| Primary purpose |
Direct or assembly production |
Routing-based, multi-stage production |
Outsourced or customer-owned processing |
| Production trigger |
Sales Order or independent plan |
Sales Order or independent plan |
Internal requirement, process routing or customer material |
| Make-to-Order (MTO) |
Supported with order pegging |
Supported with process-wise reservation |
Supported for subcontracted operations |
| Make-to-Stock (MTS) |
Supported for standard items |
Supported with buffer WIP stocking |
Applicable where configured |
| Alternative BOMs |
Multiple Single BOMs per product |
Multiple Process Routings per product |
Job-work-specific vendor routes |
| BOM structure |
RM, components, quantity, expenses and output |
Process steps, input, output, department, machine and resource |
Material issued/received, process and expected output |
| Execution document |
Production Plan and Production Voucher |
Manufacturing Order (MO) and process Work Orders (WO) |
Job Work Order and Subcontractor Delivery Challan |
| Multi-output production |
FG, SFG and by-products |
SFG, FG, by-products and intermediate scrap |
Processed output, balance material and scrap return |
| Partial production |
Supported with incremental receipts |
Process-wise partial confirmation and batch splits |
Partial receipt and batch reconciliation |
| WIP visibility |
Simplified balance |
Real-time department and work-centre WIP |
Stock with job worker / pending return ledger |
| Batch traceability |
Input raw batch to output finished batch |
RM batch to intermediate SFG to final FG batch |
Issued material batch to received finished lot |
| Serial traceability |
Component serial to parent serial |
Component, intermediate SFG and FG unit serial |
Material issued serial to product received serial |
| Quality inspection |
Production receipt and FG QC |
Incoming RM, in-process stage gates, and final FG QC |
Receipt inspection, scrap analysis and vendor rating |
| Costing & roll-up |
Material, machine hours, labor and direct expenses |
Process-wise labor, machine hour rate, scrap and overhead roll-up |
Issued material value + subcontractor service charge |
| Department movement |
Stores to shop-floor to finished store |
Integral to routing (Cutting → Machining → Assembly) |
Internal issue, external vendor transit, inward receipt |
| Best suited for |
Direct conversion, packaging, kitting |
Complex engineering, fabrication, multi-step plants |
Specialized outsourced operations and toll manufacturing |