Generating demand for production
You can use several methods to generate demand for production.
Use the Budgeting and planning – Inventory planning –Production plans documents to support push system of material flow management. A material flow in the form of manufactured products and semi-finished products is pushed to a recipient (for example, to a warehouse) on command received from the management system. A production plan is generated for an arbitrary time interval by periods specified in the selected planning scenario. For example, if the specified interval is one year and frequency is a month, enter 12 monthly plans in each plan line.
With the separate Production plans, you can specify groups in which manufactured products are planned together.
Demand for semi-finished products manufactured independently is considered in plans by dates of their possible production.
You can plan semi-finished products required to release products using the Plan semi-finished products setting in plan profiles. It can have the following values:
- Automatically – semi-finished products which are not manufactured in the process are exploded to purchased materials automatically. It allows you to generate overall demand for materials in the production plan considering demand of all semi-finished products used in goods production. A link between each semi-finished product and manufactured products in which production it is involved remains. Demand for semi-finished products is united by production plan periods but their pegging remains if they are intended for products with different assignments.
- Manually – semi-finished products which are not manufactured in the process can be added to a production plan as separate lines at the moment of its creation.
The Assignment dimension is used in the Production plans. You can create a production plan by a line of business and analyze fulfillment of plans of each line of business. You can select a method of assignment specification for each plan profile used to create plans. These methods are "for the whole document" and "line-by-line".
For more information about production plan creation, see chapter Planning.
The Sales order, Order for internal consumption, and Repair order documents also generate demand for products which can be fulfilled using production. With these documents, you can support pull system of material flow management (demand fulfillment).
Demand for production registered with production plans and sales orders are accepted for production with the Production order documents.
The Sales order and Order for internal consumption documents generate demand for products which can be fulfilled using production. Pull system of material flow management is implemented (demand fulfillment).
Version 2.1. Production orders
Production order is a document generating release batches of manufactured products, semi-finished products, and work performance.
To create production orders, go to Manufacturing – Intershop management – Production orders. The following options of creating the Production orders documents are available:
- New – a document is generated manually.
- By plan – a document is created based on demand generated using Production plans.
- By demands – a document is created based on demand stated in orders.
- Based on sales orders, repair orders, etc.
General parameters of production orders:
- Company – an analytical section by companies is inherited by business transactions of order supply and fulfillment to record them in compliance accounting.
- Dispatcher department – a department responsible for an order. It is used for separating responsibility areas at the Chief Dispatcher level and ensures separation of production orders in the order queue when generating a production schedule. With parallel management of order groups, it is recommended that you eliminate overlapping of their manufacturing processes in work centers. As a rule, the specified department is not a direct assignee of manufacturing processes.
- Order for activity – defines a taxation type of an activity for which production is planned against this order. If you use pegged supply, a taxation type is inherited from a pegging recipient.
- Priority – an indicator showing the importance of fulfilling a certain order compared to other orders. It is used to generate an order queue. It is filled in based on the Manufacturing – Settings and catalogs – Intershop management – Priorities list. End-to-end work with priorities of orders is available. The priority is inherited by assignee orders from basis orders (for example, by a production order from a sales order in case of pegging).
In production order lines, specify the following:
- Production object – products with characteristics in the desired quantity by starting batches. Starting batches are generated by separate lines of the document tabular section. You can divide total demand into batches automatically in accordance with parameters of the bill of resources selected for production. Starting batches are generated by demand dates.
- Demand date – a date by which products should be manufactured.
- Start not earlier than – a limiting production start date.
- Assignment – a source of pegged demand in pull management system (for example, Sales order). To use pegging, select Master data and settings – Master data and sections – Warehouse and delivery – Demand fulfillment – Pegged order fulfillment. In case of pegging, you can control manufacturing processes by basis orders which generated the initial demand for manufactured products.
- Standard bill of resources – a bill of resources used to generate BOM of production order lines.
