Production orders are used to manage the conversion of purchased
materials into manufactured items. Production
orders(job or
work orders) route work through various facilities(work or machine centers) on the shop floor.
Production orders are the central components of the program's
manufacturing functionality and they contain the following
information:
Products planned for manufacturing
Materials required for the planned production orders
Products that have just been manufactured
Materials that have already been selected
Products that have been manufactured in the past
Materials that were used in previous manufacturing
operations
Production orders are the starting points for:
Planning future manufacturing
Controlling current manufacturing
Tracking of finished manufacturing
Production Order Creation
Production orders can be created on an order-by-order basis
manually from the Production
Order window, or generated from the Sales OrderPlanning and/or Order Planning window. Multiple orders are
created from the Planning
Worksheet window.
Production orders are created using information from:
Items
Production bills of material
Routings
Machine centers
Work centers
Limitations on Production Order Creation
Production orders are automatically
reserved and tracked to their source when:
created from the Planning Worksheet
created with the production order
function in the Sales Order
Planning window
created from the Order Planning window
using the Replan function on production orders
Production orders created through
other means are not automatically reserved and tracked.
Production Order Status
The production order status controls how the production order
behaves within the program. The form and content of the production
are dictated by the order's status. The production orders are
displayed in different windows according to their status. You
cannot change the status of a production order manually; you must
use the Change Status
function.
The Simulated Production Order is unique based on the following
characteristics:
As its name implies, it is a simulation and its main purpose is
for quoting and costing - such as when the Research and Development
department wants to get a cost estimate on a proposed item. A
simulated production order serves as an example of a production
order.
It does not influence the planning of orders. Planning(MPS and MRP) neither considers nor is affected
by simulated production orders. Also, a simulated production order
cannot be used as a template because it disappears when you change
its status.
The Planned Production Order is unique because of the following
characteristics:
You can automatically create a planned production order from a
sales order.
Planned production orders are like released production orders
and provide input to capacity requirements planning by showing the
total capacity requirements by work center or machine center.
A planned production order represents the best estimate of the
future load for the work center or machine center load based on
available information. Typically, they are generated from planning,
but can also be created manually. Because they are erased during
subsequent planning generations, manual creation is not
practical.
Their generation in planning results in a suggested "planned
order release" that includes quantity, release date, and due date.
The planning system logic is based on the replenishment system,
reorder policies, and order modifiers that it encounters in the net
requirements planning process.
To view their impact, look at the load for each work center or
machine center on the planned production order's routing.
The Firm Planned Production Order is unique because of the
following characteristics:
You can automatically create a firm planned production order
from a sales order.
A firm planned production order acts as a placeholder in the
planning schedule for some future job released to the floor.
A firm planned production order can be generated from planning
or created manually or from sales orders. They are not erased
during subsequent planning.
Their generation in planning results in a suggested "planned
order release" that includes: quantity, release date, and due date.
The planning system logic is based on the replenishment system,
reorder policies, and order modifiers that it encounters in the net
requirements planning process.
To view their impact, look at the load for each work center or
machine center on the firm planned production order's routing.
The Released Production Order is unique based on the following
characteristics:
You can automatically create a released production order from a
sales order.
When a production order has been released, it does not
necessarily mean that materials have been picked or the job has
physically moved to its first operation.
In a MTO (Make-to-Order) environment, it is not unusual to
create a released production order immediately after the entry of
the sales order.
Actual material consumption and product output can be recorded
manually with a released production order. In addition, automatic
flushing of consumption and product output only occurs for released
production orders.
The Finished Production Order is unique based on the following
characteristics:
A finished production order is typically one that has been
manufactured.
Finishing the production order is an important task in
completing the costing lifecycle of the item that is being
produced. By finishing a production order, costing can be adjusted
and reconciled.
Finished production orders are used for statistical reporting
and to support the ability to track back to other orders (sales,
production, and purchase, for example). The ability to track back
to a finished production order allows you to review the detailed
history.
Finished production orders can never be changed.
Production Order Execution
Once a production order has been created and scheduled, it has
to be released to the shop floor to be executed. During execution
of the order, you record:
The program offers a variety of options for how a manufacturing
company might want to record material consumption. For example,
material consumption may be recorded manually, which might be
desirable if there are frequent component substitutions or greater
than expected scrap.
Consumption of materials may be processed through the Consumption Journal, but also may be
recorded automatically by the program, known as automatic
reporting. The reporting methods are:
This method assumes the expected quantity of all materials for
the entire order is consumed at the release of a production order,
unless using routing link codes. When using routing link codes, the
material consumed after the start of the operational step is
recorded in the Output Journal. To forward flush the entire
production order, you need to do two things:
All items in the top-level production BOM need to have forward
flushing selected on their respective item card.
All routing link codes on the production BOM must be
removed.
This method records the actual quantity of all material picked
or consumed when the status of a production order is changed to
Finished, unless using routing
link codes. When using routing link codes, the material is consumed
after a quantity of the parent item is recorded for the operational
step in the Output Journal.
Backward flushing(the principle of reporting methods used,
production order quantity completed, and time reported) the
entire production order requires the same setup as for forward
flushing: The reporting method must be set to backward on each item
card for all items within the parent BOM to be reported. In
addition, all routing link codes must be removed from the
production BOM.
When the Production Order is refreshed, the flushing method is
copied from the item card. Because the flushing method for each
production order component controls how and when the consumption is
recorded, it is important to note that you can change flushing
method for specific items directly on the Production Order.
