Manufacturing
From PERPWiki
Existing capacities include step-down bills of material with some costing functions, and an options structure flexible enough to handle complex product lines. Elementary work order and batch work order functions are in place.
A simple production tracking section has been set up but is not entirely functional because it awaits the hardware for scan in/scan out tracking of finished goods and management of inventory using industrial tablets.
The major sections of the Manufacturing application are given here.
Contents |
BILL OF MATERIALS
The Bill of Materials is a list of the raw parts required to make a particular assembly. The BOM is part of the inventory management system; when a product is built, the BOM is used to decrement stock counts.
pERP recognizes three different stock types: raw parts, assemblies, and stock kits. In addition, any of the stock types can be flagged as pseudo-stock.
- Raw Part - Any stock item that is used in making something else or that is sold as is to a dealer or service department. Examples are clear airline, red PVC glue, a 2" PVC right elbow, or a 1/4" x 1" round-head bolt.
- Assembly - A stock item that is made (assembled) from other things. Examples include a wood cabinet, a billiard table, a particular model of spa, or even a particular jetting arrangement such as Fox Ultra. Assemblies can be made up of just raw parts, other subassemblies, or a combination of both.
- Stock Kit - this is another way of organizing materials that will be useful for some businesses. It is a shortcut method for providing a single SKU for a group of items. Suppose you are a backyard retail store offering standard packages. Your SKU for one package, BYD01, might include a 1 m round PVC table, 2 PVC chairs, a matching umbrella and umbrella base. BYD02 might include a 1 m round cedar table, two cedar deck chairs, and a cedar planter. Another example might be a hot tub manufacturer--the stock kit would include a specific model of hot tub, with cover options such as None, Grey, Red, and Green.
- Pseudo Stock - Some stock items used in a BOM will be pseudo stock. If you can't order it from a supplier; don't actually build it, and don't sell it to customers, it can be pseudo item. It's just a list of parts grouped together for convenience (You might make up a pseudo from ten always-used parts to add to fifty other BOMs. Rather than add the same ten parts fifty times for 500 data entries, make a pseudo item and add that fifty times.) Stock Kits and Assemblies can be flagged as pseudo stock.
Note
- It is possible to flag a raw part as pseudo stock, but the meaning of this is usually unclear and may have unforeseen consequences, so take great care in doing so. Just because a thing can be done is not a good and sufficient reason to do it.
A good example of a pseudo assembly for a hot tub manufacturer is JET-112125 3" SINGLE PULSE TRI-FACE COMPLETE, which consists of one each of
- JET-112120 (3" TRI-FACE SINGLE PULSE JET INTERNAL PC),
- JET-112121 (3" SPINNING MICROJET BODY), and
- JET-112123 (3" JET/AIR CONTROL NUT).
The manufacturer can't order this assembly from any supplier. A dealer can order a complete jet, but they aren't in a box together and he has to order the three parts. In the warehouse, nobody picks a JET-112125; they go and pick a 112120, 112121, and 112123. So you can see why it is called "pseudo stock"!
This could equally be a stock kit, because a customer can order it. In fact, it might be better classed as a kit, because a stock kit will explode into its component parts on a shipment list [and on a sales order?], while an assembly will not.
However, it is also a subassembly because whenever the manufacturer puts a 3" jet into a hot tub, it needs one of each of the items it contains. It is part of a larger assembly that includes sealer, and perhaps hose.
DECISIONS ABOUT CLASSIFYING A BUILT ITEM AS A STOCK KIT OR AN ASSEMBLY MUST BE CAREFULLY MADE. A STOCK KIT MUST ALWAYS BE PSEUDO WHILE AN ASSEMBLY GENERALLY SHOULD NOT BE PSEUDO. [REVIEW THIS FOR ACCURACY!!!]
NOTE: Stock Kits will "explode" into their component parts on a shipment list [and on a sales order?]. Assemblies will not.
