Building Product Assumptions: Basic Manufactured Goods

How to add basic manufactured goods to product assumptions?

Product card of basic manufactured goods

Demand assumptions settings for basic manufactured goods

By-products settings for basic manufactured goods 

Collection terms (Product Sales Terms) settings for basic manufactured goods 

By-products settings for basic manufactured goods 

Unit (Unit conversion rates) for basic manufactured goods

Other expenses (Product-driven expenses) for basic manufactured goods

How to add a basic manufactured goods to your Product assumptions?

To add basic manufactured goods:

1. Click PRODUCTS assumptions in the Business Concept section.
   
    
   
   In some cases, you will encounter the Product List. Also, simply click Add New Product To Begin Working or Add New Product to begin working.
   
   
   
   
2. In the Add New Product window, click Manufactured Goods.
   
   
3. Select subtype of product as a basic manufactured goods, Click BASIC.
   
   
   WHAT IS A "BASIC MANUFATURED GOODS" PRODUCT TYPE IN DECISION CRITICAL?
   
   Simple service: This product type represents the creation of complete, finished products through an in-house manufacturing process that transforms raw materials into functional goods ready for end-user consumption.
   
   Imagine you manufacture wooden chairs (finished products). These chairs are created through a manufacturing process that takes raw materials (wood planks, screws, etc.) and transforms them into a final product with a specific purpose - to provide seating.
   
   
4. Enter the details of your manufactured goods: 
   
   
   
   

   1. Product Name: Clearly identify the physical product you're manufacturing and selling. (e.g., Button)

   2. Main Unit of Measure: Specify the primary unit used to measure and track your manufactured good. (e.g., Piece)

   3. Default Sale Price: Define the standard price at which you sell the manufactured good to your customers per unit based on your chosen main unit of measure.
      
      

5. After you have entered all the details, simply click on "CREATE PRODUCT AND PROCEED TO PRODUCT CARD" to continue to the Product card. 
   
   
6. Product card is a blueprint for each unique product in your company. It serves as a centralized location within a scenario, where you define key assumptions about that product. For each product, the product card will be different based on the type of product.
   
   
   
   Here are the essential settings you'll need for your manufactured goods:
   
   
   1. Productions: This section deals with defining your production plan for the manufactured goods.
   2. Demand (Market Demand Assumptions): This section allows you to forecast customer demand for the manufactured good. You can choose different models (e.g., Constant Demand, Seasonal Demand) to predict future sales.
   3. Collection Terms: This section defines when revenue is recognized for the sale of the manufactured good. It specifies the collection point (e.g., On Delivery, On Account) and potentially the collection period (e.g., Net 30 days).
   4. Units (pcs): This specifies the primary unit of measure used to track your manufactured good (e.g., Piece, Gram).
   5. Storage Rules: This section allows you to define how you manage the inventory levels of the manufactured good.
   6. By-products (if applicable): This section allows you to define any by-products generated during the manufacturing process of your main product ("Button" in our example).
   7. Bill of Materials: This section is crucial. It details all the raw materials, components, and sub-assemblies required to produce one unit of your manufactured good. The BOM helps calculate production costs and ensure you have all necessary materials available.
   8. Product-driven Expenses (if any): This section allows you to define any additional costs associated with your manufactured goods.
      
      
7. After you have finished setting up the Product card, simply return to the Product list and you will be able to see the product you just created on the list.
   
   

Product card for basic manufactured goods

Here are the essential settings you'll need for your manufactured goods:

1. Production

2. Demand (Market Demand Assumptions)

3. Collection Terms

4. Units (pcs)

5. Storage Rules

6. By-products

7. Bill of Materials

8. Other expenses (product-driven expenses)

Read the full instructions of each settings step-by-step below.

Production settings for basic manufactured goods 

To add production setting:

1. Open Production settings.
   
   
2. Before you can start working in Production settings, there is an important settings that needs to be added.
   
   
   
   

   Note:
   
   Production plan for basic manufactured goods is "produce as needed", means Decision Critical doesn't automatically generate fixed production orders for your manufactured good. Instead, production is triggered by actual demand or inventory levels
   
   Priority (Inventory Reserve) for basic manufactured goods is "Low" priority, signifies that maintaining a high level of reserve stock for this manufactured good is not crucial. You are willing to accept a slightly higher risk of stockouts for this good compared to higher priority items.

   
   
   1. Production rules (settings icon in "Type: Manufactured goods"): Set of options that define how you manage the production of a manufactured good.
      
      
      
      
      
      
      1. Allow Purchase:
         
         Default: This is typically set to "No". This means Decision Critical won't automatically generate purchase orders for raw materials or components needed for production.
         
         "Yes" (Enable): Checking this box allows you to define how you acquire the materials needed for production. There are three sub-options:
         1. Purchase Automatically: Decision Critical will automatically generate purchase orders for materials based on your production plan and Bill of Materials (BOM).
         2. Purchase as Needed (Dynamic Purchase Plan): You can manually create purchase orders for materials as needed, but Decision Critical will suggest quantities based on your production plan and BOM.
         3. Set Purchases Manually (Fixed Purchase Plan):