Basic concepts and definitions

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Within general concept of production activity automation, the application provides two options of production subsystem that differ in usage scenarios. Each option has unique data storage architecture:

• Production management, version 2.1 matches the functionality of application 2.1.3. To use it, select the Master data and settings – Master data and sections – Manufacturing – Manufacturing – Production management, version 2.1 check box.
• Production management, version 2.2 is an alternative option that is represented in version 2.2.1. To use it, select the Master data and settings – Master data and sections – Manufacturing – Manufacturing – Production management, version 2.2 check box.

The options settings are partially different, thus you can see the differences in separate sections and subsections of the description (if the specified option is used). Description of settings for Production management, version 2.1 begins with "2.1", and with "2.2" for Production management, version 2.2.

To transfer your content to Production management, version 2.2 step by step, you can use both options at once. After you finish the upgrading, you can disable Production management, version 2.1. If you use both options together, settings cover the demands of both options. For more information about the upgrade, see chapter "Features of migrating to version 2.2".

Production features are available to you if you select the Master data and settings – Master data and sections – Manufacturing – Manufacturing check box.

Recording production activity allows you to solve the following business tasks:

• Register the results of production processes.
• Control the fulfillment of material consumption standards including those by the processing locations.
• Analyze components of unfinished production to reduce capital blocking in unfinished production.
• Keep production accounting within bookkeeping.

 

Real-time management organization

With real-time management, you can plan and dispatch manufacturing processes. It allows you to determine the procedure of product launch into production, create necessary reserves of materials and products, and have uninterrupted supply of materials and semi-finished products to workplaces.

These tasks are fulfilled considering a production type and organizational and technological features of manufacturing processes.

For Production management, version 2.1, the scheme is shown in the diagram:

General production demand is defined at the first stage. It is formed out of product demand forecasts and orders of certain consumers received by the enterprise.

To fulfill the stated demand, a decision about production is taken. It is registered for separate product batches using the Production order documents.

With the production schedule, you can coordinate production order fulfillment at the level of assignee departments. Production schedule generation and monitoring of its fulfillment define the intershop level of production management. These functions are carried out by production and dispatch department of the enterprise, that is why this level can also be called the chief dispatcher level.

A step-by-step schedule of manufacturing processes is generated for departments without details to technological operations within each stage. Transfer of stage results between departments is coordinated. Replanning is carried out if there are variances from the schedule.

In departments, work planning to fulfill production schedule is performed by production and dispatch office of the shop. This is a shop management level. It can also be called a local dispatcher level (by a responsible person).

In Production management, version 2.1, schedule stage fulfillment is managed using route sheets. A dispatcher generates a schedule of route sheet completion in work centers, organizes and controls its fulfillment.

Besides schedule fulfillment, one-time production jobs can be carried out in the department. They are registered by production without schedule scheme.

Production departments

Tasks of fulfilling stages of a production schedule, assembly, and cost allocation inside a shop are carried out in departments. Enterprise management structure is described in the Master data and settings – Master data – Enterprise structure list.

Tasks of assembly and costs allocation are carried out in departments. Enterprise management structure is described in the Master data and settings – Master data – Enterprise structure list.

An adapted version of the Enterprise structure list is the Manufacturing – Settings and catalogs – Production structure – Production departments list. There are no limits of using items in the list. However, names of departments for which the flag of participation in manufacturing processes is not set are highlighted in gray.

In a profile of items of the Enterprise structure list, you can specify production department parameters by clicking Department produces goods by and without production orders – Change.

In a profile of items of the Enterprise structure list, you can specify production department parameters by clicking Department produces goods – Change.

Dispatcher department

On the Main tab, select the Dispatcher department responsible for the production orders check box for departments used to select non-overlapping zones of planning and dispatching of manufacturing processes. You can select these departments in the Dispatcher department field in the Production order documents. They participate in order queue generation considering their priority when generating the production schedule. The dispatcher department priority is specified in the Manufacturing – Settings and catalogs – Intershop management – Dispatcher department priorities list. The higher the department is in the list, the higher its priority is.

Version 2.1. Production department parameters

Release registration parameters are specified on the Main tab: By production orders and Without production orders.

Parameters of using each of the options are specified on separate tabs: Production by orders and Production without orders.

Additional parameters are specified for departments on the Main tab:

• Materials warehouse – a warehouse which will supply departments with materials and semi-finished products by default. You can specify a supplying warehouse for certain product items in the settings of material transfer to production.

