Microsoft Dynamics® NAV 2009 Manufacturing I

MICROSOFT DYNAMICS ® NAV 2009 MANUFACTURING I Microsoft Official Training Materials for Microsoft Dynamics ® Your use ...

Author: Microsoft Corporation

69 downloads 861 Views 3MB Size Report

This content was uploaded by our users and we assume good faith they have the permission to share this book. If you own the copyright to this book and it is wrongfully on our website, we offer a simple DMCA procedure to remove your content from our site. Start by pressing the button below!
Report copyright / DMCA form

DOWNLOAD PDF

MICROSOFT DYNAMICS ® NAV 2009

MANUFACTURING I

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Last Revision: March 2009 The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.

© 2009 Microsoft Corporation. All rights reserved. Microsoft Dynamics®, Microsoft® PowerPoint® Microsoft® SQL Server® and Microsoft Dynamics® NAV MorphX® are trademarks or registered trademarks of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. This course content is designed for Microsoft Dynamics® NAV 2009.


Table of Contents Chapter 1: Introduction

1-1

Welcome ............................................................................................................ 1-1 Microsoft Dynamics Courseware Contents ........................................................ 1-2 Documentation Conventions .............................................................................. 1-3 Student Objectives ............................................................................................. 1-4 Introduction ......................................................................................................... 1-5 Summary ............................................................................................................ 1-8 Quick Interaction: Lessons Learned ................................................................... 1-9

Chapter 2: Sample Company Structure

2-1

Objectives ........................................................................................................... 2-1 Introduction ......................................................................................................... 2-1 Cronus International Company Structure ........................................................... 2-2 Summary ............................................................................................................ 2-3 Quick Interaction: Lessons Learned ................................................................... 2-4

Chapter 3: Production Bill of Materials

3-1

Objectives ........................................................................................................... 3-1 Introduction ......................................................................................................... 3-1 Manufacturing Product Design ........................................................................... 3-2 Production Bill of Materials ................................................................................. 3-2 Production BOM Advanced Features ............................................................... 3-13 Production Design Reports .............................................................................. 3-19 Summary .......................................................................................................... 3-20 Test Your Skills – Production Bill of Materials .................................................. 3-21 Quick Interaction: Lessons Learned ................................................................. 3-25

Chapter 4: Basic Capacities and Routings

4-1

Objectives ........................................................................................................... 4-1 Introduction ......................................................................................................... 4-1 Capacity Setup ................................................................................................... 4-2 Routings ............................................................................................................. 4-9 Reports ............................................................................................................. 4-19 Summary .......................................................................................................... 4-22 Quick Interaction: Lessons Learned ................................................................. 4-29

Chapter 5: Production Orders

5-1

Objectives ........................................................................................................... 5-1 Introduction ......................................................................................................... 5-1 Production Order Status ..................................................................................... 5-2 Manual Production Orders ................................................................................. 5-7 Inventory Reservation ...................................................................................... 5-11 Production Order Statistics ............................................................................... 5-12 Production Order Changes ............................................................................... 5-14 Due Date Changes ........................................................................................... 5-15 Changes to Required Components .................................................................. 5-15 Quantity Changes ............................................................................................. 5-19 Routing Changes .............................................................................................. 5-19 Printing from a Production Order ...................................................................... 5-20


i

Manufacturing I in Microsoft Dynamics® NAV 2009 Production Order Reports ................................................................................ 5-22 Replan Production Order .................................................................................. 5-22 Production Orders with Phantom BOMs........................................................... 5-24 Production Orders with Manufacturing Batch Unit of Measure......................... 5-24 Changing Production Order Status .................................................................. 5-26 Summary .......................................................................................................... 5-27 Quick Interaction: Lessons Learned ................................................................. 5-30

Chapter 6: Production Order Processing

6-1

Objectives ........................................................................................................... 6-1 Introduction ......................................................................................................... 6-1 Production Order Execution ............................................................................... 6-2 Material Consumption ........................................................................................ 6-3 Picking from Warehouse .................................................................................... 6-7 Recording Production Output ............................................................................. 6-9 Putting Away in Warehouse ............................................................................. 6-15 Put-Away Processing ....................................................................................... 6-15 Production Journal ........................................................................................... 6-16 Registering Consumption and Output .............................................................. 6-20 Summary .......................................................................................................... 6-21 Quick Interaction: Lessons Learned ................................................................. 6-24

Chapter 7: Finishing Orders and Auto Reporting

7-1

Objectives ........................................................................................................... 7-1 Introduction ......................................................................................................... 7-1 Finishing Production Orders ............................................................................... 7-2 Automatic Consumption Posting (Flushing) ....................................................... 7-4 Automatic Production Posting .......................................................................... 7-15 Summary .......................................................................................................... 7-17 Quick Interaction: Lessons Learned ................................................................. 7-22

ii


Chapter 1: Introduction

CHAPTER 1: INTRODUCTION Welcome We know training is a vital component of retaining the value of your Microsoft Dynamics® NAV 2009 investment. Our quality training from industry experts keeps you up-to-date on your solution and helps you develop the skills necessary for fully maximizing the value of your solution. Whether you choose Online Training, Classroom Training, or Training Materials; there is a type of training to meet everyone's needs. Choose the training type that best suits you so you can stay ahead of the competition.

Online Training Online Training delivers convenient, in-depth training to you in the comfort of your own home or office. Online training provides immediate access to training 24 hours-a-day. It is perfect for the customer who does not have the time or budget to travel. Our newest online training option, eCourses, combine the efficiency of online training with the in-depth product coverage of classroom training, with at least two weeks to complete each course.

Classroom Training Classroom Training provides serious, in-depth learning through hands-on interaction. From demonstrations to presentations to classroom activities, you receive hands-on experience with instruction from our certified staff of experts. Regularly scheduled throughout North America, you can be sure you will find a class convenient for you.

Training Materials Training Materials enable you to learn at your own pace, on your own time with information-packed training manuals. Our wide variety of training manuals feature an abundance of tips, tricks, and insights you can refer to again and again:

Microsoft Dynamics Courseware The Microsoft Dynamics Courseware consists of detailed training manuals, designed from a training perspective. These manuals include advanced topics as well as training objectives, exercises, interactions and quizzes. Look for a complete list of manuals available for purchase on the Microsoft Dynamics website: www.microsoft.com/Dynamics.


1-1

Manufacturing I in Microsoft Dynamics® NAV 2009

Microsoft Dynamics Courseware Contents Test Your Skills Within the Microsoft Dynamics Training Materials you find a variety of different exercises. These exercises are offered in three levels to accommodate the variety of knowledge and expertise of each student. We suggest you try the level three exercises first, if you need help completing the task look to the information in the level two exercises. If you need further assistance each step of the task is outlined in the level one exercise.

Challenge Yourself! Level 3 exercises are the most challenging. These exercises are designed for the experienced student who requires little instruction to complete the required task.

Need a Little Help? Level 2 exercises are designed to challenge students, while providing some assistance. These exercises do not provide step by step instructions, however, do provide you with helpful hints and more information to complete the exercise.

Step by Step Level 1 exercises are geared towards new users who require detailed instructions and explanations to complete the exercise. Level 1 exercises guide you through the task, step by step, including navigation.

Quick Interaction: Lessons Learned At the end of each chapter within the Microsoft Dynamics Training Material, you find a Quick Interaction: Lessons Learned page. This interaction is designed to provide the student with a moment to reflect on the material they have learned. By outlining three key points from the chapter, the student is maximizing knowledge retention, and providing themselves with an excellent resource for reviewing key points after class.

1-2



Documentation Conventions The following conventions and icons are used throughout this documentation to help you quickly and effectively navigate through the information. CAUTION: Cautions are found throughout the training manual and are preceded by the word CAUTION in bold. Cautions are used to remind you of a specific result of a specific action which may be undesirable. HINT: Hints are found throughout the training manual and are preceded by the word HINT in bold. Hints are used to suggest time-saving features or alternative methods for accomplishing a specific task. NOTE: Notes are found throughout the training manual and are preceded by the word NOTE in bold. Notes are used to provide information which, while not critical, may be valuable to an end user. BEYOND THE BASICS: Advanced information found throughout the training manual is preceded by the words BEYOND THE BASICS in bold. Beyond the Basics provides additional detail, outside of standard functionality, that may help you to more optimally use the application. EXAMPLE: Examples are found throughout the training manual and are preceded by the word EXAMPLE in bold. Examples bring to light business scenarios that may better explain how an application can be used to address a business problem.


1-3


Student Objectives What do you hope to learn by participating in this course? List three main objectives below. 1.

2.

3.

1-4



Introduction This course is part of the curriculum for the Microsoft Dynamics® NAV 2009 Manufacturing certification and is designed for students who want to learn more about using Microsoft Dynamics NAV 2009 for manufacturing. Students who want to take the Microsoft Dynamics NAV 2009 Manufacturing exam can use this course as preparation. It is recommended that students take the Microsoft Dynamics NAV 2009 Manufacturing Costing course after completing this course. This material provides a conceptual and operational description of the standard manufacturing functionality of Microsoft Dynamics NAV 2009. The material can be used both in the context of an instructor-led training course and as reference material for self-training.

Target Audience This training material is intended for participants that will use Microsoft Dynamics NAV 2009 manufacturing from a general user perspective.

Training Objectives The objectives are: •

To understand general manufacturing processes

•

To be able to perform standard manufacturing transactions using Microsoft Dynamics NAV 2009

Training Prerequisites To successfully participate in the Manufacturing course or complete the training in the self-training manner, participants should have a thorough understanding of the following: •

General manufacturing knowledge

•

Inventory control

•

Core financial information


1-5

Manufacturing I in Microsoft Dynamics® NAV 2009 Material Overview Before using the material, users must install Microsoft Dynamics NAV® 2009 on their computer and generate the customized demonstration databases. In this material, the chapters reflect the relationships between different functionality pieces of the system. It is recommended that a course built on this material follows the suggested teaching path. Every chapter begins with an overview of the feature and any related setup steps. The chapters then describe how the feature supports the associated operating processes. The standard elements of a chapter are as follows: •

Descriptive text, introducing the granule or feature and its functionality.

•

Examples of how it works, based on scenarios and corresponding instructions.

•

Test Your Skills Exercises, allowing the course participants to practice using the system.

The material consists of the following chapters: Chapter 1: Introduction Chapter 2: Sample Company Structure Chapter 3: Production Bill of Material Chapter 4: Basic Capacities and Routings Chapter 5: Production Orders Chapter 6: Production Order Processing Chapter 7: Finishing Orders and Auto Reporting

Chapter 1: Introduction This chapter discusses the target audience, objectives, prerequisites, and material overview for this course.

Chapter 2: Sample Company Structure This chapter discusses how the sample company utilized the system to support the following: •

1-6

Financial and relationship management


Chapter 1: Introduction •

Distribution

•

Manufacturing processes

Chapter 3: Production Bill of Material This chapter offers information on the following: •

Definition of BOMs

•

Application of BOMs

The chapter defines what a production BOM is and demonstrates how to create and maintain different BOMs and their alternative versions. The chapter also deals with phantom BOMs, BOM reports, and various periodic activities such as exchanging BOM items and deleting expired components.

Chapter 4: Basic Capacities and Routings This chapter defines the data requirements used to create and maintain capacities, routings, and routing versions. Users learn about the following: •

How and where capacities and routings should be used.

•

Application of productive and non-productive time.

•

Differences between parallel and serial routings.

•

Use of routing link codes (useful in a JIT and Lean manufacturing environment).

•

How to use the Routing Where Used function.

Chapter 5: Production Orders This chapter defines what data is required to produce a production order (for example, Routings and BOMs). Users learn about the following: •

Various statuses of production orders, including: o o

released finished

•

How to change status.

•

How to create a manual production order.

•

How to generate the manual reservation between a sales order and production order.

•

How to handle the changes made to a production or sales order, including: o o

due date quantity


1-7

Manufacturing I in Microsoft Dynamics® NAV 2009 Chapter 6: Production Order Processing This chapter explains the manual reporting of materials consumed, time spent on the order, and the quantity of the finished goods produced. Users learn about the following: •

How to review the production order statistics after reporting events.

•

How to define the deviation.

•

How to integrate warehouse features to facilitate picking and putting away in the following processes: o o o

reporting consumption output

How to use the Register Operation Data for posting.

Chapter 7: Finishing Orders and Auto Reporting This chapter demonstrates the use of forward and backward production postingflushing. Users learn about the following: •

Forward and backward automatic reporting of materials consumed.

•

How much time is spent working on the production order.

•

Quantity of the finished good completed.

Demonstration Data All examples and exercises in this material are based on a fictitious company named Cronus International Ltd. The manufacturing functionality is illustrated on the basis of the company's numerous bicycle products. Bicycle manufacturing has been chosen as an example of a typical manufacturer. This example allows users to imagine how a bicycle is constructed or how users have repaired a bicycle at some time. The bicycle example lets users explore manufacturing in a simple application.

Summary This chapter provides an overview of the topics that will be covered in the course. Successfully completing this course will provide the reader with the knowledge to prepare for the Microsoft Dynamics NAV 2009 manufacturing certification exam.

1-8



Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

2.

3.


1-9


1-10


Chapter 2: Sample Company Structure

CHAPTER 2: SAMPLE COMPANY STRUCTURE Objectives The objectives are: •

Provide an overview of the demonstration company, Cronus International.

•

How to set up the Date.

•

How to change the default profile to Production Planner.

Introduction Microsoft Dynamics® NAV is a collaborative business management solution for medium-sized companies. It is an integrated product that includes functionality to support the following: •

Financial and relationship management

•

Distribution

•

Manufacturing

Microsoft Dynamics NAV supports world class manufacturing principles with a solution that allows manufacturers to simplify their processes and implement the operational changes necessary to focus on delivering what their customers want, when they want it.


2-1


Cronus International Company Structure Cronus International is a bicycle manufacturing company that has added further branches to its business activities, therefore it needs the services of Microsoft Dynamics NAV. Note the following about Cronus International: •

Cronus manufactures final assemblies and sub-assemblies.

•

Cronus has several production BOM levels in its product structure.

•

Cronus uses simple routings for bicycle and sub-assemblies. (Special process descriptions are not used.)

•

Sales quantity and product variety disallows flow manufacturing.

•

Machines and work centers are arranged in shop form, where production items are transported to respective work centers.

•

Item quantities are divided into lots, and every lot is organized into a separate production order.

The class demonstration uses an assemble-to-order (ATO) type of company in which the bicycle is make -to-order (MTO) and the remaining sub-assemblies are make-to-stock (MTS). In such cases, the program supports the linking of production orders to sales orders. While bicycle demand is based on sales orders, procurement of sub-assemblies, and purchased items is based on a lot-for-lot principle. Inventory usage in production is controlled and reported manually. Microsoft Dynamics NAV assumes infinite capacity during production planning, but finite loading may be defined for selected resources. The expected work load on the shop floor may be reviewed for both machine centers and work centers. The planner can rearrange or reschedule orders to solve overload problems. Actual production output is recorded manually, reducing the work load at the machine and work centers.

Dates The dates in the training material are in United States format. To avoid confusion when reading the material and following the exercises, set up the regional options in Microsoft® Windows® to English (U.S.) before starting the training session (Control Panel, Regional, Language Options ). The working date is often given in the manual. If it is not, use 01/28/2010. It is important that this date is used when following the examples and performing the exercises included in the material. Remember that the date must be reset every time the database is started.

2-2


Chapter 2: Sample Company Structure License Information Use the Cronus license to create and use the demonstration data for this training material. This grants access to the manufacturing functionality, which allows the use of the business dates.

Further Information Since this is a manufacturing course, ensure that you have changed the default profile to Production Planner. To change the default profile to the production planner profile, perform the following steps: 1. In the navigation pane, click the Departments button. 2. Go to Administration > Application Setup > Role Tailored Client > Lists > Profiles. Note that the default profile is set to Order Processor. 3. Double-click the Production Planner profile. 4. Select the Default Role Center check box. 5. Click OK. 6. Restart Microsoft Dynamics NAV 2009 by closing and reopening it. The selected profile appears. Learn more about the topic of supply chain management at the APICS web site: http://www.apics.org (http://www.apics.org/). APICS is a non-profit, educational society for resource management.

Summary This chapter provides the basic setup information that you need to complete the demonstration and labs in this course. An introduction to the fictitious company, Cronus International, provides the framework in which this course is based.


2-3



2.

3.

2-4



CHAPTER 3: PRODUCTION BILL OF MATERIALS Objectives The objectives are: •

Production Bill of Materials (BOM)

•

Production BOM Advanced Features

•

Production BOM Reports

Introduction This chapter introduces the basic concepts regarding Bill of Materials (BOM) and its significance in the production process.


3-1


Manufacturing Product Design Microsoft Dynamics® NAV 2009 Manufacturing I helps manufacturers control the manufacturing environment by providing the following functionality: •

Production Bill of Materials (BOM)

•

Routings

•

Inventory

Another way to describe the production process is to say that a person can use recipes to make things: the Production BOM is the list of ingredients, the routing tells the person what to do with the ingredients to obtain a finished product, and the finished product is stored and sold as inventory. The manual also shows that production orders keep a queue of what users plan to make, as well as what they will work on next. Additionally, the planning functions tell users what to make or buy and when they need to make or buy those items. In Microsoft Dynamics NAV 2009 Manufacturing I, the Product Design menu helps users understand the creation of a manufactured item in the following ways: •

Defining a finished good and its components.

•

Putting the items together into a Production BOM.

•

Creating the steps involved in the routing.

Production Bill of Materials A BOM is a list of all components and subassemblies needed to make a final product or finished good. The list contains the description, the quantity, and unit of measure.

3-2


duction Bill of Materials Chapte er 3: Prod M can be one of o the following: The end- reesult of a Prodduction BOM •

Subassemblly (used in another item)

•

Finished good (an item reeady for sale))

FIGURE 3..1 PRODUCT TION BOM

As shown in i the examplle , a bicycle is i made of maany components and s on); these are a the bicycle's subassembllies (frame, tiires, chain asssembly, and so bill of mateerials. Thus, to manufacturre or assemblee one bicycle, you need onne frame, two wheels, 72 sppokes, and soo on. The differeent levels withhin the BOM illustrate the parent-compoonent relationnship, OM. This meanns that every component otherwise known k as a multi-level m BO occupies a certain level within w the hieerarchy. Leveels define the parts that maake up the item thaat is being prooduced. This is known as a level code. There T are a NA AV 2009. maximum of o 50 levels inn Microsoft Dynamics D Note that a level 0 denottes a finished product (insoofar as the maanufacturer iss concerned). In the illusttration, Cronuus Internationnal assembles bicycles as one o of its prodducts. wever, This is show wn by the levvel 0 (finishedd good) designnation of the bicycle. How if Cronus Innternational orders o bicyclee tires from annother manuffacturer, then these 0 by thaat manufacturrer (but not byy will be connsidered finishhed goods or level l Cronus Inteernational). Low level codes c will be covered furthher in this chaapter. It is possiblle for an item m to be both a subassembly and a finisheed good, for ms example, iff a part is som metimes sold as a a spare part of another ittem. The item mponents. listed on thhe production BOM are com


3-3

Manufacturing I in Microsoft Dynamics® NAV 2009 The production BOM is used when production orders are created and is used by the Planning Worksheet to show what needs to be made or purchased. Once the production order is certified, changes to the components are often made by creating a new version of the production BOM rather than changing the original production BOM.

Production BOM Header Start by looking at the fields in a production BOM, and then create one. In the navigation pane, click Production BOMs > New. To create a production BOM, complete the following fields in the header:

3-4

Field

Comments

No.

This field identifies the BOM. It must be unique and have a maximum of 20 characters. The number field can be set to default, using No. Series in the manufacturing set up, or can be manually created. In a company where each production BOM is used on only one item (a 1:1 relationship), the production BOM number is often set up to be the same number as the item it is connected to.

Description

This field contains the BOM description so that its particular use is easily recognized.

