Efficient inventory management of raw materials is the core of successful manufacturing companies. This process ensures that the resources are available and allocated optimally, production is streamlined, and costs are controlled. Modern well known ERP systems like Devinstock are solutions that help achieve this efficiency. The platform offers features that let you create each finished product (BOM), you can also plan the production order, and step-by-step cost analysis of the manufacturing cost. T
This article explores how this works by examples, using the production of PVC windows as an example.
Optimizing your manufacturing with ERP systems
An ERP system integrate all aspects of manufacturing into a unified platform. Here’s how Devinstock help you to streamlines operations:
- Creating a Product Bill of Materials (BOM) A BOM lists all components, sub-assemblies, and raw materials required to manufacture a product. For PVC windows, it depends on the type of the wind: Sliding, Opening, etc .. the BOM might include:
- PVC profiles
- Accessories, screws and fasteners
- Rubber seals
- Glass panes
- Devinstock allows you to create and manage a comprehensive BOM to the smallest details, ensuring all materials are accounted for before production begins.
- Converting an Order to a Production Plan Once a quotation is accepted and order is placed, it can be converted into a production plan in Devinstock. For instance, an order for 100 PVC sliding windows automatically generates:
- Material requisitions
- Production schedules
- Assigned labor and machine time
- Creating manufacturing steps Devinstock enables you to define every production step, assign resources, and estimate costs. For PVC windows, the steps might include:
- Découpage (Cutting): Cutting PVC profiles to the required dimensions. for each measurement you may have to include how the raw material will be used:
For example:
Dormant + add 8 cm, Ouvrant add 4 com, this will help to calculate with precision the needed raw material dimensions.
- Soudage (Welding): Joining profiles to form the window frame.
- Vitrage (Glazing): Cutting the glass panes, prepare double glass windows.
- Assemblage (Assembly): Adding accessories and final touches.
- Cost Calculation for Each Step Devinstock tracks the cost of materials, labor, and overhead for each step, providing real-time insights into any manufacturing projects profitability.
Example: PVC Window Manufacturing
Here’s a detailed example of using Devinstock for a PVC window/m2 order, given by our friends at PVC Confort:
| Step | Description | Material Cost/h (€) | Labor Cost/h (€) | Overhead (€) | Total Cost (€) |
| Découpage | Cutting PVC profiles | 4.00 | 2.00 | 1.00 | 7.00 |
| Soudage | Welding profiles | 4.00 | 2.00 | 1.50 | 7.50 |
| Vitrage | Installing glass panes | 2.00 | 2.00 | 1.00 | 5.00 |
| Assemblage | Final assembly and testing | 2.00 | 2.00 | 1.50 | 5.50 |
| Total/h | 12.00 | 8.00 | 5.00 | 25.00 |
Calculating Profitability
With the total production cost per window at €25 (cost/working hour), and BOM of raw material of 100$, selling the window at €250 results in:
- Profit per unit window/m2: €250 – €25 -100€ = €125
- Profit marging: (€125 / €250) × 100 = 50%
Using Devinstock, manufacturers can quickly identify cost-saving opportunities or justify pricing strategies to maintain healthy margins.
The Benefits of Using Devinstock for Manufacturing
- Real-time data: Access up-to-date information on inventory, production, and finances.
- Enhanced accuracy: Minimize errors in material planning and cost calculations.
- Improved efficiency: Automate repetitive tasks, reducing manual intervention.
- Profitability insights: Get detailed breakdowns of costs and profits for every product.
Efficient inventory management is indispensable for manufacturers, especially in cost-sensitive markets like PVC windows. ERP systems like Devinstock transform operations by providing tools to create detailed production plans, track costs, and optimize profitability. By adopting this solutions, manufacturers can gain a competitive edge, delivering quality products while maximizing profits.