Microsoft Dynamics® NAV 2009 Manufacturing II

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

Author: Microsoft Corporation

29 downloads 846 Views 4MB 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 II

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

Last Revision: May 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 Introduction

0-1

Welcome ............................................................................................................ 0-1 Microsoft Dynamics Courseware Contents ........................................................ 0-2 Documentation Conventions .............................................................................. 0-3 Student Objectives ............................................................................................. 0-4

Chapter 1: System Setup

1-1

Objectives ........................................................................................................... 1-1 Manufacturing ..................................................................................................... 1-1 Inventory ............................................................................................................. 1-4 Manufacturing-Related Fields on the Stockkeeping Unit Card ......................... 1-10 Summary .......................................................................................................... 1-11

Chapter 2: Sales Order Interface and Order Planning

2-1

Objectives ........................................................................................................... 2-1 Introduction ......................................................................................................... 2-1 Sales Order Planning Window............................................................................ 2-2 Changes to Production and Sales Orders ........................................................ 2-10 Order Planning ................................................................................................. 2-11 Summary .......................................................................................................... 2-22

Chapter 3: Forecast and MPS

3-1

Objectives ........................................................................................................... 3-1 Introduction ......................................................................................................... 3-1 Production Forecast ........................................................................................... 3-2 Netting Actual Demand against the Forecast ..................................................... 3-8 Planning Approach ........................................................................................... 3-13 Forecasting Sales Items and Components....................................................... 3-20 MPS Output Provides Input to MRP ................................................................. 3-22 Summary .......................................................................................................... 3-23

Chapter 4: Planning

4-1

Objectives ........................................................................................................... 4-1 Introduction ......................................................................................................... 4-1 Planning Overview ............................................................................................. 4-2 Regenerative Planning ..................................................................................... 4-18 Net Change Planning ....................................................................................... 4-26 Order Tracking and Action Messaging ............................................................. 4-29 Summary .......................................................................................................... 4-37

Chapter 5: Additional Planning Topics

5-1

Objectives ........................................................................................................... 5-1 Introduction ......................................................................................................... 5-1 Item Variants ...................................................................................................... 5-2 Locations ............................................................................................................ 5-9 Inventory Locations in Production ...................................................................... 5-9 Inventory Transfers in Planning ........................................................................ 5-16 Blanket Sales Orders ....................................................................................... 5-19


i

Manufacturing II in Microsoft Dynamics® NAV 2009 Multi-level Production Orders ........................................................................... 5-22 Planning Tools .................................................................................................. 5-24 Filtering in the Planning Worksheet Objective .................................................. 5-25 Refresh Planning Line Function ....................................................................... 5-26 Planning Reports .............................................................................................. 5-26 Summary .......................................................................................................... 5-27

Chapter 6: Subcontracting

6-1

Objectives ........................................................................................................... 6-1 Introduction ......................................................................................................... 6-1 Subcontracting ................................................................................................... 6-2 Summary .......................................................................................................... 6-12

Chapter 7: Advanced Capacity

7-1

Objectives ........................................................................................................... 7-1 Introduction ......................................................................................................... 7-1 Capacity Resources ........................................................................................... 7-2 Work Center and Machine Center Calendars..................................................... 7-9 Capacity Journals ............................................................................................. 7-16 Summary .......................................................................................................... 7-17

Chapter 8: Shop Loading

8-1

Objectives ........................................................................................................... 8-1 Introduction ......................................................................................................... 8-1 Shop Loading Overview ..................................................................................... 8-2 Loading Capacities ............................................................................................. 8-6 Finite Loading ................................................................................................... 8-11 Reports ............................................................................................................. 8-14 Summary .......................................................................................................... 8-15

Chapter 9: Additional Manufacturing Topics

9-1

Objectives ........................................................................................................... 9-1 Introduction ......................................................................................................... 9-1 Standard Task Codes ......................................................................................... 9-2 Stop Codes ......................................................................................................... 9-6 Scrap Codes ....................................................................................................... 9-8 BOM Scrap and Routing Scrap .......................................................................... 9-9 Non-Productive Time ........................................................................................ 9-14 Methods to Reduce Lead – Time ..................................................................... 9-17 Multi-Level Manufacturing ................................................................................ 9-21 Business Notification ........................................................................................ 9-23 Families ............................................................................................................ 9-25 Summary .......................................................................................................... 9-28

ii


Introduction

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.


0-1

Manufacturing II 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.

0-2


Introduction

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.


0-3


About the Manufacturing II in Microsoft Dynamics NAV 2009 Training Manual This training manual provides a conceptual and operational description of the standard trade functionality of Microsoft Dynamics NAV 2009 . The manual can be used both in the context of an instructor-led training course and as reference material for self-teaching.

Target Audience This training manual is intended for Microsoft Certified Dynamics Partners' employees selling, implementing, and supporting Microsoft Dynamics NAV.

Training Objectives Whether used in a course setting or for self-teaching, the manual is designed to equip course participants with the product knowledge, both at conceptual and functional levels, required when implementing and supporting Microsoft Dynamics NAV at a wide range of wholesale and manufacturing companies with a focus on the trade area.

Training Manual Overview Before you start the course (self-teaching), you must install Microsoft Dynamics NAV VPC (Virtual PC) on your computer. This manual provides the participants with an in depth understanding of the manufacturing functionality in Microsoft Dynamics NAV. The manual consists of the following chapters: •


•


•


•

Chapter 4: Planning

•


•


•


•


•


In this manual, the chapters are organized logically, reflecting the relationship between different granules of the program. It is, therefore, recommended that the course or self-teaching activity follows the suggested teaching path.

0-4


Introduction The chapters in this training manual typically contain the following elements: •

Concepts

•

Demonstrations

•

Labs

Demonstrations represent the typical business situations where the application is used. Demonstrations provide a basis for examples that give practical step-bystep descriptions of how to use the application. Labs enable the course participants (manual readers) to practice using the program. The manual includes the following typographic conventions: •

Name is used for names of fields, FastTabs, and windows.

•

PATHNAME→PATH

is used for navigation paths for users to follow.

Dates The dates in the course manual are in the American format. In order to avoid confusion when reading the manual and following the exercises, if necessary, it is a good idea to change the date format in Windows before starting the training session. The working date is set to be 01/28/2010 (January 28, 2010). It is important that this date is used when following the examples and doing the exercises included in the manual, unless instructed otherwise.

Demonstration Data All examples and exercises in this manual are based on a fictitious company, Cronus International Ltd. Where possible, examples and exercises in each chapter are designed independently of each other. However, because of the limited scope of the Cronus demo database, the same data is sometimes used in examples illustrating different functionality. To make sure that you always have a clean demo database, make a copy of the database on the hard disk before you start the course.

License Information To run the examples and exercises included in this training manual, you must have a standard Cronus license. This is provided on the product CD.


0-5

Manufacturing II in Microsoft Dynamics® NAV 2009 Suggested Course Duration When this training manual is used to run a course, it is recommended that the course be taught over a period of two to three days.

Additional Information You can learn more about the topics of distribution and supply chain management from the APICS homepage: http://www.apics.org. APICS is a nonprofit, educational society for resource management.

0-6


Introduction

About This Course This section provides you with a brief description of: •

The course

•

Audience

•

Suggested prerequisites

•

Course objectives

•

Student materials

•

Related certification exams

Description This three-day course, Manufacturing II in Microsoft Dynamics NAV 2009, explores the module from an end-user’s point of view. Chapters in this hands-on classroom experience include topics such as production planning, subcontracting, and capacities. These topics help enable users to understand what is being produced, what needs to be produced, and what needs to be purchased or produced and when.

Audience This course is intended for participants that will use Microsoft Dynamics NAV manufacturing from a general user perspective, or anyone who wants to pursue certification in Microsoft Dynamics NAV Manufacturing. Microsoft Dynamics Partner professionals tasked with assessing a customer’s business needs and advising them on the use, configuration, and customization of the application can also benefit from this course. Additionally, consultants who are responsible for training or supporting the customer benefit from the course. It is strongly recommended that students have a strong background in Microsoft Dynamics NAV financials, a working knowledge of manufacturing terms and processes, and familiarity with Microsoft Dynamics NAV inventory.

At Course Completion The course completion objectives are for students to be able to: •

Set up the manufacturing module

•

Use the Sales Order Planning Window

•

Define netting actual demand and forecast

•

Use planning

•

Set up a subcontractor


0-7

Manufacturing II in Microsoft Dynamics® NAV 2009 •

Use shop loading

•

Set up work centers and machine center calendars

•

Create and use task codes, stop codes and scrap codes

Prerequisites Before attending this course, students must have: •

A strong understanding of manufacturing terminology and processes

•

Completion of the Manufacturing I in Microsoft Dynamics NAV 2009 course

Student Materials The following material for Microsoft Dynamics NAV 2009 are related to this course: •

0-8

Course AD: Manufacturing I in Microsoft Dynamics® NAV 2009


Introduction

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

2.

3.


0-9


0 - 10



CHAPTER 1: SYSTEM SETUP Objectives The objectives are •

Be able to set up the Manufacturing module in Microsoft Dynamics® NAV 2009.

•

Be able to set up inventory in relation to Manufacturing.

•

Understand the purpose of a Stockkeeping Unit Card.

Manufacturing The Manufacturing module requires only a few simple setup steps. This chapter explains the manufacturing setup and production schedule. You can access the manufacturing setup either through the RoleTailored client or the Classic client. If you need to set up your production schedule, use the Classic client as the Production Schedule setup is not available in the RoleTailored client. To define your manufacturing setup (in the RoleTailored client), go to: Departments> Administration > Application Setup> Manufacturing > Tasks > Manufacturing Setup. In the Classic client, the production schedule and manufacturing setup can be accessed by going to: Manufacturing > Setup .

Manufacturing Setup First, look at the Manufacturing Setup.

FIGURE 1.1 MANUFACTURING SETUP IN THE CLASSIC CLIENT.


1-1

Manufacturing II in Microsoft Dynamics® NAV 2009 Review the fields on each of the tabs.

General Tab Field

Comments

Normal Starting Time

Enter the start of the working day. Individual shifts are setup under Capacities > Setup > Shop Calendars .

Normal Ending Time

Enter the end of the working day.

Planning Warning

When selecting this field and sales order lines meet certain conditions, the system provides a warning. If changes are made to a sales order line that is tracked to a production order, the system warns users so they can review and/ or change the production order. Changes to the production order are not made without review.

Doc. No. is Prod. Order No.

Select this field to use the released production order number for all postings. The production order stays the same when a released production order is finished.

Dynamic LowLevel Code

When selected, this automatically sets a dynamic low-level code when a production bill of material (BOM) is certified. If certification is time consuming, leave the field clear and manually calculate low-level code through the Periodic Activities (discussed later). Low-level codes must be correct for MRP and standard cost calculations to be accurate.

Cost Incl. Setup

Select this to include the setup costs in the routing in cost calculations.

Preset Output Quantity

Use this field to choose from the three options to control the output field of the production journal when it is first opened. The three options are: • Expected Quantity •

Zero on All Operations

•

Zero on Last Operation

Numbering Tab The options on the Numbering tab allow users to define a range of valid characters for various types of orders and centers and for BOMs and routings. For each item, choose from the No. Series setup in Administration > IT Administration > General Setup. Define the number series for each item used. If numbers are created manually, then use the Manual Nos. option in No. Series setup.

1-2


Chapter 1: System Setup When you want the program to assign the same number to different types of production orders (for example, Firm Planned and Released), use the same number series for both types of production orders. Finished production orders are automatically assigned the same number as was on the released production order.

Planning Tab The fields on the Planning tab affect the information in the planning worksheet. Field

Comments

Current Production Forecast

Specifies which production forecast to use when calculating the planning worksheet.

Use Forecast on Locations

This nets the actual demand against the forecast by location. If this field is left blank, demand nets against forecast without consideration of location.

Default Safety Lead Time

A date formula, which the program uses as the default safety lead time. It is used if nothing is changed in the Safety Lead Time field on the item card or the stockkeeping unit card.

Combined MRP/MPS Calculation

Both MPS and MRP are selected when calculating a plan.

Components at Location

The location for components can be set in three places: • Location field on the Posting tab of the production order. •

Components at the Location field on the Stockkeeping card.

•

Globally by choosing a location here on the Planning tab.

Dampener (Time)

Users can enter a period of time that they want the program to defer proposing an action to reschedule the due date on a production order outward in time. Once entered, the program only proposes rescheduling after the specified period expires. Use a dampener to limit action messages for insignificant variances when the program calculates a plan.

Dampener (% of Lot Size)

Users can enter a minimum quantity, below which they do not want the program to propose an action to decrease the quantity on an existing order. Once entered, the program only proposes this action when the quantity exceeds the amount entered in the field. Specify this quantity as a percentage of the lot size of the item.


1-3

Manufacturing II in Microsoft Dynamics® NAV 2009 Production Schedule The Production Schedule sets the date parameters to show in the Gantt production schedule, which can only be accessed from the Classic client. To access the production schedule, go to: Manufacturing > Setup > Production Schedule.

FIGURE 1.2 PRODUCTION SCHEDULE SETUP

Inventory This section discusses the most important fields on the item card that reflect the integrated features for the following: •

MRP

•

Item tracking

•

Warehouse

Manufacturing-Related Fields on the Item Card The item card is a central document for manufacturing companies. The following are short descriptions of the most important fields.

1-4


Chapter 1: System Setup Replenishment Tab The Replenishment tab affects the timing and quantity of purchase and production orders.

FIGURE 1.3 ITEM CARD - REPLENISHMENT TAB

Field

Comments

Replenishment System

Determines whether the item is to be purchased or produced.

Manufacturing Policy

Specifies which production method to use when the replenishment system is Prod. Order. The available policies are: • Make-to-Stock (MTS) •

Made-to-Order (MTO)

Items are produced to inventory. In MTS production orders, only one item is allowed per production order. MTS inventory is composed of standard items with a relatively short manufacturing lead-time or for items that are used as required subassemblies for other items. Manufacturing Policy (continued)

Items are produced to specific customer specifications for a specific sales order. MTO inventory may be composed of more expensive items that are complex to produce. MTO items have multilevel BOMs and may have multiple lines on the production order. If the items are turned into production orders through the Sales Order Planning window, users have the option of placing all items of the sales order on the same production order regardless of the item's manufacturing policy.

Routing No.

Specifies the routing the item is based on. This is the routing used on production orders. The field needs a value if the user will use this item in a BOM with routing links. Otherwise, when the user refreshes the production order they get an error message.


1-5

Manufacturing II in Microsoft Dynamics® NAV 2009 Field

Comments

Production BOM No.

Specifies the number of the production BOM. To see the production BOM numbers in the Production BOM window, click the Assist button. The number identifies the production BOM that the production of this item is based on. The production BOM determines the components used on production orders.

Rounding Precision

Specifies how quantities of this item must be rounded in the various calculations that involve the item. If, for example, the item is only available in whole units, enter 1 in this field.

Flushing Method

Defines how material consumption is posted. The three options are: • Manual •

Forward

•

Backward

With Manual, the consumption journal is used to manually specify how much material was consumed. With Forward, the expected quantity of material is automatically consumed at the release of a production order (beginning of the process) and is based on expected material usage. If routing link codes are used, the material is automatically consumed at the start of the routing step. Flushing Method (continued)

With Backward flushing, the actual quantity of material is automatically consumed at the finish of a production order and is calculated as the Output quantity multiplied by the quantity per for each component. If routing codes are used, the items are consumed at the same rate at the completion of a routing step.

Scrap %

Used to plan for increases in the amount of materials required. For example, to produce 100 pieces of this item the company would need to produce 105 (because five will be scrapped), 5 would be entered as the scrap % on the item card. After the next MRP run or planning (refresh) of an individual production order, the scrap % results in additional quantities of components required to produce the item.

Lot Size

This field is used only for production items. This field contains the quantity of the item that is usually produced in one production lot. If the item routing includes fixed costs such as setup time, the program uses the contents of this field when it calculates standard cost price and distributes the fixed costs of manufacturing the item.

1-6


Chapter 1: System Setup Planning Tab The Planning tab affects how to plan for the quantity required.

FIGURE 1.4 ITEM CARD - PLANNING TAB

Field

Comments

Reordering Policy

Specifies how the MRP run calculates replenishment quantities for a planning period (reorder cycle). When an option is chosen in this field, unnecessary fields on the Planning tab are disabled. The following policies are available: Fixed Reorder Qty. The planning system considers the quantity in the Reorder Quantity field. The suggested order is either for the reorder quantity or the net requirement, whichever is higher. This option is normally used in a " fixed demand" setup for items that are inexpensive to produce or purchase. Maximum Qty. The planning system uses the quantity in the Maximum Inventory field as the amount to order up to, so that the inventory is set to the maximum amount upon receipt. The suggested order is either for the maximum quantity (projected available balance) or the net requirement, whichever is higher. This is a "logistic-based" principle, where a location is to be filled up, no matter what the net need is. It is normally used in a "fixed demand" setup for items that are inexpensive to produce or purchase. Order The planning system generates an order for each requirement if necessary. It considers each "order demand" (whether it is a sales order line, an MRP component, or a production order component) and creates a separate line in the MRP worksheet. In other words, the order suggestion for an item is the gross requirement based on a single parent order only. This is a true "bucketless" approach to MRP. (Bucket is a term used to refer to a period of time.) This principle is normally used in make-to-order environments.


1-7


Comments

Reordering Policy (Continued)

Lot-for-Lot The planning system generates an order with the quantity necessary to cover the requirement of the reorder cycle. In other words, a net requirement for each period is considered. Once the net requirement is calculated for the reorder cycle, this amount may be increased to cover the inventory safety stock or the reorder point. This policy is typically used in a "variable demand" setup using MRP. Blank The planning system ignores the item. It can still be useful to fill in the other fields, because you might want MRP to ignore the item but still have the possibility to define the manufacturing policy of the item as MTO.

Include Inventory

Based on the Reordering Policy chosen, this field is either automatically set or available to be set manually. If Order is chosen, you may set this field manually. If this is selected, the planning system considers the quantity in the Inventory field when it calculates the available quantity. In this case, the available quantity is calculated as: Inventory + Quantities from Purchase Orders + Quantities from Production Orders = Calculated Requirement If this field is not selected, the available quantity is calculated as: Quantities from Purchase Orders + Quantities from Production Orders = Calculated Requirement

NOTE: If the manufacturing policy is Make-to-Order, then the quantity on inventory is not considered, regardless of whether the Include Inventory field is selected.

1-8


Chapter 1: System Setup Field

Comments

Reserve

This option determines whether the program allows reservations to be made for this item. If MRP is used to plan production and purchases, then this field may be set to Optional or Always. If production orders are created manually, then standard reservation rules apply.

Order Tracking Policy

Specifies when order tracking entries are created. The following policies are available: None No order tracking entries are created. Tracking Only Order tracking entries are created to link demand and supply in two circumstances: • Dynamically, when creating an order that may be matched by an existing order •

After running the planning engine

Tracking and Action Msg. In production planning, Tracking is used as above, plus action messages are created for net change planning purposes. Stockkeeping Unit Exists

This field is set automatically. If a stockkeeping unit exists for an item, this flag is set, reminding users that some fields must be set on the stockkeeping unit.

Critical

Identifies the item as a critical item. This means that the program calculates this component's availability when using the order promising feature from a sales order. This field does not influence order promising if it is set on the item being sold.

Reorder Cycle

A time period in which net requirements are grouped for planning purposes. The reorder cycle groups all the requirements that fall within that cycle and sets them due on the date of the initial requirement. In addition, the planning system utilizes the reorder cycle to determine which action message to issue in response to demand.

Safety Lead Time

A date formula, such as 1D indicates a safety lead time for the item. In the planning process, this affects the date that produced items become available for sale. The safety lead time can be considered a buffer period in case of delays in the production process.

Safety Stock Quantity

Specifies the lowest acceptable inventory quantity. This represents safety stock and should be a lower quantity than the quantity specified in the Reorder Point field. If the planning system calculates a quantity to reorder simply because availability falls below the inventory safety quantity, then the program suggests an order that is back scheduled.

Reorder Point

Indicates the inventory level that triggers the generation of a planned receipt (forward scheduled) for the item. The reorder point determines "when to buy." It is calculated as demand using lead time + safety stock quantity.


1-9


Comments

Reorder Quantity

The reorder quantity determines "how much to buy." But if the reorder quantity is set below the reorder point, the system does not consider this logical and therefore rounds the suggested order up to the quantity in the reorder point.

Maximum Inventory

Specifies the maximum inventory level for the item. The program uses the maximum inventory minus the safety stock to calculate order proposal quantities. Note that depending on the current inventory, this may result in proposed quantities that cause the projected available balance to exceed the maximum inventory that you define.

Minimum Order Quantity Maximum Order Quantity Order Multiple

These three fields are commonly referred to as order modifiers. They suggest receipt quantities tailored by convenient or economic reordering factors. For example, if an item must be ordered by the dozen, the minimum order quantity and order multiple are set to 12. This ensures that all release quantities are a minimum of 12, and multiples of 12.

NOTE: The quantity in the Safety Stock Quantity field is not included in any calculations. When minimizing the inventory investment, users are most likely not going to enter reorder point, inventory safety stock quantities, or safety lead-time. However, they need to consider the following: •

Lead time calculation (and/or routing)

•

Manufacturing policy

•

Reordering policy

•

Reorder cycle

•

Applicable order modifiers

For example, if the item is produced to stock (M-T-S) with a fixed reorder quantity, a routing and no order modifiers, then the following is true: A production order may only be created to produce an item. The reorder quantity is used to determine how much to order. The routing is used to determine when to produce the item.

Manufacturing-Related Fields on the Stockkeeping Unit Card The Stockkeeping Unit Card is integral to the item and its production. When a Stockkeeping Unit Card is created, most of the information defaults from the Item card, and can be changed. For example, the Reorder Point could be different for each location. If the user set Location Mandatory equal to Yes, the user must fill in the Stockkeeping Unit Cards for each location for planning to be accurate.

1-10


Chapter 1: System Setup The path to the Stockkeeping Unit Card is: Manufacturing > Planning > Stockkeeping Units.

FIGURE 1.5 STOCKKEEPING UNIT CARD

The following information is unique to the Stockkeeping Unit Cards: Field

Comments


In addition to the standard Purchase and Prod. Order options, Transfer is valid.

Transfer-from Code

The location that usually supplies the demand for transfers is entered here.

Components at Location

Select the inventory location from where the production order components are to be taken when producing this stockkeeping unit. If this is not filled in, then components are chosen from the location on the production order or from manufacturing setup.

Summary This chapter provides the information needed to set up your manufacturing module. Because production processes vary widely across companies and industries, a typical configuration setup cannot be provided. Even though the necessary fields in the manufacturing setup are already defined, it is recommended that you customize the settings to optimize the production process.


1-11


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

2.

3.

1-12



CHAPTER 2: SALES ORDER INTERFACE AND ORDER PLANNING Objectives The objectives are: •

Be able to use the Sales Order Planning Window.

•

Make Changes to Production and Sales Orders.

•

Define the Order Planning process.

Introduction The Sales Order Planning Window is used in the sales order planning process and was developed especially for small manufacturers in the make-to-order (MTO) and assemble-to-order (ATO) businesses to help them plan more efficiently. The chapter also covers how to make changes to sales orders and how the order planning process works from start to finish. Order Planning is a tool used for direct production planning developed as an alternative to the traditional Planning and Requisition worksheets. Users can either choose to use the Order Planning tool or the traditional Planning Worksheets, as they cannot be used in combination.


2-1


Sales Order Planning Window A make-to-order manufacturing company does not usually carry finished goods inventory; each item is produced only when ordered. This is common for products offering a great deal of configuration or customization. It is critical that production personnel are notified promptly of customer requests. The program assists in the transfer of information from sales to production. The following three transfer methods are used: •

On an individual basis, a production order can be automatically generated from a sales order.

•

On a group basis, the planning worksheet can generate one or more production orders to satisfy multiple sales orders. This feature is demonstrated in the chapter that discusses Planning.

•

Using the Order Planning worksheet, orders can be created for: o o o

Individual items Whole orders All orders

Generate a Production Order from a Sales Order The program offers a sales planning feature from the sales and marketing application area. Click Sales Orders from the navigation pane to view the list of available sales orders. Order Planning is a menu choice for sales and purchasing as well as manufacturing. To access this function, open a sales order and go to Related Information > Order > Planning. From the Sales Order Planning window, go to Actions > Functions > Create Prod. Order. The Sales Order Planning window allows for the creation of two types of production orders. •

Item Order - one production order is produced for each individual line of a sales order.

•

Project Order - for all lines of a sales order (regardless of the manufacturing policy for the line items), one multi-line production order is produced. It is especially useful in the large project environment, with a relatively long manufacturing lead-time.

NOTE: In Microsoft Dynamics® NAV 2009, it is not possible to create a project production order for multiple lines of the same item. For example, a sales order may be entered with the same line item, but different ship dates (such as a blanket type of order). For these types of sales orders, a separate production order for each line must be created (item production order). This is because the program treats all lines of the same item on a production order as one line for output posting purposes.

2-2


Chapter 2: Sales Order Interface and Order Planning Demonstration 1 The following demonstration shows how to create production orders from sales orders. 1. From the navigation pane, click the Sales Orders button. 2. Click New. 3. Create a new sales order with the following information: Field

Data to use

Sell-to Customer No.

10000 (The Cannon Group PLC)

Type

Item

No

1000 (Bicycle)

Quantity

12

Shipment Date

Go to the Shipping FastTab and choose a shipment date, such as 01/28/2010

4. Click OK. 5. An inventory stock-out warning is received. Click Yes in response to the inventory stock-out warning. 6. Go to Related Information > Order > Planning. 7. Make sure that the Needs Replanning field is showing. If it is not, use Show Column to add the column to the view. The Sales Order Planning window displays the following information.

FIGURE 2.1 SALES ORDER PLANNING WINDOW

The Planning Status field is None and there is a check mark in the Needs Replanning field.


2-3

Manufacturing II in Microsoft Dynamics® NAV 2009 A description of the fields in the sales planning window are as follows. Field

Comments

Item No.

This field shows the item number of the sales order line.

Variant Code

This field shows the variant code from the sales order line. The program uses this field internally.

Planning Status

This field contains the planning status of the production order, depending on the actual sales order. The options are None, Simulated, Planned, Released, and Inventory.

Description

This field shows the description of the item number of the sales order line.

Shipment Date

This field shows the shipment date of the sales order line.

Planned Quantity

This field shows the quantity on the production order that is tracked to the sales order line. It looks up Reservation Entries.

Available

This field shows the actual number of items currently available.

Next Planning Date

This field shows the next date the item is scheduled to be planned. The program uses this field internally. The next planning date is determined by the work date and the reorder cycle defined on the item card. For example, if the work date is 06/01/09, and the reorder cycle is one week, then the next planning date is 06/08/09.

Expected Delivery Date

Prior to creating a production order for the sales order line, this field shows a theoretical delivery date based on the following formula: The next planning date + lead-time calculation (on the item card) + safety lead-time (on the item card). The program includes all calendar days in the calculation. For example, if the next planning date is 06/08/09, the lead time calculation is zero days (none) and the safety lead time is ten days, therefore, the expected delivery date is 06/18/09.

Needs Replanning

This field indicates if the line on the sales order needs to be rescheduled for any reason. For instance, if the due date for a production order tracked to the sales order line changes. The action to be taken depends on the setting of the order tracking policy on the Planning FastTab of the item card. Another lesson demonstrates the various order tracking policies and their effect on changes to the production order and the sales order.

2-4


Chapter 2: Sales Order Interface and Order Planning NOTE : In an MTO environment, the expected delivery date on a sales order is not meaningful until a production order is generated because the necessary production orders and/or purchases to fulfill the order are not yet planned. For make-to-stock (MTS) items, the next planning date and expected delivery date (based on the reorder cycle, lead-time calculation, and safety lead-time from the item card) show when an item is produced. The MTS expected delivery date is more meaningful than the MTO expected delivery date example above. Once a production order is created for the sales order line, the expected delivery date becomes the due date of the production order.

Demonstration 2 To create a production order directly from this sales order: 1. From the Sales Order Planning window, go to Actions > Functions > Create Prod. Order. Choose between three types of production order status: •

Planned

•

Firm Planned

•

Released

This selection depends on the company's business process. The program's ability to convert sales orders is well suited for MTO companies that allow sales engineers to create released production orders for long complicated projects with multiple configurations. There may be situations where a company does not want to allow sales personnel to create released orders. Microsoft Dynamics NAV 2009 Manufacturing II security has the ability to restrict access to the Sales Order Planning window (or modify the window to exclude released orders). Choose between two production order types: •

Item Order - created for each line on the sales order.

•

Project Order - also known as a multi-line production order, a production order for all lines is created on the sales order. However, a production order cannot be created for multiple lines of the same item from the sales order.

2. From Prod. Order status, select Firm Planned. 3. From Order Type, select Item Order. 4. Click Yes to create a firm planned production order for the item.


2-5

Manufacturing II in Microsoft Dynamics® NAV 2009 A message screen displays stating that a production order is created showing the production number. Take note of this number. The Sales Order Planning window shows the following: •

Planning status changed to Firm Planned.

•

Planned quantity is 12.

•

Needs Replanning field is inactivated.

FIGURE 2.2 SALES ORDER PLANNING

The sales order is now entered and a production order is created to satisfy the demand. This type of production order generation functionality is useful in maketo-order and assemble-to-order environments. 5. Close the window when you are finished viewing the information.

Soft Commit If there is an existing sales order for a manufactured item and the item is not in stock, the Production Planner may enter a manual production order to fulfill the demand. The production order is created to satisfy the demand of the sales order. This may be referred to as a soft commit because there is nothing in the program that prevents the output of the production order from being used to fulfill the demand for a different sales order.

Hard Commit – Order Reservation If the Production Planner wants to make certain that the production order output is used to fulfill the demand for the first sales order, the production order can be reserved for that sales order. This is referred to as a hard commit-when the user connects a specific sales order to a specific production order. Likewise, components used in the manufacture of an item are either reserved from inventory stock or from another production order.

2-6


Chapter 2: Sales Order Interface and Order Planning Reservations for sales orders from production orders or for production orders from components (or other production orders) are either: •

Automated

•

Set up to occur manually

This depends on the setting of the Reserve field on the Planning FastTab of the item card.

Order Tracking Once reservations are invoked, the order can be tracked to view the connections between sales, production and inventory. To view order tracking, go to the Lines FastTab of your Sales order. Click the Actions icon (lightning bolt symbol) and go to Functions > Order Tracking. The Order Tracking can always be followed from the Sales Order or the Production Order, regardless of reservation. The Order Tracking link is controlled in the following way: •

If the item is set to Order Tracking = None: o

•

The Order Tracking link can be removed when calculating Planning Worksheet

If the calculation ends up suggesting a change: o

A brief explanation is Order Tracking = none is actually dynamic Order Tracking = none.

The method used to create a production order may dictate whether the items automatically reserve and track. Orders are automatically reserved and tracked to their source when they are: •

Created from the planning worksheet.

•

Created with the Production Order function in the Sales Order Planning window.

•

Using the Replan function in MRP or production orders.

Demonstration 3 This demonstration shows how to track to the firm planned production order created previously. 1. From the sales order created earlier, go to the Lines FastTab of your Sales order. Click the Actions icon (lightning bolt symbol) and go to Functions > Order Tracking. 2. Click Show.


2-7

Manufacturing II in Microsoft Dynamics® NAV 2009 The firm planned production order appears. 3. Check routing and component details by going to the Lines FastTab. Click the Actions icon (lightning bolt symbol) and go to Line > Routing or Line > Components. The program automatically: •

Sets the due date as shipment date.

•

Subtracts one day from the ending date

•

Back schedules to determine a starting date

4. Close all open windows. The following demonstration shows how to track from the production order to the source sales order. 5. In the navigation pane, click the Firm Planned Production Orders button. 6. Select the production order that was created from the sales order. 7. From the Lines FastTab of the production order, click the Actions icon (lightning bolt symbol) and go to Functions > Order Tracking. 8. Click Show to view the sales order that generated the production order From the Lines FastTab, note the automatic reservation (in the reserved quantity column) of 12 pieces for the item. 9. Close all open windows.

Update Shipment Dates From the Sales Order Planning window: •

Use the Update Shipment Dates function to change the shipment date of sales order line(s) to the expected delivery date.

•

Use this window as a simple "available to promise" feature for determining delivery dates.