Unit of Measure

This field is used as a basis for recalculation factors in the BOM line item. The unit of measure used on a production BOM must also be set up in the Item Units of Measure table (from the Item card) before a production order can be created. This topic is examined later in the chapter.


Chapter 3: Production Bill of Materials Field

Comments

Status

This field indicates the status of a BOM. The valid statuses are: • New •

Certified

•

Under Development

•

Closed

New The status is automatically set to New when creating a new BOM and it is editable. Certified The program allows a BOM with the status of Certified to be used for production planning and orders. A Certified BOM is not editable and an error message displays if a user attempts to use a non-Certified BOM. Under Development This status indicates that a Certified BOM is undergoing edits or changes. After the edits or changes have been completed, the status must be changed back to Certified. This is not used in Cost Rollup for the item. (Refer to the Manufacturing Costing training course for more information on cost roll up.) Cost is not calculated with this status. Closed This status indicates that the BOM is no longer used. (Similar to the Block option used elsewhere in Microsoft Dynamics NAV 2009.) This is not used in Cost Rollup for the item. Search Name

This field can be used to search for a BOM when its number has been misplaced. It defaults from the description and can be up to a maximum of 30 characters. This field can be edited to create a more pneumonic search name.

Version Nos.

This field shows the version number series applicable to the Production BOM. You can choose a number series from the No. Series table or leave it blank.

Last Date Modified

This field tracks the last date the BOM was edited or changed.


3-5

Manufacturing I in Microsoft Dynamics® NAV 2009 Production BOM Lines The production BOM lines show the components. Components can be items or production BOMs, usually called Phantom BOMs. Fill in the following fields: Field

Comments

Type

Use the drop down arrow to select from the following options: • Item •

Production BOM

•

Blank

Item This option lets users select an item from the inventory item file in the production BOM. If the item is a produced item and has a production BOM, the components are automatically considered when the BOM is exploded. Production BOM This option utilizes a phantom BOM in the line. Blank This option is used to add a comment after a production BOM line. Comments do not carry through to production orders.

3-6

No.

Choose an Item No. or production BOM No. to use on this line.

Quantity per

This usually indicates the quantity of the component required for the production of one production BOM item. If using a calculation formula, the amount in the field is multiplied by calculation specifications to compute the quantity.

Calculation Formula

This field is used to determine how the Quantity per field must be calculated. Select one of the following options: • Blank (the quantity is not calculated) •

Length (Quantity = Length * Quantity per)

•

Length * Width (Quantity = Length * With * Quantity per)

•

Length*With*Depth (Quantity = Length * With * Depth * Quantity per)

•

Weight (Quantity =Wight*Quantity per)


Chapter 3: Production Bill of Materials Field

Comments

Unit of Measure Code

Use the drop down arrow to select the unit of measure used by this production BOM line. It defaults from the item or production BOM card. You may use a consumption unit of measure by entering new information in the Item Units of Measure table.

Scrap %

Enter the percentage of scrap expected for this component when it is being used in this production BOM. Scrap on the production BOM line increases the required amount of the component item selected. For example, if the scrap percent is 20 (for 20%), the Quantity per is 1, and the amount of the parent part is 10, then (10 X (1 + .20) = 12 components are required. There are other types of scrap calculation that can be entered elsewhere in Microsoft Dynamics NAV 2009. The types are discussed later.

Routing Link Code

These codes are used to relate material to an operational step. They are discussed in detail in another section. A BOM cannot be Certified using routing link codes unless the codes have been assigned to the operational steps on the routing.

Position/Position 2/ Position 3

In these fields, you can define different inventory placements that refer to ancillary materials, such as a working drawing.

Production Lead Time

Enter the time required to prepare the item on the line for production. Use D for Days, Y for Years, and so on. During replenishments planning, the value in this field offsets the due date of the component on that line in the production BOM. The program makes the following calculation: Component Due Date = (Finished Good Starting Date) - (Component Production Lead Time).

Starting Date and Ending Date

These can be specified for each line item in the BOM to show the valid dates for the component. These fields are used in execution of the batch processes Exchange Production BOM item and Delete Expired Components.

Comments

Comments can be entered for the entire production BOM, as well as for its individual components.

Create a Production BOM As previously mentioned, a production BOM is created to determine the materials required to manufacture or assemble a specific item.


3-7

Manufacturing I in Microsoft Dynamics® NAV 2009 Demonstration 1 Follow these steps to create a production BOM: 1. In the navigation pane, click the Production BOMs button. 2. Click New. 3. Use the following information for these fields: Field Name

Data

No.

1003

Description

Basic Bike


PCS

The unit of measure on the production BOM has to be listed in the item Units of Measure table for any item it is used with. 4. Move to the production BOM lines, and use the following information: Type

No.

Description

Quantity per


Item

1100

Front Wheel

1

PCS

Item

1200

Back Wheel

1

PCS

Item

1300

Chain Assy

1

PCS

Item

1600

Bell

1

PCS

Item

1700

Brake

1

PCS

Item

1800

Handlebars

1

PCS

Item

1850

Saddle

1

PCS

Item

1900

Frame

1

PCS

Note that the Description and Unit of Measure Code fields are automatically populated when the item number is entered. 5. In the Status field, select Certified. 6. Click OK.

Copy BOM The creation of a new BOM can be streamlined using the Copy BOM function. Once the components have been copied to the new BOM, users can make changes or augmentations.

3-8


Chapter 3: Production Bill of Materials Demonstration 2 Create a new production BOM that is similar to the first one by following these steps: Follow these steps to create a production BOM: 1. In the navigation pane, click the Production BOMs button. 2. Click New. 3. Use the following information for these fields: Field Name

Data

No.

1004

Description

Basic 2 Bike


PCS

4. Click on a production BOM line (those under Type, No., Description, and so on). 5. Go to Actions > Functions > Copy BOM. 6. From the list, choose the production BOM 1000 (Bicycle), and click OK. 7. All of the components are copied into the new production BOM. Changes can be made by adding or deleting components or changing the quantities. 8. Check that the Status field is New. 9. Click OK. NOTE: While maintaining a production BOM or production BOM version, the Status field must be set to New (the starting default) or Under Development. For a production BOM to be available for use in production orders, MRP, and item cost calculation, the status must be Certified.

Changing or Correcting Production BOM lines If a production BOM is changed, users have two options: •

Change the production BOM itself (if changes are not tracked).

•

Create a version (required if the company tracks engineering changes).


3-9

Manufacturing I in Microsoft Dynamics® NAV 2009 EXAMPLE: The company engineer determines that to improve the quality of a product, a change must be made to the components. This is sometimes called an engineering change order (ECO). Rather than creating an entirely new production BOM, the current one is updated by creating a version. This allows the company to maintain the original production BOM in case it is needed for reference, but to use the updated production BOM in production. Using versions also maintains the product structure if the production BOM is used in many items. For example, a BOM version is created to comply with a legal requirement that a bell should be included in the specifications from November until February. The Production Planner can send an email to the Sales Manager requesting confirmation if the specifications are correct.

Demonstration 3 Follow these steps to change a BOM: 1. From the Production BOMs list, double-click production BOM 1004 (Basic 2 Bike), that was created in the previous exercise . 2. In the Status field, select Under Development. 3. Delete items 1400 (Mudguard front), 1450 (Mudguard back), and 1500 (Lamp). 4. Add the Starting Date and Ending date in the Lines FastTab columns. Refer to the Introduction to Microsoft Dynamics NAV 2009 course for more information. 5. For item 1600 (Bell), enter a starting date of 11/01/2010 and an ending date of 02/28/2011. This means that the bell will only be included in the production process during the specified period. 6. Change the Status to Certified. 7. Click OK.

Production BOM Versions Sometimes, a company needs to make an adjustment to a production BOM, but does not necessarily need to create an entirely new production BOM. Notice that a starting date can be entered in the version header. Production orders created on or after the starting date in the version header use the new BOM or components list. When setting the starting date, new ECOs can be phased in.

3-10


Chapter 3: Production Bill of Materials Copy BOM Version To streamline the creation of a new BOM version, use the function Copy BOM Header or Copy BOM Version. Once the components have been copied to the new BOM version, users can make any necessary changes or modifications to the lines before certifying the BOM.

Demonstration 4 1. From the Production BOMs list, double-click production BOM 1004 (Basic 2 Bike). 2. Click Versions from the Process actions pane. 3. Click New. 4. In the Versions Code field, enter a version number, such as 1. 5. In the Description field, type Summer Edition. 6. In the Unit of Measure Code field, select PCS. 7. In the Starting Date field, enter a date in the future (for example, February 1, 2010). This field is used in planning and creation of production orders. If a process is run before the Starting Date, then the original BOM (or a previous version) is used. 8. Click on a production BOM line (those under Type, No., Description, and so on). 9. Go to Actions > Functions > Copy BOM Header. Select Yes to copy from the Production BOM. 10. Make the ECO changes to the components list; add, delete or modify production BOM lines. For example, add item 1400 (Mudguard front), and 1450 (Mudguard back). These added items should each have a quantity of 1. 11. In the Status field, select Certified. 12. Click OK. 13. Close the Prod. BOM Version List window.

Active Versions The active version can be seen from the production BOM card. If the original production BOM is the active version, the field is blank.

Demonstration 5 Follow these steps to view the active version: 1. Go to the production BOM you have been working with (Production BOM 1004). 2. Click Versions. 3. Change the Starting Date field to a date that is before your work date. For example, choose November 10, 2008.


3-11

Manufacturing I in Microsoft Dynamics® NAV 2009 4. Check that the Status field is set to Certified. Remember that if the version is not certified, it is not available for use. 5. Click OK. 6. Click Close. 7. Go back to the General FastTab and note that the Active Version field is filled in.

Matrix per Version Window The Matrix per Version window is used to compare all of the existing versions of a production BOM. This window offers a view of the components on either a single level or multi level basis. In the production BOM you just created, click the Matrix per Version button. If the cursor is on a component that is a manufactured item, click Item>Matrix per Version to view the versions for the component. The default view of the versions is on a single level. Select Multi to view the entire product structure in an exploded form.

Where-Used Feature The where-used feature shows where a production BOM or item is used throughout the product structure. (A similar feature is available for routings.) The single and multilevel features are helpful tools when performing maintenance or troubleshooting. When viewing multilevel, the indentation of the description field indicates the level within the BOM structure, similar to an indented BOM. The quantity needed includes scrap percentage from the production BOM line. You can access the where-used information in three ways: •

To see which items use a production BOM, click the Where-used button in the actions pane.

•

To see which items have a component, place the cursor on a production BOM line, and then click the Where-used button in the actions pane.

•

Follow these steps to see where an item is used: 1. 2. 3. 4. 5.

3-12

In the navigation pane, click the Production BOMs button. Click an item (for example, 1150 Hub). Click the Where-used (Top Level) button in the actions pane. From the Calculation date field, enter 11/14/2010. Click Preview.



Production BOM Advanced Features Phantom Bill of Material A phantom BOM is a BOM used for non-stocked subassemblies. In Microsoft Dynamics NAV 2009, a phantom BOM is a production BOM that is chosen on a production BOM line. A phantom BOM represents a group of items that are put together immediately before being used in production. Instead of listing each of the items needed in the production BOM lines, users can choose the phantom BOM. Phantom BOMs allow the MRP process to account for the components without having to create an Item card or a separate production order for the subassembly. The time required for assembling a phantom BOM is considered to be zero or is accounted for in the master item's routing. Using phantom BOMs can also simplify the creation or review of production BOMs by listing the phantom BOM instead of each component. Deciding whether a subassembly will be set up as a phantom BOM or an item is a matter of opinion, and the decision is usually made by the engineers or production managers. The following demonstration shows the use of a phantom BOM.

Demonstration 6 Follow these steps: 1. 2. 3. 4. 5. 6.

In the navigation pane, click the Production BOMs button. Click New. In the No. field, type 1005. In the Description field, type Mountain Bike. In the Unit Code of Measure field, select PCS. On the lines, enter the following items with a quantity of 1: o 1400 (Mudguard Front) o 1450 (Mudguard Back)

7. Add a phantom BOM to the lines. 8. Under Type, select Production BOM. 9. Click the drop down arrow in the No. field and select 1003, with a quantity of 1.


3-13

Manufacturing I in Microsoft Dynamics® NAV 2009 10. From the starting date header, type 11/20/2010, so that this version becomes the current version. If the Starting Date field is not visible, click the Actions button (thunderbolt icon) from the Lines FastTab. Click Choose columns, add Starting date to the list on the right, and click OK. 11. Change the Status to Certified 12. Click OK.

Calculation Formula for Bill of Material It is sometimes necessary to specify a calculation formula, such as length multiplied by width, for the component quantity needed in a production BOM. To illustrate this, create an item card for steel. It is inventoried in sheets and purchased in pounds. A 10 foot by 15 foot sheet weighs 100 pounds. Another item, such as the bicycle in the previous demonstration, requires a 3 foot by 5 foot sheet of steel.

Demonstration 7 1. 2. 3. 4. 5.

In the navigation pane, click the Items button. Click New. In the Description field, type Steel. In the Base Unit of Measure Code field, click the drop down arrow. Click New and add the following units of measure:

Code

Qty. per Unit of Measure

SHEET

1

KILO

0.01 (1/100)

SQFT

0.00667 (1/150)

NOTE: To create a new unit of measure, refer to the next exercise. 6. Select Sheet as the Base Unit of Measure. 7. On the Replenishment FastTab, enter a Purchase Unit of Measure of KILO. 8. Click OK. Use this new item in a production BOM. 1. In the navigation pane, click Production BOMs. Select a production BOM to which the steel can be added, or create a new production BOM. For example, choose item no. 1003 (Basic Bike). 2. Change the Status to Under Development.

3-14


Chapter 3: Production Bill of Materials 3. On a new line, enter the item Steel. Enter the following: Calculation Formula

Length * Width

Length

3

Width

5

Quantity per

1


SQFT

NOTE: If the Length and Width columns are not shown in the Lines FastTab, click the Actions button (thunderbolt symbol), select Choose Columns, add these two to the list, and click OK. 4. Change status to "Certified". Notice that the steel requires 15 square feet to make one finished item. (1 * 3 * 5 = 15). 5. Click OK.

Exchange Production BOM Item The Exchange Production BOM Item report enables users to replace items that are obsolete with replacement parts. Follow these steps to view the Exchange Production BOM Item: 1. In the navigation pane, click the Product BOMs button. 2. Click the Exchange Production BOM Item button in the actions pane. 3. It contains the following setup: Field

Comments

Exchange Type

Item Production BOM Do not choose

Exchange No.

Item No. or Production BOM No. to be replaced.

With Type

Item Production BOM Choose to expire or delete a component but not replace it.

With No.

New Item No. or Production BOM No.


3-15

Manufacturing I in Microsoft Dynamics® NAV 2009 Field

Comments

Create New Version

Select this check box to have the replacement in a new version. The version is first copied and then the replacements are made. The old version remains unchanged. The Starting Date from the report is copied to the version.

Multiply Qty. with

Quantity ratio = New quantity / Replaced quantity

Starting Date

Enter the date when you want the substitution to be in effect.

Recertify

Select this check box to certify the changed BOM after the exchange process is complete. The exchange batch job automatically changes the status of the current BOM to Under Development, makes the change, and then re-certifies the modified BOM.

Copy Routing Link

Select this box for the routing link to be copied to the new component.

Delete Exchanged Component

You can choose to delete the exchanged component if you have not chosen to create a new version. The Starting Date from the report is copied to the production BOM line.

NOTE: If you do not want to create a new version or delete the exchanged component, then view both Starting Date and Ending Date used on the production BOM lines. To delete the old items, run the Delete Expired Components report, described in the following section.

Delete Expired Components The Delete Expired Components report is a maintenance function for BOM lines whose ending date has expired. Follow these steps to view Delete Expired Components: 1. In the navigation pane, click the Production BOMs button. 2. Click the Delete Expired Components button in the actions pane. The Delete Expired Components window contains two FastTab:

3-16

•

Options

•

Production BOM Header


Chapter 3: Production Bill of Materials The Options FastTab is where users define the date up to which all components are to be deleted. This data is entered in the Delete Before field. Enter a T if today's date must be used, or a W if the working date is to be used. Otherwise, enter the date to be used for the routine. The Production BOM Header FastTab is where users enter filters to determine which production BOM lines are to be deleted. Filters can be set on all fields on the production BOM header, as well. The order of the columns does not affect the filter. This report is used when having to manually enter an end date on production BOM lines, or used with the Exchange Production BOM item report.

Inventory and Manufacturing Units of Measure The production BOM also has a Unit of Measure field in the header. This manufacturing batch unit of measure defines the quantity in which a produced item is manufactured. For example, an item's stocking unit of measure is pounds (lbs.) and a user might want to produce a ton of this item at a time. In this case, it is beneficial to record the component requirements needed for the production BOM based on producing a ton, rather than a pound, of the parent item. Often, a production unit of measure is the same as the item's base unit of measure. This means that the user must count an item (base unit of measure) as a piece and you produce it as a piece, as well. When the production BOM unit of measure is not the same as the item's unit of measure, you need to set up the production BOM unit of measure in the item's Item Unit of Measure table. The Item Unit of Measure table is the table accessed by clicking in the Base Unit of Measure field on the General FastTab of the Item Card. In addition to being able to create a manufacturing batch unit of measure, users can also create a usage unit of measure for a component that differs from the component base unit of measure.

Calculate Low Level Code As previously mentioned, every component, item, and subassembly in a product is assigned a level code. The level code signifies the relative level in which that item or subassembly is used within the product structure. Often, the end items are assigned a level of zero, with its components assigned levels of one and so on. Low level codes are necessary for the planning process, MPS and MRP, to work properly. Incorrect low level codes mean that the quantity suggested by the planning process might be incorrect. The periodic activity Calculate Low Level code must be run if you have set Dynamic Low-Level code to No.


3-17

Manufa acturing I in Microsoft Dynam mics® NAV V 2009 To view thee Dynamic Loow level Codde, perform thhe following steps: s 1. To view youur manufacturring setup, goo to: Departm ments> Administraation > Appliication Setup p> Manufacturing > Task ks > Manufacturing Setup. 2. Look at the General FasttTab. L level Codde determiness the low leveel code in thiss way: Calculate Low •

Item A is asssembled. Its main m componnents are item ms B and C.

•

Items B andd Item C are purchased. p

•

mbly and a finnished good. Its componennts Item B is booth a subassem are items D until J.

OR BICYCLE FIGURE 3..2 LOW-LEVE EL CODE FO

In this exam mple: Item A (biccycle) is the toop level, or leevel 0. Items B (w wheel) and C (frame), are leevel 1. Items D (rim m), E (tire), F (spokes), annd K (color) are a level 2. Item G (tiree valve) is levvel 3. Items H (boolt), I (nut), and a J (cap) aree level 4. An item is always assignned the lowesst level code possible. p

3-18



Production Design Reports This report prints an indented BOM listing for items specified in the filters. The report contains the following columns: Column

Description

Level

A number and an indentation indicate the level within the BOM structure.

No.

This is the item or production BOM (phantom BOM) number.

Description

This is text taken from the item master data or the description of the used production BOM.

BOM Quantity

This is the quantity of the item or production BOM required to make one of the master item.


Code for the unit of measure.

Total Qty.

Shows the total quantity of the component needed.

Demonstration 8 Preview the report as follows: 1. In the navigation pane, click the Production BOMs button. Click Quantity Explosion of BOM from the actions pane. 2. On the Item FastTab, enter one or more items that are produced (that is, have a production BOM on the item card). For example, select Item no. 1000 (Bicycle). 3. On the Options FastTab, enter a date to use for the calculation. For example, select 11/14/2010. 4. Click the Preview button to display the report.

Where-Used (Top Level) Report The Where-Used (top level) report shows where items specified in the filters are used in the product structures. Unlike the Quantity Explosion of BOM report described previously, in this report enter components or subassemblies. The report shows where those items are used in the production BOM. The levels are the opposite of those for the Quantity Explosion of BOM report. This means that they are "bottom up," rather than "top down." This report is helpful, particularly in the following two cases: Quality Control: After a production run, it is standard for the Quality Department to take a sample to ensure that the finished goods comply with the manufacturing specifications (materials used, quantity, type) as well as legal requirements, when applicable.


