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Manufacturing

Manufacturing Inventory: Bill of Materials and Work Orders

Master manufacturing inventory with BOMs, work orders, and production tracking. Essential guide for manufacturers and assemblers.

Robert Kim 2024-10-28 12 min read
Manufacturing Inventory: Bill of Materials and Work Orders

Manufacturing Inventory Challenges

Manufacturing inventory is more complex than retail—you're managing raw materials, work-in-progress, and finished goods simultaneously. Accurate BOMs and work orders are essential.

Zentracka's manufacturing module handles the complexity for you. Start your free trial to see manufacturing features in action.

Bill of Materials (BOM) Basics

A BOM lists all components needed to build a product:

  • Component SKU and name
  • Quantity required per unit
  • Unit of measure
  • Scrap/waste allowance

Zentracka's BOM builder makes setup easy with drag-and-drop components.

Multi-Level BOMs

Complex products have sub-assemblies with their own BOMs:

  • Level 0: Finished product
  • Level 1: Major sub-assemblies
  • Level 2: Components of sub-assemblies
  • Level 3+: Raw materials

Zentracka's Enterprise plan supports unlimited BOM levels.

Work Order Management

Creating Work Orders

Specify what to build, quantity, and due date. Zentracka checks component availability and warns of shortages.

Component Allocation

Reserve components for the work order to prevent allocation conflicts across multiple orders.

Production Tracking

Track progress as units are completed:

  1. Start production—consume components
  2. Record units completed
  3. Track scrap and rework
  4. Close work order—add finished goods

Inventory Implications

Manufacturing creates complex inventory movements:

  • Raw materials decrease (consumption)
  • WIP increases during production
  • Finished goods increase on completion
  • Scrap is written off

Zentracka tracks all movements automatically with full audit trail.

Costing and Valuation

Calculate true product costs including:

  • Component costs from BOM
  • Labor costs
  • Overhead allocation
  • Scrap factor

Zentracka's costing reports show true manufacturing margins.

Ready for manufacturing excellence? Start your free trial. See manufacturing features by plan or contact us for complex manufacturing needs.

Keywords
manufacturing
bill of materials
BOM
work orders
production
assembly

Put These Insights Into Action

Start your free 7-day trial and see how Zentracka can transform your inventory management.