The Production Plan is the document that can be used to simply plan the production activity; indeed it contains the list of items to be produced in a given period of time.
The Production Plan can also be treated as a reintegration proposal since the quantities it contains are considered to be those to produce.
These quantities can derive from:
- the need to fulfil customer orders;
- the need to cover any out-of-stock inventories;
- arbitrary decisions made by the production manager who manually fills in the plan.
The production order is the document that contains all the information needed to start up production activity: it includes the list of materials to use and the operations to perform; these operations can be performed in-house or outsourced.
The production order also shows indications of the projected and final times and costs that are updated during final balance.
The materials list and the operations can be freely changed after creating the production order, without causing an amendment to the bill of materials.
The production order can be simply generated directly from the production plan: the procedure explodes the bill of materials associated with each semi-finished or finished product inserted into the Plan, and a production order is generated for the quantity necessary for each level of the bill.
The production orders are hierarchically connected (parent production order, subordinate production order) so as to be able to quickly track down the finished product that induced the production of a given semi-finished product.
Otherwise there are control procedures that beginning from a production plan make it possible to analyse the inventory situation thereby making it possible to calculate net quantity with inventory availability, limiting stocks of both finished/semi-finished products and raw materials.
The Manufacturing Base module provides analysis tools to support the Production Manager in deciding what and when to purchase or produce.
Feasible production analysis provides information on raw materials to purchase and/or semi-finished products to produce, in order to comply with requirements indicated on the production plan selected. It brings together items repeated on several lines and exploding the bills of materials.
Manufacturing Base - Producibility Analysis
The incomplete material Supplier Reorder permits to generate supplier orders for raw materials to purchase complying with the selected plan. One can decide whether to calculate net quantity of the inventory stocks or not, considering the minimum stocks.
The incomplete semi-finished Production Reorder permits to generate the production orders for finished products and semi-finished products to be produced, so as to respect what is indicated in the production plan selected. Here too one can decide whether to calculate net quantity of the inventory stocks, considering the minimum stocks.
Using the Production Progress procedure it is possible to control which orders can be “start up” in production, according to the inventory availability of the components needed for the production of the finished product.
It is then possible to carry out the final balance, which can also be partial. So a single production order can load inventory more than once and at different times.
A production order can be terminated for quantities other than the original. In these cases, it is possible to select during the final balance phase whether to act on discharging materials appropriately (more discharge or return).
In the event of final balancing of a production order hierarchically linked with “subordinate” production orders, you will be asked whether you want to proportionately calculated the balance of these “subordinates” as well.
Control reports exist in each procedure so the user can analyse and verify the production “status”: beginning from production progress for the orders selected there is a control report of the progressive availability of each component to use in production so as to keep a daily control of the inventory stocks and to issue supplier orders in time, until arriving at the end of production where there is a report for controlling production costs, comparing projected costs with final costs.
One issue that must not be underestimated is definitely the control of production costs. With the base production, there are both the projected costs and the final costs on the production order so that it is possible to compare the figures at any time.
During production, the following is considered:
- cost of materials, valorised according to the various criteria available in the item master file (LIFO, FIFO, Average cost, Most recent cost, ...);
- cost of semi-finished products, valorised according to the production cost (if a “subordinate” production order exists in the hierarchy for the semi-finished product) or according to the inventory cost;
- cost of operations, whether they are performed in-house or by an outsourcer.
The production order can be executed in-house or outsourced. In the latter case it is a good idea to generate the outsourcing documents such as supplier order and delivery note.
Subcontractor DN Generation
For the generation of the delivery notes, a tool permits to analyse the quantities available at outsourcers with possible proposal for reintegration.
It is possible to issue delivery notes:
- only for the quantities needed for production
- for different quantities (higher or lower than the production order).
Every time the delivery note is generated the quantities available at the outsourcer are indicated and it proposes reintegration of the quantities necessary to process the production orders that have been sent.
The outsourced work processes can be balanced quickly and simply, registering the packing list issued by the outsourcer.
Easy of use and to lookup the documents linked to the production order are one of the strengths of Manufturing Base: from the production order we access all the linked outsourcing documents: supplier order, delivery and packing lists for outsourcing work, and inventory entries.