If a dealer orders a stock kit of JET-112125, one each of the component parts would be shipped. Assemblies do not do this. So some care must be taken in labeling any item as stock kit or assembly; warehouse staff must know that this SKU is made of three other items.
Any finished product is real stock and should NOT be flagged as pseudo stock unless it is routinely shipped with other items, in which case it might be a stock kit. A picnic table is an assembly that dealers order. A picnic table that comes with a separate umbrella and base would be a stock kit.
THE BOM LIST
The Bill of Materials for a product is not static. Changes are sometimes made mid-run. The price of a given component may vary. So a given product needs to be linked to the BOM as it was when the product was built in order to get an accurate build list and costing for any given unit or any given production run.
On first entering the BOM section in the test version of pERP, you see a list of builds (in the working version of pERP, the builds have yet to be entered, so the first people working in it will have an empty list)
Figure 5-2 The BOM List, showing various current builds.
Before we try a new build, please take a look at the list, which contains both finished goods (LIT-104840 Northern Lights NA Complete) and subassemblies (LIT-006026 3" Underwater Light Assy, for example) that go into a finished widget. pERP needs to keep track of inventory whether it's raw or partially assembled.
You'll note that the list shows the effective from and to dates (in the example, all Effective to dates are empty, meaning they are in effect indefinitely). Your screen may not show edit/delete icons. If you do see those, don't delete a BOM without checking with your manager and the IT team.
CREATING/EDITING A NEW BILL OF MATERIALS
You can do this in either of two ways 1. Starting at the Stock Item record (Inventory > Stock List > choose stock item > Bill of Materials Tab > New 2. Starting at the BOM list (Manufacturing > Bill of Materials > New Bill of Materials > choose stock item )
Each method works MUCH the same way, but you may find it easier to do it one way or the other. Screens for both methods are shown in this section.
Before creating a new build, the finished product and any component parts, assemblies, or subassemblies must first be entered in the stock list. The highest level stock item in the BOM must be identified as an assembly.
Remember that pERP considers any finished product an assembly.
Some assemblies have options, so be sure to read the Options section before doing a new BOM
Starting from the Stock List
1. Find the part for which you want to make a BOM. Click either the SKU or the edit button for the part to open its stock card. If the part is an assembly or a stock kit, it will have a Bill of Material tab.
Remember that only Assemblies and Stock Kits will show a BOM Tab, so if you don't see the Bill of Material Tab you may first have to set the part to Assembly or Stock Kit on the Details tab.
2. Click the Bill of Materials Tab to view the BOM for the part, or to create a BOM if one does not exist. See the screenshots below for details.
Figure 5-3 The stock card for Northern Lights International (sometimes called European); no BOM has been entered.
New - This button will only be present for an Assembly or Stock Kit that does not yet have a BOM.
3. Click the New icon to create a new BOM (continued below)
Figure 5-4 Here, there are two future bills of materials
4. Any existing BOMs will be shown on the tab. You can click the number of the BOM (10 or 11 in the shot above) to examine or edit it, or you can click New to replace those in the list. Note that each succeeding BOM automatically terminates the previous one.
BUILD FOR THE FUTURE
A new BOM is automatically set to come into effect one day after you create it. This gives you twenty-four hours to complete it or add edits and ensure that it is correct before it takes effect. For experimental builds, you might want to give yourself more time.
Future builds will not show on the BOM List if Status is set to Current (See fig. 6-3). Setting the Status to Future or All will show these builds in the list.
You cannot see the components of a build by clicking its SKU at the left side of the line, but users with access can edit a future build by clicking the Edit icon to the right side of the line.
5. After you click the "New" button as described above, you see a New Bill of Materials Screen. This screen is almost identical to the one that you get when going from Manufacturing > Bill of Materials > New Bill of Materials, except that here the For field is already filled in (because you started from a stock item, pERP knows which one you're working on), so from this point on the two methods are the same.
Figure 5-5 A new Bill of Materials screen starting from the Stock Item; the For field is completed.