- Release placement – an algorithm of stage placement when generating a production schedule:
- To start – corresponds to the "as soon as possible" planning option. It is used by default.
- To finish – corresponds to the "just-in-time" planning option.
- Semi-finished products planning – defines demand for additional planning of semi-finished products. It is used when semi-finished products, for which the Production supply method is selected but they are not written off as products manufactured in the process, are specified in a bill of resources. You can plan such semi-finished products using separate lines of the current production order or using separate production orders. To add lines with semi-finished products to the current order, click Plan semi-finished products. This option is like a service or a tooltip which reminds you to generate starting batches for components produced independently. It does not let you generate common starting batches of semi-finished products included in different items of the current order or used in different redistributions of one item.
Location of lines in the document tabular section determines the priority of their fulfillment within a production order.
A bill of materials is generated for each order line. It is a replication (copy) of the bill of resources specified in the line. All further changes in manufacturing process stages and decisions taken about the use of stock and substitute materials are recorded in an order line BOM. To edit an order line BOM, click (Edit). Changes in the order line BOR do not affect source reference data. The bill of resources specified in the order line is one of the standards for variance analysis.
The bill of resources with the unique content created for the order line reflects a certain technological option of product release. Later, you may need to create the created option again. On the Products tab of the Production order documents, click Bill of resources – Create a BOR based on order BOM to save the bill of resources of the selected order line as a separate bill of resources.
In the Manufacturing – Intershop management – Production schedule workplace in the Products group, product quantity needed to be manufactured is shown in units of measure specified in a production order, including in packaging.
Version 2.2. Production orders
Use the Production order documents to register demand for production specified in production plans or other orders (sales orders, repair orders, etc).
Comparative analysis of production order use for Production management, version 2.1 and Production management, version 2.2 is outlined below:
In Production management, version 2.2 scheme, production orders are simple documents with a list of manufactured products. It allows employees of related services (for example, sales persons) to organize the work with them. In Production management, version 2.2 scheme, the Production stage documents are the main objects during production planning and dispatching. Use a production schedule and route sheets (they will be available in future versions) for detailed production management.
To create production orders, use the Manufacturing – Intershop management – Production orders workplace. You can create orders manually or using order generation wizards by clicking Create – By plan... or Create – By demands.
To use the wizard of production order generation by demands, you can also click Generate orders in the Manufacturing – Intershop management – Order queue management workplace.
Wizards include several steps.
On the first step of the wizard of production order generation by demands, specify conditions of picking manufactured products for release of which production orders will be generated. You can filter them by properties of demand for manufactured products (a warehouse, an assignment, a category, etc.) and by supply method parameters (a department, a supply type, and a supply source). You can set custom filters.
In the wizard of production order generation by plans, the first filter is by a dispatcher department and product launch/release period. Order launch period is calculated considering standard production duration which is defined by data of a bill of resources for manufactured products.
Duration of production by a BOR consists of planned duration of product release stages and duration of production of semi-finished products manufactured in the process. It is calculated in background during the following events:
- Changing the BOR status to Valid.
- Changing duration of BOR steps.
- Assigning the main BOR to items.
- Changing duration of semi-finished product manufacturing.
If semi-finished products manufactured in the process are used to release manufactured products, manufactured products and each semi-finished product have their own production periods. It allows you to generate separate production orders agreed by fulfillment periods for each of these releases.
Filter by order period is set by workdays from the planned release date.
The second step of the wizard of production order generation by plans contains production plan data with the calculated standard production duration (the Deadline field) and the desired date of production order creation (the Order date filed).
Release of Manufactured products 1 and Manufactured products 2 which are manufactured using Semi-finished product will be planned after its production.
In the form, you can select lines for which the unposted Production order documents will be generated later. They are posted and accepted after a visual inspection and refinement (if necessary).
The similar approach is implemented in the wizard of production order generation by demands:
- 2 of 5. Customize supply methods – select check boxes for necessary supply methods to generate orders. Specify product kinds which should be included in orders for the selected supply methods:
- Order point reached – demand for these manufactured products are fulfilled not later than the order fulfillment date set by the supply method. If you do not order these manufactured products today, they may not be manufactured on time.
