Any manufacturing operation will inevitably incur overhead expenses – indirect costs associated with production. Calculating and adding these costs precisely per produced item is pretty much impossible. This is where applied overhead comes in. Let’s take a closer look at what is applied overhead, how it differs from actual overhead, and why it matters.
Manufacturing is experiencing a shift towards both more customization and shorter lead times. One option for catering to this contrary dynamic is the engineer-to-order manufacturing workflow. ETO has the potential to achieve fast-paced bespoke manufacturing, but only if companies leverage the right tools for the job.
Regardless of the size of the manufacturing operation, a Bill of Materials (BOM) is vital for production. Companies across the globe utilize them as the guide and shopping list for their final product and as such, they are tied into manufacturing, maintenance, scheduling, purchasing, and other areas of the organization.
Manufacturing routing is a process as well as a document that standardizes, describes, and sequences manufacturing operations so that the product is manufactured as efficiently as possible. Effective routings can contribute to reduced costs, improved quality, accurate production planning, and the streamlined use of production resources.
Discrete manufacturing implies producing distinct items that require assembly along a production line. Process manufacturing, on the other hand, produces goods by mixing or combining raw materials in a manufacturing process. In this article, we will explore key differences between the two manufacturing types and look at examples of each.