Manage By-products in Manufacturing

By-products are secondary or additional products that are generated alongside the main product during manufacturing. They can be the result of various processes or materials used in production. Efficient management of by-products is crucial for optimizing manufacturing and minimizing waste.

Activate the by-product management feature

Access the Manufacturing application > Configuration > Settings, check the By-Product feature to start managing by-products in manufacturing activities.

Activate By-product feature

Set up the standard quantity for by-products

In each Bill of Materials, go to the By-Product tab and add the by-products that are generated alongside the main product during the manufacturing process.

Add by-products in BoM

Tip

In the Viindoo software, to simplify manufacturing activity management, you can add the by-products that the business needs to track in terms of quantity and value (for resale or reuse in other manufacturing activities, etc.).

Tracking the quantity and cost of by-products in manufacturing

Create Manufacturing order

From the Manufacturing application, create a manufacturing order.

Create manufacturing order

On the By-Products tab, you can track the expected quantity of by-products that will be generated after this manufacturing order in the To Produce column. Click the Confirm button to start the manufacturing.

Tab by-products in manufacturing order

Record the quantity of by-products generated during the manufacturing process

Periodically, during the manufacturing process, enter the actual quantity of by-products generated in the Produced column.

Record amount of by-products are generated in manufacturing process

Enter the by-products into inventory

After clicking Mark as Done on the Manufacturing Order, the system will generate inventory transfers for the actual quantity of by-products generated during the manufacturing process.

Receive by-products in the warehouse

View the byproduct analysis report

On the manufacturing order, click the Production Cost Analysis button. In the By Products section, we can view statistics on the quantity of by-products and the cost associated with these by-products to make informed decisions (pricing for the by-products, cost analysis of raw materials if these by-products are to be used in subsequent manufacturing activities).

By-products report