< Back to ERP Page

Production in Jewelry ERP Software

The production process for the system starts as soon as the customer’s order is entered. The order is acknowledged by the Production Manager and then is put to be processed. The process involves generating Vendor PO’s, Workbags, raw material PO’s, receipt of merchandise, in-house transfers and inventory movements, shipment to the customer etc.

Production Plan Sheet
Highlights
  • Production Request can be generated from Sales Order, Inventory, Sales Forecast or direct
  • Style master defines whether style is to produced in-house or it is to be bought. If style is to be produced in-house then workbag is prepared automatically. If style is to be purchased from outside, then PO is generated
  • Workbag tracking is done at different production stages. Production stages can also be customized
  • Workbag tracking can be done by style#, customer#, ship date, SO#, etc.
  • Workbags are bar-coded for easy tracking
  • The Work-in-Process (WIP) tracking can be done using styles, workbag#, SO#
  • Packing list is generated automatically from the workbag
Features
  • Sales Order Acknowledgment by Production Manager, which leads to a Production Request (PR)
  • The PR can be generated from an order or can be entered manually, as need be
  • The PR quantity is suggested by the software automatically, by checking the inventory levels
  • If needed, the quantities can be changed by the production manager, or the PR can easily be generated manually
  • It also adds other information from the BOM such as vendor, vendor item #, production type etc.
  • If you choose to generate a PR manually, you can either type in the items or even upload them from an MS Excel file
  • System can generate a PR by combining multiple sales orders automatically. This is particularly helpful when handling distribution orders
  • If needed, you can split the PR to place orders to different vendors, for the same job
  • Once PR is generated, it can be processed to obtain workbags and purchase orders
  • The default type of production is defined in the BOM itself, which can be changed to accommodate special cases
  • The major production types are Workbag, PO with Workbag and Semi mount PO with Workbag
  • Workbag stands for local production, where you supply castings, diamonds, color stones etc. to a local contractor and get them set. You pay him for the labor and occasionally for components that he uses from his inventory, for ex: gold
  • PO with Workbag means that you need the jewelry finished from an overseas vendor to whom you may or may not supply raw materials. He might bill you for the complete piece or partially if you supplied the diamonds etc.
  • Semi mount PO with Workbag is used when the semi mount is purchased from an overseas vendor (to whom you might supply side-stones etc.) and then is sent to a local contractor along with center stones to get the piece finished. It is a multi-step production method
  • As soon as the PR is processed, you can print the barcoded workbags and/or labels, which becomes the cost center for the entire production
  • System can update the purchase order and set the prices based on the latest gold price and diamond and labor details from BOM
  • The purchase orders can be automatically emailed to the vendors
  • Diamond and metals, both have dedicated screens with customized columns specific to the item type
  • Diamond/stone purchases can be done by entering pieces and weights both
  • Inventory is maintained in user-defined lot numbers
  • Prices can be by piece or by carat weight. Both way, inventory is managed and the costing is maintained correctly
  • Casting invoices have columns for capturing gold locks and based on the metal type and weight, system calculates the expected gold rate automatically
  • Surcharge/over gold also can be captured and is used to calculate the applicable gold rate
  • Labor is captured separately which gives you a clear idea of your costs
  • You can choose weight unit as grams or penny weight based on the vendor’s invoice and system does the conversion automatically to the alternate unit for inventory management
  • Labor could be charged per piece or by weight
  • In case of overseas receipt, you can specify any customs duty charged, which adds up to your cost but do not affect the vendors payable
  • There is an option to supply raw gold in advance or lock the gold by giving an advance payment, for each vendor
  • Upon each receipt of castings, system automatically maintains a ledger for the balance of gold with the vendor
  • There is no weight conversion required as the system takes care of it by itself
  • The caster statement or the gold balance ledger is available to check as part of the reports and is maintained live
  • Once a workbag is generated, system captures the raw material requirements from the BOM and records it in the workbag itself
  • System knows the difference between vendor supplied components and components that you are supposed to procure. The raw material requirement is generated accordingly
  • Based on this, it can help you place orders for raw materials such as Castings, Findings, Diamonds and Color Stones
  • System checks the current available inventory level for the raw materials and suggest you the required quantity
  • The order generation can be done based on any search criteria such as Sales Order, Customer PO#, Style # or workbag number
