Introduction to Components
Components can be really useful for situations where a in process material is created as a batch before being used up between a number of products. A Component is a special type of Project that when manufactured, increases stock of a material rather than stock of a product for sale.
Once you've completed this tutorial, you'll be able to:
✔ Create a new component
✔ Manufacture your component to create new material stock
✔ Use your component in a product recipe
This tutorial should take approximately 25 mins to complete.
What are Components?
A component (otherwise known as a sub-assembly), increases stock of a material rather than stock of a product when it is manufactured. Components can be really useful for situations where a material is created as a batch before being used up between a number of products.
When should you use Components?
If you create a material as a sub-process and later use this new material in more than one product, then you should definitely consider creating a component to handle this.
A very simple example is "Buttercream": this is essentially butter, sugar and milk blended together to produce a new ingredient that is used as a filling or icing on cakes. Typically to save time a baker would produce a batch of Buttercream to be used for all cakes baked that day, so this fits the criteria for a component.
Creating the Buttercream as a component has two main advantages:
1. For each cake, only the amount of Buttercream needs to be added to the product recipe. Otherwise, the exact amount of Butter and Sugar used in the buttercream would need to be calculated and added separately to each recipe.
2. The extra hidden labor cost of producing the component can be automatically factored into your pricing and labor costs.
How to create a Component
When you create a Component, it creates two parts that are linked together: the component and a material. It is helpful to think of the component as the "factory" that produces more of the material when manufactured, and the material tracks its stock on hand and unit pricing.
Adding components is very similar to adding a product - this is configured on the Add Component page, so let's go there now.
The needs to be set as the unit of measurement of the component material you will be producing. For our Buttercream example, we will set this to be "gram".
Once happy with the information you have added, click the button to submit the details. Once saved, you'll be taken to your component page.
You'll see that the page is very similar to your product one, but there are some minor differences: as components cannot be sold you'll see only the Manufactures and Adjustments tabs along the top.
Also, you'll see a link to your Component Material listed in the summary section like so:
Let's click on the link under the label Component Material now. Again, this page is very similar to regular material, but you'll notice that there is again some missing tabs and extra information.
The Expenses tab is not available here: this is because a component can not be purchased - it is only ever manufactured via the component. A note also appears to indicate it is a component material along with a link back to the linked product. You'll also see that instead of unit cost, we have Manufacture Cost displayed: this will be 0.00 as we haven't told the system about what goes in the component yet.
Let's now return to the component by clicking the component link. We're now going to add in a recipe for the component. This process is identical to the one you use to create a regular product, so we'll skip through this quickly.
Let's say that we produce 500 grams per batch we create of Buttercream. We'll enter in 500 in the Manufacture Batch Quantity and 15 minutes in the Estimated Batch Manufacture Time. We'll then add in the butter, sugar and milk as materials and click the button.
Back on the component page, we can now see our complete recipe with the total manufacture cost. Now let's make some Buttercream and see what happens!
Click the tab, then click the button. We'll leave everything as the default for this manufacture, so after the form loads, click the button.
If you now navigate to your Component Material, you'll see we now have 500 ounces in stock. The manufacture has increased your stock on hand of the material, and has decreased your stock on hand of the materials in your recipe.
Using Components in Product Recipes
Now that we have made some buttercream, let's use some of it in another product.
Create a new Product called "Buttercream Cake". In the recipe, add the Buttercream material along with a couple of other regular materials and then save. Looking at the recipe list on the Cake product's page, you should be able to see that the proportioned materials AND labor cost for the Buttercream is displayed and is tallied as part of your total manufacture cost.
Finally, adding a Manufacture for your Buttercream Cake will decrease your stock on hand of the component material in exactly the same way as all other materials used in the recipe.
Have some questions?
If you have any additional questions, please get in touch and we'll be happy to give you a hand.