# Product Requirements Document (PRD)
## Production and Manufacturing Management System (PMMS)

| Field | Detail |
|---|---|
| Document Version | 1.0 |
| Status | Draft for Review |
| Owner | Product/Operations Team |
| Last Updated | July 8, 2026 |
| Document Type | Full Product Requirements Document |

---

## 1. Executive Summary

The Production and Manufacturing Management System (PMMS) is a centralized platform designed to give factory owners and operations managers full visibility and control over raw material inventory, material requirements planning, procurement, production costing, pricing, and order-to-delivery workflows.

Today, most small-to-mid-size factories manage this information across spreadsheets, paper logs, and verbal communication — leading to stockouts, overproduction, inaccurate pricing, and lost profit. PMMS solves this by digitizing and automating the full material-to-product lifecycle: **what materials exist, what materials are needed, what they cost, and what the final product should be priced at** — all in one system.

---

## 2. Problem Statement

Factory operators currently face:

- **No real-time visibility** into raw material stock levels across warehouses/floors.
- **Manual, error-prone calculation** of material requirements for production runs.
- **Disconnected pricing** — material cost changes don't automatically reflect in product pricing.
- **Reactive procurement** — materials are reordered only after stockouts halt production.
- **No single source of truth** connecting inventory, production, and finance teams.

---

## 3. Goals & Objectives

| Goal | Success Indicator |
|---|---|
| Real-time material inventory visibility | Stock accuracy ≥ 98% vs physical count |
| Automated material requirement planning (MRP) | Reduce manual planning time by 80% |
| Accurate, dynamic product pricing | Pricing updates reflect material cost within 24 hrs |
| Reduce stockouts and overstock | Stockout incidents reduced by 70% |
| Centralized production tracking | 100% of active work orders tracked in-system |

---

## 4. Scope

### 4.1 In Scope
- Raw material inventory management (stock in/out, thresholds, locations)
- Material Requirement Planning (MRP) based on Bill of Materials (BOM)
- Procurement & purchase order management
- Vendor/supplier management
- Product costing & dynamic pricing engine
- Production planning, scheduling & work orders
- Quality control checkpoints
- Sales order integration (basic)
- Reporting & analytics dashboard
- Role-based user access control

### 4.2 Out of Scope (Phase 1)
- Full accounting/ERP-grade finance (GL, tax filing)
- HR/payroll management
- IoT machine-level sensor integration (Phase 3 consideration)
- Multi-currency international logistics

---

## 5. Stakeholders & User Personas

| Persona | Role | Key Needs |
|---|---|---|
| **Factory Owner/Admin** | Full system control | Business-wide visibility, pricing control, reports |
| **Production Manager** | Plans & runs production | Work orders, material availability, scheduling |
| **Inventory/Store Keeper** | Manages stock | Stock in/out, low-stock alerts, location tracking |
| **Procurement Officer** | Buys materials | Purchase orders, vendor comparison, reorder alerts |
| **Finance/Costing Officer** | Manages pricing & cost | Material cost trends, product cost breakdown |
| **Quality Inspector** | QC checks | Inspection logs, pass/fail tracking, rejects |
| **Sales/Order Staff** | Manages customer orders | Order status, stock availability for sales |

---

## 6. Core Modules & Functional Requirements

### 6.1 Raw Material Inventory Management
**Purpose:** Know exactly what materials exist, where, and in what quantity — at all times.

Functional Requirements:
- FR1.1: Add/edit/delete material master records (name, SKU, unit of measure, category).
- FR1.2: Track stock quantity per warehouse/location/bin.
- FR1.3: Record stock-in (purchase receipt) and stock-out (used in production) transactions with timestamps and responsible user.
- FR1.4: Set minimum stock threshold (reorder point) and maximum stock capacity per material.
- FR1.5: Auto-generate low-stock alerts/notifications when quantity falls below threshold.
- FR1.6: Batch/lot number and expiry date tracking (for perishable/sensitive materials).
- FR1.7: Full stock movement history and audit trail.
- FR1.8: Barcode/QR code generation and scanning support for stock entries.

### 6.2 Material Requirement Planning (MRP)
**Purpose:** Calculate exactly how much material is needed for a given production order.