  • System even suggests the vendor from whom the raw materials should be ordered based on the information from BOM
  • You have the option to choose an alternate vendor here
  • The quantity to order can be modify based on your needs without restrictions
  • The orders are placed by piece and weight, both
  • The system consolidates the items for each vendor and combines it to have 1 order per vendor. This setting can be modified to have one order per vendor per sales order too
  • The casting orders are placed with a ring size specification if the order demands that, to avoid mistakes by vendor
  • The orders placed can be modified to include any special instructions to the vendor
  • The orders can be printed right after generation or you can choose to schedule it to be sent via email from the system itself
  • Diamond and color stone orders can be placed as loose or sets
  • If order is placed as a set, the system will still be able to show the complete details of stones involved, such as shape, color, clarity, quality, mm/sieve size etc.
  • To send the workbag filled with raw materials, you can make contractor memo
  • Each workbag is barcoded. You just need to select the vendor and scan all the bags being sent
  • System assigns a value to the bag to cover the insurance. This column is editable and you can type in the number you want to show on memo
  • Each bag prints with details of components it carries. The print format is completely customized to suit your needs
  • While making memo, system shows the current balance with the contractor to help you make sure that you do not exceed the maximum value limit for the vendor
  • The system automatically assigns a due date to the job based on the sales order ship date, the formula to which is determined by you. This date is editable too, so that you can override in special cases
  • System clearly identifies whether a job is being sent as a new production or a repair
  • You can define your own types of jobs, such as Setting, Rhodium, Finishing etc., for reporting purposes
  • You can send the diamonds or other raw material multiple times with or without splitting the bags
  • The receipts can be made by selecting/scanning workbags or by using user-friendly lookups
  • Upon receipt, the order or memo closes automatically. Back-orders are maintained under the same order/memo number
  • You can receive complete shipment or partial. The system automatically splits the associated workbag which you can print and track separately
  • The labor paid to the vendor along with any duty or other costs are added to the workbag for cost analysis
  • In case if you receive the raw materials back and the job is not done, you can receive the bag as “Unfinished”. This closes the memo, but doesn’t close the bag and you can send the same workbag to any other vendor of your choice again
  • If received as finished, the jewelry inventory is increased and accounts payable (optionally) are affected at the same time
  • The finished jewelry can go to any stage of your choice, by default. For ex: if QC and receiving departments are the same, then we can default the receiving stage as QC
  • The pieces can also go directly to RTS, or “Ready to Ship”
  • The invoices from the vendors can be scanned and attached to the system for future references. This reduces paperwork and in case of an audit, you don’t need to waste time searching for the original invoice
  • The cost breakup by each component can be recorded while taking the purchase. This is particularly useful when you buy the complete jewelry from the vendor without supplying raw materials. It helps you verify the charges from the vendor and gives you a comparison point w.r.t. the BOM
  • You can print the workbags or labels from the purchase document which are used for internal transfers, because in most cases, workbag envelopes/stickers are not returned by the vendors
  • Shipping charges can be captured separately on the invoices
  • The transfers of finished jewelry can be done by workbags or by pieces
  • The transfers are barcode and RFID enabled, to minimize time used for data entry
  • You can scan the workbag or the individual item’s barcode if it is tagged
  • Transfers can also be done by using a reference document. For ex: Say you need to move all 50 items you purchased on one invoice. You don’t need to scan each bag or piece. Just put the document number and system picks the detail from it
  • Another way of uploading data for transfer is by using MS Excel documents
  • You can even choose to move all pieces from a certain inventory location or stage to another destination, using a single click
  • Transfers can be done while using the tracking screens such as Production Plan Sheet, by using simple drag-and-drop also
  • The source and destination stages are user-defined. You can select the stages based on the departments or a function or even by individual person
  • There are several stages pre-defined in the system where you can transfer pieces to and from, which are described below
    • RECV (Receiving) – This is the receiving department who enters the purchase for the first time.
    • QC – Quality Control
    • REJ – Rejections (pieces rejected by the QC)
    • REP – Repairs (pieces that require some repairs)
    • CRET – Customer returns (Sales credits, memo returns etc.)
    • STCK – Stock (these pieces are created for holding in stock, not allocated to any sales order)
    • TSHP/RTS – Ready to Ship

