ERP GUIDE FOR MANUFACTURING COMPANIES

What Is Production Management? Work Orders, MRP, Waste and Cost Tracking

Production management is making the entire process measurable—from order release to production, raw material requirements, work orders, waste and subcontracting tracking, warehouse movements, to actual product cost.

Why Production Management Is Not Just Planning?

Many manufacturers in Turkey track their production plan with Excel, phone, e‑mail and department‑based notes. Even if this structure seems to work on a small scale, control becomes difficult when the number of orders, product variety, size‑color‑variant structure or subcontracting processes increase.

Production management does not only answer "when to produce?" It tracks on the same data which material is used, which operation is completed, what was given to the subcontractor, how much scrap was generated and what the actual cost of the product was.

Frequently occurring problems

  • A work order is opened but its current stage cannot be seen in real time.
  • The product tree and recipe are not up to date, so the raw material requirement is calculated incorrectly.
  • Scrap, waste and subcontracting costs are not correctly reflected in product cost.
  • A difference arises between the stock in the warehouse and the material used in production.

Key Production Processes to Track with ERP

A production tracking program is not just a single screen. Value comes from processes working together.

Work Order Tracking

A work order is opened according to the order or inventory need; operation, quantity, deadline and responsible team are tracked.

Product Structure and Production Recipe

Finished goods, semi‑finished goods, raw materials, variants and scrap rates are managed via recipe.

MRP and Material Requirements Planning

Open orders, stock and recipe determine missing materials and purchase needs.

Scrap and Waste Tracking

Recorded together with the causes of waste generated in production; hidden costs become visible.

Subcontracting Tracking

Materials given to the subcontractor, pending work, delivered quantity and customer/cost impact are monitored together.

Production Cost

Materials, labor, overhead, subcontracting, scrap, and energy items are linked to product cost.

Why is it More Critical in Footwear, Textile and Leather Production?

Footwear Manufacturing

Model, color, size, season and subcontracting operations change simultaneously. A shoe production schedule must track these variants together with inventory and production planning.

Textile Production

Size, color, fabric, cutting, sewing and shipping steps are interlinked. If the recipe and production plan are not up to date, waste and deadline risks increase.

Leather and Subcontract Production

Batch, quality, color, cut waste and subcontractor tracking directly affect cost. Material movements must not be mixed with customer/supplier account movements.

PRODUCTION CONTROL WITH KORGÜN ERP

Combine Production Data with Inventory, Purchasing and Accounting

KG Palaimon helps track work orders, product tree, MRP, warehouse, subcontracting and cost processes on the same system in manufacturing businesses. The goal is not only to record production but also to enable the manager to make timely decisions on accurate cost and delivery.

Frequently Asked Questions About Production Management

Are production management and production planning the same thing?

No. Production planning determines what, when, and with which resources to produce. Production management, on the other hand, includes planning as well as work order, material, operation, waste, subcontracting, inventory and cost tracking.

How does a production tracking program replace Excel?

Excel is usually updated per person and data integrity is weak. The production tracking program uses the same data across warehouse, production, procurement and accounting, reducing duplicate entry and manual errors.

Can MRP work without a product tree?

It does not work properly. For MRP to generate the correct raw material requirement, the product tree, recipe, scrap rate, inventory and open order information must be up to date.

Why is subcontracted production tracking important within ERP?

If material sent to subcontractor, pending work, received product, waste and customer/supplier movements are kept in separate places, cost and inventory control break down. When tracked within ERP, production and finance view the same data.

Did You Find This Page Useful?

Other Solutions That May Interest You

Explore other products and services frequently examined with this solution.

Your privacy is important to us

We use cookies to improve your experience while visiting our site, provide our services, and fulfill our legal obligations. Click for more information.