Discrete Manufacturing is a production approach that creates distinct, individually countable products that can be touched, seen, and separated from one another, such as automobiles, electronics, furniture, machinery, and appliances. Unlike process manufacturing where materials are transformed through chemical reactions (like paint or chemicals), discrete manufacturing assembles or fabricates parts and components into finished goods. Each unit produced maintains its individual identity and can typically be disassembled back into its component parts. Products are manufactured through a series of distinct operations or assembly steps, with bills of materials (BOMs) defining exact parts required and routings specifying the sequence of operations, work centres, and time required.

Discrete manufacturers face unique operational challenges. Managing complex BOMs with hundreds or thousands of components requires sophisticated planning systems to ensure all parts arrive when needed without excessive inventory. Coordinating work across multiple work centres or assembly stations demands careful scheduling to prevent bottlenecks. Tracking serialised products enables warranty management and quality traceability but adds operational complexity. Configuration management becomes critical when products offer multiple options (different engines, colours, features), requiring systems that can manage BOM variations without creating unmanageable complexity. Production can be organised as make-to-stock (building inventory based on forecasts), make-to-order (manufacturing only after receiving customer orders), assemble-to-order (keeping sub-assemblies in stock), or engineer-to-order (designing custom products for each customer).

Modern ERP and MES systems designed for discrete manufacturing provide capabilities specifically suited to this environment: multi-level BOM management, finite capacity scheduling that accounts for equipment and labour constraints, work order tracking through multiple operations, serialisation and lot tracking, configuration management for product variants, and costing methods that accurately capture materials and labour for each product. Quality control typically involves inspecting dimensional accuracy, fit and function, and assembly correctness at various stages, with rework often possible as defective components can be replaced. As discrete manufacturers adopt Industry 4.0 technologies, they gain real-time visibility into work-in-progress location and status, automated data collection eliminates manual tracking, and analytics identify opportunities to improve throughput and quality throughout increasingly complex production processes.