Review the definitions of the two dates: •

Next Planning Date - is determined by the work date and the reorder cycle defined on the item card. o

2-8

For instance, if the work date is 11/01/2010, and the reorder cycle is one week, then the next planning date is 11/08/2010.


Chapter 2: Sales Order Interface and Order Planning •

Expected Delivery Date (prior to creating a production order) - is equal to: o o o o

The next planning date +. Lead-time calculation (on the item card) +. Safety lead-time (on the item card) +. Default safety lead time. (Default safety lead time is set up in Manufacturing > Setup > Manufacturing Setup.)

The program includes all calendar days in the calculation. For instance, if the next planning date is 11/08/2010, the lead time calculation is zero days and the safety lead time is ten days, then the expected delivery date is 11/18/2010. The expected delivery date is more meaningful if: •

The reorder cycles are set correctly.

•

Accurate lead time calculation and safety lead time amounts are entered on the item card for production items.

If this is the case, the expected delivery date can assist the Order Processor in: •

Promising a delivery date to a customer.

•

Changing the shipment date on the sales order line(s) to the expected delivery date, using the Update Shipment Dates function.

Demonstration 5 The following demonstration shows how to enter another sales order for the same item used in the previous example: 1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. Create a new sales order with the following information. Field

Data to use

Sell-to Customer No.

10000 (The Cannon Group PLC)

Type

Item

No

1000 (Bicycle)

Quantity

7

Shipment Date

Go to the Shipping FastTab and choose a shipment date, such as 02/28/2010.


2-9

Manufacturing II in Microsoft Dynamics® NAV 2009 4. Click OK. 5. An inventory stock-out warning is received. Click Yes in response to the inventory stock-out warning. The shipment date information from the header is transferred to each sales line automatically. Verify this by viewing the Shipment Date field on the sales lines and update the shipment date. 6. From the sales order, go to Related Information > Order > Planning. 7. From the Sales Order Planning window, go to Actions > Functions > Update Shipment Dates. 8. Select Each line own Shipment Date. 9. Click OK. The shipment date has changed to the expected delivery date in the Sales Order Planning window and on the sales order line. 10. Close all open windows.

Changes to Production and Sales Orders This lesson identifies the various messages generated by the system when making immediate changes to due dates and quantities on sales orders and production orders. Some of these changes are carried out silently by the system while others generate certain messages. In some cases, the Needs Replanning field in the Sales Order Planning window needs to be activated. The following table summarizes the results of changes made to dependent entities.

2-10

Type of Change

Message Generated

Production order due date moved to sooner than sales order shipment date.

No Message

Production order due date moved to later than sales order shipment date.

"The tracking entries for this line have a date conflict." The Sales Order Planning window indicates that replanning is required.

Sales order shipment date moved to sooner than production order due date.

"The tracking entries for this line have a date conflict." The Sales Order Planning window indicates that replanning is required.

Sales order shipment date moved to later than production order due date.

No message


Chapter 2: Sales Order Interface and Order Planning Type of Change

Message Generated

Sales order quantity changed to less than the original quantity.

No message

Sales order quantity changed to greater than the original quantity.

The Sales Order Planning window indicates that replanning is required.

Without Supply Planning, there is an opportunity for the consultant to develop a report or multiple reports, indicating which sales orders and/or production orders are uncoordinated. However, the Order Planning feature also finds and resolves the unplanned sales orders and production orders.

Order Planning Order Planning is a simple supply planning tool for manufacturing companies. The Production Planner must periodically handle new demand, both from sales and production, to create the necessary supply orders. You can access Order Planning by going to: Departments > Manufacturing > Planning > Tasks > Order Planning. It allows users to find unplanned demand and make decisions order by order. The order planning window includes features to: •

Coordinate supply from alternative sources.

•

Create different supply orders.

•

Recalculate new demand.

Order Planning is used as a simple tool for production planning instead of the more complex tools: the Planning Worksheet and the Requisition Worksheet. NOTE: Order planning is used instead of the Planning Worksheet and the Requisition Worksheet. The two different methods cannot be combined.

WARNING: If the Planning Worksheet is run after Order Planning, all supply orders created by Order Planning is recalculated by the Planning Worksheet. The goal of Order Planning, also referred to as direct planning, is to give the user the ability to establish a plan for a specific sales order that comprises all lines of the order, and for the user to establish a plan for each production order to ensure all components are available in time to be used on the production order. Order Planning is accessed from Purchasing, Sales and Marketing, and from Manufacturing providing users with access from different areas. Within manufacturing, Order Planning can be accessed for all demand through the planning menu, and can focus on one production order when accessed through the production order.


2-11

Manufacturing II in Microsoft Dynamics® NAV 2009 An unplanned sales order means that the sales order is released and one or more of the sales lines are not planned. Production orders are shown when there is unmet demand for components. NOTE: Order Planning views one layer of the BOM structure in production orders when it is calculated. When users create the orders suggested in the order planning worksheet, it results in the next layer of the BOM structure to be seen the next time order planning is calculated. To simplify the form and planning, demand is grouped by order. For sales orders, priority is given to the sales order with an unplanned sales line with the earliest shipment date. Sales order view includes sales lines for return orders where a replacement is needed. Transfer orders, service orders, drop shipments, and special orders are not considered in the demand calculation at this time. Order planning parallels the planning engine used in the planning worksheet, but does not duplicate it. (The planning worksheet and MRP/MPS are discussed in the chapters covering Forecasting, MPS and Planning.) Order Planning differs from the planning engine used in the planning worksheet in the following ways: •

Order parameters from item cards or SKUs are not considered.

•

Forecasts are not considered.

•

Planning is done level by level, so one level of the BOM structure is examined at a time.

The goal is to allow the user to determine which orders need to be affected, determine how much to get from where, create supply orders for them, advise the user the orders are created, and then provide a reference to the orders . Order Planning is accomplished as follows:

2-12

•

It finds and displays which orders (sales and production) need to be planned.

•

The user chooses an order to examine and it calculates and displays how the demand from a selected order can be met.

•

The user can modify the suggestions then create supply orders within the worksheet to cover the demand.


Chapter 2: Sales Order Interface and Order Planning Demonstration 6 The following demonstration shows how to plan for demand created by a sales order. For this example: •

Choose a produced item with at least two BOM levels, at least one component that is manufactured, such as a bicycle with subassemblies for the chain assembly and the front and back wheels.

•

Ensure that the item has no inventory available and no production orders. If production orders exist for the item, delete or complete them.

Start by creating a sales order for an item to create demand. 1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. Press Enter to automatically insert the next number in the default number series for sales orders. 4. Go to the Sell-to Customer No. field and select customer number 10000, The Cannon Group PLC. 5. On the sales line, select Item in the Type field. 6. Go to the No. field and select item number 1001, Touring Bicycle. 7. In the Quantity field, type 10. 8. In the Location Code field, select BLUE. 9. Click Yes for the inventory stock-out warnings to continue. 10. Click OK to close the Sales Order window. 11. Find the unfulfilled demand through the Order Planning window. 12. In the navigation pane, click the Departments button. 13. Go to Manufacturing > Planning > Tasks > Order Planning to open the Order Planning window. 14. Set the Show Demand As field to All Demand. 15. Go to Actions > Functions > Calculate Plan. The Order Planning window finds all unmet demand and shows one bold line for each order, both sales and production orders. Orders without availability problems are not shown. 16. Go to the Show Demand As field and select Sales Demand. 17. Click on Actions > Functions > Calculate Plan to view the demand from sales orders.


2-13

Manufacturing II in Microsoft Dynamics® NAV 2009 View the fields in the form, which is based on the requisition worksheet. Note that not all fields are displayed. Use the Choose columns functionality to view other fields. The Order Planning form includes the following fields: Field

Description

Demand Date

This field shows the demanded date for the demand the planning line represents. The date is either the shipment date of a sales order line or the due date of a component line. It is always the earliest date of all demand in the order. The calculation of new demand occurs every time the window is opened or Calculate Plan is clicked; it is done order-by-order. This means the order that includes the demand line with the earliest due or shipment date is considered first, and all other demand lines in that order, regardless of their individual due or shipment dates, are also calculated for that order. Therefore, all planning lines under one order header line have the same demand date.

Status

This field shows the status of the demand order and is only filled for passive planning lines representing order headers. The field is copied from the order header. Sales demand - shows a status of Open or Released. Production demand - shows a status of Planned, Firm Planned, or Released.

Demand Type

This field shows for which type of demand order the planning line is created, and is only filled for passive planning lines representing order headers. The field can show two different demand types: Sales - representing a sales order (or negative return order). This expands to show one or more sales lines on the sales order with insufficient availability. Production - representing a production order. This expands to show one or more component lines on the production order with insufficient availability.

Demand Subtype

Based on the demand type, this field shows the status of the order. It is copied from the order header.


This field shows which kind of order the program must use when it creates replenishment orders and order proposals. The program creates a purchase order, a production order, or a transfer order. This field is automatically filled with the contents of the Replenishment System field on the item card if the No. field is filled in; however, it can be changed.

Supply From

This field must contain a value according to the selected replenishment system before the system can create a supply order for the line. Note: This is not the case if the replenishment system is a Prod. Order.

Reserve

This field contains a check mark if the item on the planning line has a setting of Always in the Reserve field on its item card. If necessary, select this field to reserve the needed quantity against the supply order that is created from the planning line. To do this, the Reserve field on the item card must be set to either Optional or Always.

2-14


Chapter 2: Sales Order Interface and Order Planning Field

Description

Qty to Order

The needed quantity is proposed on the planning line as the quantity to order. This quantity relates to the demand line only. It does not consider any planning parameters defined on the item card.

Unit of Measure Code

This field shows the unit of measure code the program uses when it determines the unit price. If the Sales Unit of Measure field on the item card is filled in, the value is automatically copied from that field when the requisition line is populated. Otherwise, the value is copied from the Base Unit of Measure field on the item card.

Order Date

The Order date flows from the order lines. Enter the order date that applies to the requisition worksheet line. If the field is filled in, the Due Date field is calculated from this date.

Order No.

The sales or production order number.

Description

Based on the demand type, this field fills in with the customer name for sales and the item description for production orders.

Demand Line No.

The line number from the sales order or component.

Item No.

Item number from the sales line or production order is copied here.

Location Code

Location is copied from the sales line or component line.

Description

Description from the item.

Demand Quantity

This field shows the quantity on the demand that the planning line represents. If the demand is a sales line, then it is the value in the Quantity field (of that sales line). If the demand is a component line, then it is the value in the Expected Quantity field (of that component line). This field is used in the calculation of the needed quantity as follows: Demand Quantity - Demand Qty. Available = Needed Quantity

Demand Qty Available

This field shows how many of the demand quantity are available. It is used in the calculation of the needed quantity as follows: Demand Quantity - Demand Qty. Available = Needed Quantity

Needed Quantity

This field shows the quantity of the demand quantity that is not available and must be ordered to meet the demand the planning line represents. It is calculated as: Demand Quantity - Demand Qty. Available = Needed Quantity Another way to state this is Needed Quantity = Outstanding or Remaining Quantity - Reserved Quantity.

Starting Date

This field contains the starting date of the manufacturing process.

Due Date

This field shows the date when the items are expected to be received.


2-15

Manufacturing II in Microsoft Dynamics® NAV 2009 The bottom of the Order Planning window shows the following information for each line. •

Available for Transfer - If there is a location on the line, drill-down in this field to view the Get Alternative Supply form.

•

Substitutes Exists - If this is set to Yes, drill down to the substitution list. This is only available for components. Sales line substitution must be done from the sales order.

•

Quantity Available - This field shows the total availability of the item on the active planning line, regardless of quantities calculated for the line. The quantity in this field is copied from the Projected Available Balance field. This field can also be accessed from the Order Planning window by clicking Item, Item Availability by.

•

Earliest Date Available - This field shows the arrival date of an inbound supply order that can cover the needed quantity on a date later than the demand date. Note: If the inbound order only covers parts of the needed quantity, it is not considered available and the field does not contain a date.

1. From the order Planning window, find the sales order that you have created and place the cursor on the row. 2. Go to Related Information > Line > Show Document to view the sales order. 3. Click on the Shipping FastTab and note the shipment date. 4. Escape back to the order planning window. 5. From the sales order, click the plus sign to expand the header to show the demand lines, which shows the actual demand. 6. Notice the Order Date is related to the shipping date. 7. The Needed Quantity field contains the quantity of the item from the sales line. 8. View the Quantity Available field found at the bottom. This field shows the total availability of the item and is the same quantity displayed in the Projected Available Balance field in the Item Availability By window. 9. Go to Related Information > Item > Item Availability By > Period to verify. 10. Close the Item Availability by Periods window. 11. Ensure that the production order of your sales order is highlighted. View the Available for Transfer field at the bottom. Although it is zero, click in the field. The icon that appears allows users to view the Get Alternate Supply window. 12. Escape back to the Order Planning window. In the Replenishment System column, notice that the selection is Production Order. Manually change the components.

2-16


Chapter 2: Sales Order Interface and Order Planning 13. With the cursor on the line for the item, go to Related Information > Line > Components to view the components from the production BOM. 14. Make a change to the components, such as changing the quantity of the front wheel to 500. This is obviously a mistake. So that planners can examine different scenarios, there is an option to bring the original component information back to the item. Use the Refresh Planning Line option. 15. Click OK to close the Planning Components window. 16. From the Order Planning window, go to Actions > Functions > Refresh Planning Line. 17. Accept the default information and click OK. 18. Ensure that the production order of your sales order is highlighted. Go back to Related Information > Line > Components. Note that the quantity of the changed component is changed back to the original quantity, which is based from the production BOM. 19. Make a change to the components, with the change carried to the production order. For example, change the quantity of Bell component to two pieces. 20. Click OK. 21. From the Order Planning window, click the Reserve field to make a reservation between the supply order being created and the demand line (sales line or component line) that it is created for. It is empty by default. 22. Click Make Orders.


2-17

Manufacturing II in Microsoft Dynamics® NAV 2009 The make supply order screen offers choices on both the Order Planning FastTab and the Options FastTab. A message on the Order Planning FastTab states "Multi-level production orders made with this function may generate new demand, which you can only see after you have recalculated a plan in the Order Planning window." This indicates Order Planning functions are on a level by level basis.

FIGURE 2.3 MAKE SUPPLY ORDERS WINDOW

•

The Active Line - makes the selected supply order only for the line where the cursor is placed.

•

The Active Order - makes the selected supply order(s) for all of the planning lines in the selected order.

•

All lines - makes the selected supply orders for all planning lines in the window.

NOTE: The Reserve field can only be selected if Optional or Always is in the Reserve field on its item card. 23. From the Makes Orders for field, select the Active Order. On the Options FastTab, the following choices are available: •

Create Purchase Orders: o o o

2-18

Make Purchase Orders Make Purchase Orders and Print Copy to Req Worksheet


Chapter 2: Sales Order Interface and Order Planning •

Create Production Orders: o o o o

•

Planned Firm Planned Firm Planned and Print Copy to Req Worksheet

Create Transfer Orders: o o o

Make Transfer Orders Make Transfer Orders and Print Copy to Req Worksheet.

When Copy to Req Worksheet is chosen, fill in the requisition worksheet template and name. These fields are not accessible if any other choice is made. 24. Select Firm Planned in the Create Production Orders field. 25. Click OK. The sales order is now no longer shown on the order planning form. The sales order no longer appears in the order planning window because the demand is met. 26. Click OK to close the Order Planning window. View the production order. 27. In the navigation pane, click the Firm Planned Prod. Orders button. 28. Open your production order (Touring Bicycle). 29. To view the change to the components made earlier, go to the Lines FastTab. Click the Actions icon (lightning bolt symbol), and go to Line > Components. The change can now be viewed. 30. Return to the production order. Now plan the production order. 31. Go to Related Information > Order > Planning. Observe that the same Order Planning window displayed earlier and the Show Demand As field cannot be edited now and are set to Production Demand. The plan needs to be recalculated because the production order is created since the last planning. 32. Go to Actions > Functions > Calculate Plan. If all demand is met for the production order, a message appears indicating all items are available and no planning line is created for it. 33. Click the plus sign (+) from your production order to view the components.


2-19

Manufacturing II in Microsoft Dynamics® NAV 2009 34. View the Replenishment field. Notice that some items are set to production order and others are set to purchase. 35. View the components for each subassembly. For example, select item 1100 (Front Wheel) and go to Related Information > Line > Components to view its components. Close the window when you are finished viewing the information. Assume for this example that the parts for a subassembly, such as the brake, takes too long to order and receive, and the customer cannot wait that long. 36. Change the Replenishment System for item 1700 (Brake), to Purchase. The Production Planner realizes the need to have more brakes on hand and changes the quantity to order. 37. Increase the quantity to order. For example, in the Qty. to Order field, change the quantity to 20. 38. In the Supply From field, enter 01587796. 39. Click Make Orders. Make the production and purchase orders by using the following data: 40. 41. 42. 43.

In the Make Order for field, select the Active Order. In the Create Purchase Order field, select Make Purch. Orders. In the Create Production Order field, select Firm Planned. Click OK.

Because the order planning is done one level at a time, run the order planning worksheet again to determine if more demand is created. 44. 45. 46. 47. 48. 49. 50.

51. 52. 53. 54.

2-20

Close the Order Planning window. In the navigation pane, click the Departments button. Go to Manufacturing > Planning > Tasks > Order Planning. From the Order Planning window, go to Actions > Functions > Calculate Plan. Select Production Demand in the Show Demand As field. There are new Firm Planned Production Orders for each of the subassemblies. Review the Order Date and Due Date. Delete all rows, except your production order (Touring Bicycle). Because this is a worksheet, the demand is not affected and the demand lines are calculated the next time planning is run. In the Supply From field, enter 01587796. Click Make Orders and in the Make Order for field, select All Lines. Click OK. Close all open windows.


Chapter 2: Sales Order Interface and Order Planning Overview of Order Planning The following is a review of how the system helps the Production Planner meet demand. Remember, it is designed to help the Production Planner perform the task, not to replace the Production Planner. The order planning system: •

Provides information to help the Production Planner make decisions about supply.

•

Shows if the demand is already covered by inventory or current plans by verifying if there are inbound or planned orders.

•

Shows if a supply order needs to be created and if the item card information flows to the Order Planning window to show if the item must be purchased (and from whom) or produced (and the components and routings).

•

Suggests when demand can be taken care of by substitution or transfers. The rescheduling performed may mean the quantity on an already planned and created purchase order is no longer sufficient.

•

After calculating a plan, the Order Planning window suggests to create an additional purchase order for the same item, and it does not delete or change the old purchase order (as does the automatic planning run). Therefore, check existing supply orders and manually modify them according to new demand created through fine scheduling.

•

Calculates a tremendous amount of data and a puts the demand information, along with supply options, into the Order Planning worksheet.

The Role of the Production Planner The Production Planner must review the information and be able to override the suggestions when appropriate. The Production Planner: •

Has the freedom to create a supply order even though the quantity is available.

•

Can change the replenishment system (purchase, production order, or transfer) and the vendor or transfer from location.

•

Can change the quantity to better suit the business needs. As shown, the user can modify the components to a production order.


2-21

Manufacturing II in Microsoft Dynamics® NAV 2009 NOTE: As mentioned at the beginning of this lesson, Order Planning is used instead of the planning and requisition worksheets. The two different methods cannot be used together. Order Planning is a simple supply planning feature intended for small to mid-size manufacturing companies with Make-To-Order or Assemble-To-Order production.

Summary This chapter explains the use of the Sales Order Planning Window. It provides a detailed description of how to create and make changes to production and sales orders, as well as the Order Planning process and the difference between Order Planning and the Planning and Requisition Worksheet. Order Planning can be seen as an efficient supply chain planning tool for small to mid-size manufacturers that operate in a Make-To-Order or Assemble-To-Order environment.

2-22



Lab 2.1 - Sales Order Interface Scenario Use Sales Order Planning to create Production Orders. •

Create a sales order for customer 10000, The Cannon Group PLC.

•

This order is for 12 touring bicycles (item number 1001) and seven bicycles (item number 1000). The shipment date for the order is 02/15/2010.

•

Using the Sales Order Planning window, turn the new sales order into a firm planned production order. The Sales Order Planning window is accessed from the Order button on the sales order.

Observe the order tracking created by the production order.

Step by Step 1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. Press Enter to automatically insert the next number in the default number series for sales orders. 4. Go to the Sell-to Customer No. field and select customer number 10000, The Cannon Group PLC. 5. On the sales line, select Item in the Type field. 6. Go to the No. field and select item number 1001, Touring Bicycle. 7. In the Quantity field, type 12. 8. Click Yes, if the Check Availability window appears. 9. Go to the next sales line and select Item in the Type field. 10. Go to the No. field and select item number 1000, Bicycle. 11. In the Quantity field, type 7. 12. Click on the Shipping FastTab. 13. Enter 02/15/2010 in the Shipment Date. 14. Delete any information in the Location code field. 15. Go to Related Information > Order > Planning. 16. Go to Actions>Functions > Create Prod. Order. 17. Accept the defaults of firm planned order and item order by selecting Yes. 18. A confirmation message appears, stating that a Firm Planned order has been created. Note the production order number and click OK. 19. Put the cursor on the top row. 20. Select Functions > Order Tracking. The order tracking window for the selected line appears. 21. Close the order tracking window and all open windows.


2-23

Manufacturing II in Microsoft Dynamics® NAV 2009 Track from Lab 2.2: Firm Planned Production Order to Sales Order Locate the Firmed Planned Production Orders just created and track back to the sales order.

Step by Step 1. In the navigation pane, click the Firm Production Planned Orders button. 2. Open the first production order created (Touring Bicycle). 3. Go to the Lines FastTab of your production order. Click the Actions icon (lightning bolt symbol) and go to Functions > Order Tracking. 4. Click Show. The sales order appears. 5. Close all open windows. 6. Open the second production order created (Bicycle). 7. Repeat steps 3 to 5.

Lab 2.3: Use the Sales Order Planning Window to View Updates •

Change the due date of the production order just created.

•

What happens in the Sales Order Planning window?

Step by Step 1. In the navigation pane, click the Firm Production Planned Orders button. 2. Open the first production order created (Touring Bicycle). 3. Change the due date to a date that is earlier, such as 02/10/2010. 4. Click Refresh. 5. Accept all default settings and click OK. Ignore any warning messages. 6. Click OK to close the production order. 7. In the navigation pane, click the Sales Orders button. 8. Open the sales order created. 9. Go to Related Information > Order > Planning. 10. There must be a change to the Expected Delivery Date field and no check mark in the Needs Replanning field. 11. Close all open windows. 12. Repeat steps 1 through 2. 13. Change the due date to 02/28/2010.

2-24


Chapter 2: Sales Order Interface and Order Planning 14. Repeat steps 4 through 9. 15. The Next Planning Date must be filled in and a check mark must be in the Needs Replanning field. 16. Close all open windows.

Lab 2.4: Use Order Planning to Create Orders •

Delete the production orders just created.

•

Use the Order Planning window to create production orders.

Step by Step 1. In the navigation pane, click the Firm Production Planned Orders button. 2. Select one of the production orders created (Touring Bicycle). 3. Right-click and select Delete to delete the production order. 4. Click Yes to confirm. 5. Find the other production order created (Bicycle). 6. Right-click and select Delete to delete the production order. 7. Click Yes to confirm. 8. In the navigation pane, click the Departments button. 9. Go to Manufacturing > Planning > Tasks > Order Planning. 10. Change the Show Demand As field to Sales Demand. 11. Go to Actions >Functions > Calculate Plan. 12. Find the sales order. (Demand is determined by sales order line ship date.) 13. From the sales order, click the plus sign to expand the header to show the demand lines. 14. Put the cursor on any of the rows for the sales order (the sales order header or the demand lines). 15. Click Make Orders. 16. In the Make Orders for field, select the Active Line and click OK. 17. Close the Order Planning window. 18. In the navigation pane, click the Firm Production Planned Orders button. 19. View the new order created.


2-25


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

2.

3.

2-26



CHAPTER 3: FORECAST AND MPS Objectives The objectives are: •

Explain what the Production Forecast involves.

•

Define Netting Actual Demand and Forecast.

•

Examine the Planning Approach .

•

Explain forecasting sales items and components.

•

Describe how MPS output provides input to MRP.

Introduction To fulfill the customer's needs, companies must foresee the future demand and plan in advance accordingly. Forecast and Master Production Scheduling (MPS) goes into detail about production forecasting and explains how to net actual demand to forecasts. Additionally, the Planning Approach is explained, and how to forecast for components and sales items. The course also describes how Master Production Scheduling (MPS) provides input to Multi-Resource Planning(MRP ) in Microsoft Dynamics® NAV 2009.


3-1


Production Forecast Long Term Planning When the cumulative lead time of a product is longer than the customers' delivery time expectations, a problem exists. Late customer deliveries lead to bad customer relationships. To make deliveries on time, companies need to plan for the future, determine what needs to be bought or what is currently manufactured, and then consider lead time. Lead time depends on a department's point of view. •

In the sales department, lead time is the time elapsed between when the customer order is taken and when the product is delivered.

•

In purchasing, lead time is the time between the recognition of the need for an order and the receipt of the items, and includes: o o o

•

Order preparation time Processing time Delivery and inspection time

In manufacturing, the cumulative lead time is the longest planned length of time to accomplish an activity, and includes: o o o

Purchasing Production Related processing time

Customer expectations can be stated in the form of forecasted quantities: •

Item by item

•

Period by period

Normally, the demand is forecasted for a given span of time (for example, one year), and is maintained continuously. The sales management part of the system provides options to have sales budgets displayed at an overall item group level. The system can express sales budget as expected amounts and quantities that concern all items in the group. For planning purposes, users must state the forecast as a quantity of each individual item that is covering expectations for a given period.

3-2


Chapter 3: Forecast and MPS The following figure shows an example of how a forecast can be entered in Manufacturing in Microsoft Dynamics NAV 2009.

FIGURE 3.1 PRODUCTION FORECAST

Looking at Demand and Forecasts Forecasts are not perfect. Companies need to deal with differences between actual demand and forecasted demand. •

If the forecast is greater than actual demand, it may require moving the remaining forecast to the next period. (This is acceptable if the uncertainty only concerns timing; however, if even the forecasted quantity is uncertain, this can cause accumulation of inventory. A standard system must not support that situation.)

•

An overly optimistic forecast causes an increase in inventory if production of a period is carried out in accordance with the forecast. A surplus causes a larger opening inventory of the next period, and the remaining forecast is moved to the next period. However, if calculation of net requirement uses the inventory to fulfill forecasted or actual demand of the next period, then the surplus is not added to the forecast of the next period.


3-3

Manufacturing II in Microsoft Dynamics® NAV 2009 The opposite scenario, where the sale is larger than the forecast, is more serious. Since a forecast is only made if cumulative lead time is larger than the customer expected delivery time for sales orders, the consequence of an overly pessimistic forecast is that shipments to customers will be late. •

Since the system does not push customer orders, it has to propose orders to fulfill the demand even though the orders cannot be carried out in due time.

•

If the shipment dates of those customer orders are changed to reflect reality, the orders are consuming forecast from the next period.

The production forecast can differ from the sales forecast, including: •

Seasonal variations in a sale call for flexible production planning occur as expectations of customer demand vary.

•

The Production Planner can have other reasons for adjusting or supplementing the sales forecast. Use of the production forecast can be close to that of a Master Production Schedule.

Forecast Types and Considerations To access the production forecast window, go to Departments > Manufacturing > Planning > Reports > Production Forecast. When users process the production forecast in Microsoft Dynamics NAV 2009: •

It is entered manually by item number.

•

Results criteria such as production forecast name, forecast date and location code can also be used.

•

The Forecasts option is also available using the following path from the sales and marketing menu: Departments > Sales and Marketing > Reports and Analysis > Analysis and Reporting > Production Forecast. A company can use the forecasting function without using manufacturing.

Forecasting can be done by sales items and by component items. It is important to understand the difference between dependent and independent demand: •

Independent Demand - Demand for an item that is unrelated to demand for other items. This is, for example, a top item in a BOM structure.

•

Dependent Demand - Demand that is directly related to or derived from the BOM structure for other items or end products. This is typically a component item.

Independent demand is based on the customer's demand and can be forecasted. Depend and demand can always be calculated from the independent demand.

3-4


Chapter 3: Forecast and MPS When an item has both independent and dependent demand, the case is a little more complicated. This type of item is used to make a finished good but it is also sold by itself, probably as a spare part. Forecasting for this item must be done in sales for the spare part sales, and must be included when components are calculated. If you plan to net demand against forecast for each location individually, use the location filter in the header of the form before entering a quantity. Normally, forecasts are entered company-wide and not by location, but this is a company decision.

Enter Data in the Forecast Form Forecasts mainly involve the following roles: •

Sales Representatives

•

Master Production Planner

•

Materials Planner

The forecast is: •

The Sales department's best estimate at what is sold in the future.

•

Specified item for each item and period by period, for example, monthly.

The forecast can, for example, be transferred to a spreadsheet, as shown in the following table. Forecast as of September 10 , 2008 2008

2009

Item

Description

October

November

December

January

February

March

April

1000

Bicycle

800

600

3500

200

200

300

500

1001

Touring Bicycle

900

600

3300

200

200

200

200

1200

Back Wheel

5

5

5

5

5

5

5

1500

Lamp

40

60

100

80

80

80

20

and so on The Production Planner then takes the sales forecast and modifies it to fit production constraints.


3-5

Manufacturing II in Microsoft Dynamics® NAV 2009 The most important part of the forecast is on end items. However, if the end items are assembled to order, the forecast might be on the main-parts, which can be used as components in the final assembly. The same reasoning can be used in a make-to-order environment, for example, in a rapidly changing product area, such as home computer sales. This method allows for the flexibility of both individual orders and to quickly replace an outdated part with a new, improved part. Spare parts or options can also carry a separate forecast. In the previous example, the lamp is an option and the rear wheel a spare part. The gross requirement for components also sold as spare parts might be much larger than the sales forecast indicates, but most of the demand is dependent. In the example, both the bicycle and the touring bicycle use one rear wheel for each bike. The sales forecast on the wheel shows just the expectations of direct sale for spare parts. The total amount of rear wheels for production is 1705 (800 for the bicycle, 900 for the touring bicycle, 5 sold as spare parts).

Demonstration 1 The following demonstration shows how to enter three months of forecast for Part A. Before entering the production forecast, create an item or choose an item to use in this demonstration, which is also the basis for later demonstrations. 1. In the navigation pane, click the Production Forecast button. 2. Click New. 3. Enter a Name and Description. For example, type a name of 2009 and a description of 2009 Forecast. 4. Click OK. 5. Double-click 2009 Forecast to open it. 6. In the Forecast type field, select Sales Item. 7. In the View by field, select Month. 8. In the Column Set field, check that May2007..Dec 2009 shows. If not, click Previous Set. 9. Click Show Matrix. 10. Move the date section on the right forward or back until October 2009 is showing. 11. Choose an item to enter the production forecast. For example, choose item 1000 (Bicycle). 12. Enter the following information for the item for the 2009 fourth quarter.

3-6


Chapter 3: Forecast and MPS Create sample item based on Cronus. Item No

Description

Date and Year

Quantity

1000

Bicycle

Oct 2009

800

1000

Bicycle

Nov 2009

600

1000

Bicycle

Dec 2009

3,500

Based on the information, the production forecast must appear as shown in the following figure.

FIGURE 3.2 PRODUCTION FORECAST FOR BICYCLE (OCT. - DEC. 2009)

When you enter a forecast in Microsoft Dynamics NAV 2009, the figure is always placed on the first date of the period. (The production forecast form functions similar to the Accounting Budget form, which is shown when you continue to the next step.) 13. Put the cursor in one of the fields that holds a quantity, such as November 2009. 14. Click the AssistButton to view the Production Forecast Entries window. 15. Verify that the Forecast Date field is November 1, 2009. The time interval window gives the planner multiple choices to insert the demand at a specific date in a period.


3-7

Manufacturing II in Microsoft Dynamics® NAV 2009 NOTE: The definition of forecast periods states that a forecast on a given (starting date) is valid until the next forecasts start. Avoid changing the forecast period scope unless all forecast entries are moved to the starting date of this period. An unlimited number of forecasts can be created and copied, and the user is able to work with alternative forecasts. You can copy a forecast from the Production Forecast Matrix window. Go to Related Information > Actions > Copy Production Forecast. Only one production forecast can be used in the Material Requirements Planning (MRP) process. The default production forecast is set up in manufacturing setup, and the user is allowed to choose another production forecast when he or she runs the planning worksheet. 16. In the navigation pane, click the Departments button. 17. Go to Manufacturing > Administration > Setup > Manufacturing Setup. 18. In the Planning FastTab, select the new forecast, 2009, in the Current Production Forecast field. NOTE: When you run the planning worksheets, the system bases the calculations on the sales unit of measure and the forecast entries in the valid forecast form. If no sales unit of measure is given in the item card, the system uses the base unit of measure.