3-19

Manufacturing I in Microsoft Dynamics® NAV 2009 Recall: If an error during the manufacturing run is discovered (for example, wrong or defective component used). The report allows the production manager to trace and recall items that have been erroneously manufactured, saving time and money for the company.

Compare List Report The Compare List report compares the components for two selected items. The report shows the following: •

Components

•

Unit costs

•

Exploded quantities

•

Cost shares (unit cost multiplied by exploded quantity)

•

Total cost difference

The report uses the Unit Cost field from the Item cards. If using a Costing Method other than Standard Cost, users must run the Adjust Cost-Item Entries before running this report to update the unit cost field. The Adjust Cost-Item Entries is found in Departments >Financial Management>Inventory> Tasks >Costing>Adjust Cost-Item Entries .

Demonstration 9 Preview the report as follows: 1. In the navigation pane, click the Production BOMs button. 2. Go to Reports>Compare List. 3. Enter two items in the specified fields. Each item must be produced, that is, it must have a production BOM number entered on it. For example, select items 1100 (Front Wheel) and 1200 (Back Wheel). 4. Enter a Calculation Date so that the correct version is used. 5. Click Preview button display the report.

Summary This chapter explains the concept and application of bill of materials (BOM), which allows a production planner to determine the type and quantity of components that is needed to manufacture a specific item. The ability to copy BOM versions and use phantom BOMS, provide greater flexibility in the production process.

3-20



Test Your Skills – Production Bill of Materials NOTE: The item and BOM numbers mentioned here are for your guidance only. You may need to create these items and the production BOM, if these do not exist in your database (demo data). Scenario

Lab 3.1 - Create Production BOM Scenario: You are a production planner at Cronus International. As a part of a new product launch, you add a water bottle to the standard production BOM for one of the bicycles. Create a production BOM for the water bottle assembly (item 2000) and structure the water bottle mounting bracket (item 2010) and the water bottle (item 2020) in it.

Lab 3.1 - Step by Step 1. 2. 3. 4. 5. 6. 7.

In the navigation pane, click the Production BOMs button. Click New. In the No. field, enter 2000. In the Description field, type Water bottle assembly. In the Unit of Measure Code, select PCS. In the Lines FastTab, under Type, select Item. In the No. header. click the drop down arrow and click New to create the new items. 8. Enter the following information in the General FastTab for the first item: Field Name

Data

No.

2010

Description

water bottle mounting bracket

Base Unit of Measure

PCS

NOTE: If the list is empty, click New and select PCS.


3-21

Manufacturing I in Microsoft Dynamics® NAV 2009 9. Click OK. 10. Create another item using the following information: Field Name

Data

No.

2020

Description

water bottle

Base Unit of Measure

PCS

11. Go back to the Water bottle assembly Production BOM and select these two new items in the Lines FastTab. 12. Under Quantity per, enter 1 for both items. 13. In the Status field, change New to Certified. 14. Click OK.

Lab 3.2: – Use Copy Production BOM Create a production BOM for the touring bicycle (item 1001). Use the standard bicycle (item 1000) as a base from which to copy the components. Add the water bottle assembly (item 2000) to the touring bicycle production BOM. Now go to reports and select Compare List. Enter the produced items created in the two exercises and preview the report to see the differences.

Lab 3.2: - Step by Step 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

3-22

In the navigation pane, click the Production BOMs button. Click New. In the No. field, enter 1001. In the Description field, type Touring Bicycle. In the Unit of Measure Code, select PCS. In the Lines FastTab, under Type, click the first line. Go to Actions > Functions > Copy BOM. From the list, select item 1000 (Bicycle), and click OK. Go to a new line. Under Type, select Production BOM. Under No., select item 2000 (Water bottle assembly). Under Quantity per, enter 1. In the Status field, change New to Certified. Click OK.


Chapter 3: Production Bill of Materials Follow these steps to compare lists: 1. In the navigation pane, click the Production BOMs button. 2. Go to Reports>Compare List. 3. Enter an item in the specified fields. For example, select items 1000 (Bicycle) and 1001 (Touring Bicycle). 4. Enter a Calculation Date so that the correct version is used. For this exercise, accept the default date. 5. Click Preview to display the report.

Lab 3.3: – Create and Compare Versions For the purpose of this exercise, the touring bicycle (item 1001) is modified, so users practice with two versions: with and without the Water bottle assembly (item 2000). 1. Copy the line items from the touring bicycle (item 1008) created in Lab 2.2 and establish version A with a date of 01/01/10. 2. Create version B with a date of 01/01/10. Paste in the same lines and then delete the Water bottle assembly (item 2000). 3. Click the Prod. BOM button and then click Matrix per Version. Observe the differences. When finished, delete versions A and B.

Lab 3.3 :- Step by Step 1. From the Production BOMs list, double-click production BOM 1001 (Touring Bicycle). 2. Click Versions from the Process actions pane. 3. Click New. 4. In the Versions Code field, enter version number A. 5. In the Description field, type Touring Bicycle - A. 6. In the Unit of Measure Code field, select PCS. 7. In the Starting Date field, enter a date in the future (for example, January 1, 2010). 8. Click on a production BOM line (those under Type, No., Description, and so on). 9. Go to Actions > Functions > Copy BOM Header. Select Yes to copy from the Production BOM. 10. In the Status field, select Certified. 11. Click OK. 12. From the Production BOMs list, double-click production BOM 1001 (Touring Bicycle). 13. Click Versions from the Process actions pane. 14. Click New. 15. In the Versions Code field, enter version number B.


3-23

Manufacturing I in Microsoft Dynamics® NAV 2009 16. In the Description field, type Touring Bicycle - B. 17. In the Unit of Measure Code field, select PCS. 18. In the Starting Date field, enter a date in the future (for example, January 1, 2010). 19. Click on a production BOM line (those under Type, No., Description, and so on). 20. Go to Actions > Functions > Copy BOM Version. 21. Select Version code A. 22. Click OK. 23. Delete the Water bottle assembly. To delete a line, select it, rightclick, select Delete Line and click Yes. 24. In the Status field, select Certified. 25. Click OK. 26. From the Production BOM, click Matrix per Version from the Process actions pane. 27. In the Options FastTab, select Single. 28. Click Show Matrix from the Process actions pane. 29. Click Close, when you are finished viewing the data. Follow these steps to delete a BOM Version: 1. From the touring bicycle Production BOM, click Versions from the Process actions pane. 2. Double-click version A. 3. Change the Status from Certified to Under Development. 4. Click OK. 5. Select version A, right-click, and select Delete. 6. Click Yes. 7. Repeat the steps to delete version B.

3-24




2.

3.


3-25


3-26



CHAPTER 4: BASIC CAPACITIES AND ROUTINGS Objectives The objectives are: •

Be able to set up capacity.

•

Be able to establish Routings

•

Be able to define Routings Advanced Features

•

Be able to generate reports such as creating a capacity journal or a capacity report

•

Create Capacity Reports

Introduction This chapter examines the setup of capacity in Microsoft Dynamics® NAV 2009. The capacity setup can be seen as establishing a model of the production environment. All the information added in this area is used later when defining routings, as well as when creating capacity journals and reports.


4-1


Capacity Setup Start by looking at the capacity setup features.

FIGURE 4.1 EXAMPLE OF SOME MANUFACTURING FUNCTIONALITY.

Capacity Unit of Measure Capacity Unit of Measure codes are specified to define the unit of measure in which a machine or work center is managed. The choices offered are , 100/hour, minutes, hours, and days. NOTE: Remember that Days is equal to 24 hours, not a work day.

4-2


Chapter 4: Basic Capacities and Routings Demonstration 1 Use the following steps to enter a new capacity unit of measure: 1. In the navigation pane, click Departments > Manufacturing Capacities > Setup > Capacity Units of Measure.

FIGURE 4.2 CAPACITY UNITS OF MEASURE DIALOG BOX

2. Click New. 3. Under Code, enter Seconds. The code is chosen on work and machine center cards. 4. Under Type, leave as blank. 5. Under Description, enter Seconds. The description is usually what prints in reports. 6. Click OK.

Work Shifts Users can set up one or more work shifts as a means of grouping the working times. Work shifts are used by shop calendars, which is where the actual shift hours are entered. Users must set up work shifts here before shop calendars can be created. Capacity availability and the efficiency of machine centers and work centers can each be evaluated according to shifts. It is possible to use just one work shift even if your plant operates 24 hours each day.


4-3

Manufacturing I in Microsoft Dynamics® NAV 2009 Use the following steps to create a Work Shift: 1. In the navigation pane, go to Departments > Manufacturing>Capacities > Setup > Work Shifts. 2. On an empty row, and in the Code field, type 3. 3. In the Description field, type 3rd shift and click OK.

Shop Calendars As mentioned, shop calendars are set up according to shifts. Enter the working hours for each day, for each shop calendar. Shop calendars are entered on work center cards and are used to calculate the calendars for work and machine centers. The ending time must be after the beginning time within the span of a day. If a work shift spans midnight, then users must enter two lines for each day, one ending at 11:59:59PM and the next beginning at 12:00:00AM. If you want to enter a calendar to show a 24 hour period for each day operation, enter a beginning time of 12:00:00 AM and an ending time of 11:59:59 PM.

FIGURE 4.3 DIALOG BOXES SHOWING WORK SHIFTS AND SHOP CALENDARS.

4-4


apacities and Routings C Chapter 4: Basic Ca Work Ce enter Grou ups w center grroups Before disccussing the seetup for work center groupss, note how work function wiithin the manuufacturing proocess. Note thhe following areas when discussing where w work is i done: •

Hierarchy of Work Unitss

•

Work Centeer Groups

•

Work Centeers

•

Machine Ceenters

Hierarchy of Work Units ws users the flexibility f of defining d up too Microsoft Dynamics D NA AV 2009 allow three differrent levels of work w facilitiees: work centeer groups, woork centers, annd facilities must be coonsidered to machine ceenters. It is cruucial to plan which w whenn setting up thhe machine ceenter determine the t correct tottal available capacity c and work center.

CHY FIGURE 4..4 WORK UNITS HIERARC

Work Center Group ps ments within an organizatiion. A work center c Work centeer groups are broad departm group is a reporting r unitt, such as a prroduction or innventory department, ratheer A plant might have h a producction than a facility in which work w can be scheduled. s departmentt and an invenntory departm ment as work center c groupss. Work centerrs are assigned too work center groups. A companyy must have at a least one woork center grooup set up, buut can use muultiple groups as well. w


4-5

Manufacturing I in Microsoft Dynamics® NAV 2009 Work Centers Work centers are specific locations where work can be performed. Users might set up work centers cards for: •

Machines

•

Groups of machines

•

People

Production orders are scheduled in work centers through routings. Work centers may also have machine centers on a discrete basis, or have the machine centers roll up to include the availability of the work centers (using the consolidated calendar). Each work center must be assigned a work center group. The work center group calendar is the sum all of the calendars of all of the work centers assigned to it. If machine centers are used, the total capacity of the work center is the sum of the assigned machine centers.

Machine Centers Machine centers are the lowest level of a facility in the hierarchy and represent the following: •

A machine

•

A group of machines with identical characteristics

•

A person

•

A group of people

The user can define the extent to which a machine center needs to focus. Usually only those resources that need to be monitored, or tend to be bottlenecks, are designated as machine centers. When a production order is scheduled in a machine center, it consumes capacity (reduces availability). A machine center has only its own capacity, since there are no facilities under the hierarchy. Each machine center must be assigned to a work center. Machine centers are an option and are not required for manufacturing.

Demonstration 3 This demonstration shows you how to set up a work center group. 1. In the navigation pane, click Departments > Manufacturing Capacities > Setup > Work Center Groups. 2. Click New. 3. Under Code, enter 3. 4. Under Description, enter Assembly Department.

4-6


Chapter 4: Basic Capacities and Routings 5. Go to Related Information>Planning>Calendar. The work center group calendar shows the available time for the sum of all the work and machine centers assigned to the group. You can view the information by day, week, month, quarter, year, or fiscal period. 6. In the View by field, select Month. 7. Click Show Matrix . NOTE: Related information for each work and machine center is shown based on the view selected, in this case, on a monthly basis. There are no calendar entries for the assembly department since it is a new work center group. To add calendar entries to this work center group, double-click on a period (For example, December 2010). This will open the Calendar entry dialog box. Enter relevant information pertaining to the work center and machine center. 8. Click Close. 9. Click OK.

Standard Tasks Standard tasks are used to define the following: •

Tools

•

Personnel

•

Quality measures for informational purposes

Setting up standard tasks simplifies the creation of routings by listing and providing frequently recurring tasks in this table. Users can assign a description, which overwrites the description of the work or machine center on the routing line. By clicking the Std Task button in the Standard Tasks dialog box, you can also assign tools, personnel, description, and quality measures. All assigned definitions default to the routing line when the standard task code is selected. Use the following steps to set up standard tasks: 1. In the navigation pane, click Departments > Manufacturing > Capacities > Setup > Standard Tasks. 2. If appropriate for the task, go to Related Information>Std. Task. Select the relevant option and enter further information.


4-7

Manufacturing I in Microsoft Dynamics® NAV 2009 Routing Links Routing link codes are used to link a component defined on an item's bill of material (BOM) to an operation on an item's routing. This means that users can specify at which step of a process (operation) inventory must be reduced. Routing link codes allow for greater just-in-time functionality because they give the flexibility to flush the material (remove the material from inventory) at a specific operational step, rather than all at the beginning or end of the production order. Routing codes are often used in long processes. The use of routing link codes reduces the amount of time needed to make changes to BOMs and/or routings when components are linked to routing operations. For example, an existing component is now used in a different sequence due to changes in processing. In a program requiring users to link production BOM components directly to various routings, the user needs to make changes to each routing and BOM. With the use of routing link codes, users simply change the routing link code.

Stop Codes Stop codes are used to define down time during production. After setting up the stop codes, users can enter them in the posting lines of the output journal and the capacity journal. Use codes that are easy to remember and descriptive, for example, material defects or a mechanical breakdown. Users can set up as many codes as they want.

Scrap Codes Scrap codes are used to define reasons for scrap or waste. Enter a code to identify why an item has been scrapped. After setting up the scrap codes, users can enter them in the posting lines of the output journal and the capacity journal. Use codes that are easy to remember and descriptive, for example, material defects or incorrect measurements in the product design. Users can set up as many codes as they want.

Capacity-Constrained Resources Where the production planner foresees a risk of overloading a resource, he or she has the option to select that resource as capacity-constrained. This ensures that the machine center or work center in question is only loaded to a specific critical level, a finite load. Such finite loading is typically used for a work center or machine center that the planner has identified as a bottleneck for which he or she wants to monitor a limited load. This feature ensures that no more work is assigned to the resource than it can be expected to execute in a given time.

4-8


Chapter 4: Basic Capacities and Routings Machine centers and work centers to be assigned finite loads must be set up in the Capacity Constrained Resources window as shown in the figure.

FIGURE 4.5 RESOURCES WITH CONSTRAINED CAPACITIES.

The window contains the following fields that are specific to finite loading: Field

Comments

Critical Load %

Users can enter the percentage of the available capacity of a work center or machine center to which the program is allowed to apply load. Thus, in addition to noting constraint in general, users can account for potential down time.

Dampene r (% of Total Capacity)

Enter the allowable tolerance (as a percentage) by which the critical load can be exceeded. By slightly exceeding the critical load percentage, the program can schedule a load to a work center or machine center at the last possible day.

Routings A routing specifies the sequence of operations to manufacture a product. The operations can be performed at a work center or at a machine center, also referred to as capacities or facilities. Manufacturing companies use routings to manage and show the production process. The routings are the basis for the following: •

Process scheduling

•

Capacity scheduling

•

Manufacturing documents


4-9

Manufacturing I in Microsoft Dynamics® NAV 2009 The routings are then assigned to the item card in the same manner as production BOMs.

Routing Header Although the work centers and machine centers are set up in capacities, users must set up the routing in the product design area. In the navigation pane, click the Routings button. To create a routing, define the routing header. This heading information applies to the entire routing. In the routing detail lines, the data is entered for the specific machine center and work center that processes the product at that operation. Define a number (code) and a type. Open a Routing to view this information. For example, double-click item number 1000 (Bicycle).

FIGURE 4.6 ROUTING FOR BICYCLE.

4-10

Field

Comments

No.

This is a unique identifier for the routing. Users can enter a maximum of 20 characters, utilizing both numbers and letters.

Comment

As seen throughout Microsoft Dynamics NAV 2009, users can access routing card comments by going to Related Information > Routing > Comments. Comments are for internal viewing and do not print on the job card.

Description

This field contains the Routing description so that its particular use is easily recognized.


Chapter 4: Basic Capacities and Routings Field

Comments

Type

This specifies the routing as serial or parallel. • Serial - indicates that operations are performed consecutively. •

Parallel - indicates that two separate, unrelated operations can be performed simultaneously. Parallel operations reduce throughput time, increase efficiency, and help reduce the complexity in the BOM structure.

NOTE: In Microsoft Dynamics NAV 2009, the definition of parallel processing or parallel scheduling differs from APICS. APICS defines it as "The use of two or more machines or job centers to perform identical operations on a lot of material. Duplicate tooling and setup are required." Microsoft Dynamic NAV's parallel processing is used for two or more non-identical operations on different lots of material. Microsoft Dynamics NAV 2009's definition of concurrent capacity is closer to the APICS definition of parallel scheduling. Field

Comments

Status

This field indicates the status of a routing. • New - The status is automatically set to New when creating a new routing that is editable. •

Certified - The program allows a routing with the status of certified to be used for production planning and orders. It is not editable and an error message displays if you attempt to use a non-certified routing.

•

Under Development - This status indicates that a certified routing is undergoing edits or changes. After the edits or changes have completed, the status must be changed back to certified.

•

Closed - The status of closed indicates that the routing is no longer used.

Search Description

This field can be used to search for a routing when its number has been misplaced. It defaults from the description and can be up to a maximum of 30 characters.

Version Nos

This field shows the version number series applicable to the routing. You can choose a number series from the No. Series table or leave it blank.

Active Version

This field shows the current version in use.

Last Date Modified

As used throughout Microsoft Dynamics NAV 2009, this field updates to the system date (not the work date) when a routing is initiated or changed.


4-11

Manufacturing I in Microsoft Dynamics® NAV 2009 The routing lines must be completed with the required operations. Complete as many lines as necessary to finish the routing. Routing lines are discussed later in the section entitled Routing Lines.

Throughput Time There are two types of throughput time: Productive and Non-Productive. It is important to understand the various components of throughput time or manufacturing lead time. Note the following Times: •

Productive Time

•

Setup Time

•

Run Time

•

Non-Productive Time

•

Wait Time

•

Move Time

•

Queue Time

FIGURE 4.7 THROUGHPUT TIME

There are two types of Productive Time, including setup time and run time.

4-12

•

Setup Time is the time required to set up the machine or work center to convert from production of the last good item in a lot to the first good item of the next lot.

•

Run Time is the time required to process or manufacture a piece or lot at a specific operation. Run time does not include setup time.


Chapter 4: Basic Capacities and Routings There are three types of Non-Productive Time, including wait time, move time, and queue time. •

Wait Time is defined as the time required between the processing steps (drying processes, for instance). APICS defines wait time as "the time a job remains at a work center after an operation is completed until it is moved to the next operation. It is often expressed as part of move time."

•

Move Time is the time a lot or batch of an order spends in transit from one operation to another within the plant.

•

Queue Time is the amount of time a lot or batch of an order spends waiting for setup and processing at a particular machine or work center. Increases in queue time mean direct increases to manufacturing lead time and work-in-process inventory. Queue time is not included in the determination of the start or ending time for a routing operation; it is the amount of time between the end of one operation and the start of the next.

NOTE: The various types of throughput time can be defined in different units of measure. For example, run time can be in hours while setup time is in minutes. However, setting different units of measure for the various throughput times has costing implications. See also the Manufacturing Costing training material. For the purpose of this course, the routings utilize machine centers only. However, routings can be constructed with a work center or a combination of both.

