Before you jump into ERP configuration or clean up your master data, there’s one big question to answer: how does your production actually flow?
The answer lies in something called VAT plant structures — three simple shapes that describe how materials and products move through your business.
Understanding whether your plant is shaped like a V, an A, or a T is one of the most powerful ways to improve your:
ERP setup
Data quality
Production planning
System performance
What Are VAT Plant Structures?
The VAT model comes from Lean manufacturing and the Theory of Constraints. It classifies production flows into three shapes:
1. V-Plant
One input turns into many outputs.
Example industries: steel, chemicals, food processing (e.g., one cow = steaks, leather, bones)
Shape: Starts as one, then splits
2. A-Plant
Many parts come together to form one product.
Example industries: automotive, electronics, aerospace
Shape: Starts wide, narrows into one product
3. T-Plant
Many standard parts combine into many different finished goods.
Example industries: modular furniture, computers, build-to-order machines
Shape: A mix of A and V — both splits and joins
Industries That Use V-Plants:
Chemical & Pharmaceutical Manufacturing: A single base chemical is processed into multiple finished products.
Petrochemical & Oil Refining: Crude oil is converted into fuels, lubricants, and other petroleum-based products.
Metal Processing & Smelting: Raw ores are refined into various metal grades and alloys.
Why This Matters for Data Governance
When you know your plant’s flow type, you can design smarter rules for your data and systems.
| Governance Area | V-Plant | A-Plant | T-Plant |
| BOM Setup | Needs by-product and co-product handling | Requires full-kit availability | Uses options/variants BOMs |
| Master Data Rules | Focus on split tracking and traceability | Emphasize part availability and sourcing | Manage product options and versions |
| Quality Checks | Test at the diverging point | Test at the assembly point | Test both input modules and final product |
| Data Updates | Rarely add SKUs, but weights/units change | Add parts often; vendor data critical | Constant variant updates; needs configurator support |
How to Configure Your ERP System for Each Flow Type
V-Plant ERP Tips
Use co-products or by-products in your ERP system
Allow batch splitting for traceability
Add inventory buffers before the split point
Use co-products or by-products in your ERP system
Allow batch splitting for traceability
Add inventory buffers before the split point
A-Plant ERP Tips
Turn on multi-level reservations (only start when all parts are available)
Use make-to-order settings for procurement
Plan with visual tools to manage timing of part arrivals
Turn on multi-level reservations (only start when all parts are available)
Use make-to-order settings for procurement
Plan with visual tools to manage timing of part arrivals
T-Plant ERP Tips
Enable a product configurator or variant builder
Use a matrix warehouse to handle parts logically
Activate Capable to Promise (CTP) for accurate delivery dates
Enable a product configurator or variant builder
Use a matrix warehouse to handle parts logically
Activate Capable to Promise (CTP) for accurate delivery dates
What This Means for ERP Projects
Knowing your flow type helps avoid common ERP pitfalls:
| Flow Type | Risk | What to Watch |
| V | One input causes many delays | Material traceability, production splits |
| A | One missing part stops everything | Part tracking, vendor reliability |
| T | Mix of both risks | Configurator logic, variant BOMs, full-kits |
Tip: Many companies don’t fit just one shape. In that case, model each department or product line by its dominant type and plan accordingly.
📌 Key Takeaways
- Every production line follows a shape — V, A, or T — that impacts your ERP and data needs
- Data governance rules should match your flow to avoid gaps and chaos
- ERP modules must be set up to fit the plant structure — not the other way around
- Training your team on flow types helps avoid delays and poor planning
- Don’t rely on guesswork — model your plant, then let the data guide you
We help manufacturers across Canada configure their ERP systems (Odoo, Zoho, Dynamics) to match real-world production flows.
Contact us to start with a free VAT Flow Assessment and see how it shapes your ERP journey.
