Component & material consumption for manufacturing #407

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2026-06-29T08:38:07Z

rob commented

2026-06-29 08:38:07 +00:00

Let's track the true CoG in actual production vs what the design and production departments estimate. By designing a simple way to support use of other SKUs as components, we can track component SKU consumption when providing production materials to factories. By creating a PO with a set quantity, we can generate a material requirements pick list to fetch fabric, buttons, zippers etc from the warehouse and give to the factory. Since there is always variation in production, we'll never get 100% of a PO's SKU qty ordered. Always a bit more or a bit less. But the cost of the material components given to the factory can be fixed based on the qty within a PO.

Thus, we can see what we actually get back and set a true cost per piece based on the materials consumed for what was received in that PO. In this case, the SKU/QTY bucket now has materials CoG associated with the PO Line via the component SKU/qtys picked for a PO line.

CoG will be calculated by cost of materials provided for a SKU/QTY bucket divided by how many pcs actually came in against that PO line + Labor cost per unit as billed by the factory The Labor Cost Price (not just Cost Price).

This path is not required for all SKUs. Only if the SKU has component SKUs associated with it would it consume and calculate.

Spec Sheet Concerns

Rob originally wrote about this in in #151, however we had a long discussion about it.

More details to come, but key takeaways are:

Have SKUs for materials even if we never stock them.
Spec sheets are snapshots in time. Can be created for internal use, or created to attach to POs.
Various bits of data needed to generate a spec sheet need to be stored as attributes at the SKU level.
- Text stuff
- Images
- Assets like PDFs (for screen printing, etc).

Let's track the true CoG in actual production vs what the design and production departments estimate. By designing a simple way to support use of other SKUs as components, we can track component SKU consumption when providing production materials to factories. By creating a PO with a set quantity, we can generate a material requirements pick list to fetch fabric, buttons, zippers etc from the warehouse and give to the factory. Since there is always variation in production, we'll never get 100% of a PO's SKU qty ordered. Always a bit more or a bit less. But the cost of the material components given to the factory can be fixed based on the qty within a PO. Thus, we can see what we actually get back and set a true cost per piece based on the materials consumed for what was received in that PO. In this case, the SKU/QTY bucket now has materials CoG associated with the PO Line via the component SKU/qtys picked for a PO line. CoG will be calculated by cost of materials provided for a SKU/QTY bucket divided by how many pcs actually came in against that PO line + Labor cost per unit as billed by the factory The Labor Cost Price (not just Cost Price). This path is not required for all SKUs. Only if the SKU has component SKUs associated with it would it consume and calculate. --- # Spec Sheet Concerns Rob originally wrote about this in in #151, however we had a long discussion about it. More details to come, but key takeaways are: * Have SKUs for materials even if we never stock them. * Spec sheets are snapshots in time. Can be created for internal use, or created to attach to POs. * Various bits of data needed to generate a spec sheet need to be stored as attributes at the SKU level. * Text stuff * Images * Assets like PDFs (for screen printing, etc).

rob added the Discussion label 2026-06-29 08:38:07 +00:00

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Reference: rob/pms3#407