BOMs live in scattered spreadsheets and every department works from a different version.
One approved, default BOM per product, plus the BOM Update Tool to replace a component or refresh costs across all BOMs at once.
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Manufacturing and Production Management in ERPNext
Plan production and control BOMs, costs, quality, and maintenance in a manufacturing ERP integrated with inventory and accounts. Request a demo today.
Bill of Materials and product costingERPNext 16 · Operion Theme
Multi-level BOMs built in one placeNo license fees
ERPNext · Manufacturing
Manufacturing ERP and Production Management with ERPNext
From the production line to finance, ERPNext brings discipline and visibility to the way you run your plant. You start with Bills of Materials and routings, plan production against sales orders and material requests, run work orders and job cards on your workstations, and track material consumption and the cost of every unit you produce. Whether you operate a small workshop or a full industrial complex, the system covers resource planning, cost control and consistent product quality.
ERPNext production management is wired directly into stock, buying, selling and accounting, so every production transaction posts to inventory and the ledger with no double entry. MRP calculates material shortages and raises material requests, job cards capture actual time and completed quantities, in-process items are inspected on the line, and machine downtime is logged from the same system.
Operion, an official Frappe ERPNext partner in Egypt and Saudi Arabia, implements the Manufacturing module end to end: shop-floor analysis, BOM and routing design, data migration and customization, then role-based training and post go-live support, with Egyptian ETA and Saudi ZATCA e-invoicing on the sales side.
Multi-level BOMs
Define every product's components, operations and costs in one connected Bill of Materials.
Demand-driven production planning
Plan production from sales orders and material requests, with required materials calculated for you.
Live shop-floor visibility
Follow work orders, job cards and workstation status as they happen.
Actual cost per product
Roll up material and operating cost on every work order and post it straight to accounting.
Challenges & solutions
Plant problems ERPNext solves
Common issues in small and mid-sized factories, and how a well-implemented ERPNext fixes them.
Production stops because a material shortage is discovered only when the job starts.
The Production Plan compares required materials with available stock and raises material requests for shortages before the start date.
Nobody knows the real unit cost until the month is closed.
Each work order rolls up issued material cost and operating cost based on workstation hour rates, so cost is known when the manufacture entry is posted.
Some machines are overloaded while others sit idle, and scheduling depends on memory.
Workstations carry working hours and production capacity, and capacity planning schedules job cards against real availability.
Materials sent to an outside processor are hard to track.
The Subcontracting cycle transfers raw materials to the supplier warehouse and records receipt, consumption and service cost on one trail.
Breakdowns and stoppages go unrecorded, so low output has no explanation.
Downtime Entry logs duration and stop reason per machine, and the Downtime Analysis report shows which workstations fail most.
Capabilities
ERPNext Manufacturing module features
Everything you need to run the production cycle, from design and planning to execution and costing, in one integrated system.
01
Bill of Materials and product costing
A BOM defines each product's components, quantities and the operations needed to make it, so ERPNext can calculate material cost, operating cost and total unit cost. Keep one approved default BOM per product, record secondary items and loss, and refresh costs from valuation rate, a price list or the last purchase rate.
- Components, operations and cost in one document
- One approved default BOM per product
- Scrap, secondary items and process loss
- Bulk cost refresh with the BOM Update Tool
02
Multi-level BOMs built in one place
Instead of creating a BOM for every sub-assembly and linking them by hand, the BOM Creator builds the whole product tree in one document, and in version 16 it can read the part tree from a STEP or CSV design file. On submit, ERPNext creates the BOMs for every level automatically.
- The full product tree on one screen
- Import parts from a STEP or CSV file
- All sub-assembly BOMs created on submit
03
Production planning from sales orders
Pull open sales orders or material requests into one Production Plan and set quantities and start dates per product. The plan explodes the required sub-assemblies, consolidates identical items, then creates work orders and material requests in one click, and can reserve stock for the plan.
- Pull demand from sales orders or material requests
- Sub-assemblies exploded automatically
- Work orders and material requests in one click
- Stock reservation for the plan
04
Material Requirements Planning (MRP)
ERPNext calculates required raw materials from the BOMs and planned quantities, then compares them with actual and projected stock in your warehouses. Shortages become material requests for purchase or transfer, so materials keep flowing without delays and without building up unnecessary stock.
- Requirements exploded from BOMs and plan quantities
- Checked against actual and projected stock
- Material requests raised for shortages
05
Work orders and operations
Turn the plan into clear work orders that link the product to its BOM, warehouses and operations. Transfer materials to the work-in-progress warehouse, track completed quantity per operation, then post the manufacture entry to move finished goods into stock at actual cost.
- Work order linked to BOM and warehouses
- Material transfer against the approved quantity
- Completed quantity tracked per operation
- Manufacture entry at actual cost
06
Job cards and the plant floor
A job card is created for each operation in the work order, where operators start and complete the job and record actual time and completed quantity. From the Plant Floor view, supervisors see machine status, open job cards and the stock of each production area.
- One job card per operation, created automatically
- Actual time and quantity per operator
- Quality inspection straight from the job card
- Visual machine status on the Plant Floor
07
Workstations and capacity planning
Define workstations with working hours, production capacity and an hour rate built from electricity, wages, consumables and rent. When a work order is submitted, capacity planning schedules its job cards against each workstation's availability to balance load and prevent bottlenecks.