Automatic Consumption Posting (Flushing)
The advantage of automatic flushing is that it greatly reduces
data entry. With the ability to automatically flush an operation,
the entire consumption and output recording process can be
automated. The disadvantage of using automatic flushing is that you
may not be accurately recording, or even aware of, scrap. The
Automatic Reporting methods are:
If you forward flush the production order at the start of the
job, the behavior of the program is very similar to a manual
consumption. The major difference is that consumption happens
automatically.
The entire contents of the production BOM are consumed and
deducted from inventory at the time the released production order
is refreshed.
The consumption quantity is the quantity per assembly stated on
the production BOM, multiplied by the number of parent items you
are building.
There is no need to record any information in the consumption
journal if all of the items are to be flushed.
When consuming items from inventory, it does not matter when
output journal entries are made, because the output journal has no
effect on this mode of consumption posting.
No routing link codes can be set.
Forward flushing an entire order is suited in production
environments with:
Flushing by operation allows you to deduct inventory during a
specific operation in the routing of the parent item. Material is
tied to the routing using routing link codes, which correspond to
routing link codes applied to components in the production BOM.
The flush takes place when the operation that has the same
routing link code is started. Started means that some activity is
recorded in the output journal for that operation. And that
activity might just be that a setup time is entered.
The amount of the flush is for the quantity per assembly stated
on the production BOM multiplied by the number of parent items
being built (expected quantity).
This technique is best employed when there are many operations
and certain components are not needed until late in the assembly
sequence. In fact, a Just-in-Time (JIT) setup might not even have
the items on hand when the RPO is begun.
Material can be consumed during operations by using routing link
codes. Some components may not be used until final assembly
operations and should not be withdrawn from stock until that
time.
Back flushing by operation records consumption after the
operation is posted in the output journal.
The advantage of this method is that the number of parent parts
finished in the operation is known.
Material in the production BOM is linked to the routing records
using routing link codes. The back flush takes place when an
operation with a particular routing link code is posted with a
finished quantity.
The amount of the flush is for the quantity per assembly stated
on the production BOM multiplied by the number of parent items that
were posted as output quantity at that operation. This might be
different from the expected quantity.
This reporting method does not consider routing link codes.
No components are picked until the released production order
status is changed to Finished.
The amount of the flush is the quantity per assembly stated on the
production BOM multiplied by the number of parent items that were
finished and placed into inventory.
Production Output
The program provides you with the capability to track how much
time is spent working on a Production Order, in addition to
recording the quantity produced. This information can help you more
accurately determine the costs of production. Also, manufacturers
using a standard costing system may want to record actual
information in order to help them develop better standards.
Output may be processed through the Output Journal, but also may be
recorded automatically by the program. The program copies the
flushing method from the Machine Center or Work Center card to the
Production Order Routing when refreshing. As with material
consumption, there are three reporting methods for output:
This method records the expected output (and time), which is
automatically recorded at the release of a Production Order.
Routing link codes are not a factor in the forward flushing of the
output.
This method records the expected output (and time), which is
automatically recorded at the finish of a Production Order. Routing
link codes are not a factor in the back flushing of the output.
Posting Consumption and Output
You can use any combination of automatic flushing and manually
recorded information for both consumption and output. For example,
you may want to automatically forward flush components, but still
use the Consumption Journal to record scrap. Similarly, you may
want to automatically record output, but use the Output Journal to
record scrap of the parent item or additional time spent on the
order.
Finally, if you enter consumption and output manually, you need
to determine the sequence in which you are going to record this
information. You can record consumption first and use a shortcut
method to enter the information, which is based on expected
quantity of output. Or, you can enter output first, using the
Explode Routing function. You
would then record consumption based on actual quantity of
output.
Production Journal
The Production Journal combines the functions of the Consumption
Journal and Output Journals into one journal, which is accessed
directly from the Released Production Order.
The purpose of the Production Journal is to provide a single
interface for you to register consumption and output from a
Production Order.
The Production Journal has a simple view and provides you with
the ability to:
Easily record output and consumption related to a Production
Order
Relate the components to operations
Relate actual operation data with the standard estimates on the
Production Order routing and component lines
Post and print an overview of registered operation data for the
Production Order
The Production Journal performs many of the same functions as
the Consumption and Output journals. Dimensions, Item Tracking, and
Bin Contents are handled in the same way as on the Consumption and
Output journals.
However, the Production Journal differs from the Consumption and
Output journals in the following ways:
It is called directly from a released production order line and
preset with the relevant data.
It allows you to define which types of components to handle
based on a flushing method filter on the journal.
Quantities and times already posted for the order are displayed
at the bottom of the journal as actual entries.
Fields where data entry is irrelevant are blank and
non-editable.
The user can set up the way output quantities are preset in the
journal – for example, that the last operation must have zero as
Output Quantity.
If you happen to exit the journal without posting your changes,
a request message is displayed allowing you to stay in the journal.
It displays operations and components together in a logical
structure that provides an overview of the production process.
In the Production Journal, Consumption Quantities are posted as
negative Item Ledger Entries, Output Quantities are posted as
positive ledger entries, and times spent are posted as Capacity
Ledger Entries.
Quick guides for manufacturing are available in
a document that you can edit and print in Microsoft Office Word.
The file, called Quick Guides – Manufacturing Foundation -
Classic.doc, is installed in the documentation folder of your
client installation.