Netting Actual Demand against the Forecast The planning process treats gross requirement from forecast as any other gross requirement. If the gross requirement causes the available projected inventory to pass below the reorder point, the system proposes a replenishment order for the planning parameters of the item. The planning system can calculate Master Planning Schedule (MPS) or Material Requirements Planning (MRP) on request, or it can calculate both at the same time. •

3-8

MPS: Calculation of a Master Production Schedule (MPS) based on actual demand and the production forecast. The MPS calculation is carried out for items with a forecast and a sales order line. These are called MPS items and are dynamically identified when the calculation starts.


Chapter 3: Forecast and MPS •

MRP: Calculation of material requirements based on actual demand for components and the production forecast on the component level. The MRP is calculated only for non- MPS items, as previously defined.

FIGURE 3.3 CALCULATE PLAN – PLANNING WORKSHEET

MPS and MRP can be combined each time the planning worksheet is run. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Administration > Setup > Manufacturing Setup. 3. In the Planning FastTab, verify that the Combined MPS/MRP Calculation check box is selected. When they are combined, the system does not stop at the MPS level, and the production forecast must reflect the same type of production conditions as the MPS. The planning algorithms are identical for both MPS and MRP. The planning algorithms effect the following: •

Netting

•

Reuse of existing replenishment orders

•

Action messages


3-9

Manufacturing II in Microsoft Dynamics® NAV 2009 The following figure also shows this process.

FIGURE 3.4 NETTING PROCESS

Additional information on this issue is discussed in the Planning chapter. In the planning procedure, the production forecast is a part of the gross requirements, but not at the same time as actual demand. When you calculate the gross requirement of an item, actual demand neutralizes the forecast. This process is called forecast consumption or netting demand and forecast. Demand within a forecast period consumes the production forecast of that period. The forecast of a period is regarded as a gross requirement due on the forecast date. If actual requirements appear within the forecast period, it reduces the forecasted quantity.

3-10


Chapter 3: Forecast and MPS Actual requirements substitute the forecast. If the actual requirements of a forecast period surpass the forecast, the forecast is removed from the gross requirements.

FIGURE 3.5 FORECAST CONSUMPTION

The result is a line of gross requirements starting with the remaining forecasted quantity of the period, if any, followed by actual requirements, then the remaining forecasted quantity of the next period followed by actual requirements of that period, and so on. Independent demand only consumes the sales item forecast and dependent demand consumes only the component forecast. The netting procedure: •

Does not actually delete the production forecast; it only reduces the impact of the forecast. The production forecast is left unchanged and it has the original effect next time a plan is calculated.

•

Regards forecast records for previous periods as expired by the starting date of the first valid forecast. If previous forecast records exist, the first valid forecast is the one with the closest date to the starting date of the planning period.

After you determine total demand by reviewing all of the dependent and independent demand for an item, the demand is netted against the forecast. If demand is greater than the forecast, then planning uses the demand quantity.


3-11

Manufa acturing II in Microssoft Dynam mics® NA AV 2009 Also, consiider that if a check c mark iss in the Use Forecast on Locations L field, then demannd nets againsst the forecastt by location. Use the folloowing steps too check this: 1. In the naviggation pane, cllick the Depaartments buttton. 2. Go to Manu ufacturing > Administrattion > Setup > Manufactu uring Setup. 3. In the Plann ning FastTab,, locate the Use U Forecast on o Locationss check box. If there is no n check markk, then demannd nets againsst forecast com mpany-wide. For more innformation onn using multipple locations and SKUs, reefer to the onlline help. Whenn a company forecasts f to plan based on multiple locaations, Use Forecast onn Location whhich provides crucial inform mation. To better unnderstand this, continue too review the forecast fo entereed for Item 10000 (Bicycle). In I addition to the forecast entered, e assum me there is a sales order foor 200 of Item 10000 (Bicycle) for f October 155, and assumee the quantityy on hand is zero. z

FIGURE 3..6 EXAMPLE OF USING PLANNING P W WITH FORECA AST AND ACTUAL DEMAND D

NOTE: A company c that forecasts by location must have a checck mark in Use Forecast on n Location too get correct information i b location. by

3-12


Chapter 3: Forecast and MPS Demonstration 2 The following demonstration shows you how to net the forecast for the example. 1. Forecast type filter: First, a filter is set to deal with independent demand and sales item forecast. This demonstration deals with independent demand for Item 1000 (Bicycle). 2. Find first valid forecast: The first valid forecast is the one with a forecast date preceding, or at, the planning date. The order date is 1015-09 and the first valid forecast is the forecast for 800 with a forecast date of 10-01-09. 3. Define current forecast: The first forecast is transformed to gross requirement as current forecast. It is a quantity of 600. 4. Define forecast period: The next forecast is read. The result is the next period starts 11-01-09. The current forecast period ending date is (the next forecast date, 1) 10-31-09. 5. Consume and insert forecast: All demand (unreserved or not) between forecast starting and ending date is read. The total demand in the example is 200. The total demand quantity is subtracted from the current forecast quantity (600 minus 200). Reaching the end of the period the remaining current forecast is inserted as gross requirement (400). 6. Prepare for next forecast period: The next forecast becomes current forecast. This period starts with 11-01-09. The procedure continues from step 4 until the last forecast is read. The planning includes forecast period 12-01-09 - 12-31-09 in its last step since planning is run until 12-15-09. Due date (2009)

10-01

Forecast qty for Item 1000 (Bicycle)

800

Sales order

10-15

11-01

12-01

600

3,500

800

3,500

800

3,500

200

Inventory Netting

400

Planning line 1000

400

200

Planning Approach Microsoft Dynamics NAV 2009 planning worksheet is used to run MPS and MRP. To find the planning worksheet (from the navigation pane), go to Manufacturing > Planning > Tasks > Planning Worksheets. There are several options. The Calculate Regenerative Plan option is used throughout this course.


3-13

Manufacturing II in Microsoft Dynamics® NAV 2009 The Calculate Regenerative Plan: •

Investigates demand and supply.

•

Projects the available balance.

•

States the net requirement for the item.

•

Creates a replenishment plan to fulfill net requirements.

When the calculate regenerative plan is chosen, the: •

Demand is net against the forecast.

•

Component option on the forecast determines which type of requirements to take into consideration in the netting process.

If the forecast is for a sales item, and not a component forecast, only sales orders net the forecast. Otherwise the netting comprises dependent demand.

Demonstration 3 The following demonstration shows you the Production Forecast and MPS functionality. Use Item 1000 (Bicycle) and place 300 pieces in inventory: 1. In the navigation pane, click the Items button. 2. Click Item Journal. 3. In the Posting Date column, enter a date prior to the work date, such as 01/24/2010. 4. In the Entry Type column, select Positive Adjustment. 5. In the Item No. column, select 1000 (Bicycle). 6. In the Quantity column, enter 300. 7. Check that the location code is blank. 8. Click Post and click Yes to post the journal line. 9. Close the Item Journal window. 10. Proceed to set up the item card. 11. Open the item card for item 1000 (Bicycle) 12. Enter the following information on the Replenishment FastTab. Replenishment System

Prod. Order

Manufacturing Policy

Make-to-Stock

Enter the following information on the Planning FastTab.

3-14

Reorder Cycle

1W

Reordering Policy

Lot-for-Lot

Include Inventory

Yes


Chapter 3: Forecast and MPS 13. Click OK to close the item card. Create a forecast based on item 1000 (Bicycle). 14. 15. 16. 17. 18. 19.

In the navigation pane click the Production Forecast button. Double-click 2010 Forecast. Verify 2010 is entered in the Production Forecast Name field. Verify the Forecast Type is set to Sales Item. In the View by field, select Month. In the column Set field, change the period to be viewed to Jan 2010..Aug 20. This is done by clicking the Next Set or Previous Set button in the process action group. 20. Click Show Matrix. 21. On the line with Item 1000 (Bicycle), insert the quantities in the periods as follows: Item No

Description

Date

Quantity

1000

Bicycle

Oct 2010

0

1000

Bicycle

Nov 2009

1,200

1000

Bicycle

December 2009

1,200

1000

Bicycle

Jan 2011

2,500

22. Click OK and close all open windows. To demonstrate the concepts of master production scheduling, create sales orders to reflect actual customer demand. Create four sales orders based on the data in the following table. 23. In the navigation pane, click the Sales Orders button. 24. Click New. 25. Create four different sales orders for customer 20000 (Selangorian Ltd.) with the following shipment dates and quantities. Ignore any credit limit check warnings. Item No

Description

Shipment Date (DD -MM- YY)

Quantity

1000

Bicycle

11/11/2010

90

1000

Bicycle

11/20/2010

170

1000

Bicycle

12/12/2010

510

1000

Bicycle

12/19/2010

710


3-15

Manufacturing II in Microsoft Dynamics® NAV 2009 26. Ignore any stock-out warnings and click Yes to update any shipment dates. 27. Close all open windows. Set up the planning system to run MPS only. 28. In the navigation pane, click the Departments button. 29. Go to Manufacturing > Administration > Setup > Manufacturing Setup. 30. In the Planning FastTab, verify that the Combined MPS/MRP Calculation check box is not selected. 31. In the Current Production Forecast field, select 2010. 32. Verify that the Use Forecast on Location check box is not selected and the Components at Location field is blank. 33. Click OK. The preparation is complete; start generating the MPS. 34. 35. 36. 37. 38.

In the navigation pane, click the Departments button. Go to Manufacturing > Planning > Tasks > Planning Worksheet. Delete the lines in the planning worksheet, if any are displayed. Click Calculate Regenerative Plan. On the Options FastTab, verify that a check mark is in the MPS field and not in the MRP field. 39. On the Item FastTab, set two filters: o No. filter for the item number, such as Item 1000 (Bicycle). o Location filter contains no data, to exclude from the plan all demand existing on other locations. 40. Enter the starting date for the plan, for example 11/01/2010, in the Order Date field. 41. Enter the end of the planning horizon, such as 01/31/2011, in the Ending Date field.

3-16


Chapter 3: Forecast and MPS 42. Verify the forecast, 2010, is entered in the Use Forecast field. If it is not, enter it now. 43. Leave the Exclude Forecast before field blank.

FIGURE 3.7 CALCULATE PLAN – PLANNING WORKSHEET

44. Click OK.

FIGURE 3.8 PLANNING WORKSHEET


3-17

Manufacturing II in Microsoft Dynamics® NAV 2009 Analyze this output. 45. Select the first row in the planning worksheet. 46. Click Order Tracking. A message displays indicating there are no tracking entries for this line. Forecast items are not tracked. Order tracking information is not listed because this line represents the gross requirement for the forecast period and it is not tracked to any specific demand. 47. Close the Order Tracking window.

Demonstration 4 The following demonstration shows you how to use the order tracking information. 1. From the Planning Worksheet window, place the cursor on the line with a quantity of 1,220. 2. Click Order Tracking. The Order Tracking screen displays two lines, one for each sales order.

FIGURE 3.9 ORDER TRACKING

During December, there is an independent demand with a quantity of 1,220 (510+710). This demand is higher than the forecast quantity of 1,200. Therefore, the forecast for this period is totally neutralized by the actual demand. 3. Close the Order Tracking window.

3-18


Chapter 3: Forecast and MPS NOTE: Order Tracking does not track to the production forecast because of the forecast's design. The forecast quantity is the sum of several entries (correction history and forecast for different locations). The system needs to calculate the quantity when trying to track back to the forecast and this is not possible.

Reports Two reports are useful in this process. These are Planning Availability and Production Forecast. Both are found by going to Departments > Manufacturing > Planning > Reports. Planning Availability - This report displays an overview of all known existing requirements and receipts for the items selected on a specific date. Use the report to obtain a quick picture of the current demand-supply situation for an item. The report displays the item number and description plus the actual quantity in inventory. Changes to the projected available inventory are listed chronologically. The following table shows some of the fields in this report. Refer to the online Help for more information. From the Planning Buffer FastTab, click the drop-down arrow under Show results to see the list. Field

Description

Gross Requirement

This is the total demand-independent and dependent-for the particular item. Independent demand comes from sales orders, service orders, transfer orders, and production forecasts. Dependent demand comes from production order components from planned, firm planned, and released production orders. Component demand for production order proposals in planning and requisition worksheets is also included.

Planned Receipts

These are the items from replenishment order proposals. This includes planned production orders, planning worksheets, and requisition worksheets.

Scheduled Receipts

These are the items from replenishment orders. This includes firm planned production orders, released production orders, purchase orders, and transfer orders.

Document Type

This shows the type of document that is the source of the availability.

Document Number

This shows the number of the relevant source document.

Production Forecast - This report shows an overview of the production forecast, plus any sales orders, for the selected items. Use the report to check the accuracy of a production forecast, for example. Define what is included in the report by setting filters.


3-19


Forecasting Sales Items and Components When using a master production schedule, the planning responsibility for fulfilling customer demand moves to the Master Production Planner and the MPS. When users later calculate MRP, order proposals from MRP are exclusively based on dependent demand. Component needs for MPS items start the planning and the further explosion is then carried out as usual, with no consideration to demand from sales orders.

Demonstration 5 The following demonstration shows you how the different forecast types work. First, delete the sales orders and then remove the bicycle inventory. 1. In the navigation pane, click the Items button. 2. Double-click item 1000 (Bicycle). 3. From the General FastTab, go to the Qty. on Sales Order field and click the number beside it. 4. Go to the first line and click Show Document, which goes to the sales order. 5. Delete the sales order by going to Actions > Delete. 6. Click Yes to confirm. 7. Repeat steps 4-6 until all the sales orders for Item 1000 (Bicycle) are gone. The next step is to remove the inventory for item 1000 (Bicycle). 8. 9. 10. 11. 12.

In the navigation pane, click the Items button. Double-click item 1000 (Bicycle). In the Inventory field, make a note of the total inventory available. Click Item Journal. From the Item Journal window, enter or select the following data in the named fields:

Field Name

Data to enter/select

Posting Date

1/28/2010

Entry Type

Negative Adjustment

Item No.

1000

Description

Bicycle

Quantity

Total quantity available

13. Click Post and click Yes to post the journal lines. 14. Close the Item Journal window.

3-20


Chapter 3: Forecast and MPS 15. From the item card, go to Actions > Refresh to update the data. 16. In the Inventory field, note that the quantity is now zero. 17. Click OK to close the Item card.

Sales Forecast The steps required to enter a sales forecast are now complete.

Demonstration 6 Create a new forecast, for example, using items A Bicycle, E Saddle, and a new item. The new item must be a component of the first item and have zero quantity on hand and no supply or demand. Make sure that the Reorder Cycle on the new item is 1M. 1. In the navigation pane, click the Production Forecast button. 2. Click New. 3. Enter a Name and Description. Enter a name of Example and a description of Example. 4. Click OK. 5. Double-click Example to open it. 6. In the Forecast type field, select Sales Item. 7. In the View by field, select Month. 8. In the Column Set field, check that Jan 2010..Aug 2012 is shown. If not, click the Next Set or Previous Set buttons. 9. Click Show Matrix. 10. Tab to the periods to be forecasted on the lines for items 1000 (Bicycle) and 1850 (Saddle), then enter the quantities according to the following table. Item No

Description

Date (MM - YY)

Qty.

1000

Bicycle

11 - 2010

200

1000

Bicycle

12 - 2010

150

1000

Bicycle

01 - 2011

300

1850

Saddle

11 - 2010

50

1850

Saddle

12 - 2010

50

1850

Saddle

01 - 2011

50

11. Click OK and close the Production Forecast window.


3-21

Manufacturing II in Microsoft Dynamics® NAV 2009 The following steps show you how to start generating the MPS. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 3. Delete the lines in the planning worksheet, if any are displayed. 4. Click Calculate Regenerative Plan. 5. On the Options FastTab, verify that a check mark is in the MPS field and not in the MRP field. 6. Enter the starting date for the plan, for example 08/01/2010, in the Order Date field. 7. Enter the end of the planning horizon, such as 01/31/2011, in the Ending Date field. 8. In the Use Forecast field, select Example. 9. Leave the Exclude Forecast before field blank. 10. Change the Number filter to include the saddle. The filter appears as 1000|1850. Click OK. 11. Choose the new forecast Example, in the Use Forecast field, on the Options FastTab. The results of your forecast for the bicycle and saddle are shown.

Component Forecast The component forecast can be seen as an option forecast in relation to a parent item. For example, this can be useful if the Production Planner can estimate the demand for the component. The component forecast is designed to define options for a parent item; the component forecast must be equal or less than the sales item forecast quantity. If the component forecast is higher than the sales item forecast, the system treats the difference between these two types of forecast as independent demand.

MPS Output Provides Input to MRP In the following example, certain events, including heavy vacation and holiday schedules, are causing changes in the MPS. In addition, one of the primary vendors is closing the business down for a week during Christmas. Use the following procedure to change the quantities by date and by item in the generated planning worksheet. 1. 2. 3. 4. 5.

3-22

In the navigation pane, click the Production Forecast button. Double-click Example to open it. In the Forecast type field, select Sales Item. In the View by field, select Month. In the Column Set field, check that Jan 2010..Aug 2012 is shown. If not, click the Next Set or Previous Set buttons.


Chapter 3: Forecast and MPS 6. Click Show Matrix. 7. Tab to the periods to be forecasted on the lines for item 1000 (Bicycle), then enter the quantities according to the following table. Item No

Description

Date (MM - YY)

Qty.

1000

Bicycle

11 - 2010

300

1000

Bicycle

12 - 2010

250

1000

Bicycle

01 - 2011

450

8. Click OK and close the Production Forecast window. After completing the quantity changes, change the planning system to run MRP (using the modified MPS) as input. 9. In the navigation pane, click the Departments button. 10. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 11. Delete the lines in the planning worksheet, if any are displayed. 12. Click Calculate Regenerative Plan. 13. On the Options FastTab, verify that a check mark is in the MRP field 14. Enter the starting date for the plan, for example 10/01/2010, in the Order Date field. 15. Enter the end of the planning horizon, such as 01/31/2011, in the Ending Date field. 16. In the Use Forecast field, select Example. 17. Leave the Exclude Forecast before field blank. 18. In the Item FastTab, ensure that there are no selected values and click OK. The results of your forecast are shown.

Summary In a complex production environment, it is crucial to plan ahead to ensure timely delivery to customers. This course examines the forecasting process in Microsoft Dynamics NAV 2009, which is one of the foundations for the MPS and MRP planning functionality. The planning approach in the planning worksheet is described in detail, and demonstrations show the calculation methods used in the system.


3-23


Lab 3.1 - Forecast and MPS Scenario There is a new item that has been produced by your company. You need to create a forecast for the new item.

Step by Step Preparation 1. In the navigation pane, click the Items button. 2. Click New. 3. In the General FastTab, enter 8000 in the number and description fields to create a new item card. 4. In the Base Unit of Measure field, select PCS. 5. In the Invoicing FastTab, go to the Gen Prod Posting Group field. and select RETAIL 6. In the Inventory Posting Group field, select FINISHED. 7. In the Replenishment FastTab, go to the Replenishment System field and select Prod. Order. 8. In the Manufacturing Policy field, select Make-to-Stock. 9. In the Planning FastTab, go to the Reordering Policy field and select Lot-for-Lot. 10. Select the Include Inventory checkbox. 11. Enter a reorder cycle of 1W for one week. 12. Click OK. Click a forecast based on the new item. 1. 2. 3. 4. 5.

In the navigation pane, click the Production Forecast button. Double-click 2010 Forecast to open it. In the Forecast type field, select Sales Item. In the View by field, select Month. In the Column Set field, check that Jan 2010..Aug 2012 is shown. If not, click the Next Set or Previous Set buttons. 6. Click Show Matrix. 7. In the No. field, type 8000 to filter the data.

3-24


Chapter 3: Forecast and MPS Tab to the periods to be forecasted on the lines for item 8000, then enter the quantities according to the following table. Item No

Description

Date (MM - YY)

Qty.

8000

8000

11 - 2010

200

8000

8000

12 - 2010

150

8000

8000

01 - 2011

300

8. Click OK and close the Production Forecast window. Set up the planning system to run MPS only. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Administration > Setup > Manufacturing Setup. 3. In the Planning FastTab, verify that the Combined MPS/MRP Calculation check box is not selected. 4. In the Current Production Forecast field, select 2010. 5. Verify that the Use Forecast on Location check box is not selected and the Components at Location field is blank. 6. Click OK.

7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Start generating the MPS. In the navigation pane, click the Departments button. Go to Manufacturing > Planning > Tasks > Planning Worksheets. Delete the lines in the planning worksheet, if any are displayed. Click Calculate Regenerative Plan. On the Options FastTab, verify that a check mark is in the MPS field and not in the MRP field. Enter the starting date for the plan, for example 08/01/2010, in the Order Date field. Enter the end of the planning horizon, such as 01/31/2011, in the Ending Date field. In the Use Forecast field, select 2010. Leave the Exclude Forecast before field blank. In the No. field, select 8000. Click OK.

The results of the forecast for item 8000 appear.


3-25



2.

3.

3-26


Chapter 4: Planning

CHAPTER 4: PLANNING Objectives The objectives are: •

Obtain a general understanding of Planning.

•

Use Regenerative Planning.

•

Use Net Change Planning.

•

Define Order Tracking and Action Messaging.

Introduction This course provides an overview of Planning in Microsoft Dynamics® NAV 2009. It explains regenerative planning and net change planning of Material Requirements Planning (MRP). The course also defines the Order tracking and action messaging functionality, which are important parts of MRP planning.


4-1


Planning Overview In Microsoft Dynamics NAV, "running the planning worksheet" or "running MRP" refers to the calculation of material requirements based on actual demand for components and the production forecast on the component level. The planning engine contains two components: •

Master Production Scheduling (MPS)

•

Materials Requirements Planning (MRP).

MRP is a tool that helps manufacturers effectively manage the following functions: •

Material planning

•

Scheduling

•

Purchasing

The overall purpose of MRP is to provide time-phased formal plans, by item, to supply the right item at the right time, in the right place, and in the right quantity. The MRP process explores what is or will be needed (demand) and what it has or is expecting to have (supply). When these quantities are netted against each other, MRP provides this information in the form of Action Messages. Action messages tell the user to: •

Create a new order

•

Change an order (quantity or date)

•

Cancel an order

Orders are both production orders and purchase orders.

4-2


Chapter 4: Planning The following figure shows an overview of an enterprise system.

FIGURE 4.1 LEVELS IN AN ENTERPRISE SYSTEM

Planning in Microsoft Dynamics NAV 2009 Manufacturing II focuses on the MRP section, which includes: •

Item structure

•

Inventory

•

Open orders

•

Processes, leading to Action Messages

FIGURE 4.2 OVERVIEW OF MRP

For each item for which demand is found, a comparison is made to inventory to determine if demand can be met. If demand is not met in inventory, then look to WIP (for manufactured items). If demand is still not met after viewing open orders, then an analysis of the item's BOM is made to determine what more is needed. For each component, the process starts over. The result of unmet demand is Action Messages, which explains how to best meet demand. To do this, it is necessary to perform one of the following:


4-3


Create a new order

•

Cancel an order

•

Change an order

NOTE: Action Messages are MRP's method of communication to tell the user what to do to meet demand. The basis of the planning routine is in the gross to net calculation. Net requirements drive planned order releases, which are scheduled based on the following: •

Routing information (manufactured items)

•

Item card lead time (purchased items)

Planned order release quantities are based on the MRP calculation, but are modified by the parameters set on the individual item cards. These fields are discussed later. The business process linked to MRP begins with independent demand. Independent demand: •

Can be in the form of a production forecast, master production schedule, a sales order, or any combination of these.

•

Is not reliant upon another item and can be finished goods, repair parts, or separately sold subassemblies.

Dependent demand: •

Is the demand for parts needed to build an item.

•

Parts are identified as components on a production bill of material.

•

Occurs depending on the demand for a higher-level assembly.

NOTE: Independent demand is the demand for an item that is unrelated to the demand for other items. Dependent demand is demand that is directly related to, or derived from, the Bill of Materials (BOM) structure for other items or end products. The following is a review of what is meant by higher-level assembly.

4-4

•

Production BOMs are structured in levels.

•

The finished good is level 0.


Chapte er 4: Plann ning •

The componnents, whetheer purchased items i or subasssemblies, aree level 1. Levvel 1 subassem mblies have coomponents. o

o

These components arre level 2 purrchase items and a subassem mblies, o until the laast level, whicch is all purchhased items, iss and so on reachedd. Microsooft Dynamics NAV 2009 can c process a production BOM B up to 500 levels deep.

FIGURE 4..3 BILL OF MATERIAL ST TRUCTURE

Microsoft Dynamics D NA AV 2009 calcuulates low-levvel codes autoomatically whhen production BOMs attachhed to an item m card are certtified and Dyynamic Low-L Level Code is cheecked in set up u (Path: Man nufacturing > Administraation > Setup p> Manufactu uring Setup > General FaastTab). Microosoft Dynamiics NAV 2009 knows wheen to search annd when to sttop searching for items.


4-5

Manufacturing II in Microsoft Dynamics® NAV 2009 NOTE: Low Level Code calculation is required for correct planning. Choose to either check Dynamic Low Level Code in set up or run Product Design > Calculate Low-Level-Code prior to using the planning worksheet. Always run calculate low-level-code after initial setup of the company is complete. A regenerative plan is run. As the plan progresses, the progress bar window shows that the items are not examined in numerical order; instead they are examined based on the low-level code. The process starts with the top level, 0. If low-level codes are not correctly calculated, the action messages may not be correct. In Microsoft Dynamics NAV, manually calculate the low-level code to resolve the problem. If production BOMs are certified before they are associated with an item or if the Dynamic Low Level Code is set to No, run the Calculate Low Level Code process before using the planning worksheet. NOTE: The low-level code must be correct for MRP to provide correct Action Messages.

Demonstration 1 The following demonstration shows how to calculate a low-level code: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Product Design > Tasks > Calculate LowLevel Code. 3. In the dialogue box, click Yes to calculate a low level code. Low-level codes are now calculated for all items in the company. The bill of material explosion controls the flow of net requirements at the parent item, which is level to the corresponding dependent demand at the lower level assemblies and raw materials. The netting process determines the quantities required for all components by considering the existing inventory levels and scheduled receipts for each item. The program continues to net demand and supply descending through all BOM levels. All components at the lowest level of the BOM are purchased items. Planned order releases (both production and purchase orders) are the output of an MRP generation. These are displayed as line items on the planning worksheet upon completion of a planning run. The production planner converts planned order releases for manufactured items to either of the following:

4-6

•

Production orders (planned or firm planned)

•

Purchase order requisitions for purchased items


Chapter 4: Planning This is referred to as the production plan. MRP does not automatically create production orders. It suggests releases for manufactured and purchased items, which are converted into production or purchase orders. This output becomes the production plan for the enterprise.

Driving and Steering the Planning Engine The planning process is initiated by independent demand. Examples of independent demand are: •

Finished goods

•

Spare parts and repair

•

Overhaul requirements

Independent demand can be in the form of: •

Sales orders

•

Production forecasts

•

A master production schedule, or

•

A combination of all three

In a make-to-order (MTO) environment: •

Independent demand may not be recognized until a customer order is received.

•

The production planner creates an associated firm planned production order to drive the planning process.

•

Some MTO clients may desire to plan for future production by entering a production forecast or a master production schedule, only for those items that receive bookings.

•

Alternatively, MTO clients may forecast or master schedule at the component or sub-assembly level. This allows clients the flexibility of producing a wide variety of final products from the relatively few standard items that make up the forecast or master production schedule.

Make-to-stock environments are characterized by the requirement to: •

Deliver products in a short time span, typically from finished goods inventory. This approach requires the use of a: o o

Production forecast Master production schedule to drive the manufacturing company to produce items to replenish inventory based upon anticipated sales volumes of products.


4-7

Manufacturing II in Microsoft Dynamics® NAV 2009 Methods for Generating a Plan Most companies have a specific process for generating a production plan, including the periodic requirements for plan generation; that is, how often, what method, and so on. These processes must be considered during the setup and implementation stage. Plans may be calculated using these methods: •

Calculate Regenerative Plan - Calculates all selected items, whether it is necessary or not. This function processes a fully regenerative plan. All items in the database are replanned. The system generates worksheet entries assuming infinite capacity. Capacity in work or machine centers is not considered when developing schedules. This calculation automatically deletes all planned orders that are currently loaded.

•

Calculate Net Change Plan - Calculates only those selected items that have had some change in their demand-supply pattern and, therefore, have been assigned for planning. This function processes a net change plan. Items participate in net change planning as a result of two types of changes: o o o o o o o o

•

Demand/supply changes: Modifications to quantities on sales orders or production forecasts. Planning parameter changes: Safety stock Reorder point Routing Bill of material Unplanned consumption Changes in purchase order quantities

Get Action Messages - This function serves as a short-term planning tool by issuing action messages to alert the user of any modifications made since the last regenerative or net change plan is calculated.

NOTE: Calculating a plan uses a significant amount of system resources and locks some tables. It is strongly recommended that the planning functions be processed during periods when users are not accessing inventory or bill of material records. It is not necessary to recalculate the entire plan every time the planning routines are run, although it is often done, especially if it can be run before or after work hours. If you are choosing only those items that have experienced changes in their demand stream, or changes in an item definition that consequently impact the material, the plan must be recalculated. This reduces the load on system processing, which significantly shortens the amount of time required to calculate a plan.

4-8


Chapter 4: Planning Reorder Point A reorder point represents demand during lead time. When the projected inventory passes below the inventory level defined by the reorder point, it is time to order more quantity. Meanwhile, the inventory is expected to decrease gradually and possibly reach zero (or the safety stock level), until the replenishment arrives. Accordingly, the planning system will suggest a forward-scheduled supply order at the point when the projected inventory passes below the reorder point. The reorder point reflects a certain inventory level. However, inventory levels can move significantly during the reorder cycle and, therefore, the planning system must constantly monitor the projected available inventory. To include an item in the planning process, it must have a reordering policy. Otherwise, it must be planned manually. You can select the following kinds of reordering policies for an item. Reordering Policy Type

Description

Fixed Reorder Qty.

The Fixed Reorder Qty. policy is related to inventory planning of typical C-items (low inventory cost, low risk of obsolescence, and/or many items). This policy is usually used in connection with a reorder point reflecting the anticipated demand during the lead time of the item.

Maximum Qty.

The Maximum Quantity policy is a way to maintain inventory using a reorder point. Everything regarding the Fixed Reorder Qty. policy also applies to this policy. The only difference is the quantity of the suggested supply. When using the maximum quantity policy, the reorder quantity will be defined dynamically based on the projected inventory level and will therefore usually differ from order to order.


4-9

Manufacturing II in Microsoft Dynamics® NAV 2009 Reordering Policy Type

Description

Order

In a make-to-order environment, an item is purchased or produced to exclusively cover a specific demand. Typically it relates to A-items, and the motivation for choosing the Order reordering policy can be that the demand is infrequent, the lead-time is insignificant, or the required attributes vary. The program creates an order-to-order link, which acts as a preliminary connection between the supply, a supply order or inventory, and the demand that it is going to fulfill. Apart from using the Order policy, the order-to-order link can be applied during planning in the following ways: • When using the make-to-order manufacturing policy to create multi-level or project type production orders (producing needed components on the same production order). •

When using the Sales Order Planning feature to create a production order from a sales order.

Even if a manufacturing company considers itself as a make-to-order environment, it might be best to use a lot-for-lot reordering policy if the items are pure standard without variation in attributes. As a result, the system will use unplanned inventory and only accumulates sales orders with the same shipment date or within a defined reorder cycle. Lot-for-Lot

4-10

The lot-for-lot policy is the most flexible because the system only reacts on actual demand, plus it acts on anticipated demand from forecast and blanket orders and then settles the order quantity based on the demand. The lot-for-lot policy is aimed at A- and B-items where inventory can be accepted but should be avoided. In some ways, the lot-for-lot policy looks like the Order policy, but it has a generic approach to items; it can accept quantities in inventory, and it bundles demand and corresponding supply in time buckets defined by the user. The time bucket is defined by the reorder cycle. The system works with a minimum time bucket of one day, since this is the smallest time unit of measure on demand and supply events in the system (although, in practice, the time unit of measure on production orders and component needs can be seconds). The reorder cycle also sets limits on when an existing supply order should be rescheduled to meet a given demand. If the supply lies within the reorder cycle, it will be rescheduled in or out to meet the demand. Otherwise, if it lies earlier, it will cause unnecessary build-up of inventory and should be canceled. If it lies later, a new supply order will be created instead. With this policy, it is also possible to define a safety stock to compensate for possible fluctuations in supply, or to meet sudden demand. Because the supply order quantity is based on the actual demand it can make sense to use the order modifiers: round the order quantity up to meet a specified order multiple (or purchase unit of measure), increase the order to a specified minimum order quantity, or decrease the quantity to the specified maximum quantity (and thus create two or more supplies to reach the total needed quantity).