- All, planned order placement – all manufactured product kinds delivered by this method. Quantity to order will be offered for fulfillment of demand to the "Next delivery date" which should be filled in when selecting this option.
- 3 of 5. Inventory level control – the third step is skipped if there is no demand generated according to the rules of inventory level control.
- 4 of 5. Orders for shipment.
- 5 of 5. Specify generated orders.
All created production orders are displayed in the Manufacturing – Intershop management – Production orders list regardless of their current status.
Specify the required products, their quantity, and the warehouse where demand for products should be fulfilled in the Being generated order status (specify the receiving department for works).
In one production order, you can include product items that have:
- Single demand date – the value in the Required release date field on the Products tab is set for the whole document.
- Same production priority – defined by the value in the Priority field in the document header.
- General release placement – one department specified in the Dispatcher department field on the Main tab is responsible for release.
- Common semi-finished products – during planning, allows you to generate batches optimal in size for launch of semi-finished products into production.
The For production order status shows that the enterprise's Planning and Dispatching Department is responsible for the order and that the order is being prepared to be launched into production. The Manufacturing – Intershop management – Order queue management workplace is designed for employees of the Planning and Dispatching Department acting as the Chief Dispatcher in production management. All orders in the For production status are displayed in the tabular section of this workplace. To see orders in the Being generated status, click Orders being generated.
Specify a production time frame in the Production order documents:
- Start not earlier than field – the date from production can be started. If the value is not specified, the current date is used as the production start date.
- Required release date field – the date by which demand for manufactured products should be fulfilled.
- Release placement field – the selected value defines a planning approach:
- To start – corresponds to the "as soon as possible" planning option. It is used by default.
- To finish – corresponds to the "just-in-time" planning option.
If the Master data and settings – Master data and sections – Manufacturing – Allow using planning interval "Hour" check box is selected, the date format to the precision of minutes will be used in all lists.
In Production management, version 2.2 scheme, you can select the expected production technology (the Standard bill of resources field in the tabular section of the Products tab) in production orders for each product item. The bill of resources is not stored in the order. Data from the specified bills of resources is used when generating production stages. You can arbitrarily change stage components and stage fulfillment order later: new stages are added, one stage is divided into several stages, and some existing stages are excluded. It allows you to record fulfillment features of a certain production order.
It is not necessary to select a bill of resources in a production order. You can create the Production stage documents required for release manually.
The Closed status is set for production orders whose stages are fulfilled or canceled and all references are processed. To close an order, click Actions – Close order in the Manufacturing – Intershop management – Order queue management workplace.
Version 2.2. Production stages
Production management is based on fulfillment of manufacturing process stages. For each release batch of production orders, components of stages to be fulfilled can be inherited from the selected standard bill of resources or specified manually. The stage contains all the necessary information: finished products, materials and semi-finished products, labor costs, and work center kind use.
Each stage is a separate Production stage document.
Stages are created for production orders in the For completion status in the Manufacturing – Intershop management – Order queue management workplace by clicking Actions – Generate production stages.
Each redistribution described by a bill of resources is a stage chain ending with release of manufactured products or semi-finished products. The Production stage document chain is generated similarly.
A unique name is generated for each Production stage document in the production system. It consists of the following elements (for example, PR00-6.3.1, Production):
- Short number of the production order within which the stage is created (PR00-6).
- Chain sequence number within the production order (3) is assigned automatically upon creation of a new chain.
- Stage number in the chain (1) is assigned automatically during stage creation.
- Stage name is inherited from a bill of resources (the Production value is used by default). You can change it manually in the Name field on the Main tab.
A stage fulfillment deadline is specified in brackets for reference.
If manufactured semi-finished products are used in production of manufactured products, stages for manufactured products are added with stages necessary for production of semi-finished products.
