The Make-to-Stock (MTS) approach is ideal for businesses that produce goods in anticipation of future demand, maintaining inventory levels to ensure prompt order fulfillment. This workflow outlines the steps to efficiently manage production, inventory, and sales using Katana's features.
Note: If you plan to make all your products to order, we suggest reading about the Make-to-Order workflow. If you use a mixed Make-to-Stock and Make-to-Order approach, check out this article.
Step 1: Monitor inventory levels
Access the Stock screen: Navigate to the Stock screen to view real-time inventory data.
Review calculated stock: The Calculated stock column provides insights by considering:
Current stock levels
Open sales orders (SOs)
Open manufacturing orders (MOs)
Safety stock levels
Determine production needs: A negative value in the Calculated stock column indicates the need to produce more units to meet demand and maintain safety stock levels.
Step 2: Create manufacturing orders (MOs)
Initiate MOs: There are multiple ways to create an MO:
From the Stock screen: Click + Make on the product row needing replenishment.
Global create button: Click the global + Create button and select + Manufacturing order.
Manage MOs: All MOs appear in the Schedule tab under the Make screen.
Prioritize production: Adjust MO priorities by dragging and dropping them within the list.
Note: MTS MOs are not linked to specific SOs; products are allocated to SOs based on priority.
Read more about using the Schedule.
Step 3: Define product recipes (BOMs)
Create BOMs: For each product, define a Bill of Materials (BOM) to specify required ingredients.
Assign safety stock levels: Set safety stock levels for materials to prevent shortages and ensure uninterrupted production.
Step 4: Assess material availability
Check ingredient status:
From the Make screen: Click on an MO in the Schedule tab to view ingredient availability.
From the Sell screen: Open an SO and click on Not available under the Ingredients column to identify missing materials.
Interpret availability indicators:
In stock: Materials are available for production.
Expected: Materials are on order but have not yet been received.
Not available: Materials need to be ordered.
Step 5: Purchase missing materials
Create purchase orders (POs):
From an MO: Click + Buy next to the missing ingredient.
Global create button: Click the global + Create button and select + Purchase order.
From the Stock screen: Click + Buy in the Materials table.
Review calculated stock for materials: Use the Calculated stock column to determine the quantity of materials to order, considering current stock, open orders, and safety stock levels.
Manage POs: All POs appear in the Buy screen, where you can track their delivery status.
Step 6: Receive materials
Update delivery status:
Receive all: Mark the PO as Receive all when all materials arrive.
Receive some...: If only part of the order arrives, mark as Receive some....
Stock update: Receiving materials updates their status to In stock, making them available for production.
Step 7: Execute production
Begin manufacturing:
From the Make screen: In the Schedule tab, start with the top-priority MO.
Update production status:
Work in progress: When production starts.
Done: Upon completion, marking the MO as Done adds the finished products to stock.
Detailed task management:
Define production operations: Break down the manufacturing process into specific steps.
Assign resources: Allocate tasks to team members or workstations.
Use the Tasks tab: The Tasks tab in the Make screen provides a detailed to-do list for each resource.
Shop Floor App: The Shop Floor App allows operators to access their tasks, report consumed ingredients, and log manufactured products in real time.
Step 8: Fulfill sales orders
Allocate products to SOs:
Automatic allocation: Products from MTS MOs are allocated to SOs based on priority.
Adjust SO priority: In the Sell screen, drag and drop SOs to change their priority, affecting product allocation.
Update delivery status:
Packed: Mark the SO as Packed when products are ready for shipment.
Delivered: Once products are shipped, update the status to Delivered.
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