Chapter 4: Planning The four reordering policies have the following effect on the quantity being reordered: Reordering Policy Type

Description

Fixed Reorder Qty.

The order quantity will, at minimum, be equal to the reorder quantity. It can be increased to meet the demand or the desired inventory level. This reordering policy is usually used with a reorder point.

Maximum Qty.

The order quantity will be calculated to meet the maximum inventory. If quantity modifiers are used, then maximum inventory can be violated. It is not recommended to use reorder cycle together with maximum quantity, and in most cases the reorder cycle will be overruled. This reordering policy is usually used with a reorder point.

Order

The order quantity will be calculated to meet each single demand event and the demand-supply set will remain linked until execution. No planning parameters are considered.

Lot-for-Lot

The quantity is calculated to meet the sum of the demand that comes due within the reorder cycle.

NOTE: Changing from one reordering policy to another policy may result in the program disabling some planning parameter fields that were previously active and still contain the most recently used values.

Setting Planning Parameters The following demonstration shows the calculation of a materials plan. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 3. Delete the lines in the planning worksheet, if any are displayed. 4. Click Calculate Regenerative Plan. Review the form to determine how a user can customize a planning run to meet his or her business requirements. The Calculate Plan window has two FastTabs: •

Options

•

Item

The following table describes the options available on the FastTabs. After the worksheet is filled in, the user can optionally employ filters to view only those lines within a specific date range. The planner can control which planning lines are made into orders or requisitions by controlling the Accept Action Message field. Using the Carry Out Action Messages function, the


4-11

Manufacturing II in Microsoft Dynamics® NAV 2009 Production Planner can release all orders with a starting or due date within the specified range. FastTab Name

Description

Item

The Item FastTab filters and runs the planning routines based on item, item description, or location. Filters restrict the number of items planned, for example, if a filter is set for item 1000, only item 1000 is planned for. Filtering by any other field on the item card is also possible. One option for clients is to use an unused field as a filter for planning. This field can be equivalent to a product family or a buyer's planning code. The user can then filter on a particular code and run the planning routine for that product family only.

4-12


Chapter 4: Planning FastTab Name

Description

Options

The Options FastTab specifies the type and horizon of the planning run. MPS - Placing a check mark in this field initiates the calculation of a master production schedule. Items with open sales orders and/or production forecasts participate in this run. MRP - Placing a check mark in this field initiates the calculation of material requirements planning. Items with dependent requirements participate in this run. A check mark in the Combined MPS/MRP Calculation field in manufacturing setup (Path: Departments > Manufacturing > Administration > Setup > Manufacturing Setup > Planning FastTab) permits calculation of both MPS and MRP in one run. The majority of users choose this method. Starting Date - To avoid a supply plan that incorporates open orders in the past and suggests potentially impossible actions, the planning system treats all dates before the planning starting date as a frozen zone where the following special rule applies: All supply and demand before the starting date of the planning period will be considered a part of inventory or shipped. In other words, it assumes that the plan for the past is executed according to the given plan. Frozen zone means that future supplies and order dates before the planning starting date are excluded - except those tied by order-to-order links or serial/lot numbers. Any back-dated supply-demand sets are consolidated in one Emergency order on the planning starting date. Refer to the section on Dealing with Orders before the Planning Starting Date for more Information. Ending Date - This is the ending date of the planning horizon. Neither demand nor supply is considered after this date. If the reorder cycle for an item extends beyond the ending date, the effective planning horizon for that item is equal to the order date and the reorder cycle. Stop and Show First Error - The user can select this to have the planning run stop when it encounters the first error. At the same time, a message is displayed with information about the error. If an error exists, only the successful planning lines that were made before the error was encountered, will be presented in the planning worksheet. If the field is not selected, the Calculate Plan batch job will continue until it has completed. Errors will not interrupt the batch job. If one or more errors exist, the program will display a message after completion saying how many items are affected by errors. The Planning Error Log window then opens to provide more details about the error and to provide links to the affected documents or setup cards. Use Forecast - Select a forecast that must be included as demand when running the planning batch job. Exclude Forecast Before - Define how much of the selected forecast to include in the planning run by entering a date before which forecast demand is not included. This excludes old information.


4-13

Manufacturing II in Microsoft Dynamics® NAV 2009 The planning horizon (the amount of time the plan is extended to) is sometimes difficult for non-planners to decide upon and is the basis for many discussions. •

If the horizon is too short, items with a longer lead time are not ordered on time.

•

If the horizon is too long, too much time is spent reviewing and processing information that changes before it is needed.

It is possible to set one planning horizon for production and a longer one for purchases, although it is not required. A planning horizon for purchases and production must be set to cover the cumulative lead time for components. To avoid having a supply plan show impossible and therefore useless suggestions, the planning system regards the period up until the planning starting date a frozen zone where nothing is planned for. The following rule applies to the frozen zone: All supply and demand before the starting date of the planning period will be considered a part of inventory or shipped. Accordingly, the planning system will not, with a few exceptions, suggest any changes to supply orders in the frozen zone, and no order tracking links are created or maintained for that period. The exceptions to this rule are as follows: •

If the projected available inventory, including the sum of supply and demand in the frozen zone, is below zero.

•

If serial/lot numbers are required on the backdated order(s).

•

If the supply-demand set is linked by an order-to-order policy.

If the initial available inventory is below zero, the planning system suggests an emergency supply order on the day before the planning period to cover the missing quantity. Consequently, the projected and available inventory will always be at least zero when planning for the future period begins. The planning line for this supply order will display an Emergency warning type and additional information is provided upon lookup.

Demand Stream Demand stream will be used to demonstrate the planning routines. Before creating the sales orders, create a simple production item with its bill of materials, which helps to view the results of the input. Create demand and then examine the related demand for the item and its components. NOTE: To understand how the Action Messages are reacting to the changes, create new items to use in the examples throughout the course.

4-14


Chapter 4: Planning Demonstration 3 The following demonstration shows you how to create an item with the following parameters. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

In the navigation pane, click the Items button. Click New. In the No. field, type Z. In the Description field, type Finished Good. In the Base Unit of Measure field, select PCS. In the Invoicing FastTab, go to the Gen Prod. Posting Group field and select RETAIL. In the Inventory Posting Group field, select FINISHED. In the Replenishment FastTab, go to the Replenishment System field and select Prod. Order. In the Manufacturing Policy field, select Make-to-Order. In the Planning FastTab, go to the Reordering Policy field and select Order.

Return to this card later to add the Prod BOM and Routing. 11. Click OK. Make two components: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

In the navigation pane, click the Items button. Click New. In the No. field, type Y. In the Description field, type Component 1. In the Base Unit of Measure field, select PCS. In the Invoicing FastTab, go to the Gen Prod. Posting Group field and select RETAIL. In the Inventory Posting Group field, select FINISHED. In the Replenishment FastTab, go to the Replenishment System field and select Purchase. In the Manufacturing Policy field, select Make-to-Order. In the Planning FastTab, go to the Reordering Policy field and select Lot-for-Lot. Select the Include Inventory check box. Enter a reorder cycle of 1W for one week. Click OK.


4-15

Manufacturing II in Microsoft Dynamics® NAV 2009 Make the second component, X. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

In the navigation pane, click the Items button. Click New. In the No. field, type X. In the Description field, type Component 2. In the Base Unit of Measure field, select PCS. In the Invoicing FastTab, go to the Gen Prod. Posting Group field and select RETAIL. In the Inventory Posting Group field, select FINISHED. In the Replenishment FastTab, go to the Replenishment System field and select Purchase. In the Manufacturing Policy field, select Make-to-Order. In the Planning FastTab, go to the Reordering Policy field and select Lot-for-Lot. Select the Include Inventory check box. Enter a reorder cycle of 1W for one week. Click OK.

Create the Production BOM. 1. 2. 3. 4. 5. 6.

In the navigation pane, click the Production BOMs button. Click New. In the No. field, type Z. In the Description field, type Finished Good. In the Unit of Measure field, select PCS. Enter the following on the first production BOM line: Type: Item No.: Y Quantity per: 1

7. Enter the following on the second line: Type: Item No.: X Quantity per: 2

4-16


Chapter 4: Planning 8. Select a status of Certified on the header. 9. Click OK.

FIGURE 4.4 PRODUCTION BOM

Link the production BOM to the item. 10. In the navigation pane, click the Items button. 11. Double-click Z to open it. 12. Go to the Replenishment FastTab and type Z in the Production BOM No field. 13. In the Routing No. field, select 1000 (Bicycle). If a production BOM is certified before it is connected to an item, the low-level codes are not correct. 14. Click OK. 15. Click the Departments button. 16. Go to Manufacturing > Product Design > Tasks > Calculate LowLevel Code. 17. Select Yes at the option screen when asked to calculate low level code. To establish demand for Item Z, create new demand by creating two new sales orders. Dates are suggested. 18. In the navigation pane, click the Sales Orders button. 19. Click New.


4-17

Manufacturing II in Microsoft Dynamics® NAV 2009 20. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 21. In the Shipping FastTab, go to the Shipment Date field and enter 1/28/2010 and a Location Code of . 22. Enter a sales quantity of 10 for Item Z on the sales order lines. 23. Click OK and ignore any stock-out warnings. 24. Create a second sales order for the same customer with a shipping date of 02/24/2010, Location Code of , and a quantity of 7 for Item Z. 25. Click OK and ignore any stock-out warnings. Use this information for planning.

Regenerative Planning Regenerative planning calculates a new plan for all items. This process ensures all changes in item planning parameters are considered in the planning process, such as minimum and maximum order quantity, order multiple, and other scheduling related changes, such as modifications to the shop calendars.

Demonstration 4 The following demonstration shows you how to initiate a regenerative plan: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 3. Delete the lines in the planning worksheet, if any are displayed. 4. Click Calculate Regenerative Plan. This displays the Calculate Plan request form, which is used for Regenerative/Net change Planning and MPS/MRP. The form contains two FastTabs: Item and Options. On the Item FastTab, define the criteria for calculation of the requirements. For example, choose to calculate only for a specific item number or location. Establish parameters for the run. 5. Enter the following on the Options FastTab: o Calculate MPS o Starting Date: 01/01/2010 o Ending Date: 02/28/2010 o Use Forecast 6. In the Item FastTab, go to the No. field, and enter X..Z to choose items from X through Z. 7. Click OK. 4-18


Chapter 4: Planning The program generates net requirements only for the MPS item Z. Review the most important fields on the planning worksheet. Review the most important fields on the planning worksheet. More columns are available than is covered in this section. Field

Description

No

Indicates the item number being planned.

Warning: Emergency

Any planning line created for an unusual situation will display a warning type in this field, which the user can click for additional information. The following warning types exist: Emergency, Exception and Attention. The emergency warning is displayed in two situations: • When the inventory is negative on the planning start date. •

When back-dated supply or demand events exist.

If an item's inventory is negative on the planning starting date, the planning system suggests an emergency supply for the negative quantity to arrive on the planning starting date. The warning text states the starting date and the quantity of the emergency order. Any document lines with due dates before the planning start date are consolidated into one emergency supply order for the item to arrive on the planning start date. Warning: Exception

The exception warning is displayed in two situations: • The initial available inventory does not meet the safety stock level. •

The projected inventory is below the reorder point.

If the safety stock quantity is violated, the planning system will suggest an exception supply order to replenish the safety stock quantity on the planning start date. The warning text states the item's safety stock quantity, and the date on which it was violated. Warning: Attention

The attention warning is displayed in two situations: • The planning start date is earlier than the work date. In that case, the value in the Starting Date-Time field is in red text. •

The planning line suggests changing a released purchase or production order. In that case, the value in the Ref. Order No. field is in red text.

Action Message

Indicates the type of Action message: New, Change Qty, Reschedule, Reschedule and Change Qty, or Cancel.

Accept Action Message

If this field is selected and the function Carry Out Action Messages is chosen, the change is implemented.

Original Due Date

This field shows the due date of the original order when the Action Message of Reschedule or Reschedule and Change Qty is suggested.

Due Date

Due Date Proposed. Use with Starting and Ending date and time information to show proposed schedule.


4-19


Description

Original Quantity

Similar to Original Due Date; shows the quantity on the existing order.

Quantity

Similar to Due Date; this field shows the suggested quantity for an order.

MPS Order

This field is selected when running MPS alone and indicates this planning line is linked to a sales order or production forecast.

Ref. Order Type

This field shows if the order is a purchase, production, or transfer order.

Ref. Order Number

This field shows the number of the relevant production or purchase order. If the line is New, this is the number the order is when the Action Message is carried out.

Ref. Order Status

This field shows the status of the production order. The options are: Planned, Firm Planned, or Released. If the field is blank, this indicates either a purchase order or a transfer order. Item Description and Routing Description are provided in the lower section of the planning worksheet. Use the following steps to fill in the worksheet with the requirements for dependent demanded items, run MRP. 1. Delete the lines in the planning worksheet. 2. Click Calculate Regenerative Plan. 3. Use the following information: o Item FastTab: o Remove the filter from the No. field. o Options FastTab: o Calculate MRP/MPS o Order Date 01/01/2010 o Ending Date 02/28/2010 o Use Forecast 4. Click OK.

4-20


Chapter 4: Planning The worksheet now includes the requirements for the lower level subassemblies and raw materials required to produce the master production schedule. The worksheet displays, as shown in the following figure.

FIGURE 4.5 PLANNING WORKSHEET

The rows for the components show a Ref Order Type of Purchase and no Ref Order No. or Status. The top two rows show that production orders are suggested to fulfill the demand created by the sales orders. The remaining rows show the quantity of the purchased components to produce the finished good. For example, a quantity of 14 for Item X is created because the production BOM defines that for every one of Item Z, there must be two of Item X. Track two of the lines. 1. 2. 3. 4. 5.

With the cursor on the top row, click Order Tracking. Observe that the order for ten of Item Z is tracked to a sales order. Click Show to access the original sales order. Continue to Press Esc until you go back to the planning worksheet. With the cursor on the row for 14 of Item X, click Order Tracking.


4-21

Manufacturing II in Microsoft Dynamics® NAV 2009 This row tracks to another planning line. The indented line shows what the planning line is tracked to.

FIGURE 4.6 ORDER TRACKING

This tracking form shows that the component is tracked to another planning line. The indented row shows the line that the planning line is tracked to. The Item No. field on the right side shows which item number is being discussed. Press Esc to return to the planning worksheet.

4-22


Chapter 4: Planning Planning Parameters for Items X & and Y The reorder policy is lot-for-lot, meaning the net requirement is calculated as the exact amount needed (as opposed to a fixed reorder quantity) to supply the source of demand over the entire order cycle. The replenishment order is scheduled at the date of the initial net requirement across the reorder cycle. The following is a graphical display of replenishments for items X, Y, and Z.

FIGURE 4.7 REPLENISHMENTS FOR ITEM X, Y, AND Z

The due date for the purchased items is based on the start time for routing of the finished good. Times can be modified based on time buffers entered on the item card and locations. The following demonstration shows you how to change some parameters and view the affect on ordering.

Demonstration 5 1. In the navigation pane, click the Items button. 2. Double-click item Y to open it. 3. On the Planning FastTab, go to the Safety Stock Quantity field and type 5. 4. In the Order Multiple field, type 2. 5. Click OK. Return to the planning worksheet to view the affect. 6. In the navigation pane, click the Departments button. 7. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 8. Delete the lines in the planning worksheet, if any are displayed. 9. Click Calculate Regenerative Plan.


4-23

Manufacturing II in Microsoft Dynamics® NAV 2009 10. Leave the same filters used before, except select both MPS and MRP. 11. Select OK. NOTE: In most industries, an inverse relationship exists between reorder cycle and item cost (the higher the cost, the shorter the reorder cycle). One common application: fasteners (screws, bolts, and nuts) that have a reorder cycle of one month. The final assembly they are used in might have a reorder cycle of as low as one day. This is driven by inventory investment (carrying costs). Companies want to produce smaller lots of subassemblies and finished goods with schedules that mirror demand. The program provides the flexibility for users to determine how they want to manage their reorder cycles and ultimately their inventory investment.

Modifying the Planning Horizon Users have the capability of adjusting the planning horizon to modify the results and limit the length of the planning run.

Demonstration 6 The following demonstration shows you how to study the impact of the order date on the planning horizon. Create an item card and define the following parameters: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

In the navigation pane, click the Items button. Click New. In the No. field, type W. In the Description field, type Component 3. In the Base Unit of Measure field, select PCS. In the Invoicing FastTab, go to the Gen Prod. Posting Group field and select RETAIL. In the Inventory Posting Group field, select RESALE. In the Replenishment FastTab, go to the Replenishment System field and select Purchase. In the Manufacturing Policy field, select Make-to-Stock. In the Planning FastTab, go to the Reordering Policy field and select Fixed Reorder Qty. In the Reorder Point field, type 50. In the Reorder Quantity field, type 100. Click OK.

Create a new sales order to create demand for this item. 1. In the navigation pane, click the Sales Orders button. 2. Click New.

4-24


Chapter 4: Planning 3. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 4. In the Shipping FastTab, go to the Shipment Date field and enter 2/24/2010 and a Location Code of . 5. Enter a sales quantity of 10 for Component 3 on the sales order lines. 6. Click Release and ignore any stock-out warnings. 7. Click OK. 8. In the navigation pane, click the Departments button. 9. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 10. Delete the lines in the planning worksheet, if any are displayed. 11. Click Calculate Regenerative Plan. 12. Enter the following on the Options FastTab: Calculate: MPS and MRP Starting Date: 01/01/2010 Ending Date: 02/28/2010 Use Forecast 13. In the Item FastTab, go to the No. field, and type W..Z to choose items from W through Z. 14. Click OK. A line is added to the worksheet for item W. The item falls below the reorder point, which is 50. Therefore, MRP suggests an order with a starting date equivalent to the order date of the planning period, and then forward schedules the item. Because the Reorder Quantity is 100, the 50 is rounded to 100 for ordering. NOTE: The reorder point is only triggered if there is demand for an item. If the inventory for item W was negative during the planning period, then MRP will have back-scheduled the order instead. The planning lines only include independent and dependent demand through the ending date. Modifying the ending date allows a user to only create plans for a defined period. Typically, this may be set equal to the product's cumulative lead time (user-calculated) plus some additional time for generating capacity planning information for future periods. Before continuing, make the following adjustments: 1. Delete the sales order for item W. 2. Locate Item W and change the reordering policy to Lot-for-lot (The Reorder Point and Reorder Quantity fields are disabled).


4-25


Net Change Planning Net Change Planning monitors changes in master data, planned supply, and direct changes in demand requirements. These include the following: •

Changes to the safety stock.

•

Changes in BOMs where this item is used.

•

Changes in routings where this item is used.

•

Demand-type changes in master data of the item (reorder point or safety stock).

•

Unplanned consumption, deviations in stocktaking, and any unplanned change of inventory.

•

Receiving quantities other than planned.

Net change: •

Calculations are much faster because the program only considers supply and demand or item definition changes (BOM and routing) since the last plan generation.

•

Only deletes planned orders not required due to changes in demand.

Even though a single action of the previously listed actions, for instance a change in routing, might involve several items, this is not a reason to calculate all items in a regenerative plan. It is more appropriate to let those items participate in the next net change planning.

4-26


Chapter 4: Planning The following figure shows the principle in net change planning.

FIGURE 4.8 NET CHANGE PLANNING EXAMPLE

First, a sales order (or another type of demand) causes planning assignment for item A to join the next net change planning. So far, none of the other 50 items join the next planning. •

When the net change planning runs, it causes a changed (or new) production order for item A.

•

As the components for the changed production order are changed according to the new requirements, items B, C, and D are assigned for planning.

•

The planning system works by the order of the low-level code; therefore, it must examine plans for item B, then C, and then D.

•

Since item B does not have a BOM, the planning for that branch of the product structure ends here.

•

In this example, the changed requirement for item C causes a new production order. Since item C has a BOM, it is exploded, which causes a new requirement for item E. Simultaneously, item E is assigned for planning.

•

Like item B, item D does not have a BOM, so changes in the plan for item D do not cause any further planning.


4-27


Now only item E is assigned for planning. The process goes on, and when exploding the BOM, items F, G, and L are assigned to join the planning.

•

In this example, there is plenty of item F in stock. Consequently, there is no reason to create any replenishment order. And, as a result, items of production BOM F receive no planning assignments.

The net change planning is then completed. Some other changes of master data are more infrequent and may influence a mass of items, such as to change the following: •

Replenishment system to longer take inventory into consideration

•

Entire shop calendar

Therefore, you must then carry out Planning for all items involved by using regenerative planning. Changes of the other planning parameters leads to changes in the future supply. However, the influence on demand is not sufficient to force the item to join the next net change planning.

Demonstration 7 This demonstration explores the net change planning. Begin by entering a new sales order for a manufactured item using the following steps: 1. Create a sales order for a manufactured item of your own choice for a quantity of ten. 2. Choose a date that is within the planning dates of 11/10/2010 through 02/24/2011. Use the following steps to process a net change planning run, and note the impact. 1. From the Manufacturing > Planning > Planning Worksheet, click Functions > Calculate Net Change Plan. 2. Enter the following settings on the Options FastTab: o Calculate MPS and MRP o Order Date 11-10-08 o Ending Date 02-24-09 3. Click OK.

4-28


Chapter 4: Planning The worksheet is populated with only the lines required to manufacture your item. This includes a combination of a new order and changes to existing orders. Since net change planning requires less time and resources to process, it can be run during those periods when a full regeneration is not needed.

Order Tracking and Action Messaging Use the order tracking functionality to make the linkage visible between supply and demand. Tracking entries are created by the planning routines every time they are performed. The following are true of action messages: •

They are generated by the order tracking system when balance is not obtainable within the existing supply or demand order network.

•

They identify the need for user intervention to correct a current or potential problem.

•

They are created as an appendix to a tracking record, holding information about the modifications needed to obtain a new balance in the order network.

•

They are generated and occur one level at a time, in respect of each item's low-level code. This ensures all items that experience or will experience changes in supply or demand are considered.

•

Changes are processed that reestablishes equilibrium between supply and demand.

To avoid unimportant action messages, dampeners can be established. The dampeners serve to restrict the generation of action messages to only those changes that exceed the defined quantity or number of days. To "freeze" a particular supply order so that it does not participate in action messaging, you can change the planning flexibility to None. This can be done on the following: •

Production order line

•

Purchase order line

•

Planning worksheet line

However, setting the planning flexibility to None may result in action messages requesting that you create new orders to meet demand. This occurs because the user stated that the existing order cannot be moved, therefore a new order is required to meet the change in demand. In response to any supply or demand imbalances, the system generates the following action messages: •

New

•

Change Quantity

•

Reschedule


4-29


Resched. and Change Qty.

•

Cancel

NOTE: Action Messages say to create a new order, cancel an order, or change an order (quantity or date). An order is a purchase, transfer, or production order. The following is a review of the action messages.

4-30

Message

Description

New

If a demand cannot be fulfilled by suggesting action messages to Change Qty., Reschedule, or Reschedule and Change on existing orders, the system generates Action Message = New, which suggests a new order. In addition, the system issues the action message New if there are no existing supply orders within the reorder cycle of the item in question. This parameter determines the number of periods forward and backward in the availability profile when you are searching for an order to reschedule.

Change Qty.

When demand tracked to a supply order(s) experiences a quantity change, the system generates an action message Change Qty. to indicate that the related supply must be changed relative to the change in demand. If a new demand emerges, the system searches for the nearest existing unreserved supply order within the reorder cycle and issues a Change action message for that order.

Reschedule

When a supply or demand order experiences a date modification causing an imbalance in the order network, the system issues a Reschedule action message. If there is a one-to-one relationship between demand and supply, the system issues an action message suggesting that the supply order be moved accordingly. If the supplyorder covers demand from more than one sales order, the supply order is rescheduled equal to the date of the first demand.

Resched. and Chg. Qty.

If both the dates and quantities of an order are modified, it is necessary to change plans for both circumstances. Action messaging gathers both actions in one message Resched. and Chg. Qty., to ensure the order network returns to balance.

Cancel

If a demand for an order-to-order basis is deleted, the system issues an action message to Cancel the related supply order(s). If the relationship is not order-to-order, the system generates an action message requesting a Change to reduce the supply. If through other factors, such as inventory adjustments, a supply order is not required at the time the action messages are generated by the user, the system suggests the action message Cancel in the worksheet.


Chapter 4: Planning When a demand is changed, the order tracking system seeks to re-establish balance in the order network. This can be done by either: •

Automatically changing the tracking without involving the user (dynamic tracking).

•

Creating action messages as a means of urging the user to make some specific changes to the order network.

The creation of dynamic tracking entries is not dependent on the planning routines. The planning system automatically creates appropriate order tracking entries each time a new requirement is entered into the database. Dynamic tracking and action messages are discussed later.

Demonstration 8 To demonstrate action messaging, assume a customer called and made several modifications to their order base. To reflect these changes in the demand stream, change sales order shipment dates and quantities for the bicycle and the mountain bike: 1. 2. 3. 4. 5. 6. 7. 8.

In the navigation pane, click the Sales Orders button. Select the sales order for Item Z with a quantity of 10 pieces. Change the order quantity to 8. Ignore any stock-out warnings and click OK. Select the other order, with the quantity of 7 pieces. Change the shipment date to 01/30/2010. Click Yes to modify the shipment date. Click OK.

Use net change planning to generate the action messages. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 3. Delete the lines in the planning worksheet, if any are displayed. 4. Click Calculate Regenerative Plan. Establish parameters for the run. 5. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 01/01/2010 o Ending Date: 02/28/2010 o Use Forecast 6. In the Item FastTab, go to the No. field, and type X..Z to select items from X through Z.


4-31

Manufacturing II in Microsoft Dynamics® NAV 2009 The planning worksheet shows the system-generated action messages that recommend modifications to production and purchase orders to facilitate the changes in the demand stream of item Z. Investigate some of the action messages on the planning worksheet. Review the changes to Item Z. The system uses action message Reschedule to move the parent order forward. At the same time, new orders are created for the underlying components. NOTE: Action messages are mainly controlled by two fields on the item card: Reordering Policy and Reorder Cycle. If the reorder policy is Order, then the reorder cycle-and most other planning parameters-is irrelevant. When the shipment date or quantity is changed, the system tries to reschedule any supply in response to the new situation. The planning line for item X reflects the changed quantity in the planning lines. Review the following fields on the planning worksheet used in action messaging. Field

Description

Action Message

This field displays the type of action message. Choices are: New, Change Qty., Reschedule, Resched. and Chg. Qty., and Cancel.


A check mark in this field indicates the planner accepts the suggested action. These actions are implemented when using the Carry Out Action Messages function.

Original Due Date

For action messages Reschedule or Resched. and Chg. Qty., this field displays the current date for the production or purchase order.

Original Quantity

For action message Change, this field indicates the current quantity for this receipt.

Quantity

This field indicates the new or revised quantity for this receipt, if the action message is implemented.

Implementing Actions Once the Production Planner reviews the action messages and determines whether to accept some or all of the suggested changes, the Production Planner updates the schedules. By default, the system places a check mark in the Accept Action Message field. If the Production Planner determines not to implement a particular action(s), then the check mark must be removed.

4-32


Chapter 4: Planning Dynamic Order Tracking and Action Messaging When demand increases, the system seeks to maintain the balance in the supply and demand profile. This is done by the Dynamic Tracking feature, which automatically attempts to satisfy the increased demand by tracking against existing supply orders or unreserved inventory. Dynamic order tracking is not dependent on the planning routines; order tracking entries are created automatically as required. This is accomplished in order of priority based on the following table. Priority

Dynamic Tracking Priorities - Tracking to:

1

Any excess supply within the existing order.

2

Planned and scheduled receipts in order of receipt date.

3

Available inventory.

4

If supply order exists within current order tracking, issue action message Change.

5

If none of the above, generate action message New.

NOTE: Dynamic order tracking only tracks against items that occupy identical dimensions, that is, location and bin code. The inventory location and bin code must match the demand (sales order or production forecast) exactly. If they do not, the inventory is ignored by the planning routines.

Order Tracking Policy Participation in dynamic tracking and action messaging is determined by setting the Order Tracking Policy field on an item card. This field is located in the Planning FastTab.


4-33

Manufacturing II in Microsoft Dynamics® NAV 2009 The following table shows the possible settings for the Order Tracking Policy field. None

Neither dynamic order tracking nor action messages are generated. Action messages continue to be generated when you process net change or regenerative planning.

Tracking Only

Only dynamic order tracking entries are created. To generate action messages, run regenerative or net change planning.

Tracking and Action Mesg.

Both dynamic order tracking and action messages are created.

Get Action Messages It is highly recommended that you only process regenerative or net change planning during periods when users are not accessing records used by the planning system (such as Inventory and Bill of Materials). For some companies, this may be only at night or on weekends. The Get Action Messages function allows the Production Planner, or other personnel, to get an immediate answer of the impact of schedule changes processed between net change or regenerative planning runs. An example of this is when new sales orders are entered in the morning and the Production Planner wants to start them before the next full planning run. Get Action Messages is not intended to be a substitute for the more robust planning routines employed by net change and regenerative planning. It does, however, allow users to quickly gauge the impact to the plan for a particular item that results from changes between planning runs. NOTE: There is a tradeoff of accuracy for speed and convenience when you use the Get Action Messages function. Note that it is not intended as a replacement of net change or regenerative planning.

Setting Dampeners APICS defines dampeners as: "User-input parameters to suppress the reporting of insignificant or unimportant action messages created through the computer processing of MRP." Users can specify both the period of time and a percentage of the lot size in which to suppress action messages.

4-34


Chapter 4: Planning The dampener for time makes it possible to change the shipment date for a sales order to a future date (and only a future date), controlled by the time specified in the Dampener (Time) field without needing to change the corresponding production order. This increases the stockkeeping but it makes the system less "nervous." (Nervous is an APICS term. It means that there are less changes to orders, making the planning process more stable .) The dampener for quantity makes it possible to reduce (and only reduce) the quantity of a sales order without needing to change the corresponding production order. There is also an increased inventory level; however, the system does not react to every minor change in the supply and demand chain.

Demonstration 9 The following demonstration shows you how to use dampeners. 1. From the Manufacturing Menu, go to Setup > Manufacturing Setup > Planning FastTab. 2. Set the following dampeners: Dampener (Time) 3D Dampener (% of Lot Size) 20 3. 4. 5. 6. 7.

Select the sales order for 8 of item Z. Change the order quantity to 5 and the shipment date to 2/15/2010. Select the sales order for 7. Change the order quantity to 6 and the shipment date to 1/30/2010. From a planning worksheet, calculate a net change plan with these options: o Calculate MPS o Order Date 01/01/2010 o Ending Date 02/28/2010

Only one suggestion is received for the sales order with a quantity of 5. The other order, with a changed shipment date of two days and a changed quantity of 1 (7-6 = 1 is less than 20 percent of 7), is not part of the net change planning, because there is a time dampener of three days and a quantity dampener of 20. The system does not react to the changes in that particular sales order, thereby making the system less "nervous" or sensitive to changes. In this case, the dampener makes the Planning procedure more efficient.


4-35

Manufacturing II in Microsoft Dynamics® NAV 2009 Logging Planning Errors The planning batch jobs, Calculate Plan and Carry Out Action Msg., require that a series of item setup and data relations are intact to successfully plan or create supply for every item demand. Typical setup problems that may cause the batch jobs to fail include: •

Uncertified routings and BOMs

•

Blocked items

•

Missing transfer routes

To avoid searching for errors after a lengthy planning is finished, the Production Planner can select the Stop and Show First Error field on the Options FastTab of both batch job request forms during and after the batch jobs.

Calculate Plan – Plan Worksheet If the Production Planner selects the Stop and Show First Error field, the Calculate Plan batch job stops as soon as it encounters an error. At the same time, a message appears with information about the (first) error. If an error exists, only the successful planning lines made before the encountered error are presented in the Panning Worksheet. If the field is not selected, the Calculate Plan batch job continues until it is completed, that is, errors do not interrupt the batch job. If one or more errors exist, the program displays a message after completion saying how many items are affected. The Planning Error Log window then opens to provide more details about the error and links to the affected item card, BOM, or other source of the error.