A stage chain generated by one bill of resources is identified by the release stage. For example, in the diagram, you can see the following stages: Manufactured products: Production stage 1.3 and Semi-finished product: Production stage 2.3. There may be only one release stage. It is always at the end of the chain. You can register release of items, for which the production cost is calculated, at the release stage only.
You can register side release at the fixed cost at any stage included in the stage chain. The side release cost is excluded from the production cost amount when calculating a manufactured product cost.
In the Production stage documents on the Additional information tab in the Price type field, specify a price type which is used to estimate the release cost of products specified in the Side and intermediate release at fixed cost tabular section on the Finished products tab. Prices are filled in for lines with the Produced check box:
- When selecting the Produced check box.
- By clicking Fill in – Fill in prices by price type.
- When filling in stages by operations.
- When changing the stage status to Completed (and selecting the Produced check box at the same time).
Consolidated production of semi-finished products is supported for release batches of one production order:
For example, to produce a semi-finished product included in Manufactured products 1 at Manufactured products 1: Production stage 1.2 and in Manufactured products 2 at Manufactured products 2: Production stage 2.3, a common starting batch will be generated.
Thus, the Production stage document is a pegged object and can fulfill demand of various lines of one production order:
- Product assignment is specified as an assignment for stages releasing products on pegging basis.
- Another production stage is specified for stages releasing semi-finished products (semi-finished product release can be described only for stages which have a higher sequence number).
- Stage is a separate assignment when supplying with material resources.
Stages of one chain know their predecessors. Thus, you can easily release several related product kinds from one material (implement a so-called division scheme) using stage assignments.
You can manufacture semi-finished products for manufactured products on pegging basis using separate production orders. In this case, a link between the stages is defined by the assignment:
When using a pegged scheme, you can trace what will be affected during any variances in any place of the chain. For example, delay in delivery of materials for production of a semi-finished product at Common semi-finished product: Production stage 3.1 can delay fulfillment of Production order 1 (starting from Manufactured products 1: Production stage 1.2) and Production order 2 (starting from Manufactured products 2: Production stage 2.3).
If a production order supplies stages of another order with semi-finished products, it should be in the fulfillment queue earlier than the order being supplied.
You can plan additional semi-finished products for several production orders summarily using the standard demand fulfillment tool.
You can set the following statuses for the Production stage documents:
- Being generated– documents are created but parameters of their fulfillment are not fully defined. In this status, you can merge production stages of semi-finished products.
- Generated – the stage is ready to be passed for production and for fulfillment.
- For completion – the mark about the Chief Dispatcher's decision to pass stages for completion is set within production order dispatching. Such stages are not supplied with materials.
- Started – stage fulfillment has been started. For stages passed for fulfillment to a third party toller, the status is set when registering a tolling order.
- Completed – the stage is fulfilled and the use of all requested resources is defined.
During this stage, material consumption and item release registration can be displayed in parts. It allows you to single out costs of various accounting periods (months) in accounting.
Once stages are generated, you cannot change values in the Company, Dispatcher department, Order for activity, and Line of business fields in production orders.
The use of a dimensionless fulfillment unit (units/batches of items) is saved for stage dispatching. Quantitative indicators of stage fulfillment are displayed on the Main tab in the Production stage documents:
You can select one of the following options of determining the stage fulfillment time (the Plan check box on the Main tab):
- By total duration – stage fulfillment duration is set by fixed workdays. Workdays are defined using a business calendar of the specified department. It is the only option available for the Without planning production schedule production management method.
- By work center availability – stage fulfillment time is defined automatically when calculating a production schedule considering availability of employed work center kinds specified in the stage (the Work center kinds tab). This option is unavailable for the Without planning production schedule and Planning by material resources production management methods.
- Manually – a stage is placed in the production schedule manually. For this purpose, open the Stage placement in the production schedule form. If you correct stage fulfillment dates manually, you cannot replan the stage later. Dates corrected manually are marked with .
