Definition and scope of materials in smt processing and production

The so-called materials include: raw materials, indirect materials, finished products, semi-finished products, commodities, maintenance parts… etc., which are used for direct input into product manufacturing, or indirect auxiliary manufacturing, or products used for sales by business departments, or It is used for machine maintenance purposes in the factory…etc. In addition to the above-mentioned material items, what an industry will use: drawing numbers, fixed assets, molds, tools, jigs, fixtures, screen plates, etc., will also involve coding issues, and the coding planning principles They are all the same or similar. The editor will first explain the definitions of materials used in production and operation of all companies as follows:

1. Raw materials: refers to the goods purchased from the supplier, and must be put into the smt production workshop (production line) for processing and manufacturing before another output product can be produced, which can then be sold. For example: yarn used in textile industry, ABS plastic used in injection molding industry, IC semiconductor used in electronics industry, nitric acid used in chemical industry…etc.
2. Indirect materials: refers to the goods purchased from the supplier, but indirectly used for the purpose of manufacturing, or because the cost price is too small, it is impossible/no need to express in the manufacturing cost. For example: gloves, packing bags, scouring oil, lubricating oil… etc.

3. Finished product: The final product manufactured in the smt patch processing factory or through outsourcing processing, and the finished product available for sale.

4. Semi-finished products: unfinished products manufactured in the smt patch processing factory or through outsourcing processing can be reclaimed through production or outsourced to continue the production and processing of goods.

5. Goods: Goods that can be directly ordered from the supplier without going through the production process.

6. Entrusted processing products: The customer provides materials that enter the factory for entrusted processing, because such materials are not the raw materials purchased by the company and must be separately coded and controlled.

7. Repair parts: used for the maintenance or repair of machinery and equipment, plant facilities and used parts, or spare parts, not used for direct production of materials.

8. Fixed asset materials: In the requisition/purchase/acceptance process, before the fixed asset number is compiled, do the fixed asset materials need to be coded? How to code?

9. Expense-type materials: The materials that are used or consumed in the company or factory are included in the expense-type items. Do they need to be coded? How to code?


Post time: Oct-15-2020