Carry Out Action Message – Plan If the Production Planner selects the Stop and Show First Error field, the Carry Out Action Msg. batch job stops as soon as it encounters an error. At the same time, a message appears with information about the (first) error. If an error exists, only the planning lines processed before the encountered error result in supply orders. If the field is not selected, the Carry Out Action Msg. batch job continues until it is completed, that is, errors do not interrupt the batch job. If one or more errors exist, the program displays a message after completion saying how many items are affected.

4-36


Chapter 4: Planning Red Font Indicates Critical Planning Lines The planning system may sometimes suggest planning lines that need extra attention by the planner before they can be accepted. On such lines, the Accept Action Message field is not checked by default and the critical element is highlighted with red font: •

If a planning line suggests a starting time earlier than the work date, the value in the Starting Date - Time field is red.

•

If a planning line suggests that you change a released purchase or production order, the value in Ref. Order No. field is red.

Summary This course examines the Materials Requirements Planning process in Microsoft Dynamics NAV 2009. This includes detailed explanations and demonstrations in concepts such as net change planning, regenerative planning, order tracking, action messages, and dampeners. The planning features in Microsoft Dynamics NAV 2009 are advanced and require some practice and experience. The APICS organization offers additional resources in this special field.


4-37


Lab 4.1 - Planning Scenario

Regenerative Plan Create a sequence of four sales orders for item W (component 3). Each order is for customer 10000 and for a quantity of 10 pcs. with a shipment date of: 1/28/2010, 2/4/2010, 2/11/2010 and 2/18/2010. Calculate a regenerative plan using the planning period 1/1/2010 through 2/28/2010.

Step by Step 1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 4. In the Shipping FastTab, go to the Shipment Date field and enter 1/28/2010 and a Location Code of . 5. Under Type, select Item and under No., select W. Quantity is 10 pieces 6. Click Release and ignore any stock-out warnings. 7. Click OK. 8. Open the item card and verify that the quantity in the Qty on Sales Order field is 40. 9. In the Planning FastTab, verify that the Reorder policy is Lot-for-lot Verify that the Include Inventory field is not selected. 10. Verify that the Reorder Cycle is set to 1W . 11. In the navigation pane, click the Departments button. 12. Delete the lines in the planning worksheet, if any are displayed. 13. Click Calculate Regenerative Plan. 14. Set a filter on the Item FastTab for item W. 15. Make sure MPS is selected on the Options FastTab. 16. Set the order date for 1/1/2010 and the end date for 2/28/2010. 17. Click OK.

4-38


Chapter 4: Planning Lab 4.2 - Another Regenerative Plan 1. Continue using the information from Lab 4.1 and change the reorder cycle on item number W, to 2W. 2. Run another regenerative plan. 3. Note how the grouping of the suggested orders changes.

Step by Step Lab 4.1 must be completed to successfully complete this exercise. 1. In the navigation pane, click the Items button. 2. Open item W (component 3). 3. In the Planning FastTab, go to the Reorder Cycle field and change the entry to 2w (two weeks). 4. Click OK. 5. In the navigation pane, click the Departments button. 6. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 7. Delete the lines in the planning worksheet, if any are displayed. 8. Click Calculate Regenerative Plan. 9. Set a filter on the Item tab for item W 10. Make sure MPS is selected on the Options tab. 11. Set the order date for 1/1/2010 and the end date for 2/28/2010. 12. Click OK. 13. Select one of the lines and click Order Tracking to see the demand that created the planning suggestions.


4-39



2.

3.

4-40



CHAPTER 5: ADDITIONAL PLANNING TOPICS Objectives The objectives are: •

Discuss Item Variants

•

Use Locations in Planning

•

Conduct Transfers between Locations

•

Use Blanket Sales Orders in Planning

•

Use Multi-level Production Orders

•

Provide an Overview of Planning Tools

•

Be able to filter the Planning Worksheet

•

Be able to refresh the planning line function

•

Use Planning Reports

Introduction This course examines the use of additional planning concepts such as item variants, inventory locations, and transfers between warehouses. It also shows how to use blanket sales orders in planning and how to use multi-level production orders. Finally, the course provides an overview of additional planning tools and reports.


5-1


Item Variants Item Variants in Microsoft Dynamics® NAV 2009 Manufacturing provide compatibility with standard Microsoft Dynamics NAV 2009 functionality. The purpose of the variant code feature is to provide a basis for customization. Variant codes in Microsoft Dynamics NAV 2009 are not specifically meant for product configuration or production forecasting. Item Variants allow an item to be defined in numerous ways in terms of its characteristics. This allows multiple characteristics to be assigned to an item without creating additional items.

Item Variants in Planning It is now possible to plan with variant codes. When you calculate a plan, a variant code: •

Is treated as a discrete item.

•

Can be specified in the Production BOM Line window, which is copied to the component line when the production order is created or refreshed.

•

Appears in the output journal when output is recorded. When the output journal is posted, the variant code also appears in the item ledger entry.

An item variant only participates in the planning if there is demand (sales order or production forecast exists for the variant). Variant codes are helpful when you use a Master Production Schedule (MPS). A variant code carries text describing the particular variant, but there is no support for individual BOMs or routings for each variant. There is a maximum of one standard BOM and route for each item used across all variants of a particular item. The variant code functionality does not support individual cost for each variant. If a sales order is created with a variant code, the corresponding production order is filled in with the same variant code.

Demonstration 1 - Planning with Item Variant The sales department sold a 25-inch touring bicycle. A Touring Bicycle item is created with a Production BOM and Routing. Since all touring bicycles of the company are the same, except for the tube length in the frame, the sales department decides to use the same item number and to sub-classify it by a variant code, which specifies three different models sold:

5-2

•

23 inch

•

25 inch

•

27 inch


Chapter 5: Additional Planning Topics Use the following steps to create variant codes for the touring bicycle: 1. 2. 3. 4.

In the navigation pane, click the Items button. Double-click item 1001 (Touring Bicycle). Go to Related Information > Item > Variants. Enter the following variant options:

Code

Description

23

Touring Bicycle 23"

25

Touring Bicycle 25"

27

Touring Bicycle 27"

FIGURE 5.1 TOURING BICYCLE – ITEM VARIANTS

5. Click OK to close the window. Create a sales order for the 25-inch touring bicycle with the following data : 6. In the navigation pane, click the Sales Orders button. 7. Click New. 8. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 9. Enter a sales quantity of 1 for Item 1001 on the sales order lines. 10. Add the Variant Code field to the view on the sales line. Ignore any stock warnings, if any.


5-3

Manufacturing II in Microsoft Dynamics® NAV 2009 11. Select variant code 25. 12. In the Shipping FastTab, in the Shipment Date field enter 1/28/2010.

FIGURE 5.2 SALES ORDER WITH VARIANT ITEM

13. Click OK. The description changed based upon the variant code. To ship the 25-inch variant of the touring bicycle, it must be available in inventory, purchased, or produced. In this demonstration, it needs to be produced. 14. In the navigation pane, click the Departments button. 15. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 16. Delete the lines in the planning worksheet, if any are displayed. 17. Click Calculate Regenerative Plan.

5-4


Chapter 5: Additional Planning Topics 18. Enter the following on the Options FastTab: Calculate MPS Starting Date 1/28/2010 Ending Date 2/5/2010 Use Forecast Blank Exclude Forecast Before Blank 19. On the Item FastTab, set a filter for item 1001. 20. Click OK.

FIGURE 5.3 PLANNING WORKSHEET WITH VARIANT CODE

The variant code is filled in automatically. (You may need to add this field if it does not appear.) Create the production order to build the 25-inch bicycle. 21. Under the Accept Action Message header, select the box. 22. Click Carry Out Action Message. Click the Options FastTab and use the following data: Production Order: Firm Planned Purchase Order: Make Purch. Orders


5-5

Manufacturing II in Microsoft Dynamics® NAV 2009 23. In the Planning Line FastTab, delete all filters.

FIGURE 5.4 CARRY OUT ACTION MESSAGES – PLAN

24. Click OK. 25. Close the Planning Worksheet. 26. In the navigation pane, click the Firm Planned Orders button.

5-6


Chapter 5: Additional Planning Topics 27. Select the production order for the 25-inch touring bicycle. 28. Add the Variant field to the Lines FastTab.

FIGURE 5.5 FIRM PLANNED PRODUCTION ORDER

If you do not see the production order, perform the following: 29. From the Planning Worksheet, go to Order > List. 30. Select the production order for the 25-inch touring bicycle from the list.

Demonstration 2 - Variant Codes in Output Variant codes also appear in the output journal and are indicated on positive item ledger entries that were created as a result of output journal posting. To demonstrate variant codes in the output journal, conduct the following steps to change the status of the previous production order to Released. 1. From the production order, click Change Status. 2. Select Released as new status and 1/28/2010 as the Posting Date and then click Yes. Note the released production order number and record the output. 3. 4. 5. 6.

Click OK to close the Firm Planned order window. In the navigation pane, click the Departments button. Go to Manufacturing > Execution > Tasks > Output Journals. Enter 1/28/2010 as the posting date on the first line of the output journal.


5-7

Manufacturing II in Microsoft Dynamics® NAV 2009 7. Select the production order for the 25-inch touring bicycle, add the Variant Code and Setup Time fields to the output line column view, and then click Explode Routing.

FIGURE 5.6 OUTPUT JOURNAL

The Variant Code field is automatically inserted in the output journal. 8. Enter the process times (accepting the default output quantity), for example: Setup Time

Run Time

Operation 10

120

140

Operation 20

15

80

Operation 30

10

100

Operation 40

55

9. Click Post and Yes to post. 10. Close the Output Journal. The next step is to review the item and capacity ledger entries of the released order: 11. In the navigation pane, click the Released Production Order button. 12. Select the production order for the 25-inch touring bicycle. 13. Go to Related Information > Order > Entries > Capacity Ledger Entries, and add the Variant Code field to the capacity ledger. 14. Close the Capacity Ledger Entries window. 15. From the Released Production Order, go to Related Information > Order > Entries > Item Ledger Entries.

5-8


Chapter 5: Additional Planning Topics The item ledger entry also includes the variant code. The process is complete and the sales order can be shipped. 16. Locate the sales order number from Item Ledger Entries window by going to Actions > Functions > Order Tracking. 17. Note the sales order number and close all open windows. 18. In the navigation pane, click the Sales Orders button. . 19. Open the sales order for the touring bicycle variant. 20. Click Post and select Ship and Invoice. 21. Click OK.

Item Variants in Production BOMs A variant code can be specified on the component lines of a Production BOM. However, a variant code cannot be specified on the BOM header. When you create a production order, the component lines reflect all variants indicated on the production BOM or BOM version. When you use BOM versions, you can structure variations on the base design of a product.

Locations Microsoft Dynamics NAV 2009 Manufacturing can use an inventory location in one of two ways: •

As an item modifier that is used and tracked from the demand for the particular item or item variant to the posted output

•

On a stockkeeping unit to facilitate a number of planning options (in addition to the above)

For companies operating in a multi-site environment, they can assign a location to a stockkeeping unit, which allows the manufacturer to plan production in diverse locations. If locations are mandatory, SKUs must be set up for items.

Inventory Locations in Production Demonstrations within this lesson illustrate the conventional use of locations and then introduce location usage with the SKU (stockkeeping unit) principle.

Single Location in Planning If stocking and shipping finished production BOM items from one location (Location A), and the production of those items occur at a second location (Location B), then: •

The planning of those finished production BOM items occurs at the stocking and shipping location (Location A).


5-9


The consumption of the components is registered to the production location (Location B).

•

The output of the production orders is registered to the stocking and shipping location (Location A) that is entered on the original sales order to allow the sales order to ship.

Demonstration 3 - Single Location in Planning This demonstration shows how a sales order is entered for the touring bicycle that is stocked and shipped in the Blue location. The production is occurring at the Blank location, and the output of the production order is registered to the Blue location. 1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 4. In the Order Date field, enter 1/28/2010. 5. Enter a sales quantity of 5 for Item 1001 on the sales order lines. 6. Select location code BLUE. 7. In the Order Date field, enter 1/28/2010 8. In the Shipping FastTab, go to the Shipment Date field and enter 2/10/2010 and ignore any stock-out warnings. 9. Click OK. When you select location code Blue in the sales order line, the order is filled from that location. If the order cannot be filled with inventory, it must be purchased or produced. Since there is no available inventory in this example, the item needs to be produced. Use the planning worksheet to determine the requirements. 10. In the navigation pane, click the Departments button. 11. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 12. Delete the lines in the planning worksheet, if any are displayed. 13. Click Calculate Regenerative Plan. 14. Enter the following on the Options FastTab: o Calculate MPS o Starting Date 1/28/2010 o Ending Date 2/10/2010 o Use Forecast: Blank o Exclude Forecast Before: Blank 15. On the Item FastTab, set a filter for item 1001. 16. Click OK.

5-10


Chapter 5: Additional Planning Topics Note that the Location Code field is automatically filled in. 17. Select your production order for the 5 Touring Bicycles and click Carry Out Action Message using the following options: Production Order: Firm Planned Purchase Order: Make Purch. Orders 18. Click OK and close the Planning Worksheet. 19. In the navigation pane, click the Firm Planned Production Orders button. 20. Click Execution > Firm Planned Prod. Orders and select the production order for the touring bicycle. 21. Double-click the production order for the 5 Touring Bicycles to open it. Note that when output is recorded, the location code appears in the output journal. When the output journal is posted, the location code also appears in the item ledger entry. As with the previous Item Variants example, the location codes in the output journal are automatically filled in with the Blue location when the route for the released production order is exploded. Once the output is posted, the loop is closed, the sales order can be shipped, and the status of the production order is changed to Finished. To save the user the effort of entering a location code on all component lines for consumption journal processing, a preferred location can be stated in the Components at Location field in Manufacturing Setup.


5-11

Manufacturing II in Microsoft Dynamics® NAV 2009 The effect of which is that the component lines of production orders are automatically filled with the chosen location code.

FIGURE 5.7 MANUFACTURING SETUP IN THE ROLETAILORED CLIENT.

Multiple Locations in Planning Microsoft Dynamics NAV 2009 supports multiple location planning for companies operating in a multi-site environment. This enables individual planning at diverse locations that may plan: •

Production orders

•

Purchase orders

•

Transfer orders (internal transfers from one location to another)

•

Service orders

The stockkeeping unit (SKU), which is an extension of the item card, states the inventory and planning parameters for items and their variants for each location. By centralizing this information on the SKU, the program calculates plans on particular items at specific locations. The SKU does not state a BOM or a routing; therefore: •

An item is produced at only one location.

•

There cannot be different BOMs for each SKU.

•

There cannot be different routings for each SKU.

It is not mandatory to define an SKU for every combination of item, location, and variant stated in the demand. If no SKU is defined for the present combination, the system uses the basic information from the item card.

5-12


Chapter 5: Additional Planning Topics Because a production order states a need for component items besides the requested parent item, the Production Planner must decide which location the components are to be supplied from, in other words, the location where the demand for components appears. This is usually the same location where production takes place, and if the components are not available, planning suggests replenishment orders for the components at the same location.

Using Stock Keeping Units in Planning Before illustrating the component planning on multiple locations, the following demonstration will explain how and when to use the SKU principle in planning. The second demonstration illustrates what happens when an SKU is defined for a component. One of six distribution centers sold ten bicycles and there is no stock of that bicycle in their local warehouse. To simulate a production environment where parent item inventory is planned for several locations: •

SKUs must be created and set up for the parent item (Bicycle) for all distribution centers the bicycle is sold from (Blue, Green, Red, Silver, White, and Yellow).

•

A sales order is created to establish demand.

•

A regenerative plan is calculated for the distribution center (Blue location) in the planning worksheet, followed by the execution of that plan which results in the creation of production and purchase orders.

First, create the SKU of the parent item (bicycle) that will be used in this demonstration: 1. 2. 3. 4. 5. 6. 7.

In the navigation pane, click the Stockkeeping Units button. Click New. In the Item No.: field, select 1000 (Bicycle). In the Location Code field, select BLUE. Click the Planning FastTab. In the Reordering Policy field, select Order. Click the Replenishment FastTab and set the Components at Location field to Blank. 8. Click OK. 9. Create an SKU for this item for location Yellow with the following parameters: o Reordering Policy: Fixed Reorder Qty. o Reorder Cycle: 1W


5-13

Manufacturing II in Microsoft Dynamics® NAV 2009 10. Create a new sales order using the following data: Sell-to Customer: 10000 (The Cannon Group PLC). Item: 1000 (Bicycle) Quantity: 10 Location: BLUE Shipment Date: 2/15/2010 Ignore any stock-out warning messages. 11. Click OK. 12. In the navigation pane, click the Departments button. 13. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 14. Delete the lines in the planning worksheet, if any are displayed. 15. Click Calculate Regenerative Plan. 16. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 2/15/2010 o Ending Date 2/20/2010 o Use Forecast: Blank o Exclude Forecast Before: Blank 17. On the Item FastTab, set a filter for item 1000. 18. Click OK. 19. From the Planning Worksheet, Make sure that there is a check mark on the Accept Action Message header for this production order. 20. Click Carry Out Action Message using the following options: o Production Order: Firm Planned o Purchase Order: Make Purch. Orders 21. Click OK and close the Planning Worksheet. Adjusting for a Change in Demand of Parent Item Assume there is now a slight change in the demand for the parent item: The master planner decides to manufacture the 12 bicycles based on inventory at location YELLOW instead since this is closer to the customer's address.

5-14


Chapter 5: Additional Planning Topics Return to the sales order to change the location code on the sales line. However, since the sales line is planned and a firm planned production order is created, a one-to-one reservation exists between the two. The reservation system does not allow the change of location unless the reservation is cancelled. 1. Open your sales order and on the sales line, click the arrow beside the Reserved Quantity field to get to the Reservation Entries window. 2. In the Reservation Entries window, select Actions > Functions > Cancel Reservation. 3. Click Yes and close the Reservation Entries window. The reservation created by the planning system is now removed and the location on the sales line can be changed. 4. Return to the sales order and change the Location Code field in the sales order line to YELLOW. 5. Click OK to close the sales order. Please note that if you get a warning message ("Reserved quantity must be 0 in the sales line"), you need to: •

Select discard changes

•

Open the sales order again and select YELLOW in the location field.

•

Close the sales order.

Replan the demand. 6. In the navigation pane, click the Departments button. 7. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 8. Delete the lines in the planning worksheet, if any are displayed. 9. Select Actions > Functions > Calculate Net Change Plan. 10. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 2/15/2010 o Ending Date: 2/20/2010 o Use Forecast: Blank o Exclude Forecast Before: Blank 11. On the Item FastTab, set a filter for item 1000. 12. Click OK. 13. Close the Planning Worksheet window.


5-15

Manufacturing II in Microsoft Dynamics® NAV 2009 Demonstration 5 - SKU Created for Both Parent Item and Component In this demonstration, a component item (bell) of the parent item (bicycle) in the previous example has an SKU of its own. The net change plan can therefore plan for that component (bell) at a selected location, using that location's unique parameters, with a fixed reorder quantity of 50. 1. From the navigation pane, click the Stockkeeping Units button. Create an SKU for item 1600 (Bell) with the following parameters: 2. 3. 4. 5. 6. 7. 8. 9. 10.

In the Location Code field, select YELLOW. Click the Planning FastTab. In the Reordering Policy field, select Fixed Reorder Qty. In the Reorder Quantity field, enter 50. Click the Replenishment FastTab and set the Components at Location field to Blank. Click OK. Return to the planning worksheets and delete the existing lines. Click Actions > Functions > Calculate Net Change Plan. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 2/15/2010 o Ending Date 2/20/2010 o Use Forecast: Blank o Exclude Forecast Before: Blank

11. On the Item FastTab, set a filter for item 1600. 12. Click OK. 13. Close the Planning Worksheet.

Inventory Transfers in Planning If a component is produced at another plant, the need for a component can be redirected to another location. This can be stated either by:

5-16

•

Using the Components at Location field on the SKU.

•

Setting up the component SKU to be replenished through transfer order from a particular location using the Replenishment System field on the SKU.


Chapter 5: Additional Planning Topics Demonstration 6 - Transfer Replenishment This demonstration continues from the previous demonstration, where the parent item (bicycle) is produced in the Yellow location. In this demonstration, the component SKU (bell) is produced in the Blue location, and the Yellow location replenishes the bell component by means of a transfer order from the Blue location. 1. Select the SKU for item 1600 (Bell). 2. Select Actions > Edit. 3. Click on the Replenishment FastTab and in Replenishment System field, select Transfer. 4. In the Transfer-from-Code field, select BLUE. 5. Click OK. Check if a transfer route from location BLUE to location YELLOW exists. 6. In the navigation pane, click the Departments button. 7. Go to Warehouse > Administration > Inventory > Transfer Routes. 8. Click Show Matrix. An in-transit code already exists for items being transferred from location BLUE to locations RED and YELLOW. 9. Close all open windows.

FIGURE 5.8 TRANSFER ROUTES MATRIX

Return to the planning worksheet, delete the existing lines, and generate a new net change plan.


5-17

Manufacturing II in Microsoft Dynamics® NAV 2009 In the navigation pane, click the Departments button. 10. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 11. Delete the lines in the planning worksheet, if any are displayed. 12. Go to Actions > Functions > Calculate Net Change Plan. 13. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 2/15/2010 o Ending Date: 2/20/2010 o Use Forecast: Blank o Exclude Forecast Before: Blank 14. On the Item FastTab, set a filter for item 1600. 15. Click OK. This time, the system shows that the reorder quantity for the component item will be replenished by transfer to location YELLOW. 16. Select the boxes under Accept Action Message and click Carry Out Action Message. 17. In the Purchase Order field, select Make Purch. Orders. In the Transfer Order field, select Make Trans. Orders. Ignore any error messages, if any. 18. Click OK. 19. Close the Planning Worksheet.

Planning with Manual Transfer Orders Similar to purchase orders and production orders, transfer orders contain a Planning Flexibility field to define if items on the transfer order need to be included or excluded from the planning run. This is useful when, in addition to automatic transfer orders, a planner needs to perform a general move of inventory quantities to another location, regardless of existing demand. For this purpose, a transfer order is manually created to move the quantity. To ensure that the planning system does not try to manipulate this manual transfer order, the Planning Flexibility field on the transfer line(s) is set to None. Conversely, for the planning system to adjust the transfer order quantities and dates to existing demand, the Planning Flexibility field is set to the default value of Unlimited.

5-18



Blanket Sales Orders Many companies have stopped using forecasts. For these manufacturers, the program provides the option to plan on the basis of long-term blanket orders instead of individual forecasts. In a Just in Time environment, for example, where there is a strong customer and vendor relationship, blanket order contracts usually improve the precision of production plans and the Production Planner does not have to supervise and control forecasts and abnormal demand. A blanket order is a sales agreement that covers: •

Fixed item quantities

•

Fixed price or discounted price

•

Fixed shipment (delivery) dates

When using blanket orders in production planning, the following characteristics exist: •

A blanket order is a source of independent demand.

•

The system does not track blanket orders.

•

A sales order connected to a blanket order consumes the blanket order.

•

A sales order connected to a blanket order does not consume forecast.

When the program calculates blanket order consumption, the shipment date of the connected sales order is irrelevant.

Demonstration 7 - Planning with Blanket Orders Demonstration 7 shows how the planning engine suggests replenishment plans for a blanket order. To illustrate blanket orders that do not consume forecast, a forecast is activated that lies before the blanket sales order. 1. In the navigation pane, click the Departments button. 2. Go to Administration > Setup > Manufacturing Setup. 3. In the Planning FastTab, go to the Current Production Forecast field and select 2010. 4. Select the Use Forecast on Locations check box. 5. Clear the Combined MPS/MRP Calculation check box. 6. Click OK. 7. In the navigation pane, click the Departments button. 8. Go to Manufacturing > Planning > Lists > Production Forecasts. 9. Select 2010 Forecast and click Edit Production Forecast.


5-19

Manufacturing II in Microsoft Dynamics® NAV 2009 10. 11. 12. 13.

In the Location Filter field, select BLUE. In the View by field, select Month. Click Show Matrix. Define a forecast of 300 pieces for item 1000 (Bicycle) in February 2010.

FIGURE 5.9 PRODUCTION FORECAST

14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26.

5-20

Click OK and close all open windows. In the navigation pane, click the Blanket Sales Orders button. Click New. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). Enter a sales quantity of 500 for Item 1000 on the sales order lines. Select location code BLUE. In the Shipping FastTab, go to the Shipment Date field and enter 2/10/2010. Click OK. In the navigation pane, click the Departments button. Go to Manufacturing > Planning > Tasks > Planning Worksheets. Delete the lines in the planning worksheet, if any are displayed. Click Calculate Regenerative Plan. Enter the following on the Options FastTab: o Calculate MPS o Starting Date: 2/10/2010 o Ending Date: 2/20/2010 o Use Forecast: 2010


Chapter 5: Additional Planning Topics 27. On the Item FastTab, select item 1000 and BLUE as a location filter. 28. Click OK. There are two planning lines. 29. Close the Planning Worksheet window. Create two sales orders that are attached to the present blanket order. •

One due before the blanket order shipment date.

•

One due after the blanket order shipment date.

30. 31. 32. 33. 34.

Open the blanket order and in the Qty. to Ship field, enter 100. Click Make Order and click Yes. Ignore any stock-out warnings. Note the sales order number. Click OK. On the Shipping tab, change the date in the Shipment Date field to 02/01/2010. 35. Click OK. Go to the planning worksheet and generate a new regenerative MPS with the same planning options as shown previously. 36. In the navigation pane, click the Departments button. 37. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 38. Delete the lines in the planning worksheet, if any are displayed. 39. Click Calculate Regenerative Plan. 40. Enter the following on the Options FastTab: o Calculate MPS o Starting Date: 02/01/2010 o Ending Date: 2/20/2010 o Use Forecast: 2010 41. On the Item FastTab, select item 1000 and BLUE as a location filter. 42. Click OK. The planning line shows the 100 pieces for the sales order.


5-21

Manufacturing II in Microsoft Dynamics® NAV 2009 43. Close the Planning Worksheet window. 44. Create an additional sales order with the following data: o Sell-to Customer 1000 (The Cannon Group PLC) o Shipping date 02/25/2010 o Item 1000 o Quantity 100 o Location BLUE 45. Make the Blanket Order No. field available on the sales order line using the Show Column function. 46. Click the drop-down button from the Blanket Order No. field and select the blanket order from the Sales Lines window. 47. Click OK. Ignore any stock-out warnings. Return to the planning worksheet and generate a new regenerative MPS. 48. In the navigation pane, click the Departments button. 49. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 50. Delete the lines in the planning worksheet, if any are displayed. 51. Click Calculate Regenerative Plan. 52. Enter the following on the Options FastTab: o Calculate MPS o Starting Date: 02/01/2010 o Ending Date: 02/28/2010 o Use Forecast: 2010 53. On the Item FastTab, select item 1000 and BLUE as a location filter. 54. Click OK. In this MPS, the last sales order for 100 pieces is also shown.

Multi-level Production Orders Users have the ability to create multi-line and multi-level production orders. This order methodology is often used in the Make-To-Order (MTO) environment, where all items are built in response to sales orders.

5-22


Chapter 5: Additional Planning Topics Demonstration 8 - Multi-level Production Planning To demonstrate multi-level production orders, perform the following: •

Change the manufacturing policy to MTO for items 1100 (front wheel) and 1200 (back wheel), which are some of the subassembly items for the touring bicycle.

•

To deactivate the current forecast, make the following planning setup in the Manufacturing Setup window.

1. Use the following parameters on the Planning FastTab: o Current Production Forecast: o Use Forecast on Locations: o Combined MPS/MRP Calculation: ticked

FIGURE 5.10 MANUFACTURING SETUP

2. Create a new sales order with the following data: Sell-to Customer: 10000 (The Cannon Group PLC) Item: 1001 (Touring Bicycle) Quantity: 10 Shipment Date: 02/05/2010 3. Open a planning worksheet. Delete any existing lines and prepare to calculate a regenerative plan with certain filters.


5-23

Manufacturing II in Microsoft Dynamics® NAV 2009 4. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 1/28/2010 o Ending Date: 2/10/2010 o Use Forecast: Blank o Exclude Forecast Before: Blank 5. On the Item FastTab, set a filter for item 1001. 6. Click OK. If it is only the production order line that appears, click Refresh Planning Line and use the following parameters: Scheduling Direction: Backward Routing: Component Need: The program suggested orders for the subassemblies (front and back wheels). If these orders are released, the production orders for the front and back wheels assembly are included on the production order for the bicycle. This option lets users become more efficient by combining all items produced from a sale on a single production order. 7. Close the Planning Worksheet window.

Planning Tools Change Replenishment System Microsoft Dynamics NAV 2009 offers the flexibility of changing an item from Production Order to Purchase (Make-to-Buy) on the planning worksheet. This is accomplished by changing the Replenishment System field on the planning line. For instance, the first order can be changed for the front wheel from Production Order to Purchase from the previous lesson. This functionality is applicable when a company may want to subcontract a normally produced item because of capacity constraints or machine downtime. Once the Replenishment System field on the planning line is changed for the Front Wheel assembly to Purchase, delete all other lines in the planning worksheet. This requirement can now be forwarded to the Purchasing Department with the Carry Out Action Message function.

5-24



Filtering in the Planning Worksheet Objective To run the planning worksheet for a particular item or group of items, the program offers the capability of filtering on any Item Card field.

Demonstration 9 - Filter Planning Worksheet This demonstration shows you how to filter on a particular item number. 1. Create a new sales order with the following data: Sell-to Customer: 10000 (The Cannon Group PLC) Item: 1001 (Touring Bicycle) Quantity: 23 Location: SILVER Shipment Date: 02/12/2010 2. Go to a planning worksheet and delete any existing lines. 3. Go to Actions > Functions > Calculate Net Change Plan. 4. Enter the following on the Options FastTab: o Calculate MPS o Starting Date: 2/5/2010 o Ending Date: 2/12/2010 o Use Forecast: Blank o Exclude Forecast Before: Blank 5. On the Location Filter, select SILVER. 6. Click OK. The planning worksheet is filled in with the net requirements for the Touring Bicycle item only. Since the planning line for the Touring Bicycle has the MPS Order field selected, run MRP to generate the dependent requirements. 7. Select the production order for the touring bicycle. Select Actions > Functions > Calculate Net Change Plan.


5-25

Manufacturing II in Microsoft Dynamics® NAV 2009 8. Enter the following on the Options FastTab: o Calculate MRP o Starting Date: 2/5/2010 o Ending Date: 2/12/2010 o Use Forecast: Blank o Exclude Forecast Before: Blank 9. On the Location Filter, select SILVER. 10. Click OK.

Refresh Planning Line Function To update the planning worksheet for any changes in the bill of material or routings (including a change in active versions), you can use the Refresh Planning Line function to refresh the planning line to account for the new BOM or routing. This function works similar to the Refresh function on a production order

Planning Reports The Planning Availability report can be printed in summary or detail and is similar to the Item Availability-By window that is reviewed for each line on the planning worksheet. To view the Planning Availability Report, go to Related Information > Item > Item Availability by > Period or Variant or Location from the Planning Worksheet. Use the Planning Availability report to filter on selected fields on the planning line, such as Item No. To print the report: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Planning > Reports > Planning Availability. 3. On the Options FastTab, select Yes in the Detailed field. 4. In the Planning Buffer FastTab, select a filter. For example, item 1000 (Bicycle). 5. Click Preview and preview the report.

5-26


Chapter 5: Additional Planning Topics The report prints the columns on the Item Availability window and provides multi-level tracking information for each line on the planning worksheet. To review a report summary, perform the previous steps with the only exception that in the Detailed field, select No preview for the report.

Summary As a supplement to the two planning courses Master Production Scheduling (MPS) and Materials Requirements Planning (MRP), this course examines a variety of additional planning topics such as planning with item variants, using locations and transfer orders in a multi-site environment, and using blanket orders in planning. The course also describes some additional tools and reports.


5-27


Lab 5.1 - Additional Planning Topics Scenario As a Production Planner, you will: 1. Use the variants created in this course's examples to complete this exercise. 2. Create a sales order for five 23-inch bicycle 1000 for 01//24/08. 3. Calculate a regenerative plan. 4. Create a firm planned production order based on the plan. 5. Change the sales order to reflect a 30-inch bicycle. 6. Rerun a regenerative plan. 7. Record the results.