The following parameters are specified for departments on the Main tab:

• Materials warehouse – a warehouse which will supply departments with materials by default. You can also select a supplying warehouse for certain product items in the settings of material transfer to production.
• Work schedule – a department work schedule to be used by default:
  • Enterprise work schedule.
  • Individual schedule (specify the schedule selected for use).

Specify parameters for departments in which release by production orders is used on the Production by orders tab.

Planning interval – a time slot (an indivisible time period) used to estimate availability of work center kinds of a certain department when creating a production plan. Options with the Day, Week, and Month duration are available. To use a planning interval with the Hour duration, select Master data and settings – Master data and sections – Manufacturing – Manufacturing – Allow using planning interval "Hour". Planning interval selection criteria:

• Interval duration is much longer than time to fulfill the most frequent stages of the department. Otherwise, the local dispatcher loses flexibility in selecting an order and time of stage fulfillment.
• Reasonable time of transferring results of the stage fulfilled in the department for further use. The stage results are transferred by the boundary of the interval where the stage or its follow-up buffer is located.
• Suggested amount of manufacturing process stages which can be controlled simultaneously by the local dispatcher.
• Production management controlled by information system tools.

An unjustified increase in interval length leads to a significant growth of production cycle duration. A decrease in interval duration results in high time details of the production schedule which reduce room for maneuver to the local dispatcher.

Selection of planning interval duration does not depend on calendar dates. For example, the interval of the Week duration can be located on the boundary of two accounting periods (in terms of compliance accounting). It is not a limitation in real-time management, and several tools are available to comply with legal requirements arising in this situation.

Route sheet management method defines an option of creating a schedule for work centers of a department within the planning interval:

• DBR/SDBR (abbreviation of the method name "drum-buffer-rope"/"simplified drum-buffer-rope"). The schedule is created only for key work centers, or not created at all (as for SDBR, performance assessment and stage fulfillment control for equipment availability are not required, total time of stage fulfillment is specified).
• Operation registration (without planning) – the schedule is not created for work centers and technological operations used to fulfill the stage are assigned to a work center manually when it is necessary to fulfill them.
• Operational planning (MES) – the schedule is created for all work centers which carry out technological operations of stages.

In the Enter work center kind availability field, a period for advance specification of data on availability of work center kinds for creating a production schedule is defined.

In the Enter work center schedule field, a period for advance specification of data on work center availability used to create a work center schedule is defined.

Both parameters are specified in days. Amount of days within which you should get notifications on necessity to specify the availability setting is specified in a separate field.

These are technological parameters which provide possibility of planning for the selected period.

A release cost registration procedure is defined on the Production without orders tab. The following options are available: with or without the Write off release costs documents.

You can select an option of release costs write-off on the Parameters tab:

• By separate document "Write off release costs" – used for manual control of costs allocated to a release cost. Allocation of labor costs registered earlier is possible.
• By material allocation rules – product costs are allocated automatically according to the predefined rules. Limitation of this option is prohibition to register labor costs in the  department.

A procedure of registering department employee output is defined on the Employee work accounting tab using values of the following parameters:

• Assigned work assignees are – defines who carries out the work within a production department:
  • Employees if individual employees are involved in work performance.
  • Teams if employees are organized into teams to carry out the work.
  • Teams and employees if both described options of employee involvement are possible when carrying out the work
• Performed works are distributed among team members according to – if teams are used as assignees, it defines which indicators are used when distributing the work performed inside a team among employees during output registration:
  • Labor participation rates – the cost of the work performed is allocated among employees in proportion to labor participation rates.
  • Hours worked – the cost of the work performed is allocated among employees in proportion to hours worked.
  • Tariff rates – the cost of the work performed is allocated among employees in proportion to their tariff rates.
• Employee output is registered – defines frequency of recording the output of production department employees.

Version 2.2. Production department parameters

Options of department participation in production are selected on the Main tab:

• Use of the department as a production dispatcher – the Dispatcher department responsible for the production orders check box.
• Opportunity to release products against production orders – the By production orders check box.
• Opportunity to release products without production orders – the Without production orders check box. This setting excludes control of company stock for all shop storerooms of this department. It allows you to support transfer of manufactured products whose release has not been registered yet from a shop storeroom of the department to a warehouse.

Specify a department work schedule which will be offered for work centers by default. Possible options:

• Enterprise work schedule.
• Individual schedule (specify the schedule selected for use).

