Bills of Materials and Production Planning

Transcription

1 Bills of Materials and Production Planning Training Guide 2303 Camino Ramon, Suite 210 San Ramon, CA Voice: Fax: Website:

2 \\Miscorpdocs\docs\Winery Business\Software Documentation\Vintners Advantage\Training Manuals - Standard\BOM & PP Training Guide doc Copyright 2003 All rights protected and reserved

3 Table of Contents Bills of Materials & Production... 1 Product Group Maintenance... 3 Cost Type Code Maintenance...5 Item Master Maintenance... 7 Product Structure Maintenance Product Cost Update Costed Enquiries Product Specifications Production Planning Production Orders i

4 Bills of Materials & Production Bills of Materials and Production are part of the Vintners Advantage Manufacturing Suite. A bill of materials is required for each product that is to be manufactured and costed in the system. A bill of materials denotes the components that make up either an intermediate parent or a finished product. An intermediate parent would be an unlabelled product. It is made from several components, but is also a component itself in a finished product. A finished product would be the labelled wine that is stocked and sold. After logging on to the system the Main Menu is displayed. Select the Bottling Line menu. Then select the Bill of Materials & Costing menu. 1

5 Select the Maintenance Menu. The menu consists of options: Product Structure Maintenance this process is for the creation and maintenance of bills of material. Product Cost Update this process recomputes the cost of a finished or intermediate parent based on the current bills of materials and component costs. Item Master Maintenance is used for the creation of all finished products, components and miscellaneous items, which are used by Distribution, Inventory and Manufacturing. Product Group Maintenance is used to create groupings of product numbers. The product group field on the item master is required (for example, every item must belong to a product group). Cost Type Maintenance is used for the creation and maintenance of cost type groupings, which are used against components on the bill. Replace Component in Multiple BOM this process is used when a single component needs to be replaced in multiple bills. 2

6 Product Group Maintenance Bills of Materials and Production Planning Prior to creating items on the Item Master file it is necessary to create groups to assign to the items. The group coding is user defined and is used for reporting and sales analysis. 3

7 Product groups can also belong to major groups (used mainly for sales analysis). Groups are assigned a description and a flag to denote whether the group contains finished products or materials. This flag is used to determine if the product is to be displayed on TAB lookups (for example, you would not want to view material items when selecting a product to invoice). The rest of the fields relate to Distribution and denote whether a group is to be printed on the sales analysis reports and where sales of this product are to be interfaced to in the General Ledger. 4

8 Cost Type Code Maintenance Bills of Materials and Production Planning The cost type is a code that is assigned to a component via the Item Master Maintenance. It enables costs of components in a bill to be summarised then a product cost update is done. For example, if you have a labeled product with a front label, back label and neck label in the bill, you may wish to 5

9 summarise the cost of all the labels together. You can achieve this by creating a cost type code for labels (the codes are user assignable) and putting the code against the three label components in the Item Master Maintenance. You can view the summarized costs on the I/M Inquiry (FMIQ011). 6

10 Item Master Maintenance Bills of Materials and Production Planning The Item Master contains all finished products, components and miscellaneous items that are used by all modules of the system. Each item must have a description and belong to a valid product group. 7

11 Other fields required are: Unit Code this code denotes whether the item is a divided product (i.e. can be used as full units and part units) D=Divided Product, E=Each. No of units for Purchasing and Manufacturing/Selling. If the product has been flagged as a divided product you can enter the number of part units that make up a full unit in purchasing and manufacturing. Item tax code all items require a tax code even though it is only used on invoicing. Standard Unit Conversion this field usually contains volume per bottle and is used for sales analysis and duty conversions. The Non Stock flag is used to differentiate items that are not stocked. A non-stocked item would be a miscellaneous item that is used for invoicing or placed on the bill of materials. Non-stocked items can still have a cost assigned, which is rolled up to the parent product based on the quantity per of the bill. The second page of the maintenance screen has the costs for the item. If the item has a bill of material then this cost is calculated when a product cost update is done. If the item is a component then the cost will need to be entered at the time the item is created. It is valid to have items with no cost on the bill. Items (both components and products) require a BOM divisor factor. This is related to the way the bill is updated and costed. Usually finished products are 12 and components are 1 (i.e. finished products are made as cartons, unlabelled products are made as bottles). For both finished products and intermediate parents you can set the Recost BOM Flag to Y. This means that the product flagged will not be recosted in a product cost update even if some of the component costs have changed. This could be used for product which is aged for several years in the bottle. Even though the costs of bottles and corks have changed during that period, the cost of the stored unlabelled product remains the same. 8

12 For components fill out the same detail as for finished products. If you are using purchasing the purchasing units can be entered. 9

13 Fill out the costs for the component and set the BOM divisor to 1. On this page you can also assign a cost type code to the component (if they have previously been set up). You can also assign a reject percentage. This will be used when the bill of materials is costed up to the parent. (i.e. if the BOM cost for the component is $100 and there is a 1.00% reject percentage the cost of the component in the BOM will be $101). There is a flag on the system parameters set up screen, which denotes if the reject percentage will be used when calculating actual issue quantities for production achievements. 10

14 Product Structure Maintenance Bills of Materials and Production Planning The Product Structure Maintenance screen is for the creation and maintenance of Bills of Material. Against each final and intermediate parent you assign the components, which go into the making of the product. All components must be created through Item Master Maintenance before they can be used on a bill. Items on the bill can be either stock or non-stocked items. Non-stocked items could be glue or a bottling charge. In the quantity per column enter the quantity of the component, which goes into the making a one manufacturing unit of the parent. Usually when creating bills for unlabelled products we are making in units of 1 bottle. For finished products they may be made in cartons of 4, 6, 12, and 24. Substitute components may be entered when updating the actual bottling run, so that the correct inventory actually used is relieved. 11