Each transfer can optionally require a handshake or approval.

  • The person receiving the pieces does the approval and the transfer is recorded with the user name and a timestamp
  • Only after approval, the inventory is updated. This ensures that there is enough transparency in the system and the person moving the pieces out is responsible for the pieces unless the approval is done
  • When doing physical inventory, you can scan the pieces/bags into the system and the system can generate discrepancy reports by each stage. This makes sure that the inventory is kept under control and each department/person is accountable for any discrepancy
  • Sometimes, you have pieces in stock to fulfill a shipment and you don’t need to go through the complete production cycle. Diaspark ERP handles it using Sales Order Allocation
  • Here, you can pick the items which are available (not allocated to any other order) and allocate to any sales order of your choice
  • System automatically lists the orders which have unallocated items and shows if there are any pieces available that can be used
  • The match can be made as simple as just checking the item number or by putting customer and ring sizes to the mix
  • For ex: if customer X wants a piece with higher diamond quality than customer Y, and the piece in stock was made for customer Y, then by using this system you can ensure that you don’t end up getting a QC rejection and further penalties from the customer X
  • Ring sizes also become important, if you maintain the inventory accordingly, for the same reason. This helps in making sure that the right item is allocated to the order
  • If there are no pieces available, then you still have an option to go through allocated orders and check if some other order has the same pieces allocated. Then you can decide to unallocated those from that order and allocate the same to the order of your choice
  • This is needed many times in case of urgent shipments
  • There are various filters which helps you choose the right order and the right pieces
  • The allocation can be done automatically, where you pick the order and system picks the pieces or bags
  • You can choose the bags of your choice if you decide to allocate manually
  • Either way, system handles splitting of bags automatically, if needed
  • As soon as the allocation is done, you can print a barcoded report or bags or shipping labels for the newly allocated pieces
  • You can transfer the pieces to the shipping stage from there itself and avoid scanning each bag later. This improves productivity by saving time
  • The raw materials can be issued from the purchase invoice itself
  • The system can suggest which workbag requires the items purchased
  • The raw materials can be issued from the stock also, where you can manage inventory in various locations
  • If picking manually from stock, system tells you what components are required for a workbag along with the weight and piece counts
  • There is a one-click issue option to speed up the process, which fills in the quantities as per the bill of material
  • While issuing components, you can check on the same screen what other items have been issued to the bag. This comes in handy to avoid mistakes
  • System captures the costs of each type of component issued, like metal, diamond, stones etc., and stores in the workbag
  • This data can be analyzed and reported to compare against the bill of material
  • If the total cost of the workbag goes above BOM, the system can automatically send email alerts to the production manager, who then can check if a mistake was made while issuing or the BOM itself is incorrect or outdated
  • Another email alert which is generated based on this is for the profit margin, which if goes below certain criteria, you will know before the actual shipment is made. The profit margin is calculated based on the workbag cost and the sales order’s price to which the workbag is linked
  • This feature helps keep the costs under control, keep an eye on the profit margin in real-time, and also identify the mistakes
  • The components issued by the departments can optionally have a handshake (approval) requirement, when the raw materials are handed over to the production department by say, diamond department.
  • The components issued can be internally transferred to various departments, if required, to make sure that the correct items are picked. Each transfer can have a handshake approval.
  • All these transfers can be tracked in real time using the sales order number, workbag, item# or many other criteria
  • Sometimes, you need to receive components out of the workbag also, for ex: in case of a mistake or if you have issued extra diamonds to cover breakage. This can easily be handled using the Receive Components option
  • It appropriately adjusts the workbag costs and put the inventory back to where it belongs
  • Production Plan Sheet gives a comprehensive report on what is going on in production
  • It is designed to give details on every production activity, starting from Sales Order to Shipment
  • It shows the progress of each style’s production status, such as how many pieces are at contractors, QC, Ready to Ship etc.
  • It also gives a snapshot as to what is current surplus or shortage for order fulfillment
  • The inventory and hence, tracking is split into 6 divisions
      • Standard (STND) – For regular orders and active styles
      • Samples (SAMP) – For product development and other samples (For ex: CZ based pieces)
      • Sales Line (SALN) – Pieces set aside for sales person to take on tours and maybe deliver to customer on memo etc.
      • Special Order (SPO) – Special orders/inventory can be tracked here
      • Closeout (CLOS) – For inactive styles moved to sell as closeout items or for melting
      • Customer Repairs (CUST) – These are customer’s pieces received by you for repairs. These can be tracked separately

    The main tracking stages in production plan sheet are:

    • SO – Open Sales orders
    • SOSTK – Open Stock (projections/shelf stock) orders
    • PR – Open production requests
    • PO – Open Vendor POs
    • WB – Open Workbags
    • WDF – Workbag with diamond department
    • WDC – Workbag with casting department
    • SEMI – Semi-mounts available in stock
    • CNTR – Pieces with contractor
    • RECV – Receiving department. Pieces received from vendor/contractor after finishing jewelry
    • QC – Quality check
    • LAB – Pieces with labs for jewelry certification
    • CRET – Customer returns (Sales credits or memo returns)
    • REP – Pieces marked for repairs
    • REJ – Rejected by QC
    • TSHP/RTS – Items ready to be shipped
    • Surplus (+) – Extra pieces, after covering all open sales orders, which you have in inventory and work in progress combined.
    • Shortage (-) – How many pieces you need more in order to cover the open sales order after including work in progress and on-hand inventory
  • The flow also can be decided by you. For ex: if your QC department does the receiving too, then pieces can be directly routed to QC instead of RECV.
  • There are many filters which can help you focus on the area you need to. For ex. a simple filter shows you only the items that are in shortage.
  • You can choose to see the items for a particular customer, category or a defined group of styles such as “Engagement Rings” or any other criteria.
  • If you need to see details of any style, simply double click on the line and a pop-up window shows you the relevant activity for that item and stage.
  • For ex: if you want to see a breakup of the 50 pieces in SO column, simply double click on the column and system will show you a list of all orders summing up to 50 pieces. From there, you can further drilldown to the order entry screen itself.
  • The drilldown screen shows you the details of style including images and complete activity related to production plan sheet, in properly categorized manner.
  • To move an item from 1 stage to another, you can simply drag-and-drop the piece count shown in the plan sheet itself.
  • For ex: you see 10 pieces in CRET that needs to be given to the QC department, just click and drag the number 10 under CRET and drop it over QC. It’s that easy!

Start typing and press Enter to search