Planning interval is specified on the Production by orders tab. The rules of its selection are specified in the previous section.

To use operations for detailed management of production stage fulfillment at the shop level, select Use operation management for production stages. See the detailed description of this attribute in Version 2.2. Management at shop level.

In the Enter work center kind availability field, a period for advance specification of data on availability of work center kinds for creating a production schedule is defined.

In the Enter work center schedule field, a period for advance specification of data on work center availability used to create a work center schedule is defined.

Both parameters are specified in days. Amount of days within which you should get notifications on necessity to specify the availability setting is specified in a separate field.

These are technological parameters which provide possibility of planning for the selected period.

Release without production orders is possible from any department and does not require additional setting.

A procedure of registering department employee output is defined on the Employee work accounting tab. It is described in the previous chapter.

To see material supply schemes which are used for the specified department, click Supply schemes in a profile of items from the Enterprise structure list.

Besides, you can open one or several shop storerooms for each department.

Version 2.2. Shop storerooms

A department can receive materials necessary for production in the following ways:

• By the target method to supply certain production stages.
• In advance based on statistics of demand for these materials to release manufactured products.

In both cases, materials received by the department are considered in unfinished production but accounting actions are completely different for them.

Materials received to supply production stages cannot be used for other purposes. All decisions about their usage in unfinished production (for example, write-off to release, return to the warehouse) are made within the corresponding production stage.

A lot of materials are also used in production. To transfer these materials to departments, tools separate from production schedule supply are used. First of all, it refers to general-purpose materials and measuring materials which are difficult to supply in small batches. Use shop storerooms to manage usage of these materials and keep records by them within unfinished production.

In shop storerooms, you can keep record of free materials received by the department for processing, and items that are registered in release, but not transferred from the department to the warehouse yet (for example, when registering release with the Production without order documents).

Using shop storerooms corresponds at the most to recording goods movement at warehouses by accounting action type and data interchange. Shop storeroom components are specified in the Master data and settings – Master data – Warehouses and stores list. These are warehouses for which the Shop storeroom attribute is set, and the shop is selected the warehouse belongs to.

Only one department can use the warehouse with the Shop storeroom flag. You can specify several storerooms for a department: shop storerooms can divide financial liabilities of production teams.

Materials are transferred to shop storerooms as follows (recommended options):

• From company warehouses – the Manufacturing – Intrashop accounting – Production documents – Transfer materials to storeroom documents which can be registered directly or based on the Order for materials for production documents.
• From another shop storeroom of this or any department – the Manufacturing – Intrashop accounting – Production documents – Transfer of semi-finished products documents.

Besides, you can register any transfers between warehouses and shop storerooms using the Goods transfer documents.

Return of materials from shop storerooms to company warehouses is registered using the Manufacturing – Intrashop accounting – Production documents – Return of materials from storeroom documents (recommended option).

Materials are written-off from shop storerooms automatically after posting the Production stage or Production without order documents which registered material outflow in production.

Shop storerooms allow you to record manufactured product release and its transfer from a department to the finished products warehouse on its own. As a result, you have different options of keeping records in production. Transfer of products from a shop storeroom to a warehouse is registered using the Manufacturing – Intrashop accounting – Production documents – Product transfer to the warehouse from the storeroom documents.

With shop storerooms, you can unify demand fulfillment tools (pegging for assignment) and tools of recording material resource movements at warehouses and in unfinished production. The movements are recorded by groups (kinds) of released products. You can control balance of materials and products of shop storerooms in the Manufacturing – Intrashop accounting – Allocation of materials and works workplace.

Work centers

Work center is an equipment unit and related labor. They are an indivisible whole for performing technological operations. Work centers should be understood as separate machines, production lines, unique workers, production areas, and even shops. Work centers are specified in Manufacturing – Master data – Work centers – Work center structure by the Work center kinds groups. Each work center is included only in one work center kind.

General scheme of description of enterprise production capacities is shown in the diagram:

Work center kind (group of interchangeable work centers) – work center group which can perform technological operation with required quality, but with different efficiency (probably). Work center kinds are designed to describe production capacities of departments.

Work center kinds: usage options

Loaded work center kind – its availability (working time fund) is considered when generating a production schedule. To estimate availability, loaded work centers are specified at the BOR stages.

Key work center kind – defined automatically in the application when creating route sheets, or assigned manually in each planning interval from loaded work center kinds as a kind limiting throughput of the department where it is located. You can select several key work center kinds for parallel manufacturing processes in one department.