15 The divisor factor can be used for small quantities or when one whole unit is not used in the quantity. If the letter D is entered into the divisor factor it becomes Quantity per/manufacturing Unit. You can also use Effectivity Dates to denote when a component is to be used in the BOM. 12

16 Product Cost Update 13

17 After the items and the bill of materials have been created, you will need to run a Product Cost Update for the intermediate and final parents to be costed. This procedure uses the bills of materials and the Item Master costs entered against the components to compute the cost of the parent. You can run the product cost update for all products and all costs, or you can nominate selected products and selected costs. 14

18 Costed Inquiries Item Structure Inquiry with Costs In this inquiry you can view the cost and the makeup of the cost of the parent. 15

19 If the explosion level is set to 1 you will view one level of the BOM structure (i.e. for a finished product you would see the unlabelled and the labelling components). If the explosion level was set to 2 you would see the labelling components as well as the components that went into the unlabelled parents. On the following page all of the components are shown along with the extended cost. The inquiry also shows the cost of the parent in stocking and manufacturing units. 16

20 I/M Inquiry Cost by Type Bills of Materials and Production Planning This inquiry shows the cost of the parent summarized by cost code. 17

21 Product Specifications Product specifications may be set up against all products and will be printed on the Production Job Ticket if they are set up. The specifications are set up against user assigned headings, which can be multiple sets of headings. In the following example there are two headings assigned Labelling Specification and Process Specification. 18

22 The headings that are keyed in here will display on the Product Specification Maintenance screen for information to be keyed against each individual line. There may be as many headings as you wish and they can be separated by lines to enable easier reading. Note: After the headings have been created and product specifications have been keyed the headings should not be changed because it will not automatically update each product. 19

23 After the headings have been set up you can maintain the specifications against individual products. When the product number is entered any headings will be shown and a Y under the used column denotes that there are comments against one of the line items. 20

24 To view and maintain the comments enter the type of specification required. 21

25 The headings and comments will now be displayed below. To maintain the comments against one of the headings simply enter the line number associated and the comments will be shown in the bottom window. There can be multiple lines of comments against each of the specification lines. 22

26 You can also create templates for the product specifications. The templates can be for a vintage or there can be an overall master template. When product specifications are created it will check for the presence of the template and display against the new product This can save a great deal of time particularly if the same comments are entered against every new product. 23

27 Production Planning This process allows for the entry of a production schedule by line and the planning of component requirements based on the schedule. There can be multiple schedules but there is only one Master. The Master schedule is defined as the schedule we are currently producing against. There may also be a schedule for the years expected requirements so that the component requirements can be negotiated with vendors. 24

28 Select the warehouse for the schedule and decide on the presentation of the details and whether the latest information needs to be picked up and shown. Use the purchase order date to ensure that any suggested orders are done in an achievable time frame. 25

29 Once the questions have been answered the production schedule will be displayed. On this screen you can add additional production, change dates, change production lines and change production quantities. There are several flags on the right hand side of the screen. Ex this denotes the explosion level of components that you wish to go down to. One is the default. This enables you to plan for labelling production of previously manufactured unlabelled product, or manufacture of labelled product from the bulk wine through to the final product. * (asterisk) there are two flags displayed in this exception column:! (exclamation mark) denotes that one of the components in this structure has fallen below safety stock. * (asterisk) denotes that there is insufficient stock of a component in this structure to complete the planned production, and there is insufficient time to place and receive purchase orders. On this screen you can also add additional comments related to the production run on a particular date and line number by entering X on the first column of the window. If any changes have been made to the schedule entering R in the first column will recalculate the component requirements and net stock. Entering C in the first column will display the components for that parent and will show the quantity on hand, the production requirement and the quantity on order. If there is a problem with one of the components you will see * next to the date. 26

30 Entering M in the option prompt will place the cursor in the component window. Entering M against a component line will display the material requirements for that selected component. 27

31 This screen displays for requirements by date for the selected component. A calculation of nett stock on hand is done for each day taking into account the on hand, on order and requirement. If the on hand is insufficient the system will plan a suggested order using the minimum, maximum and multiple details from the stock file. It will only place suggested orders if the production date is after the date entered on the front screen. In the bottom window is the display of the other products that this component is used in. If there is a shortage of a component a decision by the production scheduler will need to be made and this could entail shifting either this product or one of the other products, or deciding on the priority of manufacture. For the production scheduling to work effectively it is necessary for production achievements to be entered daily and for creation and receipt of purchase orders to be done in a timely fashion. The production scheduler needs to be able to rely on the stock position of components and to take action should exceptions be flagged for the current production. 28

32 Production Orders Once the schedule has been confirmed production can be released. 29

33 Production can be released for all lines between specified dates. Job tickets will be printed for the released production showing production quantity, component requirements and specification details. Once the production has been completed Production Achievements can be entered. These achievements are for a date, line number and warehouse. Production does not need to have been released prior to entry of production achievements. 30

34 Selection of a line number will display the components based on the bill for the selected product. Enter the actual production quantity in full and part units (i.e. 100:0 is 100 cartons) and the BOM level required. 31

35 The BOM level enables you to make a multi level bill in one stage (i.e. for finished product a BOM level of 1 would mean taking previously produced unlabelled product and labelling, a BOM level of 2 would mean making finished product from bulk wine all the way through to labelling). Once the quantity and BOM level have been entered the component quantities are shown under the Actual Issue column. At this stage there are several different options: Accept actual issues as shown Enter the actual issue quantity if it differs from the quantity shown Change the component warehouse Issue a substitute component for this production run Once the entry is complete the stock transaction update will be done for both the finished product and the component. A history of component costs and quantities is kept against each production date, line number and product. 32