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ERP 101: Work Orders - The Starting Points of Manufacturing

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In this 30-minute session, you will learn:

How Work Orders relate to the ERP system through MRP
What prompts the automatic creation of a Work Order?
What do Work Orders accomplish besides building parts and products?

Publicada em: Software
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ERP 101: Work Orders - The Starting Points of Manufacturing

  1. 1. ERP 101 Session 8 Work Orders – Manufacturing’s Starting Point David Bush Senior Manufacturing Consultant, Rootstock
  2. 2. The ERP 101 Webinar Series Date Topic Aug 2, 2016 An Introduction to ERP for Manufacturing Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is accurate and up-to-date Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures Nov 1, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines Nov 29, 2016 Procurement – Link your Vendors and Purchased Parts via ERP Dec 13, 2016 MRP – Step through an overview of this vital ERP subset Jan 24, 2017 Work Orders – Manufacturing’s Starting Point Feb 14, 2017 Inventory - Maintaining Accurate and Reliable Data TBA Sales – See how you can link your Customers and Products via ERP TBA Manufacturing Accounting – An overview using standard cost TBA Manufacturing Accounting – An overview using weighted cost
  3. 3. Meet Our Speaker David Bush Senior Manufacturing Consultant, Rootstock • 30+ years of manufacturing and MRP/ERP systems experience • Previously at General Microcircuits, Consona Corporation, Relevant Business Systems, Inc
  4. 4. A Quick Recap • What we have covered in our first 7 episodes: – The history of MRP/ERP systems – Engineering Item Master and Bills of Material – Shop Floor Routings – Purchasing’s role in modern ERP systems – MRP – How it fits into the ERP system Today we look at another facet of MRP planning, work orders.
  5. 5. Material Planning WITHOUT MRP • Spreadsheets are used to track material supplies and demands for raw material and subassemblies. Data includes: – Current Inventory Levels – Current Demands – Future Demands – Re-order points • Planner calculates actual demand over time • Open supply orders considered (work orders/po’s) • Open demands then deducted from inventory and supply orders to determine necessary actions: – We’re ok – Uh oh… about to run out – Uh oh… we have way too much! Done for every active part on the system.. .PFEW! Thank goodness for MRP!
  6. 6. Where do Work Orders Originate? MRP Engine Material Demands from Sales Orders and Work Orders Engineering and Inventory Item Masters used by Planning MRP creates suggested Work Orders Manual Work Orders Work Order Receipts bring material to stores Planner reviews and firms suggested Work Orders
  7. 7. Work Orders Create Supplies AND Demands Bicycle handlebar assembly • The Work Order to build this assembly creates a SUPPLY for the number of assemblies being built. • MRP also sees a DEMAND for the components required to build the assembly: – Handlebar grips (2) – Stem (1) – Reflector Assembly (1) These demands are defined on the bill of material, and may be adjusted on the work order without affecting the original bom. So, what do Work Orders accomplish?
  8. 8. Work Order Accomplishments Supplies Satisfy ‘needs’ seen by MRP Provide the ability to manually build items apart from MRP Capture Data and Maintain History Material Issues Labor Reporting Work Center Demands Scrap Costs: material, labor, machine, overhead, subcontract Identify Demands Material demands for raw material and sub-assemblies Labor and Machine time, used for scheduling and financial planning Is that all there is to consider?
  9. 9. Following a Work Order’s Progress • MRP generates planned Work Orders • Planned Work Orders are firmed to identify material requirements via the pick list. • Routing is attached to identify labor/machine requirements. • Material is allocated and issued. • Work Order is ‘released’ to Manufacturing. • Component and Parent scrap is identified • Labor is reported, along with completions at each operation. • Finished parts are received to stores. • Work Order formally ‘closed’ when all costs are accounted for. – No further labor or material issues can occur when ‘closed’. Let’s see how this comes together is Rootstock.
  10. 10. Work Order Firm/Unfirm Object What if the work order needs to be adjusted before I firm it?
  11. 11. Adjusting MRP-created Work Orders Once we have made our changes and ‘firmed’ up the order, what’s next?
  12. 12. Creating Pick List and attaching the Routing • Click ‘Extract Operations’ to create the routing for this order. • Click ‘Extract Components’ to create the pick list used to issue material to the work order. Let’s examine additional information held on the record.
  13. 13. Work Order Adjustments • Changing the Due Date has adjusted the other related dates. • Scheduled Completion Date will be visible once the order is included in the shop floor scheduling function. • Cost details including labor, material, overhead and subcontract operations are all visible from the work order object, adjusting as the work order progresses thru the scheduled operations. How are operation quantity completions and labor entered?
  14. 14. Work Order Labor and Quantities Complete • One method is using the Time & Quantity Bookings object. • Transaction date, total hours and total parts completed are entered. • Parts completed can reduce time still needed at the work center when running the scheduling program. • Hours adds both labor and overhead costs to the work order. How are the completed parts received into stock?
  15. 15. Quantity accepted may be equal to or less than quantity available. • Inventory location (id and number) are entered, then ‘Perform Work Order Receipt’ button is clicked. • Quantity Remaining indicates number of parent yet to be received. If scrapped at any operation, this number will reflect the total ‘good’ available for stock. Once all of the work order quantity is accounted for (received or scrapped) the work order may be closed, ending all further activity. Work Order Receipts to Stock
  16. 16. Where Do We Go From Here? Today we covered the Work Order segment of manufacturing… building parts and assemblies in-house. This satisfies the MRP demands for manufactured items. What’s still to come? • Inventory – Maintains current balances of direct material – Provides means to issue material as needed to work orders and subcontract purchase orders. – Includes ability to monitor inventory records for accuracy. • Order Entry – Feeds the ‘demand’ side of ERP from the customer base. – Maintains customers, products, orders, etc • Standard Costs – Setting and maintaining standard costs for parts/assemblies/finished goods. – Using simulated costs for future planning. And much more…..
  17. 17. Q&A www.rootstock.com 888.524.0123 marketing@rootstock.com
  18. 18. The ERP 101 Webinar Series Date Topic Aug 2, 2016 An Introduction to ERP for Manufacturing Aug 16, 2016 Engineering – Learn how to create Part Master Records and Bills of Material Aug 30, 2016 Engineering – Learn how Change Orders and/or Revisions ensures that ERP system data is accurate and up-to-date Oct 11, 2016 Shop Floor – Explore how ERP is used to create and maintain Work Centers, Routings and Procedures Nov 1, 2016 Shop Floor – See how scheduling the Shop Floor through ERP controls Labor and Machines Nov 29, 2016 Procurement – Link your Vendors and Purchased Parts via ERP Dec 13, 2016 MRP – Step through an overview of this vital ERP subset Jan 24, 2017 Work Orders – The starting point of manufacturing Feb 14, 2017 Inventory - Maintaining Accurate and Reliable Data TBA Sales – See how you can link your Customers and Products via ERP TBA Manufacturing Accounting – An overview using standard cost TBA Manufacturing Accounting – An overview using weighted cost

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