Starting from the BOM List
1. Manufacturing > Bill of Materials > Bill of Materials List > New Bill of Materials. This will bring up the New Bill of Materials screen (similar to the previous figure)
Figure 5-6 Same screen as the previous figure, but you have to get a stock item into the For field.
IF THE STOCK ITEM YOU ARE LOOKING FOR IS NOT IN THE "FOR" LIST, IT IS PROBABLY IDENTIFIED AS A RAW PART RATHER THAN AS AN ASSEMBLY OR STOCK KIT. YOU WILL HAVE TO GO TO INVENTORY AND FIND THAT SPECIFIC PART, LOOK AT THE DETAILS TAB, SET THE ITEM TO 'ASSEMBLY' AND SAVE THE RECORD. WHILE YOU'RE THERE, GO TO THE "BILL OF MATERIAL" TAB AND CREATE YOUR BOM FROM THERE!
Completing a New BOM
However you get to a New Bill of Materials screen, the steps are almost the same. This window sets up some parameters for the BOM:
Effective After - This is set to tomorrow. A new BOM is automatically set to come into effect one day after you create it. This gives you twenty-four hours to complete it or add edits and ensure that it is correct before it takes effect. You can set this to a date further in the future. Don't set it to today or in the past.
Effective To - The date when this BOM will expire, if known. Can be left blank, in which case the BOM is in effect indefinitely, or until edited (see note below). If you eliminate or replace this BOM at some point, you will enter a date here so that manufacturing processes will stop using that BOM at the right time.
For - the SKU of the item you're working with. If it's already filled in (you started from the stock list), well and good. If not, fill it in with the stock item you want (for details on how to use the stock select field, see Getting Started in pERP)
Comments - Add up to 255 characters explaining details of the build, reasons for changes, substitute parts, etc.
Save - Click this when all fields on the screen are set as you want them.
Cancel - Click this to cancel the work done so far; no BOM will be made.
1. Once you click Save, you will go to the next screen to add components to the Bill of Materials. This new screen is where you will enter the parts in the BOM. Many fields are the same as the previous screen and can be edited here.
Magnifier - this View icon is used to give a different (hierarchical with costing) layout for the BOM, which won't show much at this stage. Not everyone will be see this icon; if you need it, ask your manager.
Effective After - The start date when this BOM came into effect, automatically set to one day after the date on which you first create the BOM
Effective To - The finish date, when this BOM will expire. Blank means the BOM is in effect indefinitely; this is the default
For - The assembly for which this is the BOM (don't change this)
Comments - Any description about this particular BOM, outlining reasons for changes, whatever.
Figure 5-7 The BOM tab for a stock item recently set as an Assembly and saved.
You can add components, including other assemblies, step by step. After you have set a stock item into the BOM, enter the number (required, default = 1), location, and time (optional, defaults as shown below). The stock select field should be clear and ready for you to enter the next item on the BOM.
Figure 5-8 The section where raw parts or subassemblies are shown and added to a build.
For each component, you can set the number, the location, and the assembly time if desired. In the example above, only the number of each component has been set.
When you have finished entering items, be sure to Save the BOM.
A click of the magnifying glass (BOM report) icon in the top right corner gives a hierarchical ("tree" or "step-down") view of the total assembly with all subassemblies and raw parts. Lines and indents separate each level, and options are noted with colors. This report is shown below.
Figure 5-9 Another view of the BOM, with costing (from an earlier version; the 0.00 for the subassembly is not an error, but should be hidden)
Stock Code - This is a stock search widget, so from this screen (no matter how you got here) you can look at any BOM Built At - This is normally set to No Costing, which shows you only the list of materials. With this set to a location, you will get the current best-estimate cost of this list of materials. The price shown here will be the cost from the most recent PO for that SKU or failing that, from the most recent cost entered for the item in the catalog of the preferred supplier. Date - The date field is blank by default. Changing the date will have these effects:
- A date in the past will show the BOM as it was at that time. Historical costing is NOT retained. Costing shown will be current best-estimate cost, regardless of the date selected.
- A date in the future should show future BOMs.