Alternative work center kinds – specified for loaded work center kinds when describing manufacturing process stages in the bill of resources. Alternative work center kinds are not used automatically when generating production schedule. Whether to use an alternative work center kind to perform the stage is specified manually within production schedule diagnostics.

Work center kinds: parameters of work planning in the schedule

In work center kind details, the Available by department work schedule and Available by individual schedule check boxes allow you to set a unique work schedule for the department.

If the Use in production stages check box is selected, you can use this work center kind when describing production stages. It will help you control work center kind load in the production schedule.

Click Change to open the Parameters of work planning in the production schedule form where you can specify the following planning parameters:

• Limited availability in production schedule – the selected Use limitation check box indicates the need to plan availability of the work center kind. When selecting the Do not use limitation check box, there is no availability restriction, or work center kind can perform any work volume in the planning interval.
• Availability in production schedule – the selected Defined by work schedule of work centers check box means that availability of the work center kind equals the availability of work center included in it. The Entered for work center kind check box allows you to specify overall availability for the work center kind with one value. Specify number of work centers which can participate in the action if necessary.

In a work center kind form, you can specify the maximum possible duration of a continuous work kind in one work center within the planning interval in the Maximum availability field in the work center kind profile. Specify this parameter only to define work center kind availability by the work center work schedule.

The value in the Availability reserve field shows the forced decrease in availability of the work center kind in the planning interval. It is considered when generating a production schedule. It is specified in percentage of total availability of the work center kind. The parameter is used:

• To create reserve for execution of extraordinary urgent orders.
• To perform works which were not planned in the production schedule.
• In case of regulatory framework imperfection.

The created reserve is designed to provide a higher probability of stage performance at the level of local dispatcher. When generating the production plan, you can use planning options with, or without availability reserve.

The Plan operations of work centers check box in work center kind details defines whether you can generate a work center schedule.

Click Change to open the Parameters of work center operation planning form where you can specify planning parameters.

You can use additional attributes and information for items of the Work center kinds and Work centers lists.

Work center kinds: parallel work center load

Select the Parallel load attribute to use parallel load. In case of parallel load several route sheets are executed simultaneously in one work center.

In the Load unit of measure field, specify the indicator of volume, weight, or amount of items which sets limit on the volume of simultaneous processing.

Synchronous and asynchronous kinds of load are supported:

• Asynchronous load – load option when the beginning and the end of simultaneous processing of local production batches (specified by separate route sheets) are not synchronized in the work center, and processing duration may be different. Allowable simultaneous (peak) load is defined for each work center individually.
• Synchronous load – load option when processing duration of local production batches (specified by the separate route sheets) can match in this work center kind, but time of the beginning and the end of the processing is specified consistently for simultaneously processed batches. If you do not use setup options for work centers (the Setup options are used check box is cleared), specify processing duration in the Working time field. If you use setup options, specify processing duration in the setup option parameters. Used setup options of loaded work center kinds and load volume are specified in the stages of the bill of resources.

Work center kinds: work center setup options

You can refine conditions of equipment usage in manufacturing process by selecting the Setup options are used check box in the Parameters of work center operation planning form. Use setup options to create a work center schedule at the level of local dispatcher.

After selecting the check box, options available for the work center kind are specified in the subordinate Setup options list. In case of synchronous work center load, processing duration is set for each option, the color range is selected to display work centers in the schedule.

When generating the work center schedule, consider the time required for equipment changeover (time of transfer to the setup option different from the current one): Changeover time unit – unit of changeover time. Changeover time – standard duration of changeover from any equipment setting option to another which is different from the option used before.

Individual work center parameters

Allocation of work centers within a work center kind does not affect fulfillment of production planning tasks (production schedule generation). However, work centers are used when generating a schedule of route sheet completion in operation planning.

Work center components included in the work center kind are specified in the Work centers tabular section of the Manufacturing – Master data – Work centers workplace. Unique parameters are specified in the work center profile.

In the Work schedule field, you can select an individual work schedule. If the schedule is not specified, work center uses the work schedule determined for the work center kind. If the work schedule is not specified for the work center kind, the department work schedule is used. If it is not specified, then the enterprise work schedule is used.