Routing Lines The routing lines allow users to list the user-defined required operations. In other words, this is the area where the steps in the production process are listed. In the navigation pane, click the Routings button and double-click and item (for example, bicycle). NOTE: If a field mentioned below does not appear in the screen, click the Actions button (thunderbolt icon) from the Lines FastTab, select Choose Columns and add the missing fields. •

Types - There are two types available: Work Center and Machine Center. The different uses of these two types are discussed throughout the chapter. It is possible to view the information that defaults to the routing line based on which type is used. If the type Work Center is selected, the following information defaults to the routing line:


4-13

Manufacturing I in Microsoft Dynamics® NAV 2009 Description •

Setup Time Unit of Meas. Code

•

Run Time Unit of Meas. Code

•

Wait Time Unit of Meas. Code

•

Move Time Unit of Meas. Code

The machine center card is linked to a work center. The following fields, if predefined, default to the routing line from the machine center item card.

Description •

Setup Time and Setup Unit of Measure

•

Wait Time and Wait Time Unit of Measure

•

Move Time and Move Time Unit of Measure

•

Fixed Scrap

•

Scrap %

•

Send Ahead Quantity

•

Minimum Process Time

•

Maximum Process Time

•

Concurrent Capacities

A description of some of the fields are provided below. For further information, please refer to the Help File by pressing F1.

4-14

•

No . - Based on the selection in the Type field, this field looks up to a list of work centers or machine centers.

•

Standard Task Code - This field provides the ability to enter frequent operations as a standard task. When you select a standard task code, the description of the standard task is copied into the Description field of the routing detail line. If tools, personnel, descriptions and quality measures have been saved under the standard task, the information is copied to the routing line.

•

Routing Link Code - For each operation, specify a routing link code to indicate the routing operation on which a production BOM component is used. Enter the routing link code on the routing operation before entry on the production BOM component or an error message is displayed when trying to certify the BOM.

•

Description - The description fills in and can be modified to improve or enhance the operation's definition. The description is printed on the job card, sometimes called traveler or work order.

•

Fixed Scrap Quantity - This amount reflects scrap that occurs at the beginning of an operation. For example, if the operation is printing, you might throw away the first 100 pages during the setup of the machine. This increases gross requirements.


Chapter 4: Basic Capacities and Routings •

Scrap Factor % - This percentage is designed for scrap accounted for at the end of the operation. During the actual running of the operation, you might encounter additional scrap, such as ten out of every 1000 sheets that were printed incorrectly. This can be estimated as a percentage of the total run and is actually accounted for at the end of the operation, which increases gross requirements.

NOTE: By default, the scrap factor is placed on all components used in an operation. To place the scrap factor on a specific component only, you have to differentiate that component's operation from the other components by setting different routing link codes in the production BOM and routing lines. Routing Link Codes are discussed later in the manual. •

Minimum Process Time - This is the minimum time required by the machine for processing.

•

Maximum Process Time - This is the maximum time required by the machine for processing.

•

Concurrent Capacities - This is the total quantity defined of the simultaneously available machines or persons. It is used for the machine center level only and reduces the production lead time of the order. For example, if processing normally requires four hours, the processing time is reduced significantly using two machines. In the APICS dictionary this is called "lot splitting."

•

Send Ahead Quantity- This field refers to the quantity of the current operation that must be completed before the next operation can be started. It optimizes the lead time of production orders.

•

Unit Cost Per - This field can be used if the unit cost of the operation is different from the unit cost on the work center item card. When choosing to enter the cost on each routing operation line, the Specific Unit Cost field must be selected on the work center item card. This is available for work centers only. For machine center operation lines, the unit cost may only be specified on the machine center card.

Routing Versions •

Minimum Process Time - This is the minimum time required by the machine for processing.

•

Maximum Process Time - This is the maximum time required by the machine for processing.

•

Concurrent Capacities - This is the total quantity defined of the simultaneously available machines or persons. It is used for the machine center level only and reduces the production lead time of the order. For example, if processing normally requires four hours, the processing time is reduced significantly using two machines. In the APICS dictionary this is called "lot splitting."


4-15

Manufacturing I in Microsoft Dynamics® NAV 2009 •

Send Ahead Quantity - This field refers to the quantity of the current operation that must be completed before the next operation can be started. It optimizes the lead time of production orders.

•

Unit Cost Per - This field can be used if the unit cost of the operation is different from the unit cost on the work center item card. When choosing to enter the cost on each routing operation line, the Specific Unit Cost field must be selected on the work center item card. This is available for work centers only. For machine center operation lines, the unit cost may only be specified on the machine center card.

Copy Routing Version One can apply the Copy Routing Header and Copy Routing Version functions to facilitate the creation of new routing version. Once the operations have been copied to the new routing version, users can make any necessary changes.

Demonstration 4 This demonstration shows you how to create a new routing version and how to add a step for inspection. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

12. 13. 14. 15. 16.

4-16

In the navigation pane, click the Routings button . Double-click item 1000 (Bicycle). Click Versions. Click New. In the Version Code field, enter 1, or accept the default number if a no. series has been set up. In the Description field, type "Touring Bicycle". Accept Serial as the type. In the Starting Date field, type 11/01/2008 (November 1, 2008). Go to Actions > Functions > Copy Routing Header. Select Yes to copy the information. Change the routing. Go to the first blank line. Enter a number in the Operation field, following the existing sequencing. For example, if the previous steps are numbered 10 through 40, enter a 50 in this field. Select an existing machine center. For example, select 440 (Machine Inspection). Enter a run time of 30 minutes. Change the status from New to Certified. Click OK. Close the routing card and open it up again.


Chapter 4: Basic Capacities and Routings Where-Used Feature To assist in maintenance and troubleshooting, use the Where-Used feature to display where a routing is used throughout the product structures. This can be illustrated by looking at a routing. From the routing, go to Related Information > Routing > Where used. The program displays all items that use this routing. If the form shows no items, then the routing is not assigned to any item card.

Create a New Routing To streamline creation of a new routing, users can copy an existing routing. As with production BOMs, users can make any necessary changes after the operations have been copied to the new routing.

Demonstration 5 This demonstration shows you how to create a new routing. 1. In the navigation pane, click the Routings button. 2. Click New. 3. Enter a number in the No., field or accept the default if a number series has been set up. 4. In the description field, type Chain Assembly. 5. Accept the default type of Serial. 6. Click Copy Routing. 7. From the routing list, select Bicycle and click OK. At this point, you can modify the operations. 8. Click the first operation. 9. Click the Action icon (lightning bolt symbol) and go to Operation > Tools. 10. Enter the following routing tools: No

Description

WTSAW

Wide Tooth Saw

9mm WR

9 millimeter wrench.

11. Click OK. 12. Change the status from New to Certified and close it.


4-17

Manufacturing I in Microsoft Dynamics® NAV 2009 Demonstration 6 This demonstration shows you how to use routing when producing an item, by assigning the routing to an item card. 1. In the navigation pane, click the Items button. 2. Select an item (for example, Bicycle). Keep in mind that you might want to use an item you have already created so that the information has more meaning to you. 3. Click the Replenishment FastTab and from the Routing No. field, change or insert the new routing. 4. Click OK.

Routing Link Codes Routing link codes are used to remove, or flush, components from inventory based on a routing step. Although they are not used in all manufacturing facilities, when appropriate, they are useful. Routing link codes link components on a production BOM to the specific routing step in which they are required. MRP uses the routing link code to schedule components based on the start date of the operation in which they are required. Routing link codes are often used in long processes to allow inventory to be reduced when the items are actually being used. Routing link codes are used in just-in-time (JIT) environments. Routing link codes must be established on the routing lines prior to entry on the production BOM lines. The flushing method chosen on the component item cards affects the timing. Component Flushing Method

Affect on Inventory

Manual

Inventory is affected only when the user posts through the consumption or production journals.

Forward

Inventory is affected when the routing step is started.

Backward

Inventory is affected when the routing step is completed.

Demonstration 7 This demonstration shows you how to set up routing link codes. Choose a manufactured item that has at least two operational steps and two components. A manufactured item must have both a production BOM no. and a routing no. on the Replenishment tab. 1. In the navigation pane, click the Routings button. Select item 1000 (Bicycle).

4-18


Chapter 4: Basic Capacities and Routings 2. Change the status to Under Development. 3. On the row for the first operation (Wheel assembly), go to the Routing Link Code field. NOTE: If the Routing Link Code field does not appear in the screen, click the Actions button (thunderbolt icon) from the Lines FastTab, select Choose Columns and add the missing field. 4. Select a routing link code that relates to the manufacturing process in question. If you do not see one, insert a row and you can create a unique code and description. Since this is the correct routing, just leave it as is. 5. For the second operation (Chain assembly), click the drop down arrow in the Routing Link Code field and select code 100 (Assembling). 6. Change the routing status back to certified. 7. Click OK. 8. In the navigation pane, click the Production BOMs button. 9. Double-click item 1000 (Bicycle). 10. Change the status to Under Development. 11. On the row for the first item, enter the same routing link code as on the routing line for the first operation. In this case, routing link code 100 (Assembling). 12. On the row for the second item, enter the same routing link code as on the routing line for the second operation. 13. Change the status to Certified. 14. Click OK. In this training manual, the creation and use of production orders are examined. If you use this master item on your production order, it shows that the first item is consumed in the first operation and the second item is consumed in the second operation.

Reports Standard reports have been created under the product design menu for routings and under the capacities menu for capacities.


4-19

Manufacturing I in Microsoft Dynamics® NAV 2009 Routing Sheet Reports The routing sheet prints the detailed routings specified in the report filters. The routing sheet can be used to verify correctness of routings or a basis for new routings or versions. To view a routing sheet, In the navigation pane, go to Routings > Reports >Routing Sheet. On the Item FastTab, the No. field defaults as a filter. In the filter column, enter the item number that uses the filter you want to see. On the Options FastTab, there are more choices. Production Quantity

Enter the quantity of items to manufacture for which you want the program to calculate the total time of the routing.

Print

Place a check mark on the fields that you want printed. Select from the following: Comments, Tools, Personnel, and Quality Measures.

No. of Copies

Enter the number of copies you want in addition to the original sheet. The Copies print with the word Copy at the top and a number next to it.

Select Print, Tools, Personnel and Quality Measures if you want to see what is being used. You can use filters to narrow the results. Click Print to print the report. To preview the report on the screen before printing, click Preview. If printing of the report must now be cancelled, click Cancel to close the window. NOTE: Quality measures minimum value, maximum value, and mean tolerance do not print on the Routing Sheet report, but can be added with a simple modification.

Machine Center List In the navigation pane, go to Departments>Manufacturing> Capacities>Lists >Machine Centers > Reports > Machine Center List. This report displays basic information about machine centers including:, machine center number, name, work center number that it is assigned to, capacity, and efficiency. On the Machine Center FastTab, users can enter filter information for: •

Machine center number

•

Work center number

•

Any other added filter

Select either Print or Preview to view the results.

4-20


Chapter 4: Basic Capacities and Routings Work Center List In the navigation pane, go to Departments>Manufacturing> Capacities >Lists> Work Centers > Reports > Work Center List. This report displays the following information about work centers: •

Number

•

Same

•

Alternate work center

•

Work center group

•

Unit costs

•

Unit of measure

•

Capacity

•

Efficiency

•

Shop calendar code

On the Work Center FastTab, users can enter filter information for the following: •

Work center no.

•

Work center group code

•

Shop calendar code

•

Any other added filters


Capacity Task List In the navigation pane, go to Departments > Manufacturing > Capacities > Reports > Capacity Task List. This report displays basic information about capacity. From the Prod. Order Routing Line FastTab, users can filter information for: •

Expected Capacity Need

•

Expected Capacity Overhead Cost



4-21

Manufacturing I in Microsoft Dynamics® NAV 2009 Capacity Gantt Chart In the navigation pane, go to Departments > Manufacturing > Capacities > Reports > Capacity Gantt Chart. This report displays basic information about work centers. From the Prod. Order Routing Line FastTab, users can filter information for the following: •

Critical Path

•

Setup time

•

Run time


Summary This chapter discusses the importance of properly scheduling work shifts, shop floor calendars, as well as selecting the proper routing for an optimal production flow.

4-22



Lab 4.1 - Routing Scenario

Create New Routing Create a new certified routing using existing facilities, called New Path, with operations as follows: Operation

10

20

30

Machine Center

410

420

440

Setup Time

20

30

Run Time

1.5

2.0

1.0

Step by Step Answer 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

In the navigation pane, click the Routings button. Click New. Enter New Path in the No., field. Enter New Path in the Description field. Leave the other default fields in the header. Go to the Lines FastTab. In the Operation No. field type 10. Set Type to Machine Center. Type 410 in the No. field. In the Setup Time field type 20. In the Run Time field type 1.5. Move to the next row and type 20 in the Operation No. field. Set Type to Machine Center. Type 420 in the No. field. In the Setup Time field type 30. In the Run Time field type 2.0. Move to the next row and type 30 in the Operation No. field. Set Type to Machine Center. Type 440 in the No. field. Do not enter time in the Setup field. In the Run Time field type 1.0. In the Status field, change New to Certified. Click OK.


4-23

Manufacturing I in Microsoft Dynamics® NAV 2009 Create New Version Create version 1 of the routing created in Lab 4.1 with a work date of 11/14/2010. Create version 2, to become effective on 12/01/2010, with the following modifications: Procedures have been modified so that drilling (operation 10) is no longer necessary, and the CNC machine in operation 20 can do that step, but the run time becomes 2.5 minutes.

Step by Step Answer 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.

4-24

In the navigation pane, click the Routings button. Double-click New Path. Click Versions. Click New. Type 1 in the Version Code field. Type a Description of Version 1. Type 11/14/2010 in the Starting Date field. Go to Actions > Functions > Copy Routing Header. Select Yes, copy from routing header. Click in the Status field and change it to Certified. Click OK. Click New to insert a new version header. Type 2 in the Version Code field. Type a Description of Version 2. Type 12/01/2010 in the Starting Date field. Go to Actions > Functions > Copy Routing Version. Select version 1 from the list. Click OK. Put your cursor on the row for operation 10. Press Ctrl+D to delete the row. Go to the row for Operation 20. Change the Run Time to 2.5. Click in the Status field and select Certified. Click OK. Close the Routing Version List.


Chapter 4: Basic Capacities and Routings Create Routing with Parallel Production Create a routing that demonstrates a parallel production. Start at a single facility. Describe the operation any way you want. Use any facility, adhering to the rules for establishing a parallel route. Operations 20 and 30 are made in parallel. The following table describes the operations and execution times. The facility is just a suggestion: Operation

10

20

30

40

50

Facility

MC 110

MC 110

MC 120

MC 130

MC 130

Description

Prep frame

Front wheel

Rear wheel

Final assembly

Packing

Setup

0

30

30

30

Run Time

10

60

120

120

90

Step by Step Answer 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.

In the navigation pane, click the Routings button. Click New. In the Description field, enter Finishing. Change the Type field to Parallel. Move to the Lines FastTab. In the Operation No. field, type 10. Set Type to Machine Center. Type 110 in the No. field. Change the Description to Prep Frame. In the Run Time field enter 10. Move to the next row and type 20 in the Operation No. field. Set Type to Machine Center. Type 110 in the No. field. Change the Description to Front Wheel. In the Setup Time field type 30. In the Run Time field type 60. Move to the next row and type 30 in the Operation No. field. Set Type to Machine Center. Type 120 in the No. field. Change the Description to Rear Wheel. Type 30 in the Setup field. In the Run Time field type 120. Move to the next row and enter 40 in the Operation No. field. Set Type to Machine Center.


4-25

Manufacturing I in Microsoft Dynamics® NAV 2009 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42.

Type 130 in the No. field. Change the Description to Final Assembly. Type 30 in the Setup field. In the Run Time field type 120. Move to the next row and type 50 in the Operation No. field. Set Type to Machine Center. Type 130 in the No. field. Change the Description to Packing. Type 30 in the Setup field. In the Run Time field type 90. Place your cursor in the Lines FastTab, right-click and select Choose Columns. Add Next Operation No. Click OK. Go to the first row, for Operation 10. In the Next Operation No. field type 20|30. In Operations 20 and 30, type 40 for next operation. For operation 40, type 50 in the Next Operation field. Change the status from New to Certified. Click OK.

Create Routing with Send Ahead 1. Create a routing for the Water bottle assembly 2000. It must have the following characteristics: Operation

10

20

30

Machine Center

410

110

120

Description

Drill bracket

Bend bracket

Mount bottle

Setup Time

20

30

Run Time

0.5

0.5

1.0

2. Assign this routing 2000 to item 2000. 3. Create a new version of this routing so that the above routing allows for a send-ahead quantity of 10 in operation 20.

Step by Step Answer 1. 2. 3. 4.

4-26

In the navigation pane, click the Routings button. Click New. Type 2000 in the No. field. In the Description field, type "Water Bottle Assembly.


Chapter 4: Basic Capacities and Routings 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38.

Do not change the remaining fields in the header. Move to the Lines FastTab. In the Operation No. field, type 10. Set Type to Machine Center. Type 410 in the No. field. Change the Description to Drill Bracket. In the Setup Time field type 20. In the Run Time field type 0.5. Move to the next row and type 20 in the Operation No. field. Set Type to Machine Center. Type 110 in the No. field. Change the Description to Bend Bracket. In the Setup Time field type 30. In the Run Time field type 0.5. Move to the next row and type 30 in the Operation No. field. Set Type to Machine Center. Type 120 in the No. field. Change the Description to Mount Bottle. In the Run Time field enter 1.0. Click in the Status field and change it to Certified. Click OK. In the navigation pane, click the Items button. Select the item, water bottle mounting bracket. Open the Replenishment FastTab. Type 2000 in the Routing No. field. Click Advanced. Go to Actions > View. Select Versions. Click New. Type SA in the Version Code field. In the Description field, type Send Ahead. Go to Actions >Function > Copy Routing Header. Click Yes. In the row for Operation 20, type 10 in the Send-Ahead Quantity field. 39. Click OK 40. Close all open windows.

Use Copy Routing 1. Create a new routing for item 1001, Touring Bicycle, by copying item 1000. 2. Assign routing 1001 to item 1001.


4-27

Manufacturing I in Microsoft Dynamics® NAV 2009 Step by Step Answer 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

4-28

In the navigation pane, click the Routings button. Click New. In the No. field, type 1001. In the Description field, type Touring Bicycle. Click Copy Routing. Select routing 1000. Click in the Status field and select Certified. Click OK. In the navigation pane, click the Items button. Select item 1001, Touring Bicycle. Open the Replenishment FastTab. In the Replenishment FastTab, type 1001 in the Routing No. field. Click OK.




2.

3.


4-29


4-30



CHAPTER 5: PRODUCTION ORDERS Objectives The objectives are: •

Examine the structure and makeup of a production order.

•

Review the purpose of a production order.

•

Define the five statuses of a production order.

•

Create a new production order.

•

View the routing and components of a production order.

•

Reserve components for a production order.

•

Make changes to the production order due date.

•

View actual costs against expected costs, and the capacity of a production order.

•

Make changes to the production order quantity required

•

Make changes to the production order components required

•

Use item substitution for components.

•

Make changes to the production order routing.

•

Examine the reports printed directly from a production order.

•

Access the Production Schedule from a production order.

•

Review the standard reports available for production order reporting.

•

Review the purpose of the Replan Production Order batch job.

•

Examine how the Replan Production Order batch job operates.

•

Explain the effects of scheduling a production order with a phantom BOM.

•

Calculate a manufacturing batch unit of measure.

•

Identify the two methods of changing the status of a production order.

Introduction This chapter examines the purpose of the production order in Microsoft Dynamics® NAV 2009. 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.


5-1

Manufacturing I in Microsoft Dynamics® NAV 2009 Production orders are the central components of the Microsoft Dynamics NAV's 2009 manufacturing functionality. Production orders 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

Production orders are the starting point for: •

Planning future manufacturing

•

Controlling current manufacturing

•

Tracking of finished manufacturing

Production orders go through five different statuses. The next chapter explains these statuses.

