Piece of Mind: Utilizing Pieces in Cetec ERP
In manufacturing, ‘pieces’ refers to the individual items that come out of the production process. Pieces can range from fully finished products ready to go out to customers, to those still in progress, which we call Work in Progress (WIP). Pieces play a key role in helping to track costs, productivity, inventory, and quality.
Pieces are very useful when ensuring that costs have been captured accurately. Each piece is assigned a value, which lets us calculate exactly how much it costs to make, including things like materials, labor, and overheads. This information is essential for setting prices that make sense and for understanding how profitable our products really are. It guides a lot of the decisions we make across the company.
Pieces also help us keep a close eye on how well things are going on the production floor. By monitoring how quickly we’re making pieces, we can measure productivity and efficiency really precisely. This data helps us see where we might be able to improve our processes and make things run even better.
But it’s not just about money and speed—keeping track of pieces also helps us manage our inventory really effectively. Knowing the value of each piece lets us see exactly what we have on hand, both finished products and works in progress. This helps us keep just the right amount of stock, avoid unnecessary costs, and make sure we’re producing what our customers actually need.
Quality is another big thing. Assigning a value to each piece means we’re serious about maintaining high standards throughout production. This not only keeps our customers happy but also makes sure we meet all the rules and regulations. It’s about protecting our reputation and staying competitive in the market.
On a strategic level, the data from piece tracking helps us make all kinds of decisions. From figuring out which products are most profitable to setting prices and planning how much we need to produce, having this information at our fingertips is a big advantage.
To make all this tracking easier and more accurate, many companies use timers to keep tabs on pieces in real-time. These timers help us see what’s happening on the production line and how productive each worker is being. If there are any slowdowns or problems, we can spot them quickly and fix things before they become a bigger issue.
Plus, using timers gives us even more detailed information for analyzing costs. We can see exactly how many pieces we’re making per hour or per day, which helps us work out things like labor costs per unit and total production costs. Armed with these insights, we can plan our budgets better, set prices that make sense, and make sure we’re ready to meet demand.
And when it comes to our ERP system, like Cetec ERP, there’s a feature called ‘Require Piece Value to Log Order Work’ that really shows our commitment to doing things right. It means we always have to enter the number of pieces we’re working on before we start. This not only keeps everyone accountable but also helps us make sure we’re using our resources in the best possible way.
To learn if Batch vs. One Piece flow is better for you, check out our handy guide!