Figure 5-10 No BOM shown for this SKU (note no date set = today)
Figure 5-11 A future date shows a future BOM for this SKU (note date)
See Admin -> Manufacturing -> Site Configuration -> Force Bill of Material History.
If this is set to "on", editing a Bill of Material will close the original Bill of Material as of the current date, and create a new Bill of Material as edited, with the start date being the current date. All products created up to this time will use the old BOM; products created after this time will use the new BOM. If this flag is set to "Off", editing the BOM will not close it. [More here, about how changes to BOM are linked to product builds]
The average user will not be able to access this section. If you think the BOM is not configured properly, please consult your manager.
Only Experimental and In Production stock can be purchased (see Purchased Orders) or sold. Anything on a price list can be sold; retired stock will not show on a price list. Once a discontinued sku runs out of inventory (sold or garbaged), it will be retired and should no longer show on the price list
Discontinued stock should be: - Not allowed to be ordered (no Purchase Order allowed) - Sold as long as there is inventory - Retired when inventory drops to 0 - Not allowed to be built or used in a Bill of Materials See ticket #80788
Figure 5-12 The first page of the Bill of Materials report for the Common Widgit. Note the step-down structure.
Figure 5-13 The second page of the Common Wigit Bill of Materials. Options are shown in a different color. The BoM shows what parts are required for each option.
Questions:
1) If the flag is "off" and a BOM is edited, are the changes applied retroactively to all products/assemblies manufactured under the BOM?
If a BOM is edited, and still the correct BOM based on valid dates, that BOM will be used.
2) Is the BOM timestamped? That is, if the flag is "On" and a BOM is changed in the middle of a production run, will the new BOM be applied to all products manufactured on that date, or just after the time of the change? I am under the impression that this occasionally happens, e.g. when the line runs short of a part and another must be subsitututed mid-run.
The new BOM will be used for any new Work Orders. Work Orders already scheduled, in production or completed should continue to use the BOM that they were scheduled with.
When creating a work order, and adding an item to it, the current bill
of materials for that item is copied, and the bills of materials for all options are included. This gives one unified BOM that is used for the work order detail. It is this BOM, and not the original that is
referred to in this ticket.
This bill of materials occasionally needs to be modified, to substitute components for example.
The BOM cannot be modified after production on it has started.
Special handling may be needed in the case of allowing last minute option changes, which will change the BOM.
It may be necessary to record the changes made, in addition to the result of the changes so they can be re-applied if a change of options results in a change of BOM.
OPTIONS
An OPTION is a feature of a product that may vary. For common widgets, as shown below, the options shown are White, Blue, Red, and Unpainted. Note that this covers all possibilities: a widget cannot be built that is not one of those options.
In order for this system to work, each Option must have an associated BOM.
Figure 5-14 The build options list for a common widget. If other assemblies had options, they would be shown here as well.
Besides the usual search bar (not needed with only one category!), the fields are
- Category - Each option should be given a category. Some consideration must be given to the categories and options before starting to build an option structure. For Arctic Gazebos, for example, the categories include Stain Color and Roof Color.
- Options - These are the choices within a category. Gazebo Stain Color has two options: Natural and Grey; Roof Color has three options: Green, Terracotta, and Charcoal
- New Category - An easy way to enter a new category
Note: To edit an existing category, click its title in the Category list. Both open the screen shown below, New Build Option Category
New Option -Select a new option under a selected category.
Note: To edit an existing option, click its name in the Options List. Like New Option, this will open the screen shown below, New Build Option
NEW CATEGORY/EDIT CATEGORY
Figure 5-15 The new Build Option Category screen, shown in edit mode. A new Category would not have the Name field filled in.