The value in the Work time factor field defines variance from operation execution time in a certain work center regarding standard execution time specified in the bill of resources. The value of 1 means that performance corresponds to the accepted standard. Work center availability is defined by time of the work schedule. The factor value greater than 1 indicates lower performance of the work center. Its availability will be lower than the time specified in the work schedule by this factor. The factor value less than 1 indicates more productive work center regarding the work center accepted as a standard in work center kind components. Its availability which is considered when creating the production schedule will be greater than the time specified in the work schedule.

In the Maximum load field, specify the maximum volume of production batches processed simultaneously in the work center. It is specified in load units of measure specified for the work center kind. Specify it only for work centers which provide parallel load.

Specifying work center kind availability

Work center kind availability and work center availability are specified in the Manufacturing – Master data – Availability of work center kinds workplace. To navigate to the specified workplace filtered by the department, open item details of the Work center kinds lists, and then click Go to entering availability. When describing availability, work shifts are not used.

You can specify work center kind availability even if there are no work centers in their components.

Specify availability parameters within a certain department (the Department field) in selected time period for each planning interval. Work center inherits planning interval from the settings of the department in which it is located. Tabular section lines available for entering values are highlighted in the  field with the  character (Change).

Availability is set in two options:

• To generate availability schedule – when generating the production schedule, total availability of work center kinds is used, and its specification method is defined by work center settings:
  • Manually with one value for work center kind. The value is specified in the line marked with the  character (Availability entered for work center kind).
  • Automatically as total availability of work centers included in a certain work center kind. The value is specified in the line marked with the  character (Availability defined by work center schedules). To enter a value, a new Work center schedules dialog box appears where work center schedules are described.
• To generate a work center schedule. To create a schedule, specify work center availability. Data is specified in lines marked with the  character (Availability defined by work center schedules). To enter it, a new Work center schedules dialog box appears. In some cases, you can enter values when you already know the volume of stages placed within certain planning intervals according to the production schedule. In the workplace, it is displayed in the lines marked with the  character (Availability occupied by production schedule). If demand of stages placed within the planning interval according to the summary availability of work center kind exceeds availability of work centers of this kind specified earlier, a warning with the  character (Availability shortage) appears in the line. To remove it, specify the work center schedule. Manual adjustment allows you to display variances from the set work schedule drilled down by minute-by-minute schedule. Availability of work centers having manual changes regarding the default work center kind schedule is highlighted in bold. Click Show manual changes to select all manual changes.

Work center availability can be limited due to repair in facilities connected with the work center.

When calculating the production schedule, availability is counted considering the Availability reserve indicator set in the work center kind profile.

You can increase work center availability time by changing work shifts, entering one-time changes in the work schedule, and refusing to use availability reserve. It allows you to overcome peak loads that arise when generating the production schedule.

Bills of resources

Bill of resources is a kind of master data which describes parameters of a manufacturing process of manufactured products and semi-finished products. It is a necessary and sufficient part of master data for production schedule generation. You can find bills of resources in Manufacturing – Master data – Bills of resources.

Bill of resources is a kind of master data which describes parameters of a manufacturing process of manufactured products. You can find bills of resources in Manufacturing – Master data – Bills of resources.

Bill of resources describes a step-by-step manufacturing process which ends with material release, or fulfillment of certain works.

Within product release, bills of resources describe redistributions under which semi-finished products contained in manufactured products are released.

In a simple case, a manufacturing process consists of one stage. A bill of resources which describes it is called a single-stage BOR.

A bill of resources is called Bill of resources as it describes all resources required for release in details. It contains:

• Output (manufactured products, performed works, and recyclable waste).
• Product input: materials, semi-finished products, and outsourced works (for example, co-contractor works).
• Product input: materials, outsourced works (for example, co-contractor works).
• Labor costs (by work kinds).
• Components of manufacturing process stages which you need to fulfill to achieve the result.

In multi-stage bills of resources, work kinds and output refer to a certain manufacturing process stage.

General scheme of description of manufacturing processes is shown below:

You can specify data in the bill of resources as follows:

• Manually.
• Automatically by clicking Fill in with operations sheets of stages. All previously entered values are replaced with values from operations sheets. This option is used when you can specify operations sheets at the stages of the described manufacturing process when creating a bill of resources.
• By data of the production order BOM. A unique manufacturing process registered within the production order can be saved for further use in a new bill of resources. This option is available only for Production management, version 2.1.