- Plan not earlier than – specifying a date which defines the left (the earliest) limit of the available period for stage placement in the production schedule.
The option from the stage description in the bill of resources is inherited by default.
In the Production stage documents on the Work center kinds tab, you can specify the use of alternative work center kinds during planning.
You can easily change a manufacturing process of products both at the production preparation stage and during the production process. You can create new production stages, and new shops and involved departments can be their assignees.
Version 2.2. Management of production order queue
With the Manufacturing – Intershop management – Order queue management workplace, you can manage a production order queue, generate production stages, create a production schedule, and control order fulfillment.
In the tabular form, the list of the Production order documents in the For production status is displayed.
Orders are sorted by priority and fulfillment order within one priority. Within one priority level, you can choose the order position in the list manually by clicking .
In the order list, you can use filters which allow you to select orders a certain user is responsible for:
- Dispatcher department
- Responsible person
Production order monitoring is based on the control of the order fulfillment state which is displayed as icons in the first fields of the tabular section:
- Stage fulfillment state:
- <Empty> – all necessary Production stage documents are created, stages are passed for completion, the schedule is calculated and it is relevant, and dispatching is not required.
- Generate stages – it is required to generate the Production stage documents.
- Pass stages for execution – the order has stages which should be passed for execution.
- Check stages – the order has some stages with filling errors.
- Plan schedule – the schedule was not calculated or it is not relevant anymore. New calculation of the production schedule is required.
- Supply with material resources:
- <Empty> – there are no difficulties with supplying stages with materials.
- Supply is required – there are stages for which all necessary material resources are not supplied.
- Product release status:
- <Empty> – product release time has not yet come.
- Demand date is violated – all or part of products will be manufactured after the required release date according to the schedule.
- Everything is produced – all order products are manufactured.
Select orders by fulfillment stages by applying the same name filters. For easier work with the order list, filters are located in the command bar on the right side of the screen (you can collapse it).
To perform the required action, double-click the icon in the order line or click Actions in the form header:
- Generate production orders – the Production stage documents will be generated for the selected production orders in accordance with bills of resources selected for manufactured products and semi-finished products. Stages will not be created for items which do not have bills of resources. To generate stages, select bills of resources and create stages again, or register the Production stage documents manually.
- Pass stages for execution – stages without incomplete previous stages are passed for execution. If it is required to set the For completion status beforehand for all stages, including those with unfulfilled predecessors, you can use the form for stage dispatching.
- Plan the current one – the Production schedule planning form is opened for the current order. When planning the current order, it is recommended that you have a relevant production schedule by all orders being higher in the order queue. Otherwise, their replanning can make the schedule of the current order irrelevant.
- Plan the selected ones – a production schedule will be calculated for the selected production order group. Specify planning settings in the Production schedule planning form and use them to plan all the specified orders. When planning the current order, it is recommended that you have a relevant production schedule by all orders being higher in the order queue. Otherwise, their replanning can make the schedule of the current orders irrelevant:
- Plan the queue by the current (order) – a production schedule will be calculated for the current production order and all orders which require update and have fulfillment priority higher than the current one.
- Reschedule requested supply dates – the required dates of material supply are aligned with the stage schedule. It allows you to reduce premature material supply of stages which will not be started soon. Within the Reschedule requested supply dates of production stages form, you can analyze a list of materials which have the requested supply date earlier than the stage start date. You can change material supply dates in stages manually, or you can move requested supply dates to stage start dates according to the schedule by clicking Reschedule supply dates. Note that stages planned far in the future due to other restrictions (work center load or dates of previous stage fulfillment) and for which supply with materials was moved to later dates may not be subsequently moved to earlier dates due to restrictions on materials.
- Close order – the Closed status is set for selected orders. Before using the command, you can set the Everything is produced filter for the order list. It allows you to check if orders are ready for completion. Select Master data and settings – Manufacturing – Manufacturing – Do not close partially fulfilled production orders to block closing of orders by which not everything is produced.