Functional Requirements:
- FR2.1: Define a **Bill of Materials (BOM)** per finished product — listing each raw material and quantity required per unit produced.
- FR2.2: Given a production order quantity, auto-calculate total material requirement (Requirement = BOM quantity × order quantity).
- FR2.3: Compare required materials against current stock and flag shortages automatically.
- FR2.4: Auto-suggest purchase quantities for shortfalls, factoring in existing purchase orders in transit.
- FR2.5: Support multi-level BOMs (sub-assemblies made from other manufactured components).
- FR2.6: Forecast material needs based on production schedule/sales forecast for upcoming periods.

### 6.3 Procurement & Vendor Management
Functional Requirements:
- FR3.1: Maintain vendor/supplier master data (contact, lead time, payment terms, rating).
- FR3.2: Create and track Purchase Orders (PO) linked to material shortages.
- FR3.3: Compare vendor pricing for the same material (price history & benchmarking).
- FR3.4: Track PO status (Draft → Sent → Confirmed → Partially Received → Received → Closed).
- FR3.5: Auto-update inventory upon goods receipt against a PO.
- FR3.6: Track vendor performance (on-time delivery %, quality rejection rate).

### 6.4 Pricing & Costing Engine
**Purpose:** Ensure product pricing always reflects true material and production cost.

Functional Requirements:
- FR4.1: Calculate **material cost per unit** of finished product using BOM × current material unit price.
- FR4.2: Add configurable cost layers: labor cost, machine/overhead cost, packaging cost, wastage %.
- FR4.3: Auto-calculate **Total Manufacturing Cost per Unit** = Material Cost + Labor + Overhead + Wastage.
- FR4.4: Configurable margin/markup rules to auto-generate **Suggested Selling Price**.
- FR4.5: Price history tracking — see how product cost/price has changed over time as material prices fluctuate.
- FR4.6: Alert when raw material price change impacts product margin below a defined threshold.
- FR4.7: Support tiered/bulk pricing for wholesale customers.
- FR4.8: Manual override with approval workflow for final pricing decisions.

### 6.5 Production Planning & Work Orders
Functional Requirements:
- FR5.1: Create production/work orders with product, quantity, target date, and assigned line/team.
- FR5.2: Auto-check material availability before confirming a work order (via MRP module).
- FR5.3: Track work order status (Planned → In Progress → QC → Completed → Closed).
- FR5.4: Capture actual material consumption vs planned (variance tracking).
- FR5.5: Production capacity/scheduling calendar view across lines/machines.
- FR5.6: Record downtime/delay reasons.

### 6.6 Quality Control
Functional Requirements:
- FR6.1: Define QC checkpoints per product/process stage.
- FR6.2: Log inspection results (Pass/Fail/Rework) with inspector and notes.
- FR6.3: Track rejection rate by material batch, vendor, or production line.
- FR6.4: Block shipment of failed-QC batches until resolved.

### 6.7 Sales & Order Management (Basic)
Functional Requirements:
- FR7.1: Record customer orders with product, quantity, and pricing pulled from the Pricing Engine.
- FR7.2: Check finished goods stock availability against sales orders.
- FR7.3: Trigger production work order automatically if stock is insufficient.
- FR7.4: Track order fulfillment status.

### 6.8 Reporting & Analytics Dashboard
Functional Requirements:
- FR8.1: Real-time dashboard: current stock value, low-stock items, active work orders, pending POs.
- FR8.2: Material consumption trend reports.
- FR8.3: Cost & margin trend reports per product.
- FR8.4: Vendor performance reports.
- FR8.5: Production efficiency reports (planned vs actual output, downtime).
- FR8.6: Exportable reports (PDF/Excel).

### 6.9 User & Role Management
Functional Requirements:
- FR9.1: Role-based access control (Admin, Production, Inventory, Procurement, Finance, QC, Sales).
- FR9.2: Activity audit logs per user.
- FR9.3: Multi-factory/multi-location support with data segregation.

---

## 7. Non-Functional Requirements

| Category | Requirement |
|---|---|
| Performance | Dashboard loads in < 2 seconds for up to 50,000 SKUs |
| Scalability | Support multiple factory locations under one account |
| Availability | 99.5% uptime SLA |
| Security | Role-based access, encrypted data at rest & in transit |
| Usability | Mobile-responsive for floor staff (barcode scanning via phone) |
| Auditability | Every stock/price change logged with user + timestamp |
| Offline Support | Basic stock-entry offline sync for factory floor (Phase 2) |