On the Manufacturing process tab in the bills of resources, select a kind of described manufacturing process:

• Single-stage is performed within one department and ends with product release (manufactured products, semi-finished product, and work).
• Multi-stage shows the production chain which can have several departments as its assignees. These stages can be fulfilled simultaneously and sequentially. The release is generated by fulfillment results of all stages.

In Production management, version 2.1, specify top limitations on a starting batch for multi-stage processes – the Optimal transfer quantity (between steps) parameter on the Manufacturing process tab. It allows you to split a large volume for production into several small batches. Simultaneous performance of manufacturing processes reduces total release time of the whole product volume. From a business perspective, it provides desirable time to prepare the first batch for shipment. When generating a production order, quantity of products to be manufactured is automatically split into separate starting batches. Each of them is registered using a separate line of the production order. When generating a production schedule, starting batches are planned independently.

You can regard quantity of finished products as a bottom limitation for a staring batch. Starting batches not less than this quantity and multiple of it are accepted for production by a certain bill of resources. If the multiplier requirement is not met, some of the released products will be available stock in a warehouse. If this option is unavailable, use a bill of resources with another standard release amount.

Stages with the by toller fulfillment option are described as stages by total fulfillment duration (the so-called SDBR option) without equipment availability estimation. Full costs by this stage will be generated in the specified department. In the Processing service group, specify cost parameters (service products and a costing item to include its cost in the product release cost). A toller work schedule can be used when generating a production schedule. It allows you to consider limitations on calendar days of material transfer to the toller and on deadlines. It is not required to fill in the Work schedule field.

For stages which are intended to be fulfilled by third party tollers, specify product items transferred to a toller (previous stage output) and received from the toller (next stage input) in the BOR description within one redistribution. These products are auxiliary, but they are registered in accordance with the general rules of describing material resources required to fulfill stages.

In production order BOMs, you can change the fulfillment type (own production/by toller) for stages which are not started yet. It allows you to involve a third party toller to fulfill stages which you planned to fulfill on your own and vice versa—to do things yourself instead of giving them to a toller.

Manufacturing process stages

Stage is a part of the manufacturing process separated for fulfillment within one department.

Specify the production option for the stage:

• Own production – the assignee is the company department.
• By toller – the stage is fulfilled outside the enterprise with a third party toller.

The following can be divided into separate steps:

• Technological redistribution which is a set of operations which has similar technological processing methods (for example, preparation and machine processing in machinery production).
• Responsibility transfer at the boundary of shops controlled by different local dispatchers. A stage can be fulfilled within one department only. One department can fulfill several stages sequentially and/or simultaneously.
• Material flow division by supply recipients (departments). Each stage is supplied separately on the date of stage placement in the production schedule.
• Responsibility transfer at the boundary of shops. A stage can be fulfilled within one department only. One department can fulfill several stages sequentially and/or simultaneously.
• Material flow division by supply recipients (departments).
• Arbitrary milestone of manufacturing process.

Stage sequence describes manufacturing processes of product release (including the production method without semi-finished products), and release of each semi-finished product (redistribution) manufactured in the process.

Stage sequence describes manufacturing processes of product release.

Stage sequence within one redistribution is specified as a column which allows simultaneous and sequential order. Stages are graph arcs, and graph vertices are points in which stage fulfillment conditions are defined (local points of demand fulfillment).

Stage sequence is defined by the stage attributes:

• Value in the Stage number field is a number of the point (graph vertex) which contains conditions for starting fulfillment of the described stage.
• Value in the Next stage number field is a number of the point (graph vertex) by which the described stage should be completed.

Consider the example of the manufacturing process of a semi-finished product. The process consists of four stages. Their sequence is displayed in the diagram:

The column with five vertices is displayed in the diagram:

• Point 1 – manufacturing process start, you can begin fulfillment of stages A and C.
• Point 2 – you can fulfill stage B after stage A is finished.
• Point 3 – manufacturing process start, you can begin fulfillment of stages A and С. Setting this point apart when describing the manufacturing process within the bill of resources is an implementation feature.
• Point 4 – to start fulfillment of stage D, complete stages B and C.
• Point 5 – manufacturing process is finished, all stages of the described redistribution are fulfilled, and you can proceed to the following actions. In the application, specify 0 (or empty value) for the stages which end the redistribution in the Next step number field.

Stages that must be fulfilled by departments are located between fulfillment points of the described conditions.

This manufacturing process will be described in a bill of resources as follows:

Several stages can start or end at one point (column vertices).