- Working hours and shifts per workstation
- Hour rate feeds product cost
- Job cards scheduled against available capacity
08
Subcontracting
Send raw materials to an outside supplier for processing or assembly, and track what was sent, received and consumed in the supplier warehouse. The received item is valued at material cost plus service cost, and version 16 also supports manufacturing for customers with their own materials.
- Subcontracting order linked to the purchase order
- Materials tracked in the supplier warehouse
- Item cost includes materials and service
- Toll manufacturing with Subcontracting Inward in v16
09
In-process quality inspection
Create a quality inspection from the job card to check in-process items, and inspect materials on receipt and products before delivery. Parameters come from the item's inspection template, and a row is rejected automatically when a reading falls outside the allowed range.
- In-process checks straight from the job card
- Inspection templates linked to the item
- Automatic accept or reject from readings
10
Downtime and equipment efficiency
Log every machine stoppage with its duration and reason, from breakdowns and power cuts to long set-up times and operator errors. The Downtime Analysis report shows which workstations stop most, and asset maintenance schedules help you plan preventive maintenance to cut repeat stoppages.
- Downtime log per machine with duration and reason
- Analysis by workstation and stop reason
- Scheduled preventive maintenance for equipment
How the work flows
From sales order to finished goods
One connected flow that starts with a sales order and ends with finished goods in the warehouse and the cost in your books.
- Sales OrderSales Order
- Production PlanProduction Plan
- Material RequestMaterial Request
- Work OrderWork Order
- Job CardsJob Cards
- Finished GoodsFinished Goods
Reports & KPIs
Production reports and dashboards
Standard Manufacturing reports that answer daily management questions, each of which can be shown as a chart.
Production Planning Report
Which materials does the plan need, and what is available or short?
Work Order Summary
What is the status of each work order, how much is produced, and is it late?
Job Card Summary
How long did each operation actually take, and on which workstation?
BOM Stock Report
Is current stock enough to build the required quantity of a product?
BOM Explorer
What is the full component tree of a multi-level product?
Production Analytics
How are open and completed work orders trending over time?
Downtime Analysis
Which machines stop most often, why, and for how long?
Quality Inspection Summary
How many in-process inspections were accepted or rejected, and for which items?
Case studies
All case studiesSuccess stories from our clients
Real projects delivered by the Operion team and documented as case studies.
Al Rajhi Metal Industries
Saudi Arabia · Dammam · Manufacturing
StockBuyingSellingAccountingManufacturing
Read the case studyLamsa Plastic Industries Company
Egypt · 10th of Ramadan City · Manufacturing
StockBuyingSellingAccountingManufacturing
Read the case studyNational Cable Manufacturing Company (Cablco Jordan)
Jordan · Amman · Manufacturing
StockBuyingSellingAccountingManufacturing
Read the case studyWhy Operion
How Operion implements ERPNext Manufacturing
A practical methodology that starts on your shop floor and ends with a team running the system on its own.
1
Shop-floor analysis
We map your products, operations and workstations, and design BOMs, routings and a backflush method that fit your production style.
2
Data and cost migration
We migrate items, BOMs and opening stock, and set workstation hour rates that reflect your real operating cost.
3
Customization and Frappe apps
We add the fields, reports and approval workflows your plant needs, build custom apps on the Frappe Framework when required, and add Smart Go for mobile follow-up.
4
Training, support and hosting
We train production, stores and cost teams by role, then support you after go-live and host on Frappe Cloud or on-premise.
Guide
Learn more in the official ERPNext documentation
Step-by-step documentation for the features on this page.
Related pages
Other industries
FAQ
Frequently asked questions
Didn’t find your answer? Our team replies within one business day.
How does ERPNext differ from traditional closed-source manufacturing ERPs?
ERPNext is open source and flexible, and it can be extended as needed without costly license restrictions. Closed-source systems usually rely on fixed subscriptions and expensive development, and you never get access to the source code.
Does ERPNext support multi-level BOMs?
Yes. A finished-good BOM can reference sub-assembly BOMs, and the BOM Creator lets you build the whole tree in one document and create all BOMs on submit. The Production Plan includes sub-assemblies when planning work orders and materials.
How does ERPNext calculate the cost of a manufactured product?
Cost is built from raw material cost, using the rate basis chosen on the BOM, plus operating cost calculated from operation time and the workstation hour rate. When the manufacture entry is posted, finished goods are valued at actual cost and the entries go to accounting.
Does ERPNext include MRP?
Yes. The Production Plan calculates the materials needed for the selected sales orders or material requests, compares them with actual and projected stock, then creates material requests for purchase or transfer and work orders for sub-assemblies.
Does ERPNext handle subcontracting and toll manufacturing?
Yes. The Subcontracting Order sends raw materials to a supplier and receives the finished item with its cost. Version 16 adds Subcontracting Inward, so you can receive a customer's materials and manufacture for them without those materials affecting your stock value.
Can I track batches and serial numbers in production?
Yes. Enable batches or serial numbers on raw materials and products to see which material batch went into which production batch, with the Serial and Batch Traceability report.
Can the system be customized for my plant?
Yes. You can add fields, reports, permissions and approval workflows, or build full apps on the Frappe Framework. Operion tailors the system to your plant's workflow while keeping it upgrade-safe.
How long does a manufacturing implementation take?
It depends on company size, the number of modules and product complexity. Implementation typically takes 8 to 16 weeks, covering analysis, setup, data migration, training and go-live.
Ready to switch to ERPNext?
See how ERPNext can make your business more efficient and cut costs, with Operion beside you from analysis to go-live and support.
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