Step by Step 1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 4. Enter a sales quantity of 5 for Item 1001 on the sales order lines. 5. Add the Variant Code field to the view on the sales line. Ignore any stock warnings that display. 6. Check that the location code is blank. 7. Select variant code 23. 8. In the Shipping FastTab, go to the Shipment Date field and enter 2/10/2010. 9. Note the sales order number and click OK. 10. In the navigation pane, click the Departments button. 11. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 12. Delete the lines in the planning worksheet, if any are displayed. 13. Click Calculate Regenerative Plan. 14. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 1/28/2010 o Ending Date: 2/10/2010 o Use Forecast: BLANK

5-28


Chapter 5: Additional Planning Topics 15. On the Item FastTab, select item 1001 and 23 as a variant filter. 16. Click OK. 17. Add the Variant Code column to the planning worksheet if it is not visible. 18. Make sure that the Accept Action Message check box is selected. 19. Click Carry Out Action Message. Click the Options FastTab and use the following data: Production Order: Firm Planned Purchase Order: Make Purch. Orders 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33.

In the Planning Line FastTab, delete all filters. Click OK. Close the Planning Worksheet. In the navigation pane, click the Sales Orders button. Open your sales order and change the variant code from 23 to 25. In the Reserved Quantity field, click the quantity to open the Reservation Entries window. Go to Actions > Functions > Cancel Reservation. Cancel the reservation. Click OK and ignore any stock-out warnings. In the navigation pane, click the Departments button. Go to Manufacturing > Planning > Tasks > Planning Worksheets. Delete the lines in the planning worksheet, if any are displayed. Click Calculate Regenerative Plan. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 1/28/2010 o Ending Date: 2/10/2010 o Use Forecast: BLANK

34. On the Item FastTab, select item 1001. 35. Click OK. There will be planning lines: one is to cancel the production order for 5 23-inch bicycles; the other is to create a production order for 5 of the 25-inch bicycles. 36. Close the Planning Worksheet.


5-29



2.

3.

5-30



CHAPTER 6: SUBCONTRACTING Objectives The objectives are: •

Set up a Subcontractor.

•

Set up Subcontractor Cost by Subcontractor or by Process.

•

Set up a Routing with a Subcontractor.

•

Process a Production Order with a Subcontractor.

•

Determine when a Purchase Order is related to a Production Order.

•

Determine the status of Subcontractor Operations on Released Production Orders.

Introduction Subcontracting is a strategic decision in many manufacturing companies. Subcontracting is defined as a vendor performing one or more operational steps in the production process. Subcontracting can either be a rare occurrence or an integral part of all production activities, depending on the company. This course focuses on the different aspects of the subcontracting process from setting up the subcontractor and routing to the daily work routines in the system connected to using the subcontractor.


6-1


Subcontracting Microsoft Dynamics® NAV 2009 provides several tools to manage subcontract work, including the following features: •

Work Centers with assigned vendor. The work center is set up and associated with the vendor (subcontractor). The vendor can be specified as an outside operation step on a routing, which allows easy handling of a subcontractor. In addition, the cost of the operation can be designated at the routing or at the work center level.

•

Work Center cost based on units or time. This feature specifies if costs associated with the work center are based on the production time or a flat charge for each unit. Although subcontractors commonly use a flat charge for each unit to charge for their services, the program can handle both options (production time and flat charge for each unit).

•

Subcontracting Worksheet. This feature finds the production orders with material ready to send to a subcontractor and automatically creates purchase orders for subcontract operations from production order routings. Then the program automatically posts the purchase order charges to the production order during the posting of the purchase order.

NOTE: Only production orders with a status of released can be accessed and used from a subcontracting worksheet.

Subcontract Work Centers Subcontract work centers are set up the same as regular work centers, with additional information. They are assigned to routings in the same manner as other work centers. When the purchase order is received, it is the same as completing the operational step. NOTE: If the subcontractor step is the last step in the routing, the output is posted when the purchase order is received.

Demonstration 1 The following steps show how to create a subcontract work center. 1. 2. 3. 4. 5. 6.

6-2

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists> Work Centers. Click New. In the No., field, enter 500. In Name field, type Quality Inspection. In the Work Center Group Code field, select 2.


Chapter 6: Subcontracting 7. In the Subcontractor No. field, select 30000 (CoolWood Technologies). 8. In the Flushing Method field, select MANUAL. 9. In the Gen. Prod. Posting Group, select MANUFACT. 10. In the Unit Cost of Calculation, select Units. 11. Select the check box beside Specific Unit Cost. 12. In the Unit of Measure Code field, select MINUTES. 13. In the Shop Calendar Code field, select 2. 14. Accept the defaults for Capacity and Efficiency. 15. Click OK. A Subcontractor work center card is created. Continue to use this work center card in subsequent examples. The following are some of the fields on the Posting FastTab.

Unit Cost Calculation Field The Unit Cost Calculation field is often set to Units on a subcontractor work center. The unit cost generated for a purchase order from a production order routing step is based on a unit charge rather than a measurement of time (such as for each hour). Select Units in the Unit Cost Calculation field.

Specific Unit Cost Field If the company has chosen to subcontract at a single rate for each vendor: •

Set up the cost on the Work center card by filling in Direct Unit Cost through Overhead Rate fields.

•

Leave the Specific Unit Cost field blank.

If subcontracting with this vendor for a different rate for each process then select the Specific Unit Cost field. This sets up a cost on each routing line and saves the time of reentering the information on each purchase order. The cost on the routing line is used in processing rather than the cost on the Work center cost fields. For example, suppose several different processes are subcontracted to a vendor, with most having different unit costs. An example of this is a painting shop. •

The painter applies paint of different grades (epoxy/enamel) and colors, based upon the type of bicycle.

•

Each different type of paint uses a unique process.


6-3


These factors combine to drive a high degree of variability in the unit costs for each process.

•

Rather than having multiple Work center cards for each process, the cost of each specific process is indicated on the applicable routing operation.

To enable the system to calculate costs for this vendor by the routing operation, place a check mark in the Specific Unit Cost field. A Subcontractor work center card is now created for use with Specific Unit Costs based on units.

FIGURE 6.1 WORK CENTER CARD

Demonstration 2 To continue with the demonstration and use the Subcontractor work center in a routing, perform the following steps to calculate the calendar for this work. 1. 2. 3. 4. 5. 6. 7. 8.

Open the work center that you have created. Click Calendar. In the View by field, select Month. Click Show Matrix. Go to Actions>Functions>Calculate. Accept the default start and end dates. In the Work Center FastTab, go to the No. field and select 500. Click OK.

Use this Work center on a routing.

6-4


Chapter 6: Subcontracting Routings that use Subcontract Work Centers In Microsoft Dynamics NAV 2009, Subcontractor work centers can be used exactly as the method used for operations on routings. Set up a routing that uses an outside Work center as a standard operational step. Alternatively, modify the routing for a particular production order to include an outside operation. This may be needed in an emergency situation such as a machine breaking down or during a temporary period of higher demand, where the work normally performed in-house must to be sent to a subcontractor.

Demonstration 3 The following steps show how to set up a subcontractor work center in a routing. 1. 2. 3. 4. 5. 6. 7. 8. 9.

In the navigation pane, click the Routings button. Double-click routing no. 1000 (Bicycle) to open it. Click Versions. Click New. In the Version Code field, type 1. In the Description field, type Executive Bicycle. In the Starting Date field, type 2/1/2010. In the Type field, select Serial. Go to the Lines FastTab and enter the following parameters:

Operation No.

10

Type

Work Center

No.

500

10. Change the status to Certified and click OK.

Subcontracting Worksheet The following is a demonstration showing how to use the Subcontracting Worksheet. First, review the Subcontracting Worksheet by going to: Departments>Manufacturing> Planning > Tasks> Subcontracting Worksheets. This worksheet operates similar to the Planning Worksheet and the Requisition Worksheet; it quickly calculates information and allows the user to review it. Once the user approves the information, the relevant document, in this case a purchase order, is created.


6-5

Manufacturing II in Microsoft Dynamics® NAV 2009 To calculate the information, go to Actions>Functions > Calculate Subcontracts. The Report Selection screen has three FastTabs. Setting filters on either of the first two FastTabs limits the information brought into the Subcontracting Worksheet.

FIGURE 6.2 CALCULATE SUBCONTRACTS

The Options FastTab has one field: Order Date. The date entered in this field flows to the Order Date field in the worksheet. The Due Date is calculated from this date. On the Work Center FastTab, set filters on the Work Center Card information to focus on certain vendors or processes. The Work Center No. and Subcontractor No. default as filter fields. The Production Order Routing Line FastTab has Prod. Order No. and Starting Date to focus on certain items being produced or a certain time frame.

Demonstration 4 To illustrate how the Subcontracting Worksheet can be a timesaving tool in managing outside operations, start by creating a Released Production Order for the item worked on previously. If the created routing is not associated with an item, add it to a produced item card now. Verify if the routing is in use. 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. 6-6


Chapter 6: Subcontracting 6. 7. 8. 9. 10.

11. 12. 13. 14. 15. 16. 17.

In the Lines FastTab, select item number 1000 (Bicycle). In the Due Date field, type 02/10/2010. Click Refresh to obtain the component and routing information. Accept the default settings and click OK. Highlight the item to select it, click the Actions icon (lightning bolt symbol) and go to Line>Routing to see that the subcontractor work center (Quality Inspection) is included. Close the Prod. Order Routing window and go back to your production order. Add the Routing No. and Routing Version Code on the production order lines by using Choose Columns and adding the fields. Click Change Status. Check that the status is changed to Released. Change the posting date to 20/11/2010 and click Yes. Note the released production order number and click OK. Close all open windows.

The next step is to generate a purchase order for any released production orders that have an outside work center as an operation. A purchase order cannot be duplicated because, once it is generated, it is "linked" to that order because of the Microsoft Dynamics NAV 2009 Order Tracking System. 1. In the navigation pane, click the Departments button. 2. Go to the Manufacturing > Planning >Tasks> Subcontracting Worksheets. 3. Go to Actions>Functions>Calculate Subcontracts. 4. Accept the default settings and click OK. The information in this worksheet comes from the Production Order and Production Order Routing Lines and flows to the Purchase Order when that document is created. Some of the fields are described in the following table. Field

Description

Type

This is Item .

No.

The item being produced by the Production Order shows in this field.


Selecting this field allows the user to choose Carry Out Action Message to make a Purchase Order. To keep a row in the worksheet for review, clear the checkmark in this field.

Action Message

This field says "New" to show that a new document is being created.

Prod Order No.

The Released Production Order No. is shown here.

Operation

This shows the Operation No. from the Production Order


6-7

Manufacturing II in Microsoft Dynamics® NAV 2009 Field No.

Description Routing Lines.

Work Center No.

The Work Center No. is shown.

Description

The Work Center Description is shown.

Quantity

The Quantity for this line.

Direct Unit Cost

This field shows the "cost per." If choosing Specific Unit Cost on the Work Center Card, this cost comes from the Routing Line; otherwise, it comes from the Work Center Card. The Direct Unit Cost flows to the Purchase Order and is used to calculate the Line Amount in the Purchase Order.

Demonstration 5 The following demonstration shows how to create a Purchase Order from a Subcontracting Worksheet. In a live situation, a person in the manufacturing or purchasing area reviews each row of information. As with the other worksheets, a user can delete a row from the worksheet without affecting the original information. The information appears the next time Calculate Subcontracts is chosen. In the demonstration, make a Purchase Order for the row(s) of information. As with the Requisition Worksheet, one Purchase Order is created for each vendor. If all subcontracting operations are sent to the same vendor location, only one PO is created. If multiple vendors are named, multiple POs are created. 1. From the Subcontracting Worksheet, verify that the check box under Accept Action Message is selected and go to Actions>Functions> Carry Out Action Message to make the purchase order. 2. On the Options FastTab, the Purchase Order can be printed as it is created. Leave this field blank for this demonstration and click OK. The information turned into a Purchase Order is deleted from the worksheet. Once a Purchase Order is created, the information does not appear again in the worksheet. This prevents the accidental creation of multiple Purchase Orders for the same process. 3. Close all open windows.

6-8


Chapter 6: Subcontracting The next step is to review the new purchase order. 1. In the navigation pane, click the Purchase Orders button. 2. Find and open the new Purchase Order. 3. Use the Show columns functionality and add these fields to the Purchase Order Lines FastTab: Prod. Order No., Prod Order Line No., Operation No., and Work Center No., on the Purchase Order Lines. The information that flowed from the Released Production Order to the Subcontracting Worksheet now shows in the Purchase Order. The fields from Type through Direct Unit Cost in the previous example are the same as in the worksheet. Calculate the Line Amount by multiplying the Quantity by Direct Unit Cost. The Production Order through the Work Center fields are the links that connect this Purchase Order to the Production Order. The line shows the source Production Order and capacity resource information. If the costs change when the Purchase Order is invoiced, the new costs flow to the correct Production Order WIP costs. Additional information concerning costs is available in the Manufacturing Costing course. View the date fields Planned Receipt Date, Expected Receipt Date, and Order Date to determine how the scheduling information from the Production Order is carried through.

Posting Charges to Production Orders for Subcontract Purchase Orders A Subcontract Purchase Order is used for work performed or services rendered. When a Subcontract Purchase Order is received, the inventory quantity of the parent item of the Production Order is not increased. The only exception to this is if the subcontract operation is the final step on the Production Order Routing. When the subcontractor step is the final operation, then posting the purchase order receipt is the same as posting output to the final step. Posting output to the final operational step is when inventory is increased.

Demonstration 6 The following demonstration shows how to post the Purchase Order and review the capacity entries. 1. 2. 3. 4. 5.

From the purchase order, type 1/28/2010 in the Posting Date field. In the Vendor Invoice No. field, type 123456. Click Post. Select Receive and click OK. Press the Esc button.


6-9

Manufacturing II in Microsoft Dynamics® NAV 2009 Before posting the invoice, review the Capacity Ledger Entries. 6. In the navigation pane, click the Released Production Orders button. 7. Open your production order. 8. Go to Related Information>Order>Entries>Capacity Ledger Entries. 9. Check that the Quantity field is filled in and the Direct Cost field is blank. Continue posting the Purchase Order. 10. Close all open windows and go back to the Purchase Order. 11. Click Post. 12. Select Invoice and click OK. Review the Capacity Ledger Entries again. 13. Go to the Released Production Order. 14. Go to Related Information>Order > Entries > Capacity Ledger Entries. The program automatically posts a Capacity Ledger Entry to the Production Order when the Purchase Order is received. The Direct Cost of the Purchase Order is posted to the Production Order when the Purchase Order is invoiced. 15. Close the Capacity ledger Entries window and go back to the production order. 16. From the Lines FastTab, click the Actions button (lightning bolt symbol) and go to Line > Production Journal to verify that the subcontractor operational step (Quality inspection) is posted. 17. Close all open windows. Often, one or more components are sent to a subcontracted vendor to perform some type of assembly or manufacturing operation. To record the withdrawal of components from inventory, enter a manual Consumption Journal entry. To minimize the amount of data entry required: •

Have the program automatically remove the component from inventory by setting the component to be automatically flushed.

•

Assign a Routing Link Code on the Production BOM and on the Subcontracting Routing Operation.

Alternately, set up a Routing where there is a "picking" operation immediately prior to the outside operation.

6-10


Chapter 6: Subcontracting Automatically flushed components: •

May be linked to the picking operation. This ensures that components are removed from inventory prior to the outside operation. A receiving operation may also be set up.

•

Negative quantities on the Production BOM may be linked to the receiving operation. This results in an inventory increase of the components when they are received from the vendor. (The use of Flushing methods on work and machine centers is explained elsewhere in the manual.)

NOTE: If the subcontractor step is the last operational step on the Routing, and the Purchase Order is received and invoiced, the program automatically records that the parent item on the Production Order is finished. Therefore, if time for the earlier operational steps is not recorded in the Output Journal, the Routing cannot be exploded. The time must be manually recorded, line item by line item, in the Output Journal, and the Production Order Status must be manually changed to Finished.

Reports Subcontractor - Dispatch List This report lists all of the Released Production Order Lines for subcontract operations. The report shows when these operations are scheduled and whether a Purchase Order is created. To access this report, go to: Departments>Manufacturing>Execution>Reports>Subcontractor-Dispatch List. Set the following filters when running the report: •

On the Vendor FastTab: o

•

On the Work Center FastTab: o

•

Enter a Vendor No. to limit the information for the vendor being reviewed.

Enter the Work Center Number(s) for the list to be printed.

On the Prod. Order Routing Line FastTab: o

There are three default filter fields:


6-11


Field

Comments

Prod. Order No.

The Production Order Number(s) for the printed list.

Starting Date

A Starting Date to exclude Production Order Lines that starts before this date.

Ending Date

A date to exclude Production Order Lines that ends after this date.

Click the Preview button to view the results of your report.

Summary This course reviews all of the different aspects of the subcontracting process from creating the subcontracting work center and routing to using the subcontractor worksheet, as well as creating the PO and posting it. Increasingly, processes are subject to outsourcing in the new economy, hence the importance of becoming familiar with the different aspects of the subcontracting process.

6-12



Lab 6.1 - Subcontracting Scenario

Create a Subcontractor Work Center 1. Create a subcontracting work center-called Subcontract, with a unit of measure of days. 2. Set up the work center so that the costs are set up by units on the routing line.

Step by Step 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 Departments button. Go to Manufacturing > Capacities > Lists> Work Centers. Click New. Select the General FastTab. In the No., field, type Subcontract. In Name field, type Subcontract. In the Work Center Group Code field, select 2. Go to the Posting FastTab. In the Unit Cost of Calculation field, select Units. Select the check box beside Specific Unit Cost. In the Subcontractor No. field, select 30000 (CoolWood Technologies). Go to the Scheduling FastTab. In the Unit of Measure Code field, select DAYS. In the Shop Calendar Code field, select 2. Click Calendar. In the View by field, select Month In the Column Set field, accept the default dates. Click Show Matrix. Go to Actions > Functions > Calculate. In the Starting Date field, type 01/01/2010. In the Ending Date field, type 12/31/2010. Click OK. Close all open windows.

Lab 6.2: Add Subcontractor to a Routing 1. Add Subcontract to routing number 1000 as operational step number 35. 2. Change the routing description to "Painting."


6-13

Manufacturing II in Microsoft Dynamics® NAV 2009 Step by Step 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

In the navigation pane, click the Routings button. Double-click Routing No. 1000 (Bicycle) to open it. Select the General FastTab . In the Status field, change the status to Under Development. Go to the Lines FastTab. Select operation 40. Right-click and select New Line. Type 35 in the Operation No. field Under Type, select Work Center. Type an S in the No. field and then press Tab. This chooses the Subcontract work center. Change the Description to Painting. Enter a run time of 2. Click the Actions icon (lightning bolt symbol) and select Choose Columns. Add Run Time Unit of Meas. Code to the list and click OK. Notice that this work center's run time unit of measure is in days. Change the status to Certified. Click OK.

Lab 6.3: Start the Subcontractor Worksheet 1. Create a released production order, then create a new released production order for a quantity of 3 for the item. 2. Establish the subcontracting worksheet and calculate subcontracts.

Step by Step 1. In the navigation pane, click the Released 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 3. 6. In the Due Date field, type 1/28/2010. 7. In the Lines FastTab, select item number 1000 (Bicycle). 8. Click Refresh to get the component and routing information. 9. Accept the default settings and click OK. 10. Close the released production order. 11. In the navigation pane, click the Departments button.

6-14


Chapter 6: Subcontracting 12. Go to Manufacturing > Planning > Tasks > Subcontracting Worksheets. 13. Go to Actions > Functions > Calculate Subcontracts. 14. In the Order Date field, type 1/28/2010. 15. Click OK. There will be a row for 3 pieces of item 1000 for the work center, Subcontract.

Lab 6.4: Create PO and Post Receipt for Subcontractor 1. Create a purchase order. 2. Go to the purchase order and post the receipt. 3. View the capacity ledger entries for the production order.

Step by Step 1. From the Subcontracting Worksheet, make sure that the check box under Accept Action Message is selected. 2. Go to Actions > Functions > Carry Out Action Message. 3. Click OK. 4. Close the Subcontracting Worksheet window. 5. In the navigation pane, click the Purchase Orders button. 6. Double-click the purchase order for your subcontractor, Coolwood Technologies. 7. Click Post. 8. Select Receive and click OK. 9. In the Prod. Order No. header, click the drop-down arrow and click Advanced. 10. From the Production Order List-Released window, go to Related Information > Prod. Order > Entries > Capacity Ledger Entries. 11. Close all open windows.


6-15



2.

3.

6-16



CHAPTER 7: ADVANCED CAPACITY Objectives The objectives are: •

Define Capacity Resources

•

Set up Work Centers and Machine Center Calendars

•

Use Capacity Journals for Planning

Introduction Advanced Capacity examines the capacity setup needed to run production planning with constrained resources. Planning with constrained resources is needed when bottlenecks appear in the production environment. First, the work center group, work center, and machine hierarchy are set up. Then the connected work calendars are defined. Finally, the use of the capacity journals for capacity planning is described in detail. The capacity planning can be seen as the possibility to make a "shop supervisor overview" for the manager responsible for the production.


7-1


Capacity Resources The first step in capacity planning is setting up the capacity resources. There are three types of capacity resources or facilities defined in the program: •

Work Center Groups. These are broad departments within the organization. A work center group is a reporting unit, rather than a facility where work is scheduled. A plant may have both production and inventory departments defined as work center groups.

•

Work Centers. These are the resources or facilities where work is performed. Production orders can be scheduled in work centers through routings. The consolidated calendar, which is the shop calendar from the machine center, is used by the program to designate capacity availability. This allows the work center load to become a "shop supervisor overview" of the entire work load from the attached machine centers.

•

Machine Centers. This is the lowest level in the capacity resources hierarchy. A machine center can be a: o o o o

Machine Group of machines with identical characteristics Person Group of people (who performs similar operations)

In many operations, 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). Depending on how tight companies need to control their resources, they may chose to structure their routing operations at the machine center level instead of the work center level. By structuring routings in this manner, companies can view the load at both a specific machine center and at an aggregate level by using the work center load.

Demonstration 1 – Calendar Calculation The following steps show how to recalculate all capacity calendars in the demonstration company. 1. 2. 3. 4. 5. 6. 7. 8. 9.

7-2

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Work Centers. Click Calendar. In the View by field, select Month In the Column Set field, accept the default dates. Click Show Matrix. Go to Actions > Functions > Calculate. In the Starting Date field, type 01/01/2010. In the Ending Date field, type 12/31/2010.


Chapter 7: Advanced Capacity 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

Click OK. Close all open windows. In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Repeat steps 3-10 for all machine centers to calculate the calendars. Close all open windows. In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Work Centers. Double-click work center 100 (Assembly department). In the Scheduling FastTab, select the Consolidated Calendar check box. 20. Click OK. 21. Repeat steps 19-20 for all work centers.

General FastTab In addition to establishing the work center number and description, the work center must be assigned to a work center group. Either look up the appropriate work center group or set up a new group in the Work Center Groups window. •

Alternate Work Center - This field is for informational purposes only.

•

Blocked - Select this field to block the work center account. This is done to prevent any posting to a work center when it is down for maintenance or other reasons.

Posting FastTab •

Direct Unit Cost - This field directly attributes to processing or production activities. Direct costs are expressed in costs for each unit of measure (minute, hour, or day). They are sometimes referred to as the "direct labor rate."

•

Indirect Cost % - This field cannot be directly assigned to a unit, such as general operating costs of the work center. Indirect costs are expressed as an additional percentage to increase the direct cost of the facility. This percentage is added to the direct cost in the calculation of the unit cost.

•

Overhead Rate - The overhead rate is a cost based on the unit of measure code in the work center card, which is added to the direct cost to cover overhead expenses.

•

Unit Cost - The unit cost reflects the total cost for each unit of measure to operate the facility. The unit cost is expressed as follows:

Direct cost + (indirect cost %*direct cost) + overhead rate = unit costs.


7-3

Manufacturing II in Microsoft Dynamics® NAV 2009 Although a Unit Cost can be entered directly into the field, it is recommended to use the other costing fields. •

Unit Cost Calculation - This field is determined by selecting one of two options: time or units. Select which option is to be the basis for the cost calculation. If choosing time, the calculation is based on the used time. Otherwise, it is calculated on the produced units.

•

Specific Unit Costs - Use this field to define the unit costs at the routing operation level. The Unit Cost Per field on the routing lines overrides the Unit Cost field on the work center card. This may be especially valuable for operations that have a dramatically different capacity cost than what is normally processed at that work center.

•

Department Code and Project Code - These fields are the two Global Dimensions set up in the Finance area.

•

Subcontractor No. - Use this field when establishing work center cards for outside vendors. When you are populating the subcontractor worksheet, the vendor number entered is copied to the subcontractor worksheet line as a recommendation to purchase that operation from the subcontractor indicated on this field.

•

Flushing Method - Use this field to select one of the following methods for flushing of output. Since the facilities control posting of the finished good, it is important to consider the flushing method closely.

•

7-4

Field

Comments

Manual

Select this option to manually post the output through the output journal or production journal.

Forward

Select this option to have the program automatically calculate and post output. When the status of a planned (or firm planned) production order is changed to Released, expected output is posted for those operations that have machine or work centers set to forward flush.

Backward

Select this option to have the program automatically calculate and post output. When the status of a released production order is changed to Finished, expected output is posted for those operations that have machine or work centers set to Backward Flush.

General Product Posting Group - This field functions the same way as in the rest of the program. Its addition to the work center card is primarily for costing purposes.


Chapter 7: Advanced Capacity Scheduling FastTab •

Unit of Measure Code - Use this field to use the capacity unit of measure table to assign a unit of measure for this work center. Available options are: o o o o

Minutes Hours Days 100/hour Enter any code or description that fits the production process.

•

Capacity - Use this field to state how many people are working at this work center. For example, if the number 3 is entered, this means three people staff this work center. This value is used to determine the total capacity for the work center. The default setting is 1.

•

Efficiency - Use this field to state the effective or rated capacity of the work center. If it is set to 80, then capacity and availability is calculated in the Shop Calendar Load window at 80 percent. The default is 100.

NOTE : Capacity and Efficiency - These fields affect the total available capacity of the work center. Capacity refers to how many machines or people work in the work center. If a work center's availability is eight hours but the capacity is two, then the total availability is 16 hours. Efficiency is expressed as a percentage and indicates the degree of utilization of the work center. For example if a work center's availability is eight hours but the efficiency is 90 percent, then the total availability is 7.2 hours. •

Consolidated Calendar - If this field is selected, the work center has no availability of its own. The work center's availability is equal to the sum of the machine center capacities. For example, if the consolidated calendar field is selected, and the work center has two machine centers assigned to it, each working eight hours, then the total availability for the work center is 16 hours. If the consolidated calendar field is not selected, the work center has an availability of eight hours. Use this field when routings are structured to schedule production operations at the machine center level. When you consolidate the calendar, the Work Center Load window and reports become a "shop supervisor overview" of the aggregate load in all machine centers attached to a particular work center.


7-5


Shop Calendar - Use this field as the foundation for creating a planning calendar and to determine the base availability of the work center based on the shifts and working hours of the facility. When you use the shop calendar, a specific calendar is generated for this work center (modified by work center capacity and efficiency). Generating a work center calendar helps you specify the number of shifts and shift lengths that determine the gross available capacity. How to set up shop calendars, specific work centers, and machine center calendars is reviewed later.

•

Queue Time - Use this field to always refer to the time unit entered accordingly in the Queue Time Unit of Measure field. The queue time: o

o

•

Defines the time span during which a part to be processed must wait until it is actually processed. For example, a part is delivered to this work center at 1:00 P.M., and because processing does not start until 3:00 P.M., the part has a queue time of two hours. Represents time between the start time of the routing operation step using this work center and the finish of the prior routing operation.

Queue Time Unit of Meas. Code - Use this field to indicate the unit of measure for queue time. If minutes are indicated, for example, an entry of 40 in the Queue Time field means there is a 40-minute wait.

Demonstration 2 – Work Center Setup The following steps show how to set up a new work center. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

7-6

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Work Centers. Click New. Select the General FastTab. In the No., field, type 600. In Name field, type Finishing Department. In the Work Center Group Code field, select 2. Go to the Posting FastTab. In the Direct Unit Cost field, type 1.00. In the Unit Cost of Calculation field, select Time. In the Flushing Method field, select MANUAL. In the Gen. Prod. Posting Group field, select MANUFACT. Go to the Scheduling FastTab. In the Unit of Measure Code field, select MINUTES. In the Capacity field, type 1. In the Efficiency field, type 100. In the Shop Calendar Code field, select 1.


Chapter 7: Advanced Capacity 18. 19. 20. 21. 22. 23. 24. 25. 26.

Click Calendar. In the View by field, select Month In the Column Set field, accept the default dates. Click Show Matrix. Go to Actions > Functions > Calculate. In the Starting Date field, type 01/01/2010. In the Ending Date field, type 12/31/2010. Click OK. Close all open windows.

Machine Centers •

General FastTab - In addition to establishing the machine center number and description, the machine center must be assigned to a work center from the General FastTab. There are two important fields on the work center card used by the machine center: o o

Capacity unit of measure Shop calendar code (see Work Centers)

•

Posting FastTab - This identifies direct and indirect costs, similar to the work center card. In addition, a flushing method can be specified for automatic flushing of time and quantity completed at a routing step, using this machine center (refer to the chapter discussing Finished Orders and Auto Flushing).

•

Scheduling FastTab - In scheduling, both capacity and efficiency affect the total availability of the machine center (similar to work centers). The machine center uses the unit of measure code and shop calendar code from the work center to which it is attached. How to set up shop calendars and specific work center and machine center calendars is reviewed later. Standard queue time can be specified for this machine center. As with work centers, queue time represents time between the routing operation step using this machine center and the next routing operation step.

•

Routing Setup FastTab - This is used to set default fields for a routing operation step that uses this machine center. These defaults are established for machine centers only. Since machine centers represent one or more machines performing identical work, it may be possible to set routing defaults. Because there can be a variety of work performed in a work center, setting routing defaults is not applicable.


7-7

Manufacturing II in Microsoft Dynamics® NAV 2009 Demonstration 3 – Machine Center Setup The following steps show how to set up a machine center and assign it to a work center. 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. 26. 27.

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Click New. Select the General FastTab. In the No., field, type 450. In Name field, type Finishing. In the Work Center No. field, select 600. Go to the Posting FastTab. In the Direct Unit Cost field, type 1.00. In the Flushing Method field, select MANUAL. In the Gen. Prod. Posting Group field, select MANUFACT. Go to the Scheduling FastTab. In the Capacity field, type 1. In the Efficiency field, type 100. In the Queue Time field, type 0. Go to the Routing Setup FastTab. In the Setup Time field, type 30. In the Scrap % field, type 10. Click Calendar. In the View by field, select Month In the Column Set field, accept the default dates. Click Show Matrix. Go to Actions > Functions > Calculate. In the Starting Date field, type 01/01/2010. In the Ending Date field, type 12/31/2010. Click OK. Close and open the Machine Center Calendar Matrix window to refresh the data. 28. Close all open windows.

A machine center with its own costing and scheduling information is now created for Finishing associated with a work center.

7-8



Work Center and Machine Center Calendars To specify the amount of time available for work and machine centers, a shop calendar must be defined. Multiple shop calendars can be established and then applied to the work centers as applicable. This allows work centers to be scheduled based upon a varying number of work shifts. (For example, the group of people that work in the painting area of a factory works different hours than the group that works in the assembling area). The shop calendar is modified for the specific work center or machine center using: •

Capacity

•

Efficiency

•

Specified down time (absence)

To establish a work center or machine center calendar, the shop calendar must be set up.

Demonstration 4 – Shift Codes and Shop Calendar Codes Establish shift codes first; they represent how many shifts may be run in the manufacturing plant. If necessary, define multiple shift codes, since not all work centers and machine centers run the same number of shifts. The following steps show how to set up a work shift code for working in three shifts. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Administration > Setup > Work Shifts. 3. Click New.


7-9

Manufacturing II in Microsoft Dynamics® NAV 2009 4. Type 3 as the code and 3rd shift as the description. 5. Click OK.

