Manufacturing & subcontracting

Know the real cost and where your materials are

Bills of materials (BOM), production orders, sending materials out for subcontracting, reporting completion and receiving finished goods, all posted through the Inventory module. Turn on Inventory first, then Manufacturing & Subcontracting.

Key capabilities
The problem

The recipe is in the foreman head, and subcontracted material is untracked

Small workshops estimate materials from experience and send supplies to a subcontractor with no ledger, so at month end nobody knows how much was lost.

  • Every batch uses a slightly different recipe, so nobody knows the real cost of a product.
  • Material sent to a subcontractor has no record, and losses only show when goods come back.
  • A defective product cannot be traced to the material lot it was made from.
How hOne solves it

BOMs, orders and the stock ledger agree

Each product has a versioned BOM. A production order takes the BOM, consumes materials, receives finished goods with a lot number and calculates cost. Subcontract orders add a ledger of material held at the subcontractor and a loss settlement.

Key capabilities

Versioned BOMs

Each product gets a Manufacture or Subcontract BOM listing materials, packaging and loss %. Save as a new version, mark the default, and see the standard cost if you may view cost.

Production orders

Create orders from products that have a BOM, with quantity and due date. View as a table or Kanban (Waiting, In progress, Done); filter In-house or Subcontracted.

Two ways to consume materials

By default materials are deducted by BOM when you report completion. Or issue them first to a work-in-progress warehouse, consume on completion and return the surplus.

Report completion, receive goods

Enter good and scrap quantities; hOne posts the finished-goods receipt and the material issue, generates a lot number from your pattern and calculates cost per unit.

Subcontracting

A subcontract order has a subcontractor, a fee per unit and an allowed loss. Send materials, receive goods, return surplus; the settlement table compares actual loss with the allowed level.

Lot tracing both ways

Enter a lot number or scan a GS1 label to trace a finished-goods lot to the materials used, or a material lot to the goods made from it, with production order and date.

Material at subcontractors

The "Material at subcontractors / WIP" tab lists material held at each subcontractor or WIP warehouse, with value if you may view cost.

Flexible settings

Set lot and order number patterns, default allowed subcontract loss, and automatic purchase requests for subcontract fees. Switch the module off any time; data is kept.

How it works

  1. Enable Inventory, then Manufacturing

    Run "Start inventory management" in Inventory, then open Manufacturing & Subcontracting and click "Enable". Choose how materials are consumed and the lot pattern in Manufacturing settings.

  2. Build the BOM

    Open BOMs, or the Components tab of a product, and add materials with the quantity for one finished unit and the loss rate.

  3. Create the order and run it

    Create a production or subcontract order and confirm it. The workshop issues or sends materials, then clicks "Report completion" after each batch.

  4. Close and read the cost

    Close the order, choose to return surplus material to stock, write it off as loss or keep it for the next order. Cost and stock documents are shown inside the order.

A real workflow

Cửa hàng Demo makes gift boxes and outsources box printing

Cửa hàng Demo assembles gift boxes itself and hires Xưởng in ABC to print the box sleeves. Lan builds the BOM, Minh issues the orders.

  1. LanBuilds the BOM for "Gift box": each box takes 1 sleeve, 2 tea packs and 1 ribbon, with a 2% loss on ribbon. If she may view cost, hOne shows the standard cost per box.
  2. MinhCreates a subcontract order for 100 printed sleeves at Xưởng in ABC with a fee per sleeve and a 3% allowed loss, then clicks "Send materials" to post the print paper issue.
  3. MinhWhen the printer delivers, he clicks "Receive subcontracted goods". The settlement compares paper sent, consumed and lost with the allowed loss; anything above is shown in red.
  4. LanCreates a production order for 100 gift boxes. After each batch she clicks "Report completion" with good and scrap counts; hOne generates the lot, deducts materials and receives the boxes into stock.
  5. LanCloses the order and returns the leftover ribbon to stock. Later a customer reports a faulty box, and she enters the lot in Lot tracing to see which material lots went into it.

Frequently asked questions

What must be switched on before Manufacturing?

Inventory first; if it is off, the Manufacturing screen asks you to open Inventory. An admin enables each module with one button, and switching off keeps the data.

Does hOne do production planning (MRP) or machine scheduling?

The module focuses on recording orders, materials, finished goods and cost; the due date is for tracking. If you need automatic material planning or machine scheduling, use a dedicated tool alongside hOne.

How is subcontracting different from in-house production?

A subcontract order has a subcontractor and a fee per unit. Materials are sent first, sit in the subcontractor warehouse and are settled at close: return to stock, write off as loss, or keep for the next order.

How is cost calculated?

Each completion calculates cost per unit from the cost of the materials consumed; subcontract orders also carry a fee per unit. Only users allowed to view cost see these figures.

How are finished-goods lot numbers generated?

From the lot pattern in settings (for example product code, year, month, sequence). Without a pattern, you type the lot number when reporting completion.

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