In Katana, a product recipe, also known as a Bill of Materials (BOM), is a detailed list of all the materials and subassemblies required to manufacture a product. It specifies the quantities needed for each component and serves as a blueprint for the production process.
Components of a product recipe
Materials: Raw inputs like wood, fabric, or screws.
Subassemblies: Intermediate products that are assembled from materials and used in the final product. In Katana, subassemblies are treated as products, not materials, and can also be sold independently.
Each product or its variants can have a specific recipe, allowing for precise control over the manufacturing process.
Functions of product recipes in Katana
Automatic inventory adjustments: When a manufacturing order (MO) is created and completed, Katana automatically deducts the used materials and subassemblies from inventory and adds the finished product.
Manufacturing cost calculations: The cost of a product includes the average cost of materials and subassemblies used, along with the costs from production operations.
Material availability checks: Upon creating an MO, Katana checks if the required materials and subassemblies are in stock. If not, you can generate purchase orders (POs) for materials or MOs for subassemblies directly.
Example: crafting a table
Imagine you receive a sales order (SO) for one table. The product recipe includes:
1 tabletop at $100
4 legs at $20 each
8 screws at $0.10 each
Assuming the average cost equals the purchase price:
Total Material Cost: $100 + ($20 x 4) + ($0.10 x 8) = $180.80
If you have 3 tabletops in stock but lack legs and screws:
Action: Create POs for the missing components.
Upon completing the MO, Katana updates the inventory by reducing the materials used and adding the finished table.
Managing product recipes
Creating recipes: Manually input components, import from spreadsheets, or copy from existing products.
Editing recipes: Update materials, quantities, or notes as needed. Changes to default recipes don't automatically apply to open MOs but can be updated individually or in bulk.
Using subassemblies: Incorporate products as components in other product recipes to create multi-level BOMs. This approach streamlines complex manufacturing processes.
Exporting recipes: Download recipes as spreadsheets for analysis or bulk updates.
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