Knowledge Center

Production

A production, or a producer, may be defined as an organization who produce one or more products through processing of different production factors. These production factors may be raw materials, parts or operations.

A production may result in

  1. Produced goods.

  2. Modified goods.

  3. Discarded goods.

A production order will most often be initiated through a customer order. In other instances the production order is ordered internally for stock.

A production order will in most instances, using parts, raw materials and operations, result in a finished product. If we take the car industry as an example, where a car is produced by combining own parts using in-house machines and their operative capacity, the whole production process is involved. In some cases the finished product needs to be modified, such as if a car model is faulty it needs to be recalled and modified. If a product is damaged in the production process, it can be scrapped and discarded.

Tasks relevant for the production process

  1. Register resources

    Resources in the production process, such as parts, machines, operations and personnel must be defined and set up before use.

  2. Register operations

    All available operations offered by the production company needs to be defined and set up before production.

  3. Maintain production structures

    Versioning and updating the content of products must be administered and maintained.

  4. Planning

    To deliver at agreed upon terms and time, the production needs to be planned in detail.

  5. Production

    The production itself is logged in a system to ensure traceability within the production factors, which again ensures a base for the invoice.

  6. Administer products

    Products which are produced or modified must contain information regarding production factors and information such as serial numbers.

  7. Following up cost of goods and time usage

    To create the base of the invoice as accurately as possible, all resources and goods needs to be priced accordingly.

  8. Deviation handling

    Handling defective goods or goods that need modification.

  9. Administer documentation

    There is a large amount of documentation involved in production, with instruction manuals, product certificates and measurement certificates. Which all needs to be administered.