Clear to build: what it means and how to build the report

Clear to build means you have every component needed to start and finish a production order. A clear-to-build report tells you how many units you can make right now, and which part is holding back the rest.

How to calculate clear to build

Buildable units for a component = available quantity ÷ quantity per unit, rounded down

Clear to build = the lowest buildable figure across all components

Available quantity is stock on hand plus any receipts you trust to arrive before the build starts.

A worked example

You plan to build 100 units of a product with four components.

Component	Qty per unit	Required	On hand	Confirmed PO	Available	Short	Buildable
Frame	1	100	120	0	120	0	120
Motor	1	100	60	20	80	20	80
Bracket	4	400	500	0	500	0	125
Cable	2	200	150	100	250	0	125

You are clear to build 80 units. The motor is the constraint, and you are 20 short. Chasing the frame, bracket or cable would not help, so the buyer’s effort should go to the motor.

What a useful report includes

• Product, order number and build date
• Quantity planned and quantity clear to build
• Each component’s required, on-hand, on-order and short quantities
• The constraining component and its supplier
• The promised date of the next receipt, and whether the supplier confirmed it

Confirmed dates matter because an unconfirmed purchase order is only a hope. See how to get purchase orders confirmed.

The hard part: shared components

When two products use the same part, you cannot count the same stock twice. Allocate it in priority order, usually by due date or customer, and then recalculate. A spreadsheet works for a handful of orders and gets painful after that.

How to use it

1. Run it before you release work to the floor.
2. Start only what is fully clear, so you do not fill the floor with half-finished units.
3. Give buyers the list of constraining parts, sorted by what they block.
4. Review it daily when shortages are common.

Where it fits

Clear to build is the most practical output of MRP. If your system cannot produce it, read our guide to MRP software for small manufacturers. The Statadventure Optimization Lab shows clear-to-build and which products each shortage blocks, on the Planner and Growth plans.

Frequently asked questions

What does clear to build mean?

That all the components needed for a build are available, so production can start and finish without waiting for parts.

What is a clear-to-build report?

A report that shows, for each planned build, how many units can be made with available material, and which component limits the rest.

Should clear to build include parts still on order?

Only receipts you trust to arrive before the build starts. Many teams show one figure from stock on hand and a second that includes confirmed orders.