AccountingInventoryManufacturing Tips Work in Process Inventory – What Is WIP and How To Calculate it? We have all seen manufacturing depicted in cartoons. Basic resources are rolled into a factory, followed by loud noises and a smoking chimney. Then, shiny finished products emerge on the other side. In reality, manufacturing is a bit more complex. On their journey toward becoming final products, raw materials go through work in process inventory. […] By Mattias Turovski 12 min read
Manufacturing Tips How to Eliminate Bottlenecks in Manufacturing? Manufacturing bottlenecks are points in the production process that are constrained by inefficiency. Finding and eliminating bottlenecks allows you to use more of your production capacity, minimize WIP inventory, reduce lead times, improve quality, and increase the overall efficiency of your manufacturing business. By Madis Kuuse 16 min read
Manufacturing TipsProduction planning What Is Production Capacity and How to Calculate It? Production capacity is an essential metric for any manufacturer planning their production. Knowing it helps to provide customers with more accurate lead times and can be a great aid in forecasting cash flow. In this post, we look at what production capacity is and explore different ways how to calculate it. By Mattias Turovski 11 min read
Manufacturing Tips The 8 Wastes of Lean Manufacturing The lean manufacturing methodology chiefly revolves around minimizing production times and raising efficiency by eliminating waste. In this post, we go through the 8 principal wastes in lean manufacturing and see how manufacturing software can help to address them. By Mattias Turovski 9 min read
InventoryManufacturing TipsSupply Chain Material Planning – Definition, Tools, and Tips Material planning is the process of figuring out what and how much is needed in order to produce goods within a specified timeframe, and ensuring the timely delivery of those materials. Accurate material planning can contribute significantly to the efficiency and profitability of a company. By Madis Kuuse 13 min read
Manufacturing TipsSupply Chain What Is Vendor Managed Inventory (VMI) and How To Use It? Vendor Managed Inventory is a practical supply chain management method that can lead to better inventory optimization, reduced costs, and stronger relationships between companies. But only if it’s done right. By Madis Kuuse 11 min read
InventoryManufacturing TipsSupply Chain What Is Economic Order Quantity (EOQ) and the EOQ Formula? Economic order quantity is a supply chain management technique used to determine the optimal lot size per order. This is done in order to avoid stockouts and overstocking, thereby balancing inventory costs and opportunity costs. By Madis Kuuse 9 min read
AccountingManufacturing TipsSalesSupply Chain What Are Backorders? Meaning, Causes, and Tips For manufacturers and distributors alike, backorders constitute a reliable means of keeping up sales even after goods have gone out of stock. In this article, we look at the meaning and causes of backorders and weigh their pros and cons. By Mattias Turovski 11 min read
Manufacturing TipsProduction planning What is a Multi-Level BOM (Indented BOM)? A multi-level BOM is a bill of materials that represents the composition of various subassemblies in addition to the final product. This type of BOM becomes indispensable when a certain level of product complexity is reached but there are also situations where the use of a multi-level BOM is unwarranted. By Madis Kuuse 7 min read