Efficiency: Volume 1 Issue 06 - Item Master

One of the key elements in the costing structure of a manufacturing business is the direct cost per production unit. This direct cost consists of two main resources: Labour and Material.

The Item Master

In this issue, I will focus on the Material. As previously mentioned, one essential database every business relies on is the Item Master. Every material is listed in the item master – from raw material to packaging.

In a nutshell, the Item Master is the Rosetta Stone between internal and external communication – with regards to material. It translates the terms and references used inside the business to the part numbers and descriptions of the relevant supplier.