Name - Give a name for a new category, or edit an existing name. Option For - The stock category of the assembly to which this option will apply (remember, this can be a finished product or a part of a finished product). For a gazebo, this might be GAZ-B1701 Wood Assembly (a pseudo assembly because we don't really build them, but it's a handy way to keep track of the parts involved). If the Stock Category you want is not in the drop-down, refer to Inventory > Stock List Required before production - Some options have to be known before production but others are added after the fact. Sample Manufacturing Company can make many common widgets unpainted, and then do them as required to meet customer orders. Most of our spa options are required before production and in that case the box should be checked. Save - as usual Cancel - as usual
Figure 5-16 The New Build Option screen. This screen is also used to edit an existing option and differs only in that the fields would be filled in.
Category - For a new option, set this as required. Take great care in changing this for an existing option. Name - Give the option a clear, descriptive name, or edit an existing name. Effective After - The date on which this option item will become effective in the BOM. Effective To - The date after which this option item will no longer be available. Use this for short-time specials, limited quantities, etc. Default Pricing - Here you can set or edit the price for the assembly with this option. Note that as the list grows, you can filter by Category and Status, search for any price list, or sort by any of the headers.
TIP: If an option is not available in a particular sales area, leave its price field blank rather than entering a price of zero.
Query: Is the Option list tracked the way a BOM is? That is, will editing the Option List create a new BOM effective after the date of the edit?
The final aspect of the Options is in the Stock List. Here is the stock card for the common widgit, with the Options tab open:
Figure 5-17 The options tab for the common widget stock card.
Here, the category and options are set as previously described, and cannot as yet be accessed or edited from this point.
Allowed - This field determines how the options interact with work orders and pricing [???]. The settings in the field are Not allowed - The customer cannot order an unpainted widgit, and this option should not appear in the Sales Order section. Required - the option MUST be included. This sounds contradictory, but consider our own products. Therapy air is optional - but not on a designer or ultra or extreme; on those models, it's a "required option". Default - this is the most usual option for the item. Set only one option to default. Optional - The item can be ordered with this color (for example).
Component - This is the assembly (list of parts) that go with this option. See the sample BOMs at the end of this section for specific examples.
Work Center - The work center where this option is installed or added.
BUG REPORTS IN OPTION SECTION - FOLLOW UP
No bugs reported.
This has been at least partly tested for Apollo. If there is no BOM for the option, the option will automatically be set to Not Allowed.
[tom - Wed Mar 19 12:57:26 2008]:
When a raw part or assembly is retired it can be replaced with a new sku. If the retired part was used in a BOM, is it automatically replaced with the new part?
If you provide a replacement part, the BOM will be updated with the provided replacement. You may want to go with discontinued over retired though.
What if there are still some of the retired part around and we want to use them up?
That's up to you.
Will pERP do that until there are none in stock, then include the new part in the BOM?
No.
On Mon Apr 14 15:52:08 2008, tom wrote: It would sure be nice to be able to remove one option from a category
Options are not deleted, they're discontinued. All you have to do is set the end date.
Discontinued options should be: - Not allowed to be built - Sold (needs to be in list of options) as long as there is inventory with that option
WORK ORDERS
A Work Order is a request to produce any number of a specified product with a specified option. You can, for example, put in a WO for 15 white common widgets, or another for 7 blue common widgets. But you cannot, in a single WO, specify two different products, or combine colors.
Query: Are work orders automatically created from Sales Orders?
It is my understanding that the spa has a serial number from at least the time the shell leaves vac-form and probably before.
This is the current method. In pERP, we will be using the work order number on the production floor, serial number after completion. This will cut down on unused / wasted SNs if the spa is not completed.
>The work order is not completed until the spa leaves Packaging.
Figure 5-18 The Work Order List showing a finished work order.
NEW WORK ORDER
Figure 5-19 The initial screen of a new work order.
This production request goes in two steps. The first step is to enter some basic information.
Work Order Reference - This WO number is automatically generated. Created Date - this is automatically set to the date the WO is started, and cannot be overwritten Required Date - Enter the date by which the customer requires the product, or by which production is anticipated to be complete Location - choose where the product will be made (For Blue Falls, choices might be Coleman, Thorsby, or Breton, depending on the product) Sales Order - apparently non-functional, but should be a drop-down of open sales orders. Start Date - enter the date on which production is to start Completed Date - once the product is finished and read to ship, enter this date. Direct Cost - apparently non-functional? Next - Save the data on this form and open the next step Cancel - Exit this form without saving any changes.