---

## 8. Key Data Entities (High-Level Data Model)

- **Material** (id, name, SKU, unit, category, current_stock, min_threshold, max_capacity, unit_cost)
- **Warehouse/Location** (id, name, address)
- **Stock Transaction** (id, material_id, type[in/out], quantity, warehouse_id, user_id, timestamp, reference_doc)
- **Product** (id, name, SKU, category)
- **BOM** (id, product_id, material_id, quantity_required_per_unit)
- **Vendor** (id, name, contact, lead_time, rating)
- **Purchase Order** (id, vendor_id, status, items[], expected_date)
- **Work Order** (id, product_id, quantity, status, planned_date, actual_material_used[])
- **Pricing Record** (id, product_id, material_cost, labor_cost, overhead_cost, margin, final_price, effective_date)
- **QC Log** (id, work_order_id, checkpoint, result, inspector_id, notes)
- **Sales Order** (id, customer_id, product_id, quantity, price, status)
- **User** (id, name, role, permissions)

---

## 9. Core Workflow Example: Material Requirement → Production → Pricing

1. Sales/Production Manager creates a **Production Order** for 1,000 units of Product A.
2. System pulls the **BOM** for Product A and calculates total material requirement.
3. System checks current **stock levels** for each required material.
4. If shortfall exists → system flags shortage and suggests a **Purchase Order** with recommended quantity and preferred vendor (based on price/lead time).
5. Once materials are available, **Work Order** is confirmed and material is deducted from stock upon usage.
6. **Costing Engine** recalculates cost per unit using latest material prices + labor/overhead.
7. **Pricing Engine** updates suggested selling price based on configured margin.
8. Finished goods are QC-checked, then moved to finished goods inventory, ready for sales fulfillment.

---

## 10. Suggested Technology Stack

| Layer | Suggestion |
|---|---|
| Frontend | React.js (responsive web) + mobile-friendly PWA |
| Backend | Node.js / Python (Django or FastAPI) |
| Database | PostgreSQL (relational, strong for inventory/BOM relationships) |
| Auth | JWT-based auth with role-based access control |
| Hosting | Cloud (AWS/GCP/Azure) with regional deployment |
| Reporting | Embedded BI (e.g., Metabase) or custom dashboard with charting library |
| Barcode/QR | Native camera-based scanning via web/mobile |

*(This is a suggested stack — final choice depends on team expertise and budget.)*

---

## 11. Success Metrics (KPIs)

- Inventory accuracy rate (target ≥ 98%)
- Stockout frequency (target: reduce by 70% within 6 months)
- Time to generate a material requirement report (target: < 1 minute, from hours manually)
- Pricing update turnaround after material cost change (target: < 24 hours)
- Production plan adherence (planned vs actual output %)
- User adoption rate across departments

---

## 12. Rollout Roadmap

| Phase | Focus | Timeline (Indicative) |
|---|---|---|
| Phase 1 (MVP) | Material inventory, BOM, MRP, basic costing/pricing | Months 1–3 |
| Phase 2 | Procurement, vendor management, work orders, QC | Months 4–6 |
| Phase 3 | Sales integration, advanced analytics, multi-factory support | Months 7–9 |
| Phase 4 | Offline sync, IoT/machine integration, mobile app | Months 10–12 |

---

## 13. Risks & Assumptions

| Risk/Assumption | Mitigation |
|---|---|
| Factory staff may resist digital transition from paper logs | Provide simple UI + training + phased rollout |
| Inaccurate initial data entry (opening stock) | Dedicated data migration/audit phase before go-live |
| Material price volatility affecting pricing accuracy | Real-time price update triggers + manual override option |
| Multi-location sync complexity | Start single-factory MVP, expand after validation |
| Internet connectivity issues on factory floor | Offline-first stock entry with sync queue (Phase 4) |

---

## 14. Open Questions

- Should the system integrate with existing accounting software (e.g., QuickBooks, Tally) for financial sync?
- Is multi-currency support needed for material procurement from overseas vendors?
- What level of machine/IoT integration is expected for real-time production tracking?
- Will customers/vendors need portal access, or is this fully internal-facing?

---

## 15. Appendix: Glossary

- **BOM (Bill of Materials):** The list of raw materials and quantities required to produce one unit of a finished product.
- **MRP (Material Requirement Planning):** The process of calculating material needs based on production demand.
- **PO (Purchase Order):** A formal order sent to a vendor to procure materials.
- **SKU (Stock Keeping Unit):** Unique identifier for each material or product.
- **Reorder Point:** The stock level at which new procurement should be triggered.

---

*End of Document*