warehousing of goods in preparation for export when needed.
3. Important notes in the production management process
When conducting production, sometimes you will encounter some problems that arise. Therefore, 1C Vietnam has compiled some things to note below that you can refer to to minimize the risks as much as possible:
- It is necessary to allocate appropriate task volume and completion time to each department to ensure work quality.
- Managers need to check regularly to promptly detect problems and take appropriate action to resolve them.
- The department responsible for recording production progress needs to update reports periodically to ensure that the actual production situation always follows the overall goal.
- Apply technology to the production process to better control risks.
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4. Benefits of current production management software for businesses
In the era of technological development, many production process management software have been created to support businesses in performing a number of important tasks to ensure the final quality of work. The application of specialized software for production activities not only contributes to ensuring that the process is determined in the right direction, but also saves time, costs and monitors production progress to promptly correct errors. when necessary.
If you are looking for a production process management software, you can immediately refer to 1C:Company Management software.
This software allows businesses to plan production processes for production needs according to customer orders or according to business plans or based on market demand forecasts. In addition, the bill of materials (BOM) declaration function helps businesses easily determine the quantity of materials needed to create finished products.
In addition, 1C:Company Management software also monitors the status of production plans/production orders, thereby allowing users to use resources effectively and avoid wasting resources. In particular, the software also has the function of calculating production costs based on the cost of materials, production labor, direct costs of external purchases and other general costs.
Hopefully the above article has provided useful information about the production process as well as notes to minimize risks when implementing. The competitive environment is increasingly fierce, requiring businesses to control the production process to create quality products and improve customer satisfaction. If you want support or advice on production management software solutions, contact 1C Vietnam now!
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