Once this is complete, click the Next button to save the form and go on. The second step, shown in the next figure, is to add products to the work order.
Figure 5-20 The WO has been saved and is ready for further edit.
The previous fields can be edited at this point if necessary.
There are presently no products entered. Click the Add Line button at the left of the screen to open the Stock Selection dialog.
Figure 5-21 Stock Selection dialog box.
NOTE: If this dialog box does not appear, check that your browser is set to enable pop-ups for pERP.
Stock Code - This is the Stock Selection field - see Getting Started for directions.
Quantity - This field will open when a SKU has been selected in the field above.
Choose Options - if the item to be manufactured has options, check this box. Additional fields will open as required.
Once you have chosen the stock item, the Quantity field will open. Enter the number of items to produce.
If the item has options and the Choose Options box is checked, the pop-up dialog box will look like this:
Figure 5-22 The popup ready to add options
Click Save to complete the product/option selection and close the dialog box. Click Cancel to close the dialog box without saving any changes
NOTE: It is important to close dialog boxes by using Save or Cancel or the Close control. Don't forget, clicking on the window behind the dialog box brings that window to the front. The dialog box is not closed, it is merely hidden behind the front window, and your data may not have been saved properly. Open dialog boxes can cause problems such as data loss, duplicate entries, and slow performance.
What if you want fifteen white, five red, and five blue widgits? Add two more lines for the other products.
Ticket 79771 On the work order add line popup, it should do a few more checks Warning: Inventory on hand for locations Error: No costing found Error: Missing GL accounts on any components All should include the stock item, location, and a link to fix it. Done.
Figure 5-23 A completed work order for 15 white widgits, 5 red, and 5 blue
If you edit the first line for 15 widgits, you will see this:
Figure 5-24 Editing the first line of the WO
Notice that at this point it appears that you can change most of the fields. In fact, you can edit only the option or the number. The Stock Code cannot be changed
UNABLE TO REMOVE A LINE FROM A WORK ORDER. REPORTED TICKET #52421.
UNCLEAR HOW TO MOVE WO INTO PRODUCTION - UNDER DEVELOPMENT
BUG REPORTS THIS SECTION - FOLLOW UP
52421 Unable to remove line from WO in edit mode 52420 Error in checking for serialized item in WO 52419 WO add-product dialog box generates error on save 52418 New Work Order Add LIne Dialog boxes not closing on Save
Even though Admin -> Manufacturing -> Site Config -> Allow last minute option changes is turned off, it is possible to change already set build options via a Sales Order.
SO 00001-00010 ordered a 00233 - Discover 40 with Volcano Jet, Five Neck Jets, a hardcover with Rainbow acrylic. This line was assigned Work Order 00001. Work Order 00001 was created with no cover and Caribbean Blue acrylic. The work order was changed to match the desired options, but the sales order line should have been backordered and the work order left untouched with no last minute option changes allowed.
BATCH WORK ORDERS
THIS SECTION IS NOT FUNCTIONAL AS OF CURRENT REVISION
Figure 5-25
Figure 5-26 A Work order created. Clicking save remains at this screen.
There is no view or list of existing BWOs.
PRODUCTION (SCHEDULING?)
THIS SECTION IS NOT FUNCTIONAL AT TIME OF THIS DOCUMENT REVISION (SEE BELOW)
Figure 5-30
Figure 5-31
The drop-down of Work Order numbers is pretty meaningless, just a list of number.
The purpose of the Details field is unclear. Selecting a detail doesn't' seem to produce any action.
Clicking Finish closes the screen but there is no way to view the production list, no list of what is in production.
Having entered WO 00009 in this doesn't seem to have changed the WO List - it is still shown as pre-production, rather than in production.
Figure 5-32
REPORTS
Discussion of available reports