Production Order Status Production orders are displayed in different windows according to their status. It is not possible to change the status of a production order manually. To change the status of a production order, click Change Status from the Process actions group pane. A production order can have one of the following status codes: •

Simulated

•

Planned

•

Firm Planned

•

Released

•

Finished

These status codes are explained further in the following five sections.

Simulated Production Order –- SPO The Simulated Production Order (SPO) is unique based on the following characteristics:

5-2

•

It is not real.

•

It does not influence order planning.


Chapter 5: Production Orders As its name implies, it is not real and the main purpose is for quoting and costing, such as when the Research and Development department wants to obtain a cost estimate on a proposed item. An SPO serves as an example of a production order. SPO does not influence the planning of orders. Planning (MPS and MRP, discussed in other chapters) neither considers nor is affected by simulated production orders. Also, a simulated production order cannot be used as a template because it disappears when its status changes.

Planned Production Order –- PPO The Planned Production Order (PPO) has the following characteristics: •

PPOs affect capacity requirements.

•

PPOs serve as good workload estimates.

•

PPOs need careful planning.

PPOs are similar to released production orders and provide input to capacity requirements planning by showing the total capacity requirements by work center or machine center. A PPO represents the best estimate of the future 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. The PPO 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. NOTE: To view the PPO impact in Microsoft Dynamics NAV, look at the load for each work center or machine center on the planned production order's routing.

Firm Planned Production Order –- FPPO The Firm Planned Production Order (FPPO) has the following characteristics: •

FPPOs can be manually changed.

•

FPPOs are placeholders.

•

FPPOs are created from planning, manual creation, or sales orders.

•

FPPO creation results in a planned order release.

Planning cannot change an FPPO, but the Production Planner can make changes manually to the production order. The Production Planner can automatically create an FPPO from a sales order.


5-3

Manufacturing I in Microsoft Dynamics® NAV 2009 An FPPO acts as a placeholder in the planning schedule for some future job released to the floor. An FPPO can be generated from planning or created manually or from sales orders. They are not erased during subsequent planning. An FPPOs 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 an FPPOs impact in Microsoft Dynamics NAV 2009, look at the load for each work center or machine center on the firm planned production order's routing. In this example, view the machine center and work center loads for a specified period . 1. Click the Capacities button. 2. From the navigation pane, click Machine Centers. 3. Click Machine Center Load from the Reports action group. Check the production order capacity need (load) including start time and end times. 4. From the Options FastTab, select a period (for example, November 14, 2010) that has a load. Check that your work date is the same as the selected period.

5-4


Chapter 5: Production Orders 5. Check that the No. of Periods field has a value of 4 and the Period Length field, a value of 1M (for 1 month). 6. Click Preview.

FIGURE 5.1 PREVIEW OF MACHINE CENTER LOAD

Released Production Order –- RPO The Released Production Order (RPO) has the following characteristics: •

RPOs do not indicate product removal.

•

RPOs are not always created immediately after a sales order.

•

RPOs can record material consumption from a product output.

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 an MTO (Make-to-Order) environment, it is not unusual to create a released production order immediately after the entry of the sales order.


5-5

Manufacturing I in Microsoft Dynamics® NAV 2009 Actual material consumption and product output can be recorded manually with an RPO. In addition, automatic flushing of consumption and product output only occurs for RPOs.

FIGURE 5.2 CONSUMPTION JOURNAL FOR PRODUCTION ORDER 1011004.

NOTE: Consumption (automatic flushing) and output is discussed in greater detail in a later chapter.

Finished Production Order –- FPO The Finished Production Order (FPO) has the following characteristics: •

FPOs are terminal. An FPO is an order that, for some reason, has been terminated. Usually, the order has already been manufactured.

•

FPOs can track back to other orders. FPOs are used for statistical reporting and to maintain the ability to track back to other orders (for example, sales, production, and purchase).

•

FPOs can never be changed. The ability to track back to a finished production order allows you to review the detailed history.

NOTE: Finished Production Orders cannot be posted to or deleted. NOTE: The status of a production order is changed to Finished to maintain historical information and to complete accounting and/or automatic flushing entries.

5-6



Manual Production Orders This section examines the creation of a new Production Order in addition to viewing the Routing and Components of the Production Order.

New Order Entry Demonstration 1 Perform the following steps to create a firm planned production order. 1. In the navigation pane, click the Firm Planned Production Orders button. 2. Click New. 3. In the Description field, type Bicycle. 4. In the Source No. field, select 1000 (Bicycle). 5. In Quantity field, type 12. 6. In the Lines FastTab, select item number 1000 (Bicycle). 7. In the Due Date field, enter 01/01/2010.

Source Types Note that the Source Type for this order is Item. Three Source Types are available for a production order: •

Item

•

Family

•

Sales Header

Item - An item production order is wanted when one production order for each individual line of a sales order is appropriate. Family - A Family production order is needed when a group of items always needs to be manufactured together. This type is discussed in more detail in a later chapter. Sales header - A sales header production order is appropriate when you want to produce all items of a sales order from one production order. This is useful in a large project environment where there is a relatively long manufacturing leadtime. NOTE: Notice that the inventory and product posting groups default from the item card. This information is used for general ledger postings. If needed, department, project, and location codes may be entered.


5-7

Manufacturing I in Microsoft Dynamics® NAV 2009 This demonstration shows you how the scheduling of a production order works. 1. From your Firm Planned Order, open the Posting FastTab. 2. Click Refresh from the process action group. The Refresh function simultaneously plans and schedules the production order, allowing both the needed components and the detailed routing to be scheduled at the same time. This feature is referred to as simultaneous planning. 3. From the Options FastTab, select Back as a scheduling direction. 4. Select the Lines, Routings, and Component Need check boxes. This recalculates the production order lines and copies the routing steps and components from the Routing and Production BOM. 5. You can also determine whether to calculate the routings and components for each line. Remember that you can have more than one line on a production order. When you run the Refresh function, existing detail lines are erased and new lines are created based on the standard production BOM and routing for each item. To reschedule, you may need to refresh the production order, but you may not want the program to erase the lines. This is because you will lose any changes entered on the line (Production BOM) or you might lose order tracking information (components reserved). In this case, clear the Lines field. 6. Click OK. 7. View the Schedule FastTab.

5-8


Chapter 5: Production Orders NOTE: Backward scheduling begins from the ending date and proceeds backward to the required starting date. Forward scheduling begins at the starting date and proceeds forward to the finishing date. The program automatically schedules the order to be completed one day before the due date.

FIGURE 5.3 PRODUCTION SCHEDULING PROCESS FLOW

The figure shows the elements of the lead time that are taken into account in the production scheduling process. The system calculates as follows: •

Starting and ending dates and times have been calculated based on the standard routing.

•

The lot number assigned is based on the planning lot number series entered in the Manufacturing Setup window. The use of this number is discussed when changes to production orders are addressed.

View Production Order Routing Use the following steps to view the detailed routing for the production order created: 1. From the production order, go to the Lines FastTab. 2. Click the Actions icon (next the expand/collapse button), then go to Line > Routing. The start and end dates and times for each operation are based on scheduling from the end day prior to the production order due date.


5-9

Manufacturing I in Microsoft Dynamics® NAV 2009 Using each machine (work) center calendar, the program calculates the schedule using the setup, run, wait, and move times for each operation. While queue time is not included in the determination of the start or end dates and times for an operation, it is calculated as the time between the end of one operation and the start of the next. The following figure shows for production order number 101001 the routing for item 1000, the bicycle.

FIGURE 5.4 PRODUCTION ORDER ROUTING FOR ITEM 1000.

View Production Order Components Use the following steps to view the list of production order components for the production order 101001 of item 1000: 1. From the Production order, go to the Lines FastTab.

5-10


Chapter 5: Production Orders 2. Click the Actions icon (beside the expand/collapse button), then go to Line > Components.

FIGURE 5.5 COMPONENTS FOR PRODUCTION ORDER 101001 OF ITEM 1000.

NOTE: The due date for each component is based on the lead-time calculation for purchased items and the routing for production items, along with any routing link code. If there are no routings, then it is based on lead-time calculation only.

Routing Link Codes Routing link codes can be set up to link a component defined on an item's BOM to an operation on an item's routing. Users can specify at which operation in a routing the material is used. Routing link codes allow for greater just-in-time functionality because it gives you the flexibility to flush the material at a specific operational step rather than all at the beginning or all at the end of the production order. Remember that using the JIT (Just-in-Time) functionality facilitates reduced inventories, which results in a lower cash requirement or higher working capital.

Inventory Reservation By the end of this section, users may be able to reserve components for a production order. In some cases it is necessary to reserve components for a production order. This can be done manually for a specific production order, or you can set it up to occur automatically. For detailed information about inventory reservations, refer to the Microsoft Dynamics NAV 2009 Inventory Management training manual.


5-11

Manufacturing I in Microsoft Dynamics® NAV 2009 Use the following steps to reserve a component for a production order: 1. From the Prod. Order Component window, select an item. 2. Go to Actions > Functions > Reserve. 3. Select a line, (for example, Item Ledger Entry) in the Reservation window. 4. Click Reserve from Current Line from the Process actions group. The Total Reserved Quantity is updated. The reservation can be viewed by going to Actions>Functions>Order Tracking.

Production Order Statistics This chapter examines actual cost against expected costs, and capacity of a production order. In addition to the detailed routing and components, you may want to view actual against expected costs and capacity for an item. To view the production order statistics for item 101001 (Bicycle), perform the following steps: 1. In the navigation pane,click the Firm Planned Production OrdersAll button. 2. Click item 101001 (Bicycle). 3. Click Statistics from the Process actions group. The fields in the Statistics window include the following: Field

Information

Material Cost

This field shows the material costs of all lines in the production order. These include: • Standard cost of materials based on a standard production BOM. •

Expected cost of materials based on any changes made to material components for this production order.

•

Actual cost of materials based on recording consumption for the production order.

Production order variance is calculated as follows: • Actual cost - standard cost = variance Dev % (deviation percentage) is calculated as follows: • Variance/standard cost = deviation %

5-12


Chapter 5: Production Orders Field

Information

Capacity Cost

This field shows the capacity cost amount of all lines in the production order. This includes: • Standard capacity costs (based on a standard routing)

Subcontracted Cost

Capacity Overhead

•

Expected capacity costs (based on any changes made to the internal operations on the routing for this production order)

•

Actual capacity costs (based on recorded output for the production order)

•

Deviation in percent

•

Variance

This field shows the subcontracted cost amount of all lines in the production order. This includes: • Standard subcontractor costs (based on a standard routing) •

Expected subcontractor costs (based on any changes made to external operations on the routing for this production order)

•

Actual subcontractor costs (based on subcontractor purchase order receipts for the production order)

•


•

Variance

This field shows the capacity overhead cost amount of all lines in the production order. Capacity overhead includes indirect overhead costs, such as: • Factory supervision •

Factory fixed expenses

•

Subcontractor overhead expenses

Refer to the Microsoft Dynamics NAV 2009 training manual, Manufacturing Costing, for more details. This includes: • Standard capacity overhead costs (based on a standard routing) •

Expected capacity overhead costs (based on any changes made to the internal or external operations on the routing for this production order)

•

Actual capacity overhead costs (based on recorded output for the production order)

•


•

Variance


5-13

Manufacturing I in Microsoft Dynamics® NAV 2009 Field

Information

Manufacturing Overhead

This field shows the manufacturing overhead amount of all lines in the production order. Manufacturing overhead may be indirect costs, such as freight or material handling charges. Refer to the Microsoft Dynamics NAV 2009 training manual, Manufacturing Costing, for more details. This includes: • Standard manufacturing overhead costs (based on a standard production BOM)

Total Cost

Capacity Need

•

Expected manufacturing overhead costs (based on any changes made to material components for this production order)

•

Actual manufacturing overhead costs (based on recorded consumption for the production order)

•


•

Variance

This field shows the total cost amount of all lines in the production order. This includes: • The standard costs (based on a standard production BOM and routing) •

Expected total costs (based on any changes made to the components or routing for this production order)

•

Actual total costs (based on recording consumption or output for the production order)

•

The deviation in percent

•

Variance

This field shows the total amount of capacity required (in minutes, hours, or days) of all lines in the production order. This includes: • Expected capacity (based on changes to the routing for the production order) •

Actual capacity (based on recording output for the production order)

•

Deviation

Production Order Changes There might be various types of anticipated changes that need to be made to a production order prior to it being released to the shop floor. There may also be a need to make changes to a production order after work has begun. This is typically the responsibility of the Production Planner because this person has the overview of the entire pool of production orders.

5-14



Due Date Changes The Starting date and Ending date fields on the Schedule FastTab of the Production order is automatically amended if the Due date is changed in the heading of a production order. NOTE: Changes to the Due Date causes a change in the scheduling tab and routing lines. The Starting and Ending date field values are updated based on the most recent settings of the Refresh Production Order batch job and Routing criteria of the production order.

FIGURE 5.6 AVAILABLE OPTIONS IN REFRESHING A PRODUCTION ORDER.

Changes to Required Components Components may need to be changed to manufacture an item. This is usually the case in an MTO (make-to-order) company, where items are produced to customer specifications. A production order may be created for an MTO item with components from a standard template production BOM. The operations are then modified as needed.


5-15

Manufacturing I in Microsoft Dynamics® NAV 2009 Demonstration 2 This demonstration shows you how to make a change to a production order component: 1. Open the production order that you created. 2. From the Lines FastTab, click the Actions icon and go to Line>Components. 3. From the Prod. Order Component window select the component or item to be changed. For example, select component 1600 (Bell). 4. Right-click and select Delete. 5. Click the Yes button in the Delete Prod. Order Component confirmation window. 6. Click New from the New actions group, to insert a new component in the BOM or re-insert an item that was accidentally deleted. 7. Select the item that you just deleted (1600). 8. In the Quantity per column, enter a quantity of 1. 9. Click OK.

Item Substitution Production Order Components can use substitutions, similar to a sales order substitution. Setting up item substitution is done similarly for both sales and production. To check as to whether a substitution is available for an item, perform the following steps: 1. In the navigation pane,click the Items button. 2. In the Search field, change No. to Substitutes Exist.

5-16


Chapter 5: Production Orders 3. Type Yes. 4. Press Enter.

FIGURE 5.7 RESULT SHOWING ITEMS WHERE SUBSTITUTION IS AVAILABLE.

From a production order, select Line> Components to see the list of components. Use show column to add the Substitution Available field. If a check mark is in the field, a substitution is available. From the Production Order Components, go to Related Information>Line> Select Item Substitution. To check whether substitution is available for a production order, perform the following steps: 1. In the navigation pane,click the Firm Planned Production Orders button. 2. Double-click item 101001 (Bicycle). 3. Go to the Lines FastTab.


5-17

Manufacturing I in Microsoft Dynamics® NAV 2009 4. Click the Actions icon (next to the expand/collapse button), then go to Line>Components. 5. View the Substitution Available column to check whether the components can be substituted for this production order.

FIGURE 5.8 PRODUCTION ORDER SHOWING NO SUBSTITUTION AVAILABLE.

Order Planning One reason users might choose to substitute a component is because the usual item is out of stock. A quick check of component availability is done through reports and Order Planning.

Demonstration 3 This demonstration shows you how to check components through Order Planning: 1. From a production order, go to Related Information > Order> Planning. 2. From the Order Planning dialog box, go to Actions > Functions > Calculate Plan. If components are not available for this production order, a planning line is displayed for the production order header and any unfulfilled demand lines are expanded under it. If all demand is met for the current production order, a message appears saying that all items are available and no planning line was created for it; one line (collapsed) for each production order of unplanned demand.

5-18



Quantity Changes If a production order has a Source type of Item or Family, and the Production Planner makes a change to the Quantity field in the heading, or to the Quantity field on the line, the Production Planner must run the Refresh Production Order batch job to reschedule the production order lines. NOTE: If ledger entries have been posted for the order, then the quantity on the production order header or lines cannot be changed, nor can the dates and time on the Schedule tab.

Routing Changes Similar to the components, production order routing may require modification. In an MTO company, this is usually the case where items are produced to customer specifications. A production order may be created for an MTO item with operations from a standard template routing. The operations are then modified as needed. To recalculate the routing when operations have been changed, you have to utilize Function - Replan. The Replan function is discussed later in this chapter.

Demonstration 4 This demonstration shows you how to make a change to a production order routing: 1. 2. 3. 4.

In the navigation pane,click the Routings button. Double-click routing no. 1000 (Bicycle). Change the status from Certified to Under Development. From the Lines FastTab, select the operation to be changed. For example, select operation 40 (Control). 5. Press Ctrl+D to delete the operation.


5-19

Manufacturing I in Microsoft Dynamics® NAV 2009 6. Click the Yes button. 7. Insert a new routing line and complete the required fields. For example, enter the following information: Operation No.

Type

No.

Descrip tion

Setup Time

Run Time

Concurrent Capacities

40

Machine Center

110

Control

10

8

1

8. Change status to Certified. 9. Click OK. 10. Run replanning for the production order affected by the new routing. In this case, open a production order for item 1000 (Bicycle), click Replan from the Process actions group and click OK.

Printing from a Production Order There are four reports that can be printed or previewed directly from a Firm Planned or Released Production Order. Those reports are: •

Prod . Order - Job Card

•

Prod. Order. - Mat . Requisition

•

Prod. Order - Shortage List

•

Prod. Order - Gantt Chart

FIGURE 5.9 PATH TO REPORTS FOR FIRM PLANNED OR RELEASED PRODUCTION ORDER.

The four different reports are introduced in the following four sections.

5-20


Chapter 5: Production Orders Prod. Order –- Job Card The Job Card report can be used to record actual operating times for an order and provides a list of the work in progress of a production order. Output, Scrapped Quantity, and Production Lead Time are shown or printed, depending on the operation. In addition, the report displays material components required at each operation based on the routing link code and can be used in a Just-in-Time environment. To print the report from a Firm Planned or Released production order, go to Actions > Print > Job Card.

Prod. Order –- Mat. Requisition The Material Requisition report shows component requirements for an order. The report shows the status of the production order, the quantity of end items, and components with the corresponding required quantity. The Due Date and Location Code of each component can be viewed. To print the report from a Firm Planned or Released production order, go to Actions > Print > Mat. Requisition.

Prod. Order –- Shortage List The Shortage List report shows any component items with insufficient quantities to produce the item(s) on the order. The list shows how the inventory development is planned from today until the set day, for example if orders are still open. To print the report from a Firm Planned or Released production order, go to Actions > Print > Shortage List.

Prod. Order – Gantt Chart The Gantt Chart report provides a routing schedule for an order, based on time periods and Start Date defined on the Options tab of the Request form. To print the report from a Firm Planned or Released production order, go to Actions > Print >Gantt Chart.


5-21


Production Order Reports Microsoft Dynamics NAV 2009 offers the following standard production order reports found in the Manufacturing menu under Reports and Analysis. Some examples of the reports available are described in the following table. Press F1 to obtain further information by using Microsoft Dynamics NAV 2009 Help. Report

Description

Prod. Order -Calculation

This report shows a summarization of total operation and component costs.

Prod. Order -Detailed Calc.

This report shows a detailed listing of the costs for each operation and component for production orders selected in the order filters.

Prod. Order - List

This report can be used to review the status (Due Date, Quantity Completed, and so on) of production orders selected in the order filters.

Prod. Order Picking List

This report can be used for material picking purposes.

Prod. Order - Precalc. Time

This report is a detailed listing (both routing and components) of the production order requirements.

Prod. Order - Routing List

This report can be used to record completed and scrapped quantities at each operation.

Replan Production Order The Replan Production Order is used to reschedule production orders, such as when you want to make changes to a production order routing. It is also used to create and plan production orders for lower level assemblies, as required by the current parent production order. When clicking Replan from the Process action group in a production order, the Production Planner can select the scheduling direction and the number of levels for the planning process. The Replan Production Order is not meant to be a substitute for the more advanced calculations of planning. While it can create orders for required lower level assemblies, it does not include time phasing, which is integral to planning calculations. A good use of this batch job is for a multi-level production order in which the parent and sub-assemblies are on the same production order and the Ending date is adjusted for the parent item. In this situation, the batch job enables you to adjust the dates for the lower level assemblies.