Consider the example of a separated manufacturing process displayed in the diagram:

When recording in the bill of resources, the stages have the following description of fulfillment sequence:

• 1–2 – Stage A – starts at point 1 and ends at point 2.
• 2–3 – Stage B – starts at point 2 and ends at point 3. The point of readiness for stage B start matches those of the stage C.
  • 2–4 – Stage C – starts at point 2 and ends at point 4. The point of readiness for start
• 3–0 – Stage D – starts at point 3 and ends the process.
• 4–0 – Stage E – starts at point 3 and ends the process.

If you cannot plan manufacturing process fulfillment, stage fulfillment order for production management goals is only for information. At the same time, it allows you to specify details of resource consumption by departments who are manufacturing process participants.

Fulfillment of a certain stage allows you to proceed to the following stages.

Version 2.1. Stage description

Main parameters of stage description:

• Department is a stage assignee.
• Operations sheet describes a technological route of stage fulfillment. It is used when you need to set the production order to the precision of technological operations.
• Split route sheets by. Specify the maximum fulfillment batch for one route sheet in the planning interval. Necessary number of route sheets will be automatically generated for the stage, but the task for each route sheet will not exceed the specified volume. When using this parameter at the stage of the operations sheet, the parameter is set up automatically by the operations sheet indicators.
• The Use work center kinds check box defines a regulation method of stage duration:
  • If the check box is selected, imported work center kinds, parameters of their import, a setup option, and alternative work center kinds are specified at the stage.
  • If the check box is cleared, fulfillment duration is specified for the stage. Potential capacity limitations are insignificant for manufacturing flow: all stages addressed to the department can be fulfilled for the specified time.
• The Preliminary buffer (of the stage) field and the Follow-up buffer (of the stage) field. The preliminary buffer characterizes time which is needed to fulfill all procedures which separate fulfillment of the current and previous stages of manufacturing process. The follow-up buffer characterizes time needed to fulfill all procedures which separate fulfillment of the current and following stages of manufacturing process. The preliminary and follow-up buffers are considered when generating the production schedule and located outside the planning interval in which processing is planned in the key kind of work centers. Buffer duration is a multiple of the planning interval selected for the department. Stages fulfilled sequentially will be expanded for the time necessary for the follow-up buffer of the previous stage and the preliminary buffer of the following stage.
• Simultaneously manufactured quantity is a volume of stage fulfillment batch. Work time is specified for production of this batch at the stage in imported work center kind. If production demand is less than this amount, fulfillment time is set by the specified time. For a larger amount, fulfillment duration will increase discretely for each complete or incomplete batch of the specified volume.

Manufacturing process described by the bill of resources can be issued to departments in print forms of two formats (the Additional information tab):

• By stages (continuous route for assignee departments) contains all BOR stages.
• By operations sheets (selected stage route) contains operations of one stage.

A pass-through supporting sheet of manufacturing processes fulfilled by several departments can be printed from the Products tabular section of the Manufacturing – Intershop management – Production schedule workplace by clicking More actions – Print operations sheet.

Version 2.2. General manufacturing process parameters

The amount of manufactured products specified on the Main tab is used only to calculate resource consumption standards. The type of the planned release is defined by the Start attribute located on the Manufacturing process tab. It can have the following values:

• Multiple batches. Quantity of manufactured products released as a batch is always a multiple of the amount for which the BOR is registered.
• In custom portions. Quantity of manufactured products released as a batch can differ from the amount for which the BOR is registered.

If the bill of resources allows product release by arbitrary batches, you can use it when generating production orders for any manufactured product amount. In this case, when generating the Production stage documents, the material resource demand will be defined in the ratio of the released amount to the amount for which the BOR is registered.

You can also specify BORs for semi-finished products manufactured in the process without multiplicity limitation by product release. For example, you need 1.2 tons of semi-finished products to release one ton of manufactured products. You need 1.3 tons of raw materials to produce one ton of semi-finished products. BORs allow product release by batches of any volume. To produce 1.5 tons of products, you need 1.8 tons of semi-finished products which are manufactured from 2.34 tons of raw materials.

Release by multiple batches is recommended when sets which consist of several product items are produced simultaneously. For instance, a press mold can produce 2 units of one component and 3 units of another component simultaneously. In this case, set components are defined by manufacturing technology.

The Start attribute is complemented by two parameters:

• Minimum release – minimum quantity when the release is reasonable or possible. If demand for the quantity specified during production planning process is less than this value, the product batch specified in this field will be planned for release.
• Optimal release defines economically feasible size of the release batch. If the product demand exceeds this value, several release batches are accepted for production with separation by quantity which does not exceed the value specified in the field.

