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TT4 Production Orders 7/18/2015 1 7/18/2015 Mixer Snack Bar Line Mixer Form Bake Pack Mixer Production (200) Mixer Finished Goods Warehouse (300) Raw Material Warehouse (100) Work Centers for Fitter Snacker 2 Raw Material Warehouse (100) Step 1: Detailed Instructions 7/18/2015 Mixer Mixer 1) Release Order for 500 LB of ## Dough NRG-A 2) Issue goods to production order (oats, wheat germ, etc.) from SLOC 100 3) Confirm production of 500 LB (accounting) 4) Receive 500 LB of ## Dough NRG-A into SLOC 200 Mixer Production (200) Mixer 3 1) Release Order for 7 Cases of ## Dough NRG-A 2) Issue goods to production order (500 LB of ## Dough NRG-A) 3) Confirm production of 7 Cases Snack Bar Line (accounting) 4) Receive 7 Cases of ## NRG-A into SLOC 300 Form Bake Pack Production (200) 7/18/2015 Finished Goods Warehouse (300) Step 2: Follow the Pattern 4 Functions of Production Orders Status Management: Tracking, User-defined status Scheduling Calculation of Capacity Requirements (detailed) Costing Availability Checks (material, capacity, PRTproduction resources and tools) Printing of Paper Orders/related documents Assembly drawings and instructions Inspection instructions Storage regulations Material Staging: withdrawal of materials used in production, e.g. components and sub-assemblies 7/18/2015 5 Functions of Production Orders Confirmations: quantities, activities, times Goods receipt: receipt of completed materials Period-end closing: Process cost allocation, overhead costs, surcharges, WIP calculation, variance calculation, order settlement Archiving and retrieval Many more: rework, serial numbers, as-built, quality control, etc. Production Orders capture actual data— costs, dates, etc. 7/18/2015 6 Planned Orders vs. Production Orders Planned Orders are for PLANNING Production Orders are for EXECUTION Planned Order 3 weeks in future Planned Orders 2 weeks in future Planned Orders 1 week in future Production Orders released today 7/18/2015 7 Master Data for Production Orders Master Data is data that does not change frequently Master Data for the production order comes from: Material Master Bill of Material (BOM) Work Center Routing Production Resources/Tools (PRT) Materials like gages, fixtures, test equipment Can also be items like drill bits that can be consumed in production but aren’t consumed INTO the product Most Production Order data comes from BOM and Routing 7/18/2015 8 Archiving & Deletion Order Request 1 16 Order settlement Order Creation 2 Availability Checks 15 Variance Calculation Goods Receipt 3 Production Order Cycle 14 13 WIP Determination Machine Reservation 5 Order Release 6 12 7 11 Confirmation Upload from PDC system 7/18/2015 4 10 8 Download to PDC system Order Print 9 Material staging Material withdrawal posting 9 Production Order Cycle The Production Order goes through many activities, many of which can run automatically or in the background Cost Object Controlling activities (WIP determination, variance calculation, and settlement) are periodic and usually performed in the background 7/18/2015 10 Methods of Creating Production Orders Direct (manually) From planned order (created by MRP) Order by order: an individual planned order is turned into a production order Mass processing: a group of orders is processed in a batch For sales order (can be automatic) For rework 7/18/2015 11 Scheduling MRP calculations determine Basic Dates Basic start date: the earliest possible start of production Basic finish date: the latest possible date by which production has to be finished The opening period (planned open date to basic start date) is the time required by the MRP controller to convert the planned orders into production orders or purchase requisitions (defined in scheduling margin key—specified in material master). Basic dates are calculated using in-house production time (or replenishment lead time for purchased components) and backward scheduling. 7/18/2015 12 Basic Dates 7/18/2015 13 Lead Time Scheduling Float before production PS OP OP OP OP OP …….. 0010 0020 0030 0080 0090 SS SF Queue time ES 7/18/2015 Setup time LS Processing time Teardown time EF Float after production GR process time PF Pick/pack time AD Wait time LD Load time Transit time GI RDD Move time LF 14 Lead Time Scheduling in-house production time Float before production PS PS: SS: SF: PF: relevant to sales order OP OP OP OP OP …….. 0010 0020 0030 0080 0090 SS Float after production SF Planned Start Date (Basic Date) Scheduled Start Date Scheduled Finish Date Planned Finish Date (Basic Date) Float before production and Float after production defined in scheduling margin key (assigned in7/18/2015 material master) GR process time PF Pick/pack time AD LD Load time Transit time GI RDD AD: Planned Availability Date LT: Loading Time GI: Goods Issue Date RDD: Required Delivery Date 15 Lead Time Scheduling used in capacity planning Queue time ES ES: LS: EF: LF: Setup time LS Earliest Start Date Latest Start Date Earliest Finish Date Latest Finish Date 7/18/2015 Processing time Teardown time EF Wait time Move time LF Detailed operation times can be used to calculate in-house production time automatically 16 Lead Time Scheduling 7/18/2015 17 Status Management Status Management is one tool that can be used to manage released production orders A status can allow, allow with warning, or block a business transaction Two status types are available System status: internal, predefined, fixed number User status: freely definable, set by user 7/18/2015 18 Status Management Status 7/18/2015 Status detail 19