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Production Management — What It Cost, Not What It Should Have

August 10, 2026

Overview

Most factories know their standard cost. Far fewer know what last month’s output actually cost, because the answer is spread across a stores issue book, a shift supervisor’s tally, a maintenance invoice and an electricity bill, and nobody has the week it would take to reconcile them.

Nama ERP is built so that the answer assembles itself. The materials, the hours, the machine time and the share of factory overhead all attach to the production order as the work happens, and closing the order is what values the finished goods.

The recipe and the route

Two master files carry everything the system knows about how you make a product.

The bill of material is the recipe, and it goes as deep as the product does: a finished item made of sub-assemblies made of components, exploded automatically at every level. It also carries the parts of manufacturing that recipes usually leave out — an expected scrap percentage, the substitute material you use when the preferred one is short, and the by-products that come off the line alongside the main output.

The routing is the method: the ordered operations, where each one happens, how long it should take, which people and machines it needs, and which quality check sits on it. Operations you define repeatedly — a final inspection, a curing step — become standard operations you reference rather than retype.

The order, and what actually happens to it

A production order is the instruction: make this quantity, starting this date. Pick the product and its bill of material and routing copy in, quantities scaled to the run. Until you start it, it is a plan you can argue with.

After that, the shop floor reports reality — and reality is not a queue moving neatly from operation ten to operation twenty. Nama ERP records quantity by state at each operation: ready to move on, rejected and going back for rework, scrapped, or pulled as a sample for testing. So at any hour you can say how many units sit at which step and in what condition, rather than how many were started.

Recording that movement is also what drives the paperwork. Issuing the materials the operation consumed, logging the labour and machine hours, raising the quality document, delivering finished goods into the warehouse — each can be generated from the execution rather than typed again, and each is configurable, because some factories issue everything up front and others issue operation by operation.

Closing the order is the accounting

The close voucher is where the module earns its place. It totals the actual materials, labour, machine time and resources consumed; applies overhead by whatever rule fits your factory — a percentage of material cost, an amount per unit, an amount per production hour; compares the result against standard cost so the variances are visible instead of implied; values the finished goods at what they actually cost; and locks the order so the history stays true.

For companies that need it — pharmaceuticals, food — cost can be held per batch, so the run that used a more expensive lot or took an extra shift is priced as itself. And an overhead calculator can take the real figures from the ledger accounts rather than a rate somebody set two years ago.

Where it connects

Production reads stock and writes back to it, gates output through quality control, takes its demand signal from material requirement planning, and posts its variances to the general ledger — the same accounts and cost centres the rest of the business reports on.

The full module — bills of material, routings, work centres, execution states, overhead types and order closing — is documented in the manufacturing guide.

Companies already running Nama ERP

I have never dealt with other local systems — I have only worked with international ones. Namasoft genuinely stands out for its very high flexibility in meeting our requirements quickly, whether modifying screens or delivering the enhancements we need, and that is what matters most to us. This would have cost more time and more money with the other international packages.
Eng. Ragy HassanChairman of the Board, Xpress GroupNissan Xpress

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