5-22


Chapter 5: Production Orders The following are the levels that can be used when replanning: •

No Levels

•

One Level

•

All Levels

FIGURE 5.10 THE THREE LEVELS OF REPLANNING.

No Levels - The No Levels option is used to calculate a multi-level or multi-line production order. In this case, all of the items and subassemblies must be Maketo-Order and new requirements are added to the existing production order as additional line items. One Level - The One Level option is used to create and plan production orders one level down. If the current production order is for an item that is Make-toOrder, but the first level subassemblies are Make-to-Stock, then the program creates new and separate production orders for that level. All Levels - This option is used to create separate production orders for all level requirements of the current production order. By using the order tracking functionality, you can easily view which parent production order is the source of demand for a lower-level production order(s). Furthermore, when lower-level production orders are created, the planning lot number is copied from the parent production order heading to the lower-level production order headings. This is another link or connection between production orders. To illustrate, calculate the production requirements for the first level down. Item 1000 is set up as Make-to-Order, while lower-level subassemblies are set up as Make-to-Stock. This demonstration shows you how to replan a production order. Note that you must refresh the production order to update the changes in the production order header. 1. In the navigation pane,click the Firm Planned Production Orders button. 2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 2,000.


5-23

Manufacturing I in Microsoft Dynamics® NAV 2009 5. Enter a date so that you will not get an error message. For example, 01/01/2011. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Click Replan. 9. In the Plan field, select One Level. 10. Click OK. 11. View the Firm Planned Production Order window. Note that the aside from the production order for the bike, other components (for example, front wheel, chain assembly) will be produced as well to produce 2,000 bicycles.

Production Orders with Phantom BOMs Phantom BOMs are used to reduce the number of levels in the product structure, which significantly reduces the overall complexity of the manufacturing process. When a production order with a Phantom BOM assembly component is created and the Refresh Production Order batch job is run, Microsoft Dynamics NAV 2009 displays the phantom BOM components instead of the Phantom BOM assembly. For example, if a firm planned order is created for a bicycle with a Phantom BOM pedal assembly that is made up of a pedal and a pedal screw, once the Refresh Production Order batch job is run, the pedal and pedal screw is displayed as Level 1 components of the bicycle. NOTE: Phantom BOMs are discussed in detail in the Production Bill of Materials chapter of this training manual.

Production Orders with Manufacturing Batch Unit of Measure If an item is stocked in one unit of measure, but produced in another, Microsoft Dynamics NAV 2009 can create a production order that uses a manufacturing batch unit of measure to calculate the correct quantity of the components during the Refresh Production Order batch job. Demonstration 5 This demonstration shows you how to calculate a manufacturing batch unit of measure: 1. In the navigation pane,click the Firm Planned Production Orders button. 2. Create a production order (Quantity = 5) for an Item stocked in pieces. For example, use item 1000 (Bicycle). 3. Create a Unit of Measure equal to 12 pieces and name it DOZ.

5-24


Chapter 5: Production Orders 4. Enter the production order line manually using the same Item number and quantity= 5. The Unit of Measure is set to DOZ. 5. Click Refresh from the Process action group. 6. In the Options FastTab, clear the Lines check box. 7. Click OK. 8. In the Lines FastTab, click the Actions icon (next to the expand/collapse button), then go to Line > Components. Based on the standard production BOM to build a dozen, the program calculates the correct quantity of the components.

FIGURE 5.11 COMPONENTS OF PRODUCTION ORDER SHOWING A QUANTITY OF 12 PCS.


5-25


Changing Production Order Status There are two methods to change the production order status. The first method is to change the status in the current production order by clicking Change Status in the Process action group.

FIGURE 5.12 CHANGING STATUS OF A PRODUCTION ORDER.

The window, shown in the figure, allows the user to select the desired status for this production order. Enter the appropriate Posting Date and select whether the unit costs of this production order are updated by placing a check mark in the Update Unit Cost field. The second method is to utilize the Change Production Order Status batch job. Multiple orders can be changed simultaneously using this batch job. Use the following steps to run this batch job: 1. In the navigation pane,click the Departments button. 2. Go to Manufacturing > Execution>Tasks>Change Production Order Status. 3. Select the Status of the production orders to define a filter on the lines of the form to view in the Status filter field. For example, in the Status Filter field, select Firm Planned. 4. To define the filter on the lines, enter dates in the Must Start Before and Ends Before fields. 5. Select the production orders you want to update by highlighting each order or pressing Ctrl and clicking on each order line to select several production orders. 6. Go to Actions > Functions > Change Status. 7. Type the appropriate Posting Date.

5-26


Chapter 5: Production Orders 8. Place a check mark in the Update Unit Cost field if you want the unit cost of this production order updated. 9. Select the Yes button.

FIGURE 5.13 CHANGE PRODUCTION ORDER STATUS WINDOW.

Summary Production orders (simulated, planned, firm planned, and released) are ways in which a production planner can plan and executive manufacturing requirements for a product within a certain period. Furthermore, other factors such as capacity and availability of items and resources are critical to ensure that the production schedule is followed.


5-27


Lab 5.1 - Production Orders Scenario

Create Firm Planned Order •

Create a firm planned production order for five pieces of item 1001, Touring Bicycle, due 01/23/2010.

•

Refresh the production order-backward schedule and calculate lines, routings and component need, noting the changed starting and ending dates.

Step by Step Answer 1. First, change your work date to January 1, 2010. 2. In the navigation pane,click the Firm Planned Production Orders button. 3. Click New. 4. In the Source No. field, type 1001. 5. In the quantity field, type 5. 6. In the Due Date field, type 01/23/2010. 7. On the Schedule FastTab, note the starting and ending dates and times. 8. Click Refresh in the Process action group. 9. Accept all default information and click OK. 10. On the Schedule FastTab, note that the starting and ending dates and times have changed.

Change Dates 1. On the General FastTab, change the Due date of the production order header to 11/20/2010 and click Refresh. Do the starting and ending dates change? Note that when you change the ending date in the Schedule FastTab, the due date is changed as well. 2. On the Schedule FastTab of the production order, change the ending date to 12/20/2010. What happens to the routing for the order? To view the routing for an order select the item (in this case, 1001), from the Lines FastTab, click the Actions icon (next to the expand/collapse button), then go to Line > Routing.

5-28


Chapter 5: Production Orders Step by Step Answer 1. In the navigation pane,click the Firm Planned Production Orders button. 2. Open the production order created in Lab 5.1. 3. Put your cursor in the header or on the production order line. 4. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing. 5. Note the start and end times. 6. Press Esc to go back to the production order. 7. On the Schedule FastTab, note the start and end times. 8. Go to the General FastTab and change the due date to 01/20/2010. 9. Click Refresh and click OK. 10. Go to Schedule FastTab and note the changed start and end times. 11. Put your cursor in the header or on the production order line. 12. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing. Note that the start and end times have changed due to the change of date. 13. Press Esc to go back to the production order. 14. Look at the Schedule FastTab. 15. Change the End Date to 02/23/2010. 16. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing. Note that the start and end times have changed due to change of date. 17. Escape back to the production order. 18. Put your cursor in the header or on the production order line. 19. From the Lines FastTab, click the Actions icon (next to the expand/collapse button), then go to Line > Components. 20. Put the cursor on the row with item number 1850 (Saddle). 21. Right-click and delete the row. 22. Select Yes to delete the row. 23. Put your cursor on a blank row. 24. Re-enter the same item in the Item No. field, by selecting 1850. 25. In the Quantity Per field, enter 1. 26. Click OK.


5-29



2.

3.

5-30


Chapter 6: Production Order Processing

CHAPTER 6: PRODUCTION ORDER PROCESSING Objectives The objectives are: •

Issue components using the Consumption Journal.

•

Pick and Put Away items used in manufacturing in Warehouse.

•

Record production order output using the Output Journal.

•

Register consumption and output from a Production Journal.

Introduction This chapter examines the production order processing from execution to put away in the warehouse. The first part explains material consumption. This can be done either manually or automatically. The automatic methods are forward and backward flushing. Next, the chapter displays the pick and put away features used in the warehouse. Finally, the section covers the use of the Output Journal to track the hours worked and the materials used in production. There are also three methods for recording output.


6-1


Production Order Execution Once a Production Order has been created and scheduled, it has to be released to the shop floor. During execution of the order, the following data about the progress is recorded: •

Materials picked or consumed

•

How much time was spent working on the order

•

Quantity of the parent item produced

This information can be recorded manually or through automatic reporting. As explained in the Production Orders Chapter, the following can be converted to Released Production Orders: •

Simulated Orders

•

Planned Orders

•

Firm Planned Production Orders

If you need to change the status of an individual Production Order, perform the following: 1. Click Change status in the Process action group while in a Production Order. 2. Select a new status (Firm Planned, Released or Finished). 3. Change the posting date if necessary. 4. Click Yes.

Overview of Production Activities The term "flushing" should be understood as: •

A principle for reporting materials used

•

A production order quantity completed

•

Time reported

The following table summarizes the reporting methods.

6-2

Manual

Automatic

Material Consumed

X

X

Quantity Completed

X

X

Time Reported

X

X

Automatic methods

Forward

Backward

Material Consumed

Expected Quantity

Actual Quantity


Chapter 6: Production Order Processing Manual

Automatic

Entire Order

When production order is released

When production order is Finished

Routing Link Codes

After start of operation step

When quantity of assembly is recorded in output journal

Quantity Completed / Time Reported

Expected Quantity

Expected Quantity

Entire Order


When production order is finished

Material Consumption Microsoft Dynamics® NAV 2009 offers a variety of options on how a manufacturing company might want to record material consumption. For example, material consumption may be recorded manually, which might be desired if there are frequent component substitutions or greater than expected scrap that needs to be reported. The physical picking of material can be based on one of several reports, such as: •

Prod. Order - Mat. Requisition Report

•

Prod. Order - Job Card Report

With the Warehouse functionality, special pick documents are used. If using routing link codes, the Prod. Order - Job Card Report provides the advantage of indicating which components to pick according to the operation to which they are linked. Consumption of materials may be processed manually through the Consumption Journal, but can also be recorded automatically by the program. This is referred to as automatic reporting. NOTE: Users can define automatic reporting for each item with the Flushing Method field on the Manufacturing tab of the Item card. This is done during the manufacturing setup. The reporting methods are: •

Forward

•

Backward

•

Manual

The three different methods are explained in the following sections.


6-3

Manufacturing I in Microsoft Dynamics® NAV 2009 Forward Flushing The Forward method assumes the expected quantity of all materials for the entire order is automatically consumed at the release of a production order, unless using routing link codes. When using routing link codes, the material is consumed after the start of the operational step is recorded in the Output Journal.

Demonstration 1 In this demonstration, you create a production order and forward flush the entire production order. 1. In the navigation pane, click the Firm Planned Production Orders button. 2. Click New. 3. In the Description field, type Bicycle. 4. In the Source No. field, select 1000 (Bicycle). 5. In Quantity field, type 13. 6. In the Lines FastTab, select item number 1000 (Bicycle). 7. In the Due Date field, enter 01/01/2010. 8. Click Refresh and OK. 9. To forward flush the order, from the Lines FastTab, click the Actions icon (lightning bolt symbol) Line>Components. 10. From the Flushing Method column, change Manual to Forward for all the components. 11. Click OK. 12. To remove all routing link codes on the production BOM, from the Lines FastTab, click the Actions icon (lightning bolt symbol) Line>Routing. 13. Select all the rows, right-click and select Delete. 14. Click Yes. 15. Ignore any warning messages and click OK.

Backward Flushing The Backward method is the actual quantity of all material automatically 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 entire production order requires the same setup as for forward flushing. The main difference is that you change the flushing method to Backward.

6-4


Chapter 6: Production Order Processing NOTE: All of the items in the demonstration data are set to manual flushing. Begin by recording consumption manually, and then look at automatic reporting in more detail. 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 users can change the flushing method for specific items directly on the Production Order. The advantage of automatic flushing is that it reduces data entry. (Most competitor systems auto-flush the materials only.) In fact, with Microsoft Dynamics NAV 2009's ability to automatically flush an operation, the entire consumption and output recording process can be automated. The disadvantage of using automatic flushing is that the user might not be accurately recording, or even be aware of scrap. NOTE: The chapter on Finishing Orders and Auto Flushing covers automatic reporting in greater detail.

Manual Consumption The Manual method uses the Consumption Journal to specify material picking.

Demonstration 2 This demonstration shows you how to post consumption manually by entering consumption for a Production Order: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Execution> Tasks>Consumption Journals. 3. Select the batch in question. For example, select item 1000 (Bicycle). 4. Click Calc. Consumption from the Process action group. 5. On the Prod. Order FastTab, look up the released production order to report consumption. 6. In the Options FastTab, enter a posting date in the Posting Date field. 7. In the Calculation Based on field, select Expected Output. Expected output means the consumption is calculated based on the planned output quantity. 8. Click OK confirm. NOTE: If the Quantity field is empty, enter a value that should represent the output.


6-5

Manufacturing I in Microsoft Dynamics® NAV 2009 9. Click Post in the process action group to post consumption. 10. The message "The journal lines were successfully posted" appears. 11. The Consumption journal should not be populated. Click OK. NOTE: If using the Bin functionality, the journal may be used as a precise physical pick list indicating the bin code of each component. The training material for Warehousing has more information on the topic. The Consumption Journal entries are posted to the item ledger as a negative adjustment. The entries are also posted to the released production order ledger.

View Ledger Entries from Consumption Posting The ledger entries can be viewed directly from the consumption posting.

Demonstration 3 Use the following steps to view the production order ledger entries just posted: 1. In the navigation pane, click the Released Prod. Orders button. 2. Select the production order that recorded the consumption. 3. Click Related Information >Prod. Order > Entries > Item ledger entries. 4. Highlight a Consumption entry and click the Navigate button. 5. From the Navigate window, note the results of the posting including value entries.

FIGURE 6.1 RESULTS OF THE POSTING.

6-6


Chapter 6: Production Order Processing Reversing Consumption Posting Occasionally, it is necessary to reverse consumption journal entries, for example when a customer cancels an order once production is underway.

Demonstration 4 This demonstration shows you how to reverse a Consumption Journal entry: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Execution> Tasks >Consumption Journals. 3. Select Production Order No. 1011004. If you cannot find the desired entry, select it under the Production Order No. column. 4. Enter the Posting Date of the entry to reverse in the Posting Date field. In this case, 11/14/2010. 5. Select the Production Order of the entry to reverse in the Prod. Order No. field. The Document No. is auto-populated with the Production Order No. 6. Select the item number of the entry to reverse in the Item No. field, which is 1000. 7. Type a negative quantity in the Quantity field, which is -10. 8. Click Post. 9. Go to the order's Item Ledger Entries to see the reversing entries for the item. To do this, (from the Role Center) click Released Production Orders and select production order 1011004. 10. Go to Related Information> Entries > Item Ledger Entries.

Picking from Warehouse The picking of components for production can be done in different ways depending on the extent of warehouse functionality available in the installation. NOTE: Features for putting away finished goods are organized similarly to picking and is illustrated in the Putting Away in Warehouse section of this chapter.

Warehouse Management Integration The following items are important warehouse functionality: •

Bin functionality

•

Pick and Put-Away

•

Warehouse Management Systems


6-7

Manufacturing I in Microsoft Dynamics® NAV 2009 Bin Functionality With a simple inventory solution that uses the Bin functionality as the only additional warehouse feature, picking is done on the basis of a Consumption Journal but with the possibility of specifying the exact position of each component with the Bin Code field.

Pick and Put-Away This functionality offers effective warehouse features in close integration with Released Production Orders, for example. They include the creation of specialized documents for warehouse staff serving the shop floor - either independently or administrated by a production manager.

Warehouse Management Systems This application area also includes some integrated features for manufacturing. The functionality is similar to that of the Pick and Put-away functionality. In addition, it offers the advanced tools needed to manage a large number of transactions across different warehouse activities. These tools include the use of designated pick and put-away bins for different processes and the ability to define individual bin policies. Warehouse Management Systems (WMS) is designed as a role-based system aimed mainly at large distribution customers. Refer to the Warehouse training material for more information on its manufacturing-related features.

Picking with Consumption Journal (Bin Functionality) Bins offer a simple warehouse tool, which allows the production manager to seek and then specify the required components from a specific bin. When used with special print options, the Consumption Journal can function as a precise pick list for the warehouse staff collecting the components.

Demonstration 5 This demonstration shows you how to pick with the consumption journal. 1. Create a new Released Production Order for item 1000 (Bicycle) and type a Quantity of 7 and a due date of 2/27/2010. 2. On the Posting FastTab, select a bin mandatory location in the Location Code field. For example. select Blue. 3. Run the Refresh Production Order batch job using defaults by clicking Refresh. 4. Click OK. 5. Add a Bin Code to the Production Order Lines view. If the Bin Code Column is not showing, bring it up by clicking the lightning bolt symbol and go to Choose Columns and add Bin Code to the list. 6. Select a Bin that is not empty (in other words, the Empty field is blank). For example, select A1. 6-8


Chapter 6: Production Order Processing 7. Click OK. 8. Now proceed to create a Consumption Journal which can be used as a physical pick list. 9. In the navigation pane, click the Departments button. 10. Go to Manufacturing > Execution> Tasks >Consumption Journals. 11. Click Calc. Consumption. 12. In the Options FastTab, set Posting Date to 2/27/2010. 13. In the Production Order FastTab, select the production order that you just created. 14. Click the OK button to populate the journal with components to be picked. 15. Click the Print button. 16. Define the print output by clicking the Options tab and select an activity type (for example, put-away, pick, movement) 17. When the components have been collected from the bin, consumption can be posted. 18. Insert the Bin Code for each component and click Post. (Note that since the demo data does not have the bin codes setup, this step will generate an error if tried). This last step is meant as information only.

Picking from Production Order (Pick Functionality) The same business process is performed using the integrated warehouse features of the Pick granule. The signal to the warehouse that an order requires warehouse handling is given in the form of warehouse requests. From the Manufacturing module in Microsoft Dynamics NAV 2009, a warehouse request is created to a location set up for warehouse handling when the following conditions are true: •

A Production Order changes status to Released.

•

A Released Production Order is refreshed.

Recording Production Output Microsoft Dynamics NAV 2009 provides users with the ability to track how much time is spent working on a Production Order, in addition to recording the quantity produced. This information can help a company to more accurately determine the costs of production. Also, manufacturers using a standard costing system may want to record actual information to help them develop better standards.


6-9

Manufacturing I in Microsoft Dynamics® NAV 2009 Output Journal As a Production Order is processed on the shop floor, the time and quantities produced may be recorded on one of a variety of production reports, such as the Prod. Order - Job Card Report or the Prod. Order - Routing List Report. This information is then entered using the Output Journal. A third-party shop floor data collection system may also be interfaced with Microsoft Dynamics NAV 2009 to reduce the amount of data entry.

FIGURE 6.2 OUTPUT JOURNAL FOR PRODUCTION ORDER 1011004.

As with material consumption, output can be recorded manually or automatically. Note that users can define individual flushing methods on the machine and work center cards. The program copies the flushing method from the Machine Center or Work Center card to the Production Order Routing when refreshing. As is the case with component consumption, there are three reporting methods for output: •

Forward

•

Backward

•

Manual

The Forward method is the expected output (and time), which is automatically recorded at the release of a Production Order. The Backward method is the expected output (and time), which is automatically recorded at the finish of a Production Order. The Manual method uses the Output Journal to specify time consumed and quantity produced. It is possible to use any combination of automatic flushing and manually recorded information for both consumption and output.

6-10


Chapter 6: Production Order Processing EXAMPLE: A user may want to automatically forward flush components, but still use the Consumption Journal to record scrap. Similarly, a user 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. When consumption and output is entered manually, determine the sequence to record this information: •

Record consumption first and use a shortcut method to enter the information, which is based on expected quantity of output.