FIGURE 7.1 WORK SHIFTS

6. Establish shop calendar codes and define the working days and holidays for each shop calendar code. If necessary, establish multiple shop calendar codes, because not all work centers and machine centers run the same number of shifts. The path to the Shop Calendars window is: Departments > Manufacturing > Capacities > Administration > Setup > Shop Calendars. 7. Review a shop calendar to determine how the workdays are defined. With the cursor on a row with a calendar, go to Related Information > Shop Cal. > Working Days.

7-10


Chapter 7: Advanced Capacity 8. Specify the working day and hours for each shift. The following example is for a single shift.

FIGURE 7.2 SHOP CALENDAR WORKING DAYS

If the calendar time for a shift crosses midnight, then the time should be entered on two lines. Building on the work shift created, perform the following: •

Establish a shop calendar code for three shifts.

•

The workweek is Monday through Friday.

•

Shift one is from 7:00 A.M. to 3:00 P.M.

•

Shift two is from 3:00 P.M. to 11:00 P.M.

•

Shift three is from 11:00 P.M. until 7:00 A.M. the next day.


7-11

Manufacturing II in Microsoft Dynamics® NAV 2009 An example of this is as follows:

FIGURE 7.3 THREE WORK SHIFTS FROM MONDAY-FRIDAY

NOTE: To enter 11:00 P.M., type 23 or 11 P. The system reads 11 as 11:00 A.M . and gives a redundancy warning.

Demonstration 5 The following steps show how to register planned absences for two work centers. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Tasks > Absence > Reg. Abs. (from Work Center). 3. Enter two work center numbers in the No., field on the Work Center FastTab.

7-12


Chapter 7: Advanced Capacity Use the filter expression of "|." For example, select work centers 100 and 200. The filter expression will look like this: 100|200. 4. Enter the parameters of the absence on the Options FastTab. Field

Description

Ending Time

Enter the ending time of the absence, (meaning the time the work center stops operating).

Starting Time

Enter the starting time of the absence.

Starting Date

Enter the starting date of the absence.

Ending Date

Enter the ending date of the absence. Because the Registered Absence table is used for calculating the resources calendar, this field must be filled in. Change the ending date later if the absence period is prolonged.

Capacity

Enter the amount of capacity, which cannot be used during the absence period. For example, if a work center provides three concurrent lines, it is not necessarily all three lines that are shut down.

Description

Enter a short description of the reason for the absence.

Overwrite

If this field is selected, the program overwrites entries on this particular date and time for this work center.

5. 6. 7. 8. 9. 10. 11. 12. 13.

In the Starting Time field, type 8:00:00 A.M. In the Ending Time field, type 3:00:00 P.M. In the Starting Date field, type 1/28/2010. In the Ending Date field, type 1/29/2010. In the Capacity field, type 3.00. In the Description field, type Maintenance. Select the Overwrite check box. Click OK. To implement the absences, go to Manufacturing > Capacities > Tasks > Absence > Implement Registered Absence.

This process assigns the absences under the work or machine center card. The information does not yet affect the calendar. 14. Select the Overwrite check box and click OK. The next step is to update the calendars. 15. Open a work center where the absence was created for an absence. For example, go to Manufacturing > Capacities > Lists > Work Centers.


7-13

Manufacturing II in Microsoft Dynamics® NAV 2009 16. Double-click work center 100 to open it. 17. Go to Related Information > Planning > Absence to view the registered absences. 18. Select the lines individually and go to Related Information > Absence > Update to update the work center's calendar. Note that update may only be run one line at a time. 19. Click OK. 20. Close all open windows. The next step is to run the update process for work center 200 for all absences. 21. Repeat steps 15-19 for work center 200. The next step is to review the impact on the planning calendars. 22. Open a work center where the absence was created for an absence. Double-click work center 200 to open it. 23. Go to Related Information > Planning > Calendar. 24. From the Work Center Calendar window, accept the default settings, and click Show Matrix. 25. Under the date 1/28/2010, click the displayed number for work center 200 to view the Calendar Entries window. Observe that the Capacity (Total) field for 1/28/2010 is updated to show 0 capacity between 8:00 A.M. - 3:00 P.M. The calendars for the work centers are updated to account for downtime for the defined days. 26. Close all open windows.

Review Absences To review all absences created through Registered Absence reports, go to Departments > Manufacturing > Capacities > Absence > Registered Absences. When information is updated in this form, you must still run the Implement Registered Absences report.

7-14


Chapter 7: Advanced Capacity Demonstration 6 – Creating Machine Center Calendars Manufacturing calendars may be established for machine centers, just as they are for work centers. The following steps show how to create a calendar for a machine center. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists> Machine Centers. Double-click machine center 110 to open it. Click Calendar. From the Machine Center Calendar window, accept the default settings and click Show Matrix. Go to Actions > Functions > Calculate. In the Starting Date field, type 01/01/2010. In the Ending Date field, type 12/31/2010. Click OK. Click the displayed number below a date to view capacity details for each shift.

Down time or absenteeism can also be established directly for the individual machine or work centers. The next demonstration shows how this can be done.

Demonstration 7 The machine center chosen is scheduled for an all-day safety audit. 1. Close all open windows and go back to the Machine Center Card window for machine center 110. 2. Click Calendar. 3. From the Machine Center Calendar window, accept the default settings and click Show Matrix. 4. From the Calendar Entries window, go to Related Information > Planning > Absence. 5. Enter the following information on the first line: Date

Starting Time

Ending Time

Description

Capacity

02/01/2010

12:00:00 A.M.

11:59:59 P.M.

Safety Audit

1

6. Go to Related Information > Absence > Update. The calendar is updated to include the absence. 7. Click OK.


7-15

Manufacturing II in Microsoft Dynamics® NAV 2009 8. Close and open the Machine Center Calendar Matrix window to refresh the data. Notice that the available time for machine center 110 on 02/01/2010 is now blank. 9. Close all open windows.

Capacity Journals Use both the capacity journal and the recurring capacity journal to post time to a work center or a machine center. Reasons for using the journals can include assigning maintenance work or posting stop time. To post additional time to production orders, use these journals: •

Consumption

•

Output

•

Production

A recurring journal has two additional fields: •

Recurring frequency

•

Recurring method and expiration date

The recurring capacity journal functions the same way as all other recurring journals. Use the following steps to set up the recurring capacity journal: 1. Select a recurring frequency, such as 1D or 1M. 2. Select a recurring method of fixed or variable. 3. Enter an expiration date. After this expiration date, the entry cannot be posted.

Demonstration 8 The following steps show how to create, post, and review a capacity journal entry. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Tasks > Capacity Journals.

7-16


Chapter 7: Advanced Capacity 3. Open the Capacity Journal window: Manufacturing > Capacities > Capacities Journal. 4. Enter the following information on the first line (add the missing columns to the journal): Posting Date

Document No.

Type

No.

Stop Time

Cap. Unit of Measure

Starting Time

Ending Time

01/28/2010

56789

Work Center

100

1

HOURS

7:00:00 AM

8:00:00 AM

5. Click Post and click Yes. 6. Close all open windows.

Summary This course examines how to set up capacity resources: Work center Groups, Work Centers, and Machine Centers, as well as how to use the Capacity Journals for planning purposes. Constrained-based capacity planning is useful in a bottleneck production environment because it provides an overview of the available capacity and the load on the specific resources.


7-17


Lab 7.1 - Capacity Scenario Establish a new machine center to use for the Assembly department with the following characteristics: Machine Center No

115

Name

Calibrating Machine

Work Center

100

Gen. Prod. Posting Group

MANUFACT

Direct Unit Cost

1.00

Capacity

1

Efficiency

80

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

7-18

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Click New. Select the General FastTab. In the No., field, type 115. In Name field, type Calibrating Machine. In the Work Center No. field, select 100. Go to the Posting FastTab. In the Direct Unit Cost field, type 1.00. In the Flushing Method field, select MANUAL. In the Gen. Prod. Posting Group field, select MANUFACT. Go to the Scheduling FastTab. In the Capacity field, type 1. In the Efficiency field, type 80. In the Queue Time field, type 0. Go to the Routing Setup FastTab. In the Setup Time field, type 30. In the Scrap % field, type 0. Click Calendar. In the View by field, select Month In the Column Set field, accept the default dates. Click Show Matrix. Go to Actions > Functions > Calculate. In the Starting Date field, type 01/01/2010.


Chapter 7: Advanced Capacity 25. In the Ending Date field, type 12/31/2010. 26. Click OK. 27. Close and open the Machine Center Calendar Matrix window to refresh the data. Notice that capacity information pertaining to machine center 115 (Calibrating Machine) is displayed. 28. Close all open windows.

Lab 7.2: Add Machine Center to a Routing Modify the routing so that operation, 30, is made in this new machine center.

Step by Step 1. 2. 3. 4. 5. 6. 7. 8.

In the navigation pane, click the Routings button. Double-click routing 1000 to open it. Change the status to Under Development. Go to operation 30 and change the No. to 115. Click Yes to rename the record. Change the description to Calibrating Machine. Change the status back to Certified. Click OK.

Lab 7.3: Establish a Shop Calendar Establish a new shop calendar, No. 4, for one shift, from: 7:00 A.M. until 3:00 P.M., Tuesday through Thursday.

Step by Step 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Administration > Setup > Work Shifts. 3. Click New. 4. Type 4 as the code and 4th shift as the description. 5. Click OK. 6. Go to Manufacturing > Capacities > Administration > Setup > Shop Calendars. 7. Click New. 8. Type 4 as the code and Four shifts Tuesday-Thursday as the description. 9. Go to Related Information > Shop Cal. > Working Days. 10. Select Tuesday in the day column on the first row. 11. Type 7 in the Starting Time field.


7-19

Manufacturing II in Microsoft Dynamics® NAV 2009 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

Type 3P in the Ending Time Field. Select 4 in the Work Shift field. Select Wednesday in the day column on the second row. Type 7 in the Starting Time field. Type 3P in the Ending Time Field. Select 4 in the Work Shift field. Select Thursday in the day column on the third row. Type 7 in the Starting Time field. Type 3P in the Ending Time Field. Select 4 in the Work Shift field. Click OK. Close all open windows.

Lab 7.4: Calculate Calendar Use the shop calendar created for the machine center.

Step by Step 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Double-click machine center 115 (Calibrating Machine) to open it. In the Work Center No. field, click on the drop-down arrow. Click Advanced. From the Work Center List, go to Actions > Edit. Go to the Scheduling FastTab. Enter a shop calendar code of 4. Click OK. Close all open windows, except for machine center card 115. Click Calendar. From the Machine Center Calendar window, accept the default settings and click Show Matrix. 13. Go to Actions > Functions > Calculate. 14. In the Starting Date field, type 01/01/2010. 15. In the Ending Date field, type 12/31/2010.

7-20


Chapter 7: Advanced Capacity 16. Click OK. 17. Close and open the Machine Center Calendar Matrix window to refresh the data. Notice that for machine center 115. Only Tuesday through Thursday has entries. 18. Close all open windows.

Lab 7.5: Register an Absence •

Register an absence for work center 100 for several days starting 02/20/2010 using the Reg Abs (from Work Center) report.

•

Update the work center calendar.

•

Review the work center calendar to view the affect.

Step by Step 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Tasks > Absence > Reg. Abs. (from Work Center). 3. In the No., field on the Work Center FastTab, type 100. 4. In the Starting Time field, type 8:00:00 AM. 5. In the Ending Time field, type 5:00:00 PM. 6. In the Starting Date field, type 02/20/2010. 7. In the Ending Date field, type 02/25/2010. 8. In the Capacity field, type 3.00. 9. In the Description field, type Repairs. 10. Select the Overwrite check box. 11. Click OK. 12. Go to Manufacturing > Capacities > Tasks > Absence > Implement Registered Absence. 13. Select the Overwrite check box and click OK. 14. Go to Manufacturing > Capacities > Lists > Work Centers. 15. Double-click work center 100 to open it. 16. Go to Related Information > Planning > Absence to view the registered absences. 17. Select the lines individually and go to Related Information > Absence > Update to update the work center's calendar. Note that update may only be run one line at a time. 18. Click OK. 19. From Work Center Card 100, go to Related Information > Planning > Calendar. 20. From the Work Center Calendar window, accept the default settings and click Show Matrix.


7-21

Manufacturing II in Microsoft Dynamics® NAV 2009 21. Under the date 02/22/2010, click on the field to view the Calendar Entries window. Observe that the Capacity (Total) field for 02/22/2010 is updated to show 0 capacity between 8:00 A.M. - 5:00 P.M. 22. Close all open windows.

7-22




2.

3.


7-23


7-24



CHAPTER 8: SHOP LOADING Objectives The objectives are: •

Provide an Overview of Shop Loading

•

Perform Loading of Capacities

•

Execute Finite Loading

•

Recognize the Reports Available

Introduction Shop Loading refers to the daily shop floor operations. It is important when scheduling in a production environment with limited capacity and bottleneck resources. This chapter provides an overview of how shop loading is carried out in Microsoft Dynamics® NAV 2009. It shows how to perform loading of capacities using the traditional work center or machine center load windows, and how to execute finite loading for constrained resources. Additionally, the chapter examines other reports available for capacity scheduling.


8-1


Shop Loading Overview Microsoft Dynamics NAV 2009 assumes infinite (unlimited) capacity per default when each production order is scheduled. However, the system also offers a special feature to define and manage finite (limited) capacity for particular resources. Production orders are scheduled using a variety of methods, including: •

During generation from a sales order

•

From MRP

•

When an order is entered manually

•

When refresh or replan functions are run

Each time a production order is scheduled, records are written to the machine and work center task list and production order capacity needs are summarized on the load windows. Records are not removed from the task list until a production order is finished. The work center or machine center task list Departments>Manufacturing > Capacities > Lists > Work Centers > Related Information > Planning > Task List is similar to a dispatch list, except that it does not net the time remaining on released production orders in progress. The task list displays:

8-2

•

The original gross time scheduled for the operation.

•

All production orders scheduled for the work center or machine center, not just released orders.


Chapter 8: Shop Loading For each production order scheduled in the specific work center or machine center, the Task List window shows the: •

Production order status

•

Start and end dates

•

Times

FIGURE 8.1 WORK CENTER TASK LIST

The Work Center Load or Machine Center Load window (path: Departments>Manufacturing > Capacities > Lists > Work Centers > Related Information > Work Ctr > Load) summarizes information from two sources: •

Production Order Capacity Need window

•

Detailed work center or machine center calendar entries (available capacity)

The Work Center Load window shows information for both the work center and machine centers assigned to the work center. The Machine Center Load window shows information for the machine center only.


8-3

Manufacturing II in Microsoft Dynamics® NAV 2009 Unlike the task list, the load window reflects the time remaining on released production orders.

FIGURE 8.2 LOAD FOR WORK CENTER 100 (DAY VIEW)

8-4


Chapter 8: Shop Loading There are four special columns in the Load window . Field Name

Description

Capacity

This column represents the gross available capacity based on the: • Shop calendar used •

Capacity and efficiency values established in the Scheduling FastTab of the work center or machine center card

It is possible to drill down to the detailed calendar entries for this work center or machine center. The work center calendar entries are for the work center, and any machine center assigned to the work center. The machine center calendar entries are for the machine center only. Allocated Qty.

This column represents the requirements of all production orders except simulated orders. In the Work Center Load window: Drill down to the Production Order Capacity Need window to view all the production orders scheduled on that date for the work center or any machine center assigned to the work center. All production orders except simulated orders have allocated time. In the Machine Center Load window: • Drill down to view all production orders scheduled for that machine center. •

The allocated column for a work center can represent scheduled time for a production order in the work center and, or machine center assigned to the work center.

•

An order may be displayed on the task list without time allocated on the load window for that date. This means the operation step is completed at an earlier time.

Availability After Orders

This column represents the net amount of capacity available after the allocated column is subtracked from the capacity column. If the availability column is a negative number, then there are more production orders scheduled than available capacity.

Load

This column represents a percentage of the allocated column to the capacity column. It represents how much of the availability is being used. For example, if the load column is: • 40, then 40 percent of the availability is being used. •

Greater than 100 percent, then there are more production orders scheduled than available capacity. To deal with capacity overloading, shop managers can mark critical resources and set them up for finite loading to monitor or plan operations in capacityconstrained resources. This is done in the Capacity-Constrained Resources window (path: Departments > Manufacturing > Capacities > Administration > Setup > Capacity Constrained Resources).


8-5


Loading Capacities To demonstrate shop loading, there must be a production order. Choose a produced item to work with in this example. Note the work and, or machine centers to be able to look at the load later. Before starting the demonstrations, modify the starting date of your routing version for the bicycle as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

In the navigation pane, click the Routings button. Double-click routing 1000 (Bicycle) to open it. Click Versions. If the routing version for Executive bicycle still exists, modify the date by going to Actions > Edit. In the starting date field, change it to 2/1/2015. Click OK. Close the routing Version List and go back to the Routing window for routing 1000 (Bicycle). In the Status field, select Under Development. In the Lines FastTab, check if operation 35 (SUBCONTRACT) exists. If so, right-click it and select Delete Line. Click Yes. In the Status field, select Certified. Click OK.

Demonstration 1 The following steps show how to create a released production order for 20 pieces of touring bicycles. 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In the Source No. field, type 1001 (Touring Bicycle). 4. In the quantity field, type 20. 5. In the Due Date field, type 02/01/2010. 6. Click Refresh. 7. Accept all default information and click OK. 8. Note the production order number. 9. Go to the Lines FastTab. 10. Click the Actions icon (thunderbolt symbol), then go to Line > Routing to view the routing on the production order. Note the machine and work centers. 11. Click OK to close 12. Close the production order.

8-6


Chapter 8: Shop Loading The Underloaded Machine Center Before discussing the adjustment of load to an overloaded facility, view an underloaded machine center. In such a facility, there is more than enough capacity to perform the allocated load. 1. 2. 3. 4. 5.

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Double-click machine number 410 (Drilling Machine) to open it. Click Load. In the View by field, select Day.

In an underutilized machine center, the Load column in the work center load form is less than 100 and the Availability After Orders is a positive number. To correctly analyze the load, it is necessary to understand the released production order is for 20 pieces. View the setup and run time for the steps. Since this production order is for 20 units, 20 times the run time is required plus the setup time. This total amount is the total productive time for each operation. 6. Close all open windows.

Demonstration 2 To demonstrate the methods of dealing with an overloaded facility, create an additional production order scheduled in the same time period for the same work and machine centers.

The Overloaded Machine Center The following steps show how a released production order can cause the machine center to be overloaded. Create a new released production order with this data: 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In the Source No. field, type 1001 (Touring Bicycle). 4. In the Quantity field, type 50. 5. In the Due Date field, type 02/01/2010. 6. Click Refresh. 7. Accept all default information and click OK. 8. Note the released production order number.


8-7

Manufacturing II in Microsoft Dynamics® NAV 2009 9. Go to the Lines FastTab. 10. Select item 1100 (Front Wheel). Note: If you do not see this item (1100), change the manufacturing policy of your touring bicycle, front wheel and back wheel to maketo-order. 11. Click the Actions icon (thunderbolt symbol) , then go to Line > Routing to view the routing on the production order. 12. Click OK to close. 13. Close the production order.

Demonstration 3 Move an Operation In addition to changing schedules, operations may be moved from one machine center to another when they are assigned to the same work center. To illustrate, move an operation from one machine center to another machine center. This demonstration shows how to find a machine center that is available to have the load moved to it and a machine center that is overloaded. Therefore, you need to create another released production order in order to create an overload. 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In the Source No. field, enter 1001 (Touring Bicycle). 4. In the quantity field, enter 23. 5. In the Due Date field, enter 02/01/2010. 6. Click Refresh. 7. Accept all default information and click OK. 8. Note the released production order number. 9. Close all open windows. 10. In the navigation pane, click the Departments button. 11. Go to Manufacturing > Capacities > Lists > Machine Centers. 12. Double-click machine center 410 (Drilling machine) to open it. 13. Examine the load by clicking Load. 14. In the View by field, select Day. Find a day where there is an overload. Note the date. 15. Close the Machine Center Load window and all open windows. Next, find a machine center with a surplus of available capacity from the same work center. 16. Go to Manufacturing > Capacities > Lists > Machine Centers. 17. Double-click machine center 420 to open it.

8-8


Chapter 8: Shop Loading 18. Click Load.

19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29.

Note that this machine center has 0 load for the days that the created production order is running. This means that it has available capacity Close all open windows. Go to Manufacturing > Capacities > Lists > Machine Centers. Select machine center 410 and click Task List. From the Machine Center Task List window, select your production order. Go to Actions > Functions > Move. Select machine center 420 and click OK. Repeat steps 22-24 if there are several lines pertaining to your production order. Close all open windows. Go to Manufacturing > Capacities > Lists > Machine Centers. Double-click machine center 420 to open it. Click Load.

The second machine is allocated the operation originally scheduled in the first machine center. 30. Close all open windows.

Demonstration 4 The following steps show how to post time to a production order to view the affect on the work center. Start by selecting a released production order and reviewing a related work center load. 1. In the navigation pane, click the Released Production Orders button. 2. Double-click a production order for a touring bicycle to open it and note the production order number. 3. Go to the Lines FastTab. 4. Select item 1100 (Front Wheel).

5. 6.

7. 8. 9.

Note: If you do not see item 1100, ensure that your touring bicycle, front wheel and back wheel has a manufacturing policy of make-toorder. Click the Actions icon, then go to Line > Routing to view the routing on the production order. Note the time displayed in the Run Time column for work center 100 (Rim Assembly) in the Prod. Order Routing window as well as the start and end dates. Click OK and close the production order. In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Work Centers.


8-9

Manufacturing II in Microsoft Dynamics® NAV 2009 10. Double-click work center 100 (Assembly department) to open it. 11. Click Load. 12. From the Work Center Load window, find the start and end dates of your production order and note the load. 13. Go back to your production order. 14. With item 1100 still selected, click the Actions icon, then go to Line > Production Journal. 15. Locate work center 100 (Rim Assembly) and enter an amount less in the Run Time column than what was displayed in the Prod. Order Routing window. For example, enter 1. 16. Review the information before posting it by going to Actions > Posting > Test Report and select Preview. Press Esc to return to the Production Journal. 17. Post the journal by clicking Post and then Yes. 18. Click OK and close all open windows. 19. In the navigation pane, click the Departments button. 20. Go to Manufacturing > Capacities > Lists > Work Centers. 21. Double-click work center 100 (Assembly department) to open it. 22. Click Load. Note that in the Load column, the time has changed in one of the days (between the starting date and end date) of your selected production order. 23. Close all open windows. Use the Finished field in posting to post time to a machine or work center and to indicate not to use the resource anymore for this production order. 1. Go back to your production order. 2. With item 1100 still selected, click the Actions icon, then go to Line > Production Journal. 3. Enter a time in the Run Time column again, ensuring the total expected amount is not being posted. For example, 2. 4. Select the Finished check box. 5. Post the journal by clicking Post and then Yes. 6. Click OK and close all open windows. 7. In the navigation pane, click the Departments button. 8. Go to Manufacturing > Capacities > Lists > Work Centers. 9. Double-click work center 100 (Assembly department) to open it. 10. Click Load.

8-10


Chapter 8: Shop Loading As done previously, note that in the Load column, the time has changed in one of the days (between the starting date and end date) of your selected production order Since a check mark is placed in the Finished field, the entire load for that operation is removed, even though only a part of the time is reported. 11. Close all open windows. The next section discusses a special monitoring and planning tool, to help the Production Planner handle situations where resources are overloaded and capacity cannot be easily and quickly modified using the methods described in this section.

Finite Loading Where the Production Planner foresees a risk of overloading a critical resource, they have the option to select it as a capacity-constrained resource in advance. This ensures the machine center or work center in question is only loaded to a certain critical level. This way, the finite loading routines have a defined spectrum in which to run and the planner gets a certain margin to play with during execution time. This planning is performed in the Capacity-Constrained Resources window (path: Departments > Manufacturing > Capacities > Administration > Setup > Capacity Constrained Resources). The finite loading functionality serves two purposes: •

To display and maintain status for constrained resources to provide a clear overview of limited capacities in a production plan.

•

To plan operations in capacity-constrained resources.

It is important to note that even if a machine center or work center is selected as a constrained resource, the program does not take any immediate action in case of overload. The finite loading plan only takes effect when the user triggers a change in the plan by, for example, refreshing the corresponding production orders, accepting messages in the MRP worksheets, and so on.


8-11

Manufacturing II in Microsoft Dynamics® NAV 2009 Look at the capacity constrained resources setup form. Follow the path Manufacturing > Capacities > Setup > Capacity Constrained Resources to view the form.

FIGURE 8.3 CAPACITY CONSTRAINED RESOURCES

The fields are defined as follows: Field

Description

Capacity Type

Choose Work Center or Machine Center.

Capacity No.

Choose the number of the center.

Name

The default name of the center.

Critical Load %

Enter the percentage of the available capacity of a work center or machine center that the program is allowed to apply load to. Enter as a whole number, for example, 90% is entered as 90.0.

Dampener (% of Total Capacity)

Enter the allowable tolerance (as a percent) the critical load percent can be exceeded. This allowable percent tolerance enables the program to schedule a load to a work center or machine center at the last possible day by slightly exceeding the critical load percent. Enter as a whole number, for example, 5% is entered as 5.0.

8-12


Chapter 8: Shop Loading Demonstration 5 The following demonstration repeats the previous demonstration where an overload is created at a machine center because of the release of an additional production order with the same due date. This time, however, select a machine center as a capacity-constrained resource before releasing the new order. Now the system automatically adjusts process periods to facilitate a production plan without overload. Continue from the current load status of the machine center being analyzed, where the manual adjustments performed left available capacity. When creating another production order for 35 pieces of the item with the same due date, normally an overload is created. Use the finite loading feature to avoid this. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities >Administration > Setup > Capacity Constrained Resources. 3. Define capacity constraints for the machine center. For this demonstration, use machine center 110. Choose 90% for the critical load and 5% for the dampener, which allows scheduling up to 95%. 4. Click OK. Next, create a production order based on sales order. 1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. Press Enter to automatically insert the next number in the default number series for sales orders. 4. Go to the Sell-to Customer No. field and select customer number 10000, The Cannon Group PLC. 5. On the sales line, select Item in the Type field. 6. Go to the No. field and select item number 1001, Touring Bicycle. 7. In the Quantity field, type 35 . 8. Click Yes, if the Check Availability window appears. 9. Click on the Shipping FastTab. 10. Type 02/5/2010 in the Shipment Date. 11. Delete any information in the location code field. 12. Go to Related Information > Order > Planning. 13. Go to Actions > Functions > Create Prod. Order. 14. Accept the defaults of firm planned order and item order by selecting Yes. 15. A confirmation message appears, stating that a Firm Planned order has been created. Note the production order number and click OK. 16. Close all open windows.


8-13

Manufacturing II in Microsoft Dynamics® NAV 2009 17. In the navigation pane, click the Firm Planned Production Orders button. 18. Double-click the production order that was created from the sales order to open it. In the Lines FastTab, note that start and end dates. 19. Close the production order. 20. In the navigation pane, click the Departments button. 21. Go to Manufacturing > Capacities > Lists > Machine Centers. 22. Double-click machine center 110 to open it. 23. Examine the load by clicking on Load. 24. In the View by field, select Day. View the entry and notice how machine center 110 is loaded to exactly 90% capacity and the remaining process time is allocated to the closest available period within the due date. 25. Close all open windows.

Dampener The capacity constraints are set up to allow for the load to be exceeded slightly (5%) to finish operations that need only a little more capacity than is available. This is defined in the Dampener % field. For example, if the newest production order for 50 items is small and it finished on the date, then the dampener feature allows an additional load of 5 % (above the critical load of 90). Meaning, if production can be completed within the time of (critical load + dampener), then it is scheduled for that day. If the load is greater (critical load + dampener), then the work is assigned up to the critical load for one day and the remaining assigned to another day.

Reports The program provides reports for capacity requirements planning. Although some reports are available in more than one area, all of these reports are accessible by going to Departments > Manufacturing > Execution > Reports and Analysis > Reports.

8-14

•

Capacity Task List - This report provides a task list of each facility (work and machine center) which prints on a separate page.

•

Capacity Gantt Chart - This report illustrates by production order, facility and date when production orders are scheduled to consume capacity.

•

Machine Center Load - This report illustrates the load by period and machine center.

•

Machine Center Load / Bar - This report graphically displays the load by machine center for a number of periods defined.


Chapter 8: Shop Loading •

Work Center Load - This report illustrates the load by period and work center.

•

Work Center Load / Bar - This report provides a list of the work centers that are overloaded according to the actual planning. The efficiency and overloading is shown by a bar display. This report graphically displays the load by work center for a number of periods defined.

These reports are accessed by going to Departments > Manufacturing > Capacities > Reports and Analysis > Reports. •

Machine Center List - This report is a master list of available facilities, and indicates the capacity and the efficiency factor currently set for each facility.

•

Work Center List - This report lists work center information, including: the unit cost, unit of measure code, capacity, and shop calendar code.

•

Capacity Task List - This report provides a task list of each facility (work and machine center) which prints on a separate page.

•

Capacity Gantt Chart - This report illustrates by production order, facility, and date when production orders are scheduled to consume capacity.

Summary This chapter discusses the capacity scheduling process. It shows how to perform shop loading both with finite and infinite resources. Finally, this chapter explains some other capacity reports in the system. Capacity planning and shop loading are very important concepts when operating in a production environment with limited capacity and bottleneck resources.


8-15


Lab 8.1 - Shop Loading Scenario

View Load on Work and Machine Centers •

To load the shop with work, create two production orders for 75 pieces each of the bicycle, Item 1000, with a due date of 1/28/2010.

Step by Step 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In the Source No. field, type 1000 (Bicycle). 4. In the quantity field, type 75. 5. In the Due Date field, type 1/28/2010. 6. Click Refresh. 7. Accept all default information and click OK. 8. Note the production order number. 9. Go to the Lines FastTab. 10. Click the Actions icon, then go to Line > Routing to view the routing on the production order. Note the machine and work centers. 11. Click OK to close 12. Note the production order number. 13. Close the production order. 14. Repeat previous steps to create the second production order.

Find Overloaded Facilities •

View the machine center load report by day and find the overloaded areas.

•

Refer to the January timeframe of the year 2010.

Step by Step 1. 2. 3. 4. 5.

8-16

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Double-click machine center 110 to open it. Examine the load by clicking on Load. In the View by field, select Day.


Chapter 8: Shop Loading 6. View the January 2010 timeframe. In the Availability After Orders column, there are some days showing a negative amount. This means that this machine center is overloaded. Note: If an overload does not exist, create more production orders with the same parameters as written in the beginning of this lab until you get an overload. 7. Close all open windows.

Lab 8.2: Use Move Function to Adjust Load •

Use the Move functions to shift the load from machine center 110 to another facility.

Step by Step 1. 2. 3. 4.

5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Go to Manufacturing > Capacities > Lists > Machine Centers. Double-click machine center 120 to open it. Click Load. In the View by field, select Week. Note that this machine center has 0 load for the days that the created production order is running. This means that it has available capacity. Close all open windows. Go to Manufacturing > Capacities > Lists > Machine Centers. Select machine center 110 and click Task List. From the Machine Center Task List window, select your production orders. Go to Actions > Functions > Move. Select machine center 120 and click OK. Repeat steps 8-10 if there are multiple lines pertaining to your production orders. Close all open windows. Go to Manufacturing > Capacities > Lists > Machine Centers. Double-click machine center 120 to open it. Click Load. The second machine is allocated the operation originally scheduled in the first machine center. Close all open windows.


8-17



2.

3.

8-18



CHAPTER 9: ADDITIONAL MANUFACTURING TOPICS Objectives The objectives are: •

Use Standard Task Codes

•

Create Stop Codes

•

Create and use Scrap Codes

•

Define BOM Scrap and Routing Scrap

•

Define Non-Productive Time

•

Methods to reduce lead-time

•

Using Multi-Level Manufacturing

•

Using Business Notification

•

List additional features

Introduction This course contains additional manufacturing topics that are only used in some companies. The first lesson contains a description of the standard task codes feature, which can be used to display additional information on the printed routings on the production floor. Some companies need to report scrap and define planned non-productive operation time; other companies need to reduce lead time by scheduling parallel routings or operate in a multi-level production environment; others again, for example in the pharmaceutical business, need to set up serial and lot numbers to track goods from raw material to end customers. In response to differing needs, Microsoft Dynamics® NAV 2009 provides the tools necessary to support these advanced supply chain planning topics. Additionally, this course explains the business notifications that can be used to send messages to other people in the supply chain.