In bills of resources on the Manufacturing process tab, you can specify the Product queue period is limited parameter. The period is set in days. This parameter allows you to generate processing batches (separate release stages) when creating the Production stage documents. At the same time, there is a possibility of result consumption as a semi-finished product in the period which is not greater than the expiration date of manufactured products. For example, this tool can be used to record production of perishable semi-finished products in food and chemical industry. You can use it for administrative restriction of queue period of semi-finished products in any assembly production lines to decrease unfinished production volumes.

Example. Let's consider a single-stage manufacturing process. In the bill of resources, the queue period of a semi-finished product is limited to 8 days. The volume of an optimal release batch is 10 pieces. The demand for a semi-finished product is generated by several orders in different periods. Let's define production batches for the following cases:

• The period between demands exceeds the set queue period:

• The period between demands is less than the set queue period:

• The period between demands is less than the set queue period, but the total demand exceeds the optimal release batch size:

Version 2.2. Stage description

In bills of resources, a single-stage process is described on the Manufacturing process tab in a separate form. To open it, click Create production stage. A unified form is used to describe stages of single-stage and multi-stage manufacturing processes:

• The Main tab. Specify the main fulfillment parameters: stage number (up to four characters), production type, department, operations sheet, etc. (same as for version 2.1).
• The Work center kinds tab. Specify components of imported work center kinds, buffer sizes, and stage fulfillment type.
• The Description tab is used for arbitrary stage description.

On the Main tab, when selecting the Use work center kinds check box, the imported work center kinds specified at the stage are used to calculate production plan demand for work center kinds regardless of the value of the Master data and settings – Master data and sections – Manufacturing – Manufacturing – Production management method.

In the Stage duration field, standard stage fulfillment duration is specified. The initial value is defined automatically as a sum of stage buffer duration and duration of intervals required to fulfill stage operation in the loaded work center kind. You can change the calculated value manually.

The table displays the impact of the Use work center kinds check box on calculation procedure of production plan demands in the work center kind and the production schedule generation.

To calculate work center load for production stages, click Calculation using formula on the Work center kinds tab in the form of production stage description in bills of resources. You can filter components of work kinds and work center kinds by product properties including alternative work center kinds.

Stage fulfillment by tollers

Stages with the by toller fulfillment option are described as SDBR stages by total fulfillment duration without equipment availability estimation. Total expenses by this stage are generated in the specified department. In the Processing service group, specify expense parameters: service product and costing item to include its cost in the product release cost.

You can use the toller work schedule when generating the production schedule. It allows you to consider limitations by calendar days of material transfer to a toller, and by deadlines. It is not required to fill in the Work schedule field.

Stages with the by toller fulfillment option are described by total fulfillment duration without equipment availability estimation. Total expenses by this stage are generated in the specified department. In the Processing service group, specify expense parameters: service product and costing item to include its cost in the product release cost.

Work schedule of the toller allows you to consider limitations by calendar days of material transfer to a toller, and by deadlines. It is not required to fill in the Work schedule field.

For stages which are intended to be fulfilled by third party tollers, specify product items transferred to a toller (previous stage output) and received from the toller (next stage input) in the BOR description within one redistribution. These products are auxiliaries, but they are registered by general description rules of material resources required to fulfill stages.

Products at the calculated cost

In the Products tabular section on the Main tab, specify redistribution results: manufactured products, semi-finished products, and works.

Quantity of manufactured products or works defines minimum indivisible production batch. With this bill of resources, you can produce only batches whose quantity is a multiple of those specified in the bill of resources. For example, the BOR designed for the release of 10 items is used to produce batches from 10, 20, 30, etc. items.

If the amount of product items is more than one, specify the Cost share parameter for each of them. This parameter is used to allocate costs of redistribution expenses by release items.

To calculate cost, manufactured products are not divided by release registration stages: expenses of the following redistribution stages are used in generation of cost of manufactured products released at one of the stages.

For Production management, version 2.2, the cost of manufactured products released at the final stage is generated by the calculation method.

Numeric values which define cost shares may be arbitrary, and their amount is taken as 100% during calculation.

Side and intermediate release

On the Side and intermediate release tab, specify product items with the fixed method of cost defining:

• Recyclable waste.
• Semi-finished products passed between stