Manufacturing

Who uses this module

User	Role	How they use it
R&D / Formulator	Owner of recipes	Create and evolve formulas
Production Planner	Primary user	MRP run, job order creation, scheduling
Shop-Floor Supervisor	Daily user	Material issue, completion, scrap recording
QA Inspector	Daily user	Batch release, rejection
Cost Accountant	Daily user	Job close, variance analysis

The business problem

Most F&B factories run manufacturing on spreadsheets and tribal knowledge. Common failures:

• Formulas live in people’s heads. The production manager knows how much sugar “really” goes into the mix — different from the “official” recipe. When he leaves, the product changes.
• Recipe changes are verbal. “Use 2% more sugar today” — never documented. QA can’t defend a batch under regulatory audit.
• Material issues are reconciled monthly. Real-time WIP doesn’t exist. You don’t know today what was consumed yesterday.
• FG is costed at a standard cost from year-start. By Q2 it’s 10-20% off reality. Margin reports are fiction.
• Scrap is absorbed into “other expense.” The line is scrapping 4% when acceptable is 2%, and nobody sees it.
• Yield variance is invisible. A formula says 10,000 bottles per batch; reality is 9,850 per batch. That 1.5% difference × 52 weeks × 50 batches/week = a lot of margin.

Key features

Formulas / Recipes

• Structured formulas — ingredients with percentages, by weight or volume
• Version control — every edit creates a new version; old versions stay queryable
• Approval workflow — Production Manager + QA approval required before a new version is active
• Frozen versions — a released job order locks its formula version; subsequent formula changes don’t affect in-flight batches
• Status — draft, approved, frozen, retired
• Validity period — seasonal recipes

Bills of Materials (BOMs)

• Auto-generated from formulas for a specific batch size
• Includes packaging — bottles, caps, labels, shrink
• Multiple BOMs per formula — one formula, many batch sizes (5,000 / 10,000 / 50,000 bottles)
• Sub-assembly support — base products used as components in finished products

MRP (Material Requirements Planning)

• Runs against the master production schedule
• Calculates net requirements (demand − on hand − in transit)
• Explodes BOMs to raw material needs
• Generates purchase requisitions for raw material shortages
• Generates job orders for finished good shortages
• Integrates with P2P and inventory

Job Orders

• Lifecycle — draft → released → in-progress → completed → closed
• Locked formula at release
• Cost center assignment
• Material reservation at release
• Actual vs. planned dates tracked

Material Issue

• From warehouse to WIP
• Lot capture — which physical lots were issued
• FEFO picking suggested by system
• Over-issue tolerance — policies for draw variance
• Fires Manufacturing SLA resolver → posts DR WIP, CR Raw Material Inventory

Completion

• Record finished units produced
• Lot generation for FG with auto-expiry calculation
• Scrap recording — separate from good units
• Rework — partial batches reworked as distinct job orders

Scrap + Yield Variance

• Scrap capture — quantity, reason code, cost center
• Yield calculation — planned output vs. actual good units
• Variance posting — price, yield, scrap variances separated and posted to P&L

Job Close

• Cost accountant reconciles actual vs. applied
• Variance posting — any remaining difference goes to variance accounts
• WIP balance for the job goes to zero

Traceability

• Backward — FG lot → job order → raw material lots → PO receipts → suppliers
• Forward — raw material lot → job orders → FG lots → shipments → customers
• Critical for recalls, regulatory inquiries, quality investigations

F&B scenario

Mango juice batch production. Production planner runs MRP Monday morning; results include a shortage of 10,000 bottles of mango juice.

1. Planner reviews the suggested job order, confirms timing, releases it. Formula v1.0 locked. Raw materials reserved.
2. Tuesday morning, shop-floor supervisor opens the job order. Material issue screen pre-populates required quantities. System suggests lot MAN-2026-0512-EGY (mango concentrate, FEFO). Supervisor confirms and issues. AION posts DR WIP ~18,500 SAR, CR Raw Material Inventory ~18,500 SAR.
3. Production runs. 9,850 good bottles produced, 150 scrapped due to filler under-fill.
4. Supervisor records completion (9,850 bottles) and scrap (150 bottles, reason: filler). AION posts:
   • DR FG Inventory ~18,200 SAR, CR WIP ~18,200 SAR (9,850 at standard cost)
   • DR Manufacturing Variance — Scrap ~280 SAR, CR WIP ~280 SAR
5. Cost accountant closes the job. Actuals vs. applied reconcile. Minor yield variance posts to P&L. WIP clears to zero.
6. Variance analysis report shows: this month’s scrap rate 1.8% (within target 2%), yield 98.5% (slightly below 99% target — investigate filler maintenance).

Every gram of raw material tracked. Every finished bottle costed. Every variance visible.

Integration with other modules

• Inventory — material issues decrement raw inventory; completions create FG inventory
• Procurement — MRP can generate purchase requisitions automatically
• GL — every material issue, completion, scrap, and variance posts via the Manufacturing SLA resolver
• Costing — period average cost flows from receipts through WIP to FG
• QA Inspection — batch release/rejection gates completion

Reports out of the box

Report	What it shows
Job Order Cost Sheet	Full cost breakdown per batch
Production Variance Analysis	Price + yield + scrap variance by period
Yield Trend by Product	Efficiency trend over time
Scrap Report by Line / Shift	Where scrap concentrates
WIP Aging	Open jobs that should have closed
Formula Cost Roll-up	Unit cost build-up at current prices
Batch Traceability	Forward + backward for any lot
Capacity Utilization	Line/shift efficiency

All bilingual, exportable, drillable.

Compliance

• Food safety — full batch records, audit-defensible formula versions
• Halal — supplier cert linked to raw material lots, carried forward to FG lots
• Export — country of origin, expiry, lot number on shipping docs
• Recall ready — forward + backward traceability in under a minute

vs. alternatives

Feature	Excel	Odoo	SAP B1	AION
Formula with versioning	❌	Basic	✅	✅
Approval workflow on recipes	❌	Add-on	✅	✅
Auto BOM from formula	❌	Partial	✅	✅
MRP with auto requisitions	❌	✅	✅	✅
Real-time WIP	❌	✅	✅	✅
Lot-level material issue	Manual	✅	✅	✅
Yield + scrap variance	Manual	Partial	✅	✅
Full traceability	Paper	✅	✅	✅
Arabic shop-floor UI	No	Partial	Partial	✅ native