9-1


Standard Task Codes Microsoft Dynamics NAV 2009 Manufacturing I described how to set up and maintain routings. Information such as tooling, quality measures, personnel, and comments can be defined for each operational step on the routing. Optionally, users can print this information on a routing sheet. To simplify entering this information on each routing operation, users can set up standard task codes. For each standard task code, provide a description for: •

Tooling

•

Quality measures

•

Personnel

As new routings are developed and built, the standard task code is assigned to each routing operation to reduce the amount of information entered.

Demonstration 1 The following demonstration shows you how to set up standard task codes. The standard task code in this example is used to provide information on an inspection routing operation step. Routing 1000 is modified to use the new code afterwards. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Setup > Standard Tasks. 3. Click New. Enter a code and a short description for the standard task code. 4. In the Code column, type 01 and in the Description column, type Inspection for the operation step that the additional information is connected to. 5. Click OK. 6. Go back to the Standard Tasks window, as given in step 2. 7. Select the task that you created and go to Related Information > Std. Task > Description. Enter the text to be used on the routing sheet for that particular standard task code. This can be a procedure about how to carry out this inspection and some important notes to the production personnel. 8. Type This standard task is about inspection. 9. Click OK. 10. From the Standard Task Window, select the task you created and go to Related Information > Std. Task > Tools. Enter a number and a description for each of the tools used in this operation step.

9-2


Chapter 9: Additional Manufacturing Topics 11. In the No. column, type 0 and in the Description column, type No tools required. 12. Click OK. 13. Select the task you created and go to Related Information > Std. Task > Personnel.Enter a number and a description for each of the personnel resources used in this operation step. 14. Enter the following information: No.

Description

1

Main Inspector

2

Spot Checker

15. Click OK. 16. Select the task you created and go to Related Information > Std. Task > Quality Measures. 17. Click the drop-down arrow in the Qlty Measure Code header and click New. 18. Enter the following information: Code

Description

A

Wheels

B

Frame

C

Saddle/Accessories


9-3

Manufacturing II in Microsoft Dynamics® NAV 2009 19. Click OK. 20. From the Standard Task Qlty Measures window, enter the following information about the quality measures used in this inspection operation step: Qlty. Measure Code

Description

Min. Value

Max. Value

Mean Tolerance

A

Wheels

2

2

0

B

Frame

1

1

0

C

Saddle/ Accessories

0

5

0

FIGURE 9.1 STANDARD TASK QUALITY MEASURES

This table shows an example of how quality measures can be entered in the system. Quality measures typically represent important measures on the product, such as the length. The measure must be placed between an upper and lower value with a specific mean tolerance. Otherwise the produced item is rejected in the quality inspection operation. 21. Close all open windows.

9-4


Chapter 9: Additional Manufacturing Topics Demonstration 2 The following demonstration shows you how to create a new version of a routing. 1. 2. 3. 4. 5. 6. 7. 8. 9.

In the navigation pane, click the Routings button. Double-click routing no. 1000 (Bicycle) to open it. Click Versions. Click New. In the Version Code field, type 2. In the Description field, type Special Bike. In the Starting Date field, type 1/28/2012. In the Type field, select Serial. Go to the Lines FastTab and type the following parameters:

Operation No.

Type

No.

Description

10

Machine Center

110

Mike Seamans

20

Machine Center

115

Calibrating Machine

30

Machine Center

440

Inspection

40

Work Center

600

Finishing Department

10. In operation 30 (Machine Center 440), go to the Standard Task Code header, click the drop-down box and select standard code 01. 11. Change the status to Certified and click OK. You do not need to change routing versions to add Standard Task Codes. Add Codes to the base routing and use the Forms Designer (from the Classic client), to add a standard task code to a production order. This allows a standard task to be added quickly to a specific order rather than on all orders. In the Forms Designer, with the proper license, add the Standard Task Code field to the Released Production Routing Lines window. Create a production order for an item using this routing and the routing version selected. The standard task code is used to create detailed information for the production order routing. 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 13. 5. In the Due Date field, type 2/1/2012. 6. Click Refresh. 7. Accept all default settings and click OK.


9-5

Manufacturing II in Microsoft Dynamics® NAV 2009 8. Add the Routing Version Code on the production order lines by using Choose Columns and adding the field. 9. Place your cursor in the header or on the production order line. 10. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing. 11. Highlight the routing operation that includes the Standard Task Code (operation 30) and go to Related Information > Line. 12. For example, select Quality Measures to view the quality measures copied from the standard task code. 13. Note the production order number. 14. Close all open windows. NOTE: This information can be printed on a routing sheet for the main routing; however, a routing version cannot be printed.

Stop Codes Stop Codes apply to Machine Centers and Work Centers. They describe reasons for planned downtime, such as: •

Vacations

•

Scheduled maintenance

•

Unplanned machine failure

•

Lack of personnel

Use Stop Codes to enter and record periods where equipment is not being used. Enter Stop Codes in the Capacity and Output journals and then post them to Machine Center/Work Center ledgers. These ledger entries may be analyzed later to explain and help prevent unplanned downtime. The Capacity Journal displays the Stop Code field, which needs to be added to the Output Journal.

Demonstration 3 The following demonstration shows you how to enter standard, generic Stop Codes. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Administration > Setup > Stop Codes.

9-6


Chapter 9: Additional Manufacturing Topics 3. Click New. 4. Type the following information: Code

Description

DOWN

Machine Down

MAINT

Maintenance

INSPECT

Inspection

5. Click OK.


9-7


Scrap Codes Use scrap codes only with machine centers to describe reasons for production order scrap. Enter scrap codes in the output and capacity journals and post them to ledger entries. These machine center ledger entries may be analyzed later to explain and help prevent excessive and unplanned scrap.

Demonstration 4 The following demonstration shows you how to create new Scrap Codes. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Administration > Setup > Scrap Codes. 3. Click New. 4. Type the following information: Code

Description

ALIGN

Incorrect alignment

BAD

Bad material

5. Click OK.

Demonstration 5 The following demonstration shows you how Scrap Codes are used. Enter output for the released production order created earlier and record scrap quantities and reasons for stoppage during the process. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Execution > Tasks > Output Journals. 3. Type 2/1/2012 as the posting date on the first line of the output journal. 4. From the Prod. Order No. header, type the production order number of the production order that you created in Demonstration 2. 5. Add the Scrap Code header to the view (by using Choose Columns functionality). 6. Click Explode Routing. 7. For operation 30, select scrap code BAD and type a scrap quantity of 1. 8. Click Post and click Yes to post the journal lines.

9-8


Chapter 9: Additional Manufacturing Topics 9. Click OK and close all open windows.

10. 11. 12. 13.

The next step is to view the capacity ledger entries of machine center 440 from the production order. In the navigation pane, click the Released Production Orders button. Go to Manufacturing > Capacities > Lists > Machine Centers. Double-click your production order number to open it. Go to Related Information > Order > Entries > Capacity Ledger Entries.Note that the scrap quantity of 1, is shown in operation 30.

14. Close all open windows.

BOM Scrap and Routing Scrap Scrap can be pre-defined for components on the production BOM and for parent items on the routing and is defined as a: •

Percentage on the BOM

•

Fixed amount or percentage on the Routing

All scrap identified on either the production BOM or routing results in an increase in the amount of components needed. Additionally, scrap percentage can be added on the item card. Microsoft Dynamics NAV 2009 uses all types of scrap when calculating requirements and costs. Item Card Scrap %

Enter items with scrap (when scrap comes from the item itself).

Production BOM Scrap %

Enter scrap when it is a result of this component in this production BOM.

Routing Scrap %

The fixed scrap quantity is the quantity in the product structure to increase gross requirements to account for anticipated loss within the manufacture of a particular product. The program automatically transfers the fixed scrap quantity from the Fixed Scrap Quantity field on the machine center card. Edit this value for each operation if there is a difference between the fixed scrap quantity at this machine center and this routing line.

Fixed Scrap Quantity

The fixed scrap quantity is the quantity in the product structure to increase gross requirements to account for anticipated loss within the manufacture of a particular product. The program automatically transfers the fixed scrap quantity from the Fixed Scrap Quantity field on the machine center card. Edit this value for each operation if there is a difference between the fixed scrap quantity at this machine center and this routing line.


9-9

Manufacturing II in Microsoft Dynamics® NAV 2009 When scrap percent is entered in a routing step, by default, the scrap factor is placed on all components used in an operation. To place the scrap factor on a specific component only: •

Differentiate between that component's operation from the other components by setting different routing link codes in the production BOM and routing lines.

BOM scrap is calculated as "input to work on." Routing scrap is added to input to work on, starting with the last operation and working backwards. For example: 1. If BOM scrap is 10 percent, then the component quantity for each is increased by 10 percent. 2. Routing scrap is calculated, starting with the last operation and multiplying the input to work on (BOM scrap) by the routing scrap percent. 3. The fixed scrap is added to the total scrap. 4. The process is repeated through all operations. 5. The end result is the total planned amount of component needed to build the parent item. The following example shows BOM Scrap and Routing Scrap. •

BOM scrap = 10 percent

•

Scrap on one Routing operation is:

•

Fixed = 10

•

Percentage = 25

•

The Quantity Per (before scrap calculations) = 1

To build ten of the parent, the planned quantity needed for the component is calculated as follows: •

BOM scrap = 10 x (1.10) = 11 (This is the input to work on)

•

Routing scrap percent = (11 x 1.25) = 13.75

•

Routing fixed scrap = 13.75 + 10 = 23.75

To build ten parent items, start with 23.75 (or 24 rounded) components.

9-10


Chapter 9: Additional Manufacturing Topics Demonstration 6 In this demonstration the following steps are carried out: •

Add scrap on a BOM for a selected item and create a production order using that BOM.

•

View the production order components to determine the effect of production BOM scrap.

•

Add scrap on that item's routing and create a new production order.

•

View the production order components to determine the effect of routing scrap.

Perform the following steps to add scrap to components on the production BOM for the item selected. Follow these steps to copy a production BOM and add scrap to some components: 1. From the navigation pane, click on Production BOMs button. 2. Click New. 3. Use the following information for these fields: Field Name

Data

No.

1001

Description

Special Bike

Unit of Measure Code

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, select the production BOM 1000 (Bicycle), and click OK. All of the components are copied into the new production BOM. Changes can be made by adding or deleting components or changing the quantities. 7. For items 1100 (front wheel) and 1200 (back wheel), go to the Scrap % header and type a scrap quantity of 50%. 8. In the Status field, change the status to Certified. 9. Click OK. The next step is to change the item cards of the two components to ensure that picking is done in discrete units. 10. In the navigation pane, click the Items button. 11. Double-click item 1100 (Front Wheel) to open it.


9-11

Manufacturing II in Microsoft Dynamics® NAV 2009 12. In the Replenishment FastTab, go to the Rounding Precision field and change the value to 1. 13. Click OK. 14. Double-click item 1200 (Back Wheel) to open it. 15. In the Replenishment FastTab, go to the Rounding Precision field and change the value to 1. 16. Click OK. Next, create a released production order for the item using the production BOM version you created. 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 50. 5. In the Due Date field, type 2/15/2012. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Add the Production BOM Version Code on the production order lines by using Choose Columns and adding the field. 9. Put your cursor in the header or on the production order line. 10. Click the Actions icon (next to the expand/collapse button), then go to Line > Components. Note the quantity required for the front and back wheels. If the production of the subassemblies is required for this production order, then the gross requirement is 75 rather than 50. 11. Close the Prod. Order Components window.

12. 13. 14. 15. 16. 17. 18. 19. 20.

9-12

Next, modify a version of the routing for the item and add scrap on the routing for the item. In the navigation pane, click the Routings button. Double-click version 1000 (Bicycle) to open it. Click Versions. Double-click version 2 (Special Bike) to open it. Change the status to Under Development. Add a scrap factor percentage of 10 on operation 10. Change the status back to Certified. Click OK. Close all open windows.


Chapter 9: Additional Manufacturing Topics The next step is to create a production order for the item, using both the production BOM and routing versions you just modified to see the effects of the scrap. 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 50. 5. In the Due Date field, type 2/20/2012. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Add the Production BOM Version Code on the production order lines by using Choose Columns and adding the field. 9. Put your cursor in the header or on the production order line. 10. Click the Actions icon (next to the expand/collapse button), then go to Line > Components. Note that the quantity has increased to take into account the scrap factor of 10. 11. Close the Prod. Order Components window. 12. Close all open windows.

13. 14. 15. 16. 17. 18. 19. 20. 21.

Before proceeding, go to routing version 2 (Special Bike) of routing 1000 (Bicycle) and remove the scrap factor in operation 10. In the navigation pane, click the Routings button. Double-click version 1000 (Bicycle) to open it. Click Versions. Double-click version 2 (Special Bike) to open it. Change the status to Under Development. Remove the scrap factor percentage of 10 on operation 10. Change the status back to Certified. Click OK. Close all open windows.


9-13


Non-Productive Time This lesson discusses non-productive time and how it affects product order scheduling.

FIGURE 9.2 THE NON-PRODUCTIVE ELEMENTS OF LEAD TIME

There are three elements of non-productive time: •

Wait Time - The amount of time a completed lot or batch for an order at a machine or work center must wait before it is transported to the next machine or work center. This time is often combined with move time.

•

Move Time - The amount of time a lot or batch for an order spends in transit from a machine or work center to the next machine or work center in the routing.

•

Queue Time - The amount of time a lot or batch for an order spends waiting for the start of setup and processing at a particular machine or work center. (Queue time is not included in the starting 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 operation.) Increases in queue time(s) result in direct increases to manufacturing lead time and work-in-process inventories.

The three non-productive time elements introduce a lower level of scheduling at the production floor. MRP can be seen as high level scheduling of all sales and production orders in the shop. Scheduling on the lower level refers to scheduling of the individual production orders. Since this form of scheduling does not have "knowledge" of total shop load, the use of these non-productive time elements causes the system to simulate the real shop's complexity more efficiently.

9-14


Chapter 9: Additional Manufacturing Topics Move Time The non-productive time element, Move time, is used when the schedule needs to take transportation time into account. Move time is used when: •

Facilities are not physically close to one another.

•

Material handling equipment or personnel is constrained.

An example of Move Time is when one facility feeds a second facility with material and there is no material handling equipment between the two facilities. Periodically, a clerk comes to the first facility and transports the orders to the second facility. In this example, move time will be added to account for the time used to move the materials between the facilities.

Wait Time Wait time is defined as the time a lot remains at a work center after an operation is completed until it is moved to the next operation. A common use for Wait time is an oven or painting process that connects two facilities. Rather than creating the drying time after the painting process as an operation, Wait time is added between the facilities. Wait time is often expressed as a part of Move time.

Queue Time The final non-productive time element is Queue time. This is the time a lot waits at a work center before setup or work is performed. Queue time is one element in the total manufacturing lead time; therefore, it can be added to the routing. It can also be used where work accumulates in front of a facility, rather than behind it. This may indicate that the production line is not in balance or there are bottlenecks, which is common in many companies. A released production order may not find the next facility free when it arrives on station (also common in many companies). If queue time is not used, the system generated schedule for a production order might be too optimistic. This is because the system schedules every order like it was the only one in the factory. The complexity of the orders helps to rapidly accumulate the time it takes to produce the orders on the production floor. Therefore, Queue time can be used to add time to the processes to get closer to the real production time.


9-15

Manufacturing II in Microsoft Dynamics® NAV 2009 Demonstration 7 The following demonstration shows you the impact of queue time on the scheduling of the operation steps and on the total manufacturing lead time for the product. 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 6. 5. In the Due Date field, type 1/28/2010. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Put your cursor in the header or on the production order line. 9. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing. 10. Note the work center and machine center numbers as well as starting and ending dates and times. Each successive operation starts when the previous operation finishes. If significant Queue Time is added to an operation, there must be a break in the schedule between the operation with the queue time and its preceding or upstream operation. 11. Note the production order number. 12. Close all open windows.

13. 14. 15. 16. 17. 18. 19. 20. 21.

9-16

The next step is to change the Queue time on a work center or machine center. In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Double-click machine center 130 to open it. In the Scheduling FastTab, go to the Queue Time field and type 2. In the Queue Time Unit of Meas. Code field, select DAYS. Click OK. Open the production order that you just created. Click Replan. In the Plan field, select All Levels and click OK.


Chapter 9: Additional Manufacturing Topics 22. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing. Note that the start and end dates for work center 100 has moved to adjust for the queue time. 23. Close all open windows.

Methods to Reduce Lead – Time This lesson examines different methods available to reduce manufacturing leadtime. These methods are often used when users are producing rush orders or trying to optimize how the system models the manufacturing environment on the shop floor.

Parallel Scheduling A parallel operation reduces total production order lead-time or throughput time. For some industries, it increases efficiency and can reduce the complexity in the BOM structure. NOTE: The definition of parallel scheduling in this program is different from the APICS definition that says: "Parallel Scheduling is 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." In Microsoft Dynamics NAV 2009, the definition of a parallel schedule involves doing two or more different operations at the same time on the production order.

Demonstration 8 The following demonstration shows you how to create the following: •

A new version of a selected routing, including a parallel operation. This new version is identical to the first version, which is serial.

•

Two production orders, one for the routing version with parallel operations and one for the routing version with serial operations.

•

The detailed schedules for the two production orders are similar to viewing the effect of parallel scheduling.

The first step is to modify the bicycle routing to its original state and then create a parallel routing version. 1. 2. 3. 4.

From the Role Center, click Routings. Double-click routing 1000 (Bicycle). Change the status to Under Development. Delete operation 115.


9-17

Manufacturing II in Microsoft Dynamics® NAV 2009 5. If prompted, click Yes to rename the record. 6. Select operation 40, right-click and click New Line. 7. Type the following information: Operation

Type

No.

Description

Setup Time

Run Time

Concurrent Capacity

30

Machine Center

130

Final Assembly

10

20

1

8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Change the status back to Certified. Click OK. Double-click routing 1000 (Bicycle). Click Versions. Click New. In the Version Code field, type 3, or accept the default number if a no. series has been set up. In the Description field, type Parallel version. In the Type field, select Parallel. In the Starting Date field, type 1/28/2011 (January 28, 2011). Go to Actions > Functions > Copy Routing Header. Select Yes to copy the information.

Change the routing by entering a new operation. 18. Select operation 10, right-click, and select New Line. 19. Type the following information: Operation

5

Work Center

100

Description

Start

20. Add the Next Operation No. header, move it beside the No. header, and type the following:

9-18

Operation No.

Next Operation No.

5

10|20

10

30

20

30

30

40


Chapter 9: Additional Manufacturing Topics 21. The 10|20 relationship designates the parallel operations and then the two downstream operations with the same Next Operation numbers that complete the setup.

FIGURE 9.3 ROUTING VERSION FOR BICYCLE

22. Change the status from New to Certified. 23. Click OK. 24. Close all open windows. Next, you create two production orders with different routings. 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 21. 5. In the Due Date field, type 12/31/2010. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Note the production order number. 9. Close the order. 10. Create another production order using the previous steps. However, change the due date to 1/28/2011. Add the Routing Version Code on the production order lines by using Choose Columns and adding the field. 11. Go to the Routing Version Code header and select 3 (or the version that you have just created). 12. Click Refresh. 13. Check that version 3 is in the field.


9-19

Manufacturing II in Microsoft Dynamics® NAV 2009 14. 15. 16. 17.

Accept all default settings and click OK. Open your first production order (with the standard routing). Put your cursor in the header or on the production order line. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing.

The Production Order Routing window shows the results of serial scheduling. Chain assembly can begin only after wheel assembly is finished. Go to the second production order. 18. Put your cursor in the header or on the production order line. 19. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing. This window shows the results of parallel scheduling. The parallel processing of Operation 10 and Operation 20 end on the same day and time. This is valuable time saved when working on a rush order.

Send-Ahead Quantity Another feature in routings that can be used to reduce the manufacturing leadtime is send-ahead quantity. Send-ahead quantities are defined for each routing operation, specifying a portion of the lot or batch sent on to a subsequent operation. The next operation is started when the send-ahead quantity is produced. For example, if ten parts are determined as a send-ahead quantity, the next operation can begin when these ten parts are finished in the actual operation. Start of the next operation = 10 minutes setup time + (10 pieces * 5 minutes run time) + 5 minutes wait time. As a result, the next operation can be started 65 minutes after the actual operation starts. NOTE: Use the following formula to calculate the send-ahead quantity: Start of the next operation = setup time + send ahead quantity * run time + wait time + move time + queue time (at next operation).

9-20


Chapter 9: Additional Manufacturing Topics Concurrent Capacity Concurrent capacity can be set up on both the machine center and the routing: •

Concurrent capacity on the machine center defines how much available capacity the system must concurrently plan for one operation at a machine center. The user enters a number of machines or persons that work concurrently at this machine center on the machine center card. This factor reduces the production lead-time of the order. The user must not enter a value that is greater than the Capacity field on the machine center card. Increasing the concurrent capacity specified on the work center or machine center card increases the amount of time available.

•

Concurrent capacity on a routing indicates how many machine center resources work on an operation at the same time. Increasing concurrent capacity decreases the manufacturing lead-time but does not affect the amount of time available. For example, processing requires a run time of four hours. By using two machines, the run time can be reduced to two hours.

Multi-Level Manufacturing Multi-level manufacturing enables a company to manage all production order levels of a manufactured item. This means that production orders are created that consist of a parent item and one or more required subassemblies with reservation links in between. All the production orders that are part of the same end item order are shown in the same window, the released production order Window. This provides the Production Planner with a good overview of related production orders; however, this kind of scheduling creates a lot of restrictions because of the reservation links between related orders. Therefore, this must only be used in production environments where there is a need to have a visible relationship between production orders. Otherwise, it is the role of the MRP engine to make sure all requirements for components are fulfilled. Multi-level production orders are useful in a make-to-order (MTO) environment, in which manufactured items are not stocked, but produced specifically for a customer sales order. Multi-level production encourages mixed mode manufacturing. This is an attempt to manufacture the same mix of products (make-to-stock (MTS), maketo-order, and so on) on a daily basis. Mixed mode manufacturing tends to promote a steady consumption of materials and resources. The goal of mixed mode manufacturing is to build all product lines according to daily demand.

Consumption Journal for Multi-Level Manufacturing In a multi-level manufacturing environment, the Consumption Journal is used the same way it is normally used to record component usage. The Calc. Consumption Function brings in all of the required components from subassembly production orders. Ensure that you filter on the parent production order number.


9-21

Manufacturing II in Microsoft Dynamics® NAV 2009 When you record production for a multi-level production order using the output journal, enter all production lines with the following procedure: 1. Enter the first line of a production order 2. Explode the routing and enter the processing time and completed quantities. 3. Enter the second line of the same production order, explode that line, and enter the processing time and completed quantities. 4. Enter the remaining lines on the production order in the same manner. Another option is letting the program explode all of the lines of the production order and entering processing time and quantities for each operation line. To illustrate, run the Output Journal as follows. 1. In the navigation pane, click the Departments button. 2. Go to Departments > Manufacturing > Execution > Tasks > Output Journals. 3. Select a released production order. 4. Select Explode Routing.

FIGURE 9.4 OUTPUT JOURNAL

Each line of the make-to-order released production order with a routing is exploded in the journal.

9-22



Business Notification The manufacturing area uses Business Notification to improve the control and effectiveness of purchasing and production. Business Notification generates email messages when conditions in Microsoft Dynamics NAV 2009 are met. Messages are sent to: •

Employees

•

Suppliers

•

Partners

•

Customers

Notifications can be set up: •

For production problems, such as a delay in completion or a delay in starting a production order.

•

To inform buyers when productions BOMs are updated or closed.

Once business notification setup is complete, manufacturing uses the following procedure to prepare and send notifications. Business Notification Worksheets can only be accessed in the Classic client. 1. Follow the path to Manufacturing > Execution > Business Notification Worksheets. 2. Select a code in the Notification Code field by either using the AssistButton or typing in the code.


9-23

Manufacturing II in Microsoft Dynamics® NAV 2009 3. Click the Line button and then Suggest Notification Lines from the Notification Worksheet.

FIGURE 9.5 BUSINESS NOTIFICATION WORKSHEET

4. Enter filters, if needed, based on the setup for the code chosen in the Notification Code field. 5. Click OK, after the filters are entered. 6. An information window appears stating how many lines are found for this notification.

FIGURE 9.6 BUSINESS NOTIFICATION MESSAGE

9-24


Chapter 9: Additional Manufacturing Topics 7. Accept the message. 8. If deleting a row, you receive an information message indicating that the lines are created and they are going to be deleted by continuing on. 9. To view the lines, click the Line button and then Notification Lines. From the Notification Line window, delete lines using the Functions button. It is also possible to view the document from the Show button. 10. Review the lines, and then press Esc and go to the notification worksheet. 11. Select Functions > Send To Business Notification to send the notifications. 12. Select to either send only new notification lines or send all notification lines and click OK in the message box that appears.

Families In addition to production orders for specific items or for groups of make-to-order and assemble-to-order (ATO) items on a sales order, production orders can be generated for a family of items. •

A production family is a group of individual items whose relationship is based on the similarity of their manufacturing processes.

One positive effect can be optimizing the company's material consumption as follows. •

A company uses a sheet of metal in the production of large circles, which are in demand.

•

Every time the large circles are stamped out, there is a lot of scrap. Some of the scrap is used to produce small squares, which are not used as often.

•

Therefore, every time large circles are produced, small squares are produced at the same time, and the production order is for both large circles and small squares.

All items for a family are included on one production order. An example of a family production order is the manufacture of similar parts from the same material, such as metal parts cut from a metal sheet. The families are located in Departments > Manufacturing > Product Design > Families.


9-25

Manufacturing II in Microsoft Dynamics® NAV 2009 The process, set up a family for hubs, is illustrated in the following figure. Designate a routing number and each component of the family is listed individually.

FIGURE 9.7 HUB FAMILY

A production order can be created using family as the source. In this case, the production order must be generated manually.

Demonstration 9 The following demonstration shows you how to create a family production order for the hub family. The first step is to create a hub family. 1. 2. 3. 4. 5. 6.

9-26

In the navigation pane, click the Departments button. Go to Manufacturing > Product Design > Lists > Families. Click New. In the No. field, type 101009. In the Description field, type HUB Family. In the Lines FastTab, type the following information:

Item No.

Description

Unit of Measure

Quantity

1150

Front Hub

PCS

1

1250

Back Hub

PCS

1


Chapter 9: Additional Manufacturing Topics 7. Click OK.

8. 9. 10. 11. 12. 13. 14. 15.

The next step is to create a production order. In the navigation pane, click the Firm Planned Production Orders button. Click New. In the Source Type field, select Family. In Source No. field, select 101009 (HUB Family). In the Quantity field, type 10 In the Due Date field, type 1/28/2010. Click Refresh. Accept all default settings and click OK.

FIGURE 9.8 PRODUCTION ORDER FOR HUB FAMILY

Each item included in the family is listed when the production order is scheduled. 16. Close the production order.


9-27


Summary This course examines a range of additional planning topics that can be used in more advanced production situations; for example, assigning standard task codes, defining scrap, and non-productive time, as well as reducing manufacturing lead times. This shows the flexibility and adaptability of Microsoft Dynamics NAV 2009 Manufacturing that can be used to model all types of production environments for small and mid-size manufacturers.

9-28



Lab 9.1 - Additional Manufacturing Topics Scenario As the Production Planner and super user at Cronus, you are assigned to set up the following additional manufacturing topics in the system.

Lab 9.1: Create Standard Task •

Create a standard tasks dealing with maintenance.

Step by Step 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Setup > Standard Tasks.

3.

4. 5. 6.

Enter a code and a short description for the standard task code. In the Code column, type 02 and in the Description column, type Maintenance for the operation step that the additional information is connected to. Click OK. Go back to the Standard Tasks window, as shown in step 2. Select the task you have created and go to Related Information > Std. Task > Description.

Enter the text to be used on the routing sheet for that particular standard task code. This can be a procedure about how to carry out this inspection and some important notes to the production personnel. 7. Type Normal maintenance. 8. Click OK. 9. From the Standard Task Window, select the task you created and go to Related Information > Std. Task > Tools. Enter a number and a description for each of the tools used in this operation step. 10. In the No., column, type 0 and in the Description column, type No tools required. 11. Click OK.


9-29

Manufacturing II in Microsoft Dynamics® NAV 2009 12. Select the task you created and go to Related Information > Std. Task > Personnel.Enter a number and a description for each of the personnel resources used in this operation step. 13. Enter the following information: No.

Description

1

Cleaner

14. Click OK. 15. Select the task you created and go to Related Information > Std. Task > Quality Measures. 16. Click the drop-down arrow in the Qlty Measure Code header and click New. 17. Enter the following information: Code

Description

D

Hub

18. Click OK. 19. From the Standard Task Qlty Measures window, enter the following information about the quality measures used in this inspection operation step: Qlty. Measure Code

Description

Min. Value

Max. Value

Mean Tolerance

D

Wheels

2

2

0

20. Close all open windows.

Lab 9.2: Scrap Code During wheel assembly, there is a risk of ruining the front and back wheels by careless adjustments to the mounting.

9-30

•

Create a scrap code to reflect operator error.

•

Create a machine center for hub (because scrap cannot be posted to work centers) and add it to the routing for the Bicycle, item 1000.

•

Create a production order for 30 bicycles.

•

While posting output, scrap three hubs.


Chapter 9: Additional Manufacturing Topics Step by Step The first step is to create a scrap code. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Administration > Setup > Scrap Codes. 3. Click New. 4. Type the following information: Code

Description

OPER

Operator error

5. Click OK. The next step is to create a machine center for hub (because scrap cannot be posted to work centers) and add it to the routing for the Bicycle, item 1000. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

In the navigation pane, click the Departments button. Go to Manufacturing > Capacities > Lists > Machine Centers. Click New. Select the General FastTab. In the No., field, type HUB. In Name field, type HUB. In the Work Center No. field, select 100. Go to the Posting FastTab. In the Direct Unit Cost field, type 1.00. In the Flushing Method field, select MANUAL. In the Gen. Prod. Posting Group field, select MANUFACT. Go to the Scheduling FastTab. In the Capacity field, type 1. In the Efficiency field, type 100. In the Queue Time field, type 0. Click OK. In the navigation pane, click the Routings button. Double-click routing no. 1000 (Bicycle) to open it.


9-31

Manufacturing II in Microsoft Dynamics® NAV 2009 19. Change the status to Under Development. 20. Go to the Lines FastTab and change operation 10 with the following parameters: Operation No.

Type

No.

Description

10

Machine Center

HUB

HUB

21. Change the status to Certified. 22. Click OK. The next step is to create a production order for 30 bicycles. 1. In the navigation pane, click the Released Production Orders button. 2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 30. 5. In the Due Date field, type 1/28/2010. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Note the production order number. 9. Close the production order. The final step is to post in the output journal three scrapped hubs due to operator error. 1. In the navigation pane, click the Departments button. 2. Go to Departments > Manufacturing > Execution > Tasks > Output Journals. 3. Delete all existing lines. 4. Type the number of the production order you have just created. 5. Click Explode Routing. 6. Select Operation 10. 7. In the Scrap Code field, select OPER. 8. In the Scrap Quantity field, type 3. 9. Click Post and click Yes. 10. Close all open windows.

9-32


Chapter 9: Additional Manufacturing Topics Lab 9.3: Scrap in Production BOM Wheel assembly is so poor at Cronus that they anticipate 10 percent scrap of item 1100, Front Wheel and item 1200, Back Wheel. •

Set this up in the production BOM 1000.


From the navigation pane, click the Production BOMs button. Double-click Production BOM 1000 to open it. Change the status to Under Development. For items 1100 (front wheel) and 1200 (back wheel), go to the Scrap % header and type a scrap quantity of 10%. 5. In the Status field, change the status to Certified. 6. Click OK. 7. Close all open windows. Note that there is no need to change the rounding precision of these two items, as it has already been performed in Demonstration 6.

Lab 9.4: Send Ahead Quantity It is determined that the first three operations in the assembly of item 1000 (Bicycle), can send output from a given operation to the next operation as soon as the individual item is finished. •

Modify the routing to reflect this.


In the navigation pane, click the Routings button. Double-click routing no. 1000 (Bicycle) to open it. Change the status to Under Development. For operations 10, 20 and 30, go to the Send-Ahead Quantity field and type 1.

Since operation 40 (Control) does not deal with material consumption, the Send-Ahead Quantity field for this operation is left blank. 5. Change the status back to Certified. 6. Click OK. 7. Close all open windows.


9-33



2.

3.

9-34


Microsoft Dynamics® NAV 2009 Manufacturing II

Microsoft Dynamics® NAV 2009 Manufacturing I

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 II