•

Enter output first, using the Explode Routing function. Consumption would be recorded based on actual quantity of output.

NOTE: Scrap can be entered and posted from the Output Journal. Only the output quantity completed increases the inventory quantity. Scrap quantity does not increase inventory. In addition, you can record a Scrap Code for machine center operations in which scrap quantity is recorded. Scrap Codes enable users to define reason or cause codes to classify defects for analysis. Such codes are posted to the Machine Center Ledger.

Output Journal Posting Output Journal Posting When posting the Output Journal, the following Production Order fields are affected: •

Quantity

•

Finished Quantity

•

Remaining Quantity

The Quantity field is the Production Order quantity of the line to be produced. The Finished Quantity field is the quantity of the item put into inventory. The Remaining Quantity field is the quantity not yet put in the inventory. The remaining quantity is determined by Quantity less the Finished Quantity.

Demonstration 6 This demonstration shows you how to post the recorded time spent on the Production Orders: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Execution> Tasks>Output Journals. 3. Under the Prod. Order No., select a production order. For example, 1011003.


6-11

Manufacturing I in Microsoft Dynamics® NAV 2009 4. Add the Setup Time field to the view using the Show Column feature. 5. Type a posting date in the Posting Date field. For example, 1/28/2010. 6. Click Explode Routing. 7. Type the setup time and run time in the Setup Time and Run Time fields of 10 and 15 minutes respectively. 8. Edit the output quantity if necessary in the Output Quantity field. 9. Do NOT select the operation as Finished. 10. Click Post. 11. Click Yes and OK. Note : If the production order has already been posted, then the system message "Nothing to explode" appears.

FIGURE 6.3 OUTPUT JOURNAL FOR PRODUCTION ORDER 1011004 WITH RECORDED SETUP AND RUN TIMES.

NOTE: Checking the Finished field performs two functions upon posting: 1) The routing status is changed to Finished. 2) The operation is removed from the Allocated Quantity field in the Work Center Load or Machine Center load window.

Demonstration 7 This demonstration shows you how to view the Production Order Ledger entries just posted: 1. In the navigation pane, click the Released Production Orders button. 2. Select the Production Order that recorded output (1011003). 3. Go to Related Information > Prod. Order > Entries > Item ledger entries.

6-12


Chapter 6: Production Order Processing 4. Highlight a Consumption entry and click the Navigate button. 5. Check the ledger entries for the production order.

FIGURE 6.4 ITEM LEDGER ENTRY SHOWING OUTPUT FOR PRODUCTION ORDER 1011003.

When an output quantity is posted for the final operation on the routing, a positive Item Ledger Entry is created. This entry increases the on-hand inventory for the parent item equal to the output quantity reported. In addition, some entries are posted to General Ledger.

Reversing Output Posting There are also times when output posting must be reversed. An example of this would be if a data entry error occurred and an incorrect amount of output is posted to a production order.

Demonstration 8 This demonstration shows you how to manually reverse an output posting: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Execution> Tasks>Output Journals. 3. Enter the Posting Date, Prod. Order No., Item No., and Operation No. fields in the Output Journal. 4. Enter a negative value in the Run Time field and Output Quantity field. 5. Fill in the Applies-To Entry field. This reverses the capacity and the item ledger entries. (Click the down arrow in this field to view the item ledger entries and use the entry number to fill in this field).


6-13

Manufacturing I in Microsoft Dynamics® NAV 2009 Posting Output on a Daily Basis from Time Cards It is easy to use the Explode Routing function to enter actual time worked on a Production Order if all of the information is recorded on a Production Order Job Card or other production documents. In many manufacturing companies, however, employees record the time spent on production orders on individual time cards. While this information is recorded for payroll purposes, it can also be used to record manufacturing progress. If a company chooses to record time spent on Production Orders from individual time cards, then a user might want to rearrange the Output Journal fields. Also, the user would not be able to use the Explode Routing function, which means that each line must be entered manually.

Production Order Progress Another way to check the status of Production Orders is to find out if work on an order has been performed at a particular work or machine center. Output Ledger Entries post to the work or machine center, in addition to posting to the production order. NOTE: As a review, the status of a Production Order (how much has been completed, have materials been picked, and so on) can be viewed by accessing the production order header and reviewing the ledger entries. Users can also see that actual work has been performed on the order by reviewing the Production Order Statistics.

Demonstration 9 This demonstration shows you how to view the ledger entries for Work Center 100. 1. In the navigation pane, click the Capacities button. 2. Select Work Center 100.

6-14


Chapter 6: Production Order Processing 3. Click Related Information > Work Ctr. > Capacity Ledger Entries.

FIGURE 6.5 CAPACITY LEDGER ENTRIES FOR WORK CENTER 100.

Users can set a Document Number filter to search for a particular order because the Document Number is the same as the Production Order Number. This parameter is defined in the Manufacturing Setup window.

Putting Away in Warehouse Putting away finished items from production can be done in different ways depending on the extent of warehouse functionality available in the installation. Accordingly, the put-away process can be initiated and controlled by the production manager with different levels of warehouse involvement. NOTE: Features for putting away an Item are organized similar to picking a component from a warehouse.

Put-Away Processing This section goes through the different methods for putting away, supported by different functionality parts in Microsoft Dynamics NAV 2009.

Putting Away with Output Journal (Bin functionality) As illustrated for picking, the Bin functionality provides the ability to specify a put-away bin on the Output Journal. If the location on the Output Journal line uses bins but does not require put-away processing, enter the Bin Code on the line to indicate where the item should be put away in the warehouse. Use the Print button to print a report to aid in putting the items away.


6-15

Manufacturing I in Microsoft Dynamics® NAV 2009 Putting Away from Production Order (Put-Away functionality) With the picking feature, an outbound warehouse request was created automatically when refreshing a Released Production Order. This is not the case with inbound flow from production. To utilize the put-away features, the Production Manager must first create an inbound warehouse request to enable a put-away process for the particular released order. The inbound warehouse request can be created in two ways: •

By selecting the Create Inbound Request field on the Options FastTab of the Refresh Production Order batch job. This must be done before consumption is posted as refreshing is impossible when entries exist.

To access this functionality, open a production order and click Refresh. Select the box beside Create Inbound Request. •

By running the Create Inbound Whse. Request function, from the production order. To do this, go to Actions > Functions > Create Inbound Whse. Request.

Once the request is created, the released order can be called as a source document number from the header of an Inventory Put-Away form.

Production Journal The Production Journal combines the functions of the Consumption Journal and Output Journals into one journal, which is accessed directly from a Released Production Order form. The purpose of the Production Journal is to provide a single interface for a production manager to register consumption and output from a Production Order. Access the Production Journal using this path: 1. In the navigation pane, click the Released Production Orders button. 2. Open a released production order. 3. From the Lines FastTab, click the Actions icon (lightning bolt symbol) Line> Production Journal. The Production Journal provides the Production Manager with the ability to:

6-16

•

Easily record output and consumptions related to a Production Order

•

Relate the components to operations


Chapter 6: Production Order Processing •

Relate actual operation data with the standard estimates on the Production Order routing line and components

•

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 at the top of 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 a user happens to exit the journal without posting the changes, a request message is displayed allowing the user to stay in the journal.

•

It displays operations and components together in a logical structure that provides overview of the production process

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. NOTE: Because consumption data is handled together with output data, this journal offers an opportunity to display linked components and operations in a logical process structure: Components are indented under their respective operation. This requires that you use routing link codes. Components without routing link codes are listed first in the journal.

Production Journal Window When the journal is opened, it is preset with the quantities to be posted. If nothing is posted, all quantity fields show by default the expected quantities carried from the Production Order. If partial postings have been made, the quantity fields on the lines show the remaining quantities.


6-17

Manufacturing I in Microsoft Dynamics® NAV 2009 The Production Journal window displays the following fields:

FIGURE 6.6 PRODUCTION JOURNAL FOR PRODUCTION ORDER 101001.

In the Production Journal, filter the information on: •

Posting Date

•

Flushing Method Filter

When working with the Posting Date, the work date is entered by default. The field is meant as a quick way to align posting dates on all lines. The Posting Date entered on individual lines override this field. When working with the Flushing Method Filter, select to view Consumption or Output that is posted automatically (flushed) according to the flushing methods defined for the item and resource.

Production Journal Lines The following lines are the defaults in the production journal lines view:

6-18

•

Entry Type

•

Item No.

•

Operation No.

•

Type

•

No.

•

Description


Chapter 6: Production Order Processing •

Consumption Quantity

•

Setup Time

•

Run Time

•

Output Quantity

•

Scrap Quantity

•

Finished

Entry Type - Either Consumption or Output. Consumed items can be linked to an operation. Some of the consumed items can be at an overall Production Order level. These items must be available before the first operation starts. Output registration can be for both output quantity of items and labor or machine time used. Item No. - The item number on the journal line. Operation No. - The number of the operation on the journal line. Type - Journal type of either Work Center or Machine Center. No. The number of either a Work Center or Machine Center. Description - Shows a description of the item on the journal line. Consumption Quantity - The quantity of the component item that is consumed. Setup Time - The setup time of an operation that is being registered. Run Time - The runtime of an operation that is being registered. Output Quantity - The user can set up which values to preset when the journal is first opened. This is done from Manufacturing setup > General > Preset output quantity field. Scrap Quantity - The number of units of the item that were produced incorrectly and therefore cannot be used. Even if the Item Number is later changed, this figure remains on the line. Finished - Select this field to indicate that the operation represented by the Output Journal line is finished. This updates the Routing Status field on the related Released Production Order Routing to Finished.

Actual Field Group The information shown in the Actual field group at the bottom of the window is based on the Entry type of the selected line: •

Consump. Qty.

•

Setup Time


6-19

Manufacturing I in Microsoft Dynamics® NAV 2009 •

Run Time

•

Output Qty.

•

Scrap Qty.

Consump. Qty. - Displays posted consumption quantity of selected journal line. Setup Time - Displays posted setup time quantity of selected journal line. Run Time - Displays posted runtime quantity of selected journal line. Output Qty. - Displays posted output quantity of selected journal line. Scrap Qty. - Displays posted scrap quantity of selected journal line.

Registering Consumption and Output Demonstration 10 The following demonstration shows you how to register consumption and output in the Production Journal: 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. Select an item to produce and quantity. 4. Click Refresh and OK. 5. From the Lines FastTab, click the Actions icon (lightning bolt symbol) Line> Production Journal. The Production Journal window opens showing journal lines for the production order line according to the Prod. Order Component and Prod. Order Routing windows. (These originate from the production BOM and routing assigned to the item that is being produced.) 6. Enter the posting date in the Posting Date field at the top of the journal. This date should apply to all lines. The work date is entered by default. The field provides a quick way to align posting dates on all lines - if relevant. The Posting Date entered on individual lines override this field. 7. Enter the Quantity Output value and the other relevant quantities and values in the editable fields of the production journal lines (Consumption and/or Output). 8. Select the box under the Finished column to indicate that the operation is finished. This field communicates with the Routing Status field on a Production Order Routing line. 9. Click Post and Yes.

6-20


Chapter 6: Production Order Processing If values remain to be posted, the journal contains these remaining values next time it is opened and the posted values are shown as actual values in the bottom of the journal. If an Item being consumed is blocked, the journal does not post consumption quantities for that item. If a Machine or Work Center is blocked, the journal does not post output quantities or process times for the output line in question. NOTE: Be aware that only the Output Quantity on the last journal line of Entry Type Output adjusts the inventory level when posting the journal. Be careful not to post the journal, with the expected Output Quantity preset on the last output line, until all end items are actually produced.

NOTE: If closing the journal without posting, the changes are lost. Therefore, the system displays a request message allowing you to stay in the journal if you close it by mistake.

Summary This chapter discusses the ways in which your production process can be managed. In many cases, adjustments (for example with regards to time and consumption of quantity) have to be made to fully reflect the actual production cycle. Flushing, posting, pick, and put-aways are some of the available options.


6-21


Lab 6.1 - Production Order Processing Scenario

Add Items to Location Using the Item Journal, add 30 pieces of the following items to blank location. Item

Description

1100

Front Wheel

1200

Back Wheel

1850

Saddle

Step by Step Answer 1. In the navigation pane, click the Departments button. 2. Go to Purchase > Inventory & costing > Tasks >Item Journals. 3. In the Posting Date column, type a posting date. For example, 1/28/2010. 4. Choose entry type of Positive Adjmt. 5. Accept the default document number. 6. Type 1100 in the Item No. field. 7. Type 30 in the Quantity field. 8. Go to the next line and repeat steps 3 through 5. 9. Type 1200 in the Item No. field. 10. Type 30 in the Quantity field. 11. Go to the next line and repeat steps 3 through 5. 12. Type 1850 in the Item No. field. 13. Type 30 in the Quantity field. 14. Click Post.

Post Consumption 1. Create Consumption Journal entries for the Released Production Order of item 1001 - Touring Bicycle. 2. Use a Posting Date of 01/28/2010 and calculate based on expected output. 3. Post consumption and review the entries.

6-22


Chapter 6: Production Order Processing Step by Step Answer 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

In the navigation pane, click Released Production Orders. Click New. In the Description field, type Bicycle. In the Source No. field, select 1000 (Bicycle). In Quantity field, type 12. In the Due Date field, enter 01/28/2010. Click Refresh and click OK. Remember the created production order number. Click OK. In the navigation pane, click the Departments button. Go to Manufacturing > Execution> Tasks >Consumption Journals. In the Posting Date column, enter 01/28/2010. In the Production Order No. column, select the production order you just created. In the Item No. column, enter 1000. In the Quantity column, enter 12. Click Post and select Yes. Press the Esc button. In the navigation pane, click the Released Production Orders button. Double-click your production order. Go to Related Information > Order > Entries > Item Ledger Entries. Review the data and click Close.


6-23



2.

3.

6-24


Chapter 7: Finishing Orders and Auto Reporting

CHAPTER 7: FINISHING ORDERS AND AUTO REPORTING Objectives The objectives are: •

Finish Production Orders

•

Conduct Automatic Reporting

•

Be able to record finished production.

Introduction This chapter examines the finishing of production orders in Microsoft Dynamics® NAV 2009. This is the last step in the production execution process. After the production order is finished, the flushing of materials is done either automatically or manually. The chapter goes into details with the different flushing methods: forward and backward flushing, and their advantages and disadvantages. Finally, the production posting is done either manually or automatically.


7-1


Finishing Production Orders Released production orders are Finished when the Change Production Order Status function has been performed, either directly from the production order (by clicking the Change status button on a production) or as a batch (Departments>Manufacturing > Execution > Tasks> Change Production Order Status). Finished production orders allow users to view the detailed history of production orders, including their routings and components. This is a valuable feature if users are operating in a make-to-order (MTO) environment where they change the routings and components as they work. When customers call later to reorder, it is easy to view what they previously ordered. NOTE: When a production order is finished, users are not able to post to it anymore. In an MTO environment, a finished production order may be used as a template for creating new production orders. This is done with the Copy Prod. Order Document function.

Demonstration 1 The following demonstration shows the process of copying an existing finished production order into a new planned production order. 1. In the navigation pane, click the Planned Production Orders button. 2. Click New. 3. Click the Description field. 4. Click Copy Prod. Order Document from the Process action group. 5. In the Status field, select Planned. 6. In the Document No., field select 109001. 7. Place a check mark in the Include Header field to copy the existing header information to the new production order record. 8. Click OK.

Demonstration 2 This demonstration shows how to finish a production order. A production order is finished by changing the status on the order: 1. In the navigation pane, click the Released Production Orders button. 2. Select a released production order.

7-2


Chapter 7: Finishing Orders and Auto Reporting 3. Click Change Status from the Process actions group. 4. Select Finished and enter a posting date.

FIGURE 7.1 CHANGE STATUS OF PRODUCTION ORDER WINDOW.

5. Click Yes to confirm. 6. Note the Finished Production Order number in the displayed message. All old production order ledger entries can be viewed using finished production orders. Accordingly, the released production order ledger entries are moved to the finished production order ledger. 1. In the navigation pane, click the Finished Production Orders button. 2. Select a finished production order. 3. Click Related Information > Prod. Order > Entries > Capacity Ledger Entries.


7-3

Manufacturing I in Microsoft Dynamics® NAV 2009 Among others, information pertaining to quantity, work and machines centers are shown. To view the costs of a production order, look at the production order statistics window. 1. Select a finished production order. 2. Click the Statistics from the Process actions group.

FIGURE 7.2 PRODUCTION ORDER STATISTICS FOR PRODUCTION ORDER NO. 1011001.

Automatic Consumption Posting (Flushing) Users can set up a flushing method for each item. Think of the term "flushing" as a method for reporting the following: •

Materials used

•

Production order quantity completed

•

Time reported

The following table summarizes the reporting methods and gives an overview of what to report and how to report it.

7-4

Manual

Automatic

Material Consumed

X

X

Quantity Completed

X

X

Time Reported

X

X

Automatic methods include:

Forward

Backward

Material Consumed

Expected Quantity

Actual Quantity

Entire Order


When production order is Finished


Chapter 7: Finishing Orders and Auto Reporting Manual

Automatic

Routing Link Codes (RLC)

After start of operation step

When quantity of assembly is recorded in output journal

Quantity Completed / Time Reported

Expected Quantity

Expected Quantity

Entire Order


When production order is finished

Advantages of Automatic Reporting The following are the advantages of Automatic Reporting: •

Reduces the number of required manual activities.

•

Calculates how many parent parts were actually produced through the back flushing method.

•

Provides a flexible solution. In certain kinds of production, parent parts production is not known until the Released Production Order (RPO) is completed.

Disadvantages of Automatic Reporting The following are disadvantages of Automatic Reporting: •

If you scrap components along the way, procedures might not be in place to report that usage.

•

Back flushing creates a temporary inventory record mismatch; that is, an overstated warehouse inventory and understated WIP inventory.

Automatic Reporting - Forward Flush the Entire Order When forward flushing the production order at the start of the job, note the following: •

Production BOM content

•

Consumption Quantity

•

Consumption Recording

•

Inventory Consumption

•

Routing Links

The behavior of the program is 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.


7-5

Manufacturing I in Microsoft Dynamics® NAV 2009 The consumption quantity is the quantity on each assembly stated on the production BOM, multiplied by the number of parent items built. 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.

Demonstration 3 The following demonstration shows the steps to follow to forward flush the entire order. First, select and modify the production BOM that you work with: 1. In the navigation pane, click the Production BOMs button. 2. Select a production BOM card. For example, 1000 (Bicycle). 3. Check that the Routing Link Codes column contain no entries. If a Routing Link Code is specified for any of the lines, then do the following: o Change the status to Under Development. o Delete the Routing Link Codes. o Change the status back to Certified. o Record the item numbers for the contents of the BOM. Next, the item cards for the production BOM contents must be modified: 1. In the navigation pane, click the Items button. 2. Open the item card for the first item number on your list. For example, 1100 (front wheel). 3. On the Replenishment FastTab, select Forward in the Flushing Method field. 4. Click OK. 5. Repeat steps 2-4 for all of the items on your list. Finally, create a firm planned production order. When changing the status to Released, the system automatically consumes all of the items: 8. In the navigation pane, click the Firm Planned Production Orders button. 9. Enter a new production order using the following information: Source Type: Item Source No.: 1000 (Bicycle) Quantity: 5 Due Date: 02/28/2010

7-6


Chapter 7: Finishing Orders and Auto Reporting 10. 11. 12. 13. 14. 15. 16. 17.

Click Refresh. Click OK to refresh the Production Order. Change the due date to 02/23/08. Click Change Status. Click Yes to change the status to Released. Write down the released production order number. Click OK. In the navigation pane, click the Released Production Orders button. 18. Open the released production order that you created. 19. Go to Related Information > Entries > Item Ledger Entries. 20. Click Close.

Note that all of the components that were set up with Forward in the Flushing Method field have been consumed. Forward flushing an entire order is suited in production environments with: •

A low number of defects

•

A low number of operations

•

High component consumption in early operations

Automatic Reporting - Forward Flushing by Operation Flushing by operation allows users 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 be that a setup time is entered. The amount of the flush is for the quantity for each 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 JIT setup may not even have the items on hand when the released production order is begun. Material can be consumed during operations by using routing link codes. Some components may not be used until final assembly operations and must not be withdrawn from stock until that time. In order to forward flush by operation, make sure to set up at least three routing link codes in the program.


7-7

Manufacturing I in Microsoft Dynamics® NAV 2009 To view and create routing link codes, go to: Departments > Manufacturing > Capacities > Setup > Routing Links.

Demonstration 4 The following demonstration establishes a released production order (RPO). First, add routing link codes to the production BOM. NOTE: If you select item 1200 (back wheel) for this demo, check that all the items are set to forward flushing. The components for the back wheel are: Rim, Spokes, Tire, Tube and Back Hub. 1. In the navigation pane, click the Production BOMs button. 2. Select a production BOM card with at least three components. For example, item 1200 (Back Wheel). 3. Change the status to Under Development. 4. In the Routing Link Code field for each line, use the lookup arrow to select an operation for that line. For the following exercises to work, you need to assign at least three different operation codes. 5. Select these routing links codes for these items: Item

Routing Link Code

Rim

100

Spokes

200

Back Hub

300

Tire

100

Tube

100

6. Click OK. 7. In the navigation pane, click the Routings button and find the routing card for the production BOM item 1200, Back Wheel. 8. Change the status to Under Development. 9. In the Routing Link Code field, assign a different routing link code (100, 200 or 300) for every work center and machine center. For example:

7-8

No. & Description

Routing Link Code

100 (Rim Assembly)

100

410 (Drilling)

200

420 (Deburr)

100

440 (Machine Inspection)

300


Chapter 7: Finishing Orders and Auto Reporting No. & Description

Routing Link Code

110 (Wheel Assembly)

100

10. 11. 12. 13. 14.

Change the status to Certified. Click OK. Go back to the Production BOM card (Back Wheel). Change the status to Certified. Click OK.

Continue by creating a new production order for the production BOM item number just set up. 1. Create a released production order with these data: Source Type: Item Source No.: The item number for the production BOM, item 1200 (Back Wheel). Quantity: 5 Due Date: 02/20/2010 2. Click Refresh. 3. Click OK to refresh the Production Order. 4. View the production order ledger entries for the released production order. Go to Related Information > Order > Entries > Item Ledger Entries. Note that there are no consumption entries. 5. Close the item ledger entries window and click OK. In this demonstration, record just a small amount of time for this order. Record the setup time for operation 10, Rim Assembly. 6. In the navigation pane, Click the Departments button. 7. Go to Manufacturing > Execution> Tasks > Output Journals. Enter 02/09/2010 as the posting date on the first line of the output journal. 8. Select the released production order (Back Wheel) that you just created. 9. Select Explode Routing.


7-9

Manufacturing I in Microsoft Dynamics® NAV 2009 10. Delete all lines except Rim Assembly. 11. Enter the following values: Setup Time

30 minutes

Output Quantity

0 pieces

If the Setup time column, is not visible, use the Choose columns functionality. 12. Click Post to post the output. You can also print a test report and/or use the Post and Print option. 13. Click Yes to post the journal lines. 14. Press Esc and return to the Released Production Order. 15. From the released production order, go to Related Information > Order > Order >Entries > Capacity Ledger Entries. Notice that the setup time of 30 minutes has been applied to the Released Production Order. If the Setup time column, is not visible, use the Choose columns functionality. 16. Close the window. 17. Go to Related Information > Order > Order >Entries > Item Ledger Entries. The components of the production BOM that were assigned to this Operation Code have been consumed and applied to the order. This illustrates the principle of automatic reporting - forward flushing by operation. Only components that are processed in the operation that you assigned time to are consumed. The above demonstration did not apply any run time to the released production order. In forward flushing by operation, any activity applied to the operation causes consumption posting to occur.

Demonstration 5 In the following demonstration, apply some process times to the operations: 1. In the navigation pane, Click the Departments button. 2. Go to Manufacturing > Execution> Tasks > Output Journals. 3. Enter 02/09/2010 as the posting date on the first line of the output journal. 4. Again, select the released production order that you created. 5. Click Explode Routing. 6. Delete all but the first two lines.

7-10


Chapter 7: Finishing Orders and Auto Reporting 7. Enter the following information: Set up time for operation 10: 25 minutes Run time for operation 10: 180 minutes Output quantity: 3 pcs Set up time for operation 20: 30 minutes Run time for operation 20: 400 minutes Output quantity: 3 pcs 8. Click Post. 9. When posting is complete, press Esc and return to the Released Production Order to review the ledger entries. 10. From the released production order, go to Related Information > Order > Order >Entries > Capacity Ledger Entries. 11. Click Close. 12. Close the production order. This window shows the progress to date after the application of the run time for operation 10 and the setup and run time for operation 20. NOTE: Note the quantity of the item ledger entries. Forward flushing uses the expected quantity. Now complete the output journal for the rest of the Released Production Order. 1. In the navigation pane, Click the Departments button. 2. Go to Manufacturing > Execution> Tasks > Output Journals. 3. Enter 02/09/02010 as the post date on the first line of the output journal. 4. Select your released production order. 5. Click Explode Routing. 6. Delete all except operation 30 in the output journal. 7. Enter the following information for production order for an item number: Setup time for operation 30: 30 minutes Run time for operation 30: 360 minutes Output Quantity: 3 pcs 8. Post and return to the order to review the results.


7-11

Manufacturing I in Microsoft Dynamics® NAV 2009 NOTE: Forward flushing is based on expected quantities for the parent item. Even if the quantity completed for the production order item is less than the total of the production order quantity, the entire quantity of the component is consumed. This completes the illustration of these two types of forward flushing: •

Flushing the job as a whole

•

Flushing by operation

Automatic Reporting - Back Flushing by Operation Back flushing by operation records consumption after the operation is posted in the output journal. This gives the advantage of knowing just how many parent parts were finished in that operation. Connect the material in the production BOM 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 for each assembly stated on the production BOM, multiplied by the number of parent items that were posted as output quantity at that operation. This may be different from the expected quantity.

Demonstration 6 This demonstration shows the steps to follow to back flush by operation. To accomplish this, first change all of the item cards that were earlier set to the flushing method Forward to the flushing method Backward. 1. Find the Item cards that you modified earlier in this chapter and change the flushing method to backward on the Replenishment FastTab. If you selected the back wheel, the items you need to change to backward flushing are: Rim, Spokes, Tire, Tube and Back Hub. 2. Create a new released production order for the production BOM that you selected in the first exercise with these data: Source Type: Item Source No.: The item number for the production BOM, item 1200 (Back wheel). Quantity: 5 Due Date: 02/15/2010

7-12


Chapter 7: Finishing Orders and Auto Reporting 3. 4. 5. 6. 7.

8. 9. 10. 11.

Click Refresh. Click OK to refresh the Production Order. Click OK. In the navigation pane, Click the Departments button. Go to Manufacturing > Execution> Tasks > Output Journals. Enter 02/21/2010 as the posting date on the first line of the output journal. Select the production order that you just created. Click Explode Routing. Delete all of the lines except for operation 30. Enter the following information: Setup time for operation 30: 30 minutes Run time for operation 30: 240 minutes Output Quantity: 4 pcs

12. Click Post and post the journal line. 13. Press Esc to close the output journal and return to the Released Production Order. 14. View the capacity and item ledger entries. 15. Close the production order. NOTE: Back flushing by operation consumes items linked to that operation by the actual output quantity reported in the output journal.

Automatic Reporting - Back Flushing the Entire Order 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.


7-13

Manufacturing I in Microsoft Dynamics® NAV 2009 Demonstration 7 This demonstration shows the back flushing of the entire order: 1. Open the production BOM for your selected item. For example, 1200 (Back Wheel). 2. Change the status to Under Development, remove all of the routing link codes, and change the status back to Certified. 3. Click OK. 4. Create a new released production order for a quantity of five for the selected Production BOM, due on 02/15/2010. 5. Click Refresh using the default options. 6. Click OK. 7. Close your production order. 8. In the navigation pane, Click the Departments button. 9. Go to Manufacturing > Execution> Tasks > Output Journals. Enter 02/15/2010 as the posting date on the first line of the output journal. 10. Select the latest production order for your selected item. 11. Click Explode Routing. 12. Enter the following process times (keep default output). Operation

Setup Time

Run time

Operation 10

30 minutes

300 minutes

Operation 20

30 minutes

600 minutes

Operation 30

30 minutes

600 minutes

If there are more than these operations, choose a setup time and run time. 13. 14. 15. 16. 17. 18. 19. 20.

Click Post and post the journal lines. Click OK. Open your production order. Click Change Status. Select status Finished and a posting date of 02/15/2010. Click Yes. Close the released production order window. In the navigation pane, click the Finished Production Orders button. 21. Open your finished production order. 22. Go to Related Information > Order > Entries > Item Ledger Entries.

7-14


Chapter 7: Finishing Orders and Auto Reporting Observe that all of the material consumption entries are now displayed. 23. Before proceeding, change all of the item cards that have been set to flushing method "Backward" back to flushing method "Manual". If you selected the back wheel, the items you need to change to manual flushing are: Rim, Spokes, Tire, Tube and Back Hub.

Automatic Production Posting As with material consumption, users can set the program up to automatically record finished production. To illustrate this, set up a machine or work center used on a routing operation that has been set to be automatically flushed. More information and set up details can be found in the "Basic Capacities and Routings" chapter in this manual that discusses machine and work centers. As with materials, there are two methods of automatic reporting: •

Forward

•

Backward

When you select the forward option, operation time and output quantity are automatically recorded at the release of a production order. Routing link codes are not a factor in the forward flushing of the output. When you use the backward method, operation time and output quantity are automatically recorded when the status of a production order is changed to finished. Routing link codes are not a factor in the back flushing of the output. Establishing Automatic Production Posting

Demonstration 8 This demonstration shows how to change the reporting method on one of the Machine Centers to forward flushing: 1. In the navigation pane, click the Routings button and open the routing card for the production card you have been using. In this case, item 1200 (Back Wheel). 2. Make a note of all the machine and work centers. These are found on the lines, in the Type and No. fields. 3. Click OK. 4. In the navigation pane, click the Departments button. 5. Go to Manufacturing > Capacities > Lists > Machine Centers. 6. Select a machine center from your list. For example, 440 (Machine inspection).


7-15

Manufacturing I in Microsoft Dynamics® NAV 2009 7. From the Posting FastTab, change the flushing method to "Forward" and click OK. 8. In the navigation pane, click the Firm Planned Production Orders button. 9. Click New. 10. Use the following data: Source Type: Item Source No: The item number for the production BOM (1200, Back wheel). Quantity: 5 Due Date: 02/20/2010 11. Click Refresh and accept the defaults. 12. Click Change Status, select Released and change the posting date to 02/20/2010. 13. Note the new production order number. 14. Click OK. View the released production order and review the capacity ledger entries. 15. In the navigation pane, click the Released Production Orders button. 16. Open the released production order that you created. 17. Go to Related Information > Order > Entries > Capacity Ledger Entries. Notice that the machine center selected appears as an entry. 18. Click Close. Conclude the review of flushing by looking at the back flushing of production. Set the flushing method on the machine centers and work centers that display in the routing for the selected item to be back flushed: 19. 20. 21. 22. 23. 24. 25. 26.

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Go to the first machine center on your list. Change the flushing method to "Backward". Repeat this for all the machine centers on your list. In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Work Centers. Change the flushing method to Backward for any work centers on your list. 27. Create another released order for five items. 28. In the navigation pane, click the Released Production Orders button. 29. Click New.

7-16


Chapter 7: Finishing Orders and Auto Reporting 30. Use the following data: Source Type: Item Source No: The item number for the production BOM (1200, Back wheel). Quantity: 5 Due Date: 02/25/2010 31. Click Refresh and accept the defaults. 32. Return to the released production order and notice that no output entries have been posted. 33. Click Change Status, select "Released" and change the posting date to 02/26/2010. (Ignore the message that some output is still missing.) 34. Note the new production order number. 35. Click OK. Now view the entries under the finished order. View the released production order and review the capacity ledger entries. 36. In the navigation pane, click the Finished Production Orders button. 37. Open the released production order that you created. 38. Go to Related Information> Order > Entries > Capacity Ledger Entries. Output entries have been posted that reflect the setup and run times in the routing, multiplied by the production order quantity. 39. Click Close. 40. Reset the flushing of all the machine and centers that you changed to Manual.

Summary This chapter demonstrates how forward and backward flushing methods can be used to finish production orders. This can be done either by operation or to the entire order. Additionally , posting can also occur automatically in a production order to record consumption.


7-17


Lab 7.1 - Finishing Orders and Auto Reporting Scenario

Production Order with Forward Flushing 1. Create a firm planned production order for bicycle 1000, with a quantity of two and due date of 01/15/2010. Refresh this production order. 2. Change all components to forward flush. Delete all routing link codes. Change the status to Released. 3. Select the released production order for the two bicycles, item 1000, created in the previous step. Review the production order ledger entries.

Step by Step Answer 1. In the navigation pane, click the Firm Planned Production Orders button. 2. Click New. 3. In the Source number field, enter 1000 (Bicycle). 4. In the Quantity field, enter 2. 5. In the Due Date field, enter 01/15/2010. 6. Click Refresh. 7. Accept all default information and click the OK button. 8. From the Lines FastTab, click the Actions button (lightning bolt symbol) and go to Line>Components. 9. Change the flushing method to "Forward" on every line. 10. Delete the routing link codes (if any). If the Routing Link Code header is not visible, you need to right-click the header, select Choose Columns and select Routing Link Code. 11. Click OK. 12. Click Change Status. 13. Ensure that the posting date is 01/16/2010. 14. Accept the default of release and click OK. 15. Close the production order. 16. In the navigation pane, click the Released Production Orders button. 17. Open the production order that you released. 18. Go to Related Information>Order>Entries>Item Ledger Entries. You can view all the consumption entries. 19. Click Close

7-18


Chapter 7: Finishing Orders and Auto Reporting Production Order with Forward Flushing and Routing Codes 1. Create a new firm planned production order for three more bicycles, item 1000 with a due date of 01/15/2010. Refresh the production order. 2. Change all operations to Forward Flush. Change the status of the production order to Released. 3. Review the production order ledger entries.

Step by Step Answer 1. In the navigation pane, click the Firm Planned Production Orders button. 2. Click New. 3. In the Source number field, enter 1000. 4. In the Quantity field, enter 3. 5. In the Due Date field, enter 01/15/2010. 6. Click Refresh. 7. Accept all default information and click OK. 8. From the Lines FastTab, click the Actions button (lightning bolt symbol) and go to Line>Routing. 9. Change the flushing method to "Forward" on every line. If the Flushing Method header is not visible, you need to right-click the header, select Choose Columns and select Flushing Method. 10. Change the flushing method to "Forward" on every line. 11. Click OK. 12. Click Change Status. 13. Ensure that the posting date is 01/16/2010. 14. Accept the default of release and click YES. 15. Note the new production order number. 16. Close the production order. 17. In the navigation pane, click the Released Production Orders button. 18. Open the production order you just created. 19. Go to Related Information>Order>Entries>Item Ledger Entries. View the item entry that is made when you post routing operations: an output entry. 20. Click Close.


7-19

Manufacturing I in Microsoft Dynamics® NAV 2009 Scrap Process the bicycle back hub, item 1250, with the following steps: 1. Select Backward as the Flushing Method for the Axle Back Wheel 1251 and the Socket Back 1255. 2. Create a Firm Planned Production Order (FPPO) for 100 Back Hubs 1250 due on 02/15/2010. 3. Convert the firm planned production order to a released production order. 4. Utilize the output journal with the run and setup times indicated below to complete 98 and scrap 2 of item 1250, Back Hub. Choose to accept 98 into inventory and not to withdraw more materials from stock to make up the shortage. Operation

Setup Time

Run Time

10

20 minutes

50 minutes

20

30 minutes

55 minutes

30

102 minutes

5. Convert the released production order to a finished production order and review the ledger entries.

Step by Step Answer 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

7-20

In the navigation pane, click the Items button. Open item 1251 (Axle Back Wheel). Go to the Replenishment FastTab. In the Flushing method field, choose "Backward". Click OK. Open item 1255 (Socket Back). Go to the Replenishment FastTab. In the Flushing method field, choose "Backward". Click OK. In the navigation pane, click the Firm Planned Production Orders button. Click New. Enter 1250 in the Source No. field. Enter 100 in the Quantity field. Enter a due date of 02/15/2010. Click Refresh and click OK. Click Change Status.


Chapter 7: Finishing Orders and Auto Reporting 17. Check that the new status is "Released" with a posting date of 02/15/2010, and click Yes. 18. Note the released production order number. 19. Close the firm planned production order window. 20. In the navigation pane, click the Departments button. 21. Go to Manufacturing > Execution >Tasks > Output Journals. 22. Enter a posting date of 02/15/2010. 23. In the Prod. Order No. column, choose your newly created released production order. 24. Click Explode Routing. 25. Enter the following information: Operation

Setup Time

Run Time

10

20

50

20

30

55

30

102

26. In operation 60 (Inspection of Hub), enter an output quantity of 98 and a scrap quantity of 2. 27. Click Post and choose Yes to post the journal lines. 28. Close the output journal window. 29. In the navigation pane, click the Released Production Orders button. 30. Open the production order for the 100 back hubs (source no. 1250). 31. If you look at the finished good line of the production order, notice that finished quantity is 98 and scrapped or remaining quantity is 2. 32. Click Change Status. 33. Check that the new status is "Finished" with a posting date of 02/15/2010, and click Yes. 34. Choose Yes at the message that some output has not been completed. 35. Close the released production order window. 36. In the navigation pane, click the Finished Production Orders button. 37. Open the production order for the 100 back hubs (source no. 1250). 38. Go to Related Information>Order>Entries>Item Ledger Entries. 39. Observe that consumption for items 1251 and 1255 have been posted for the expected quantity. 40. Close the Item Ledger Entries window.


7-21



2.

3.

7-22


Microsoft Dynamics® NAV 2009 Manufacturing I

Microsoft Dynamics® NAV 2009 Manufacturing II

Microsoft Dynamics® NAV 2009 - Finance

Programming Microsoft Dynamics NAV 2009

Programming Microsoft Dynamics NAV 2009

Microsoft Dynamics® NAV 2009 Trade

Microsoft Dynamics® NAV 2009 - Introduction

Programming Microsoft Dynamics NAV 2009

Programming Microsoft Dynamics NAV 2009

Microsoft Dynamics NAV 2009 Application Design

Multisite Operations in Microsoft Dynamics® NAV 2009

Microsoft Dynamics® NAV 2009 - Application Setup

Microsoft Dynamics NAV 2009 Programming Cookbook

Microsoft Dynamics® NAV 2009 - C-SIDE Introduction

Microsoft Dynamics NAV 2009 Programming Cookbook

Microsoft Dynamics NAV Administration

Microsoft Dynamics® NAV 2009 Fixed Assets

Microsoft Dynamics NAV 2009 Application Design

Microsoft Dynamics NAV 2009: Professional Reporting

Microsoft Dynamics® NAV 2009 - Report Design

Microsoft Dynamics NAV 2009: Professional Reporting

Microsoft Dynamics® NAV 2009 Warehouse Management

Programming Microsoft Dynamics NAV

Microsoft Dynamics NAV. Руководство пользователя

Microsoft Dynamics® NAV 2009 Business Intelligence for Information Workers

Microsoft Dynamics® NAV 2009 C-SIDE Solution Development

Inside Microsoft Dynamics AX 2009

Inside Microsoft Dynamics AX 2009

Using Microsoft Dynamics AX 2009

Microsoft Dynamics AX 2009 Administration

Microsoft Dynamics AX 2009 Programming: Getting Started

Microsoft Dynamics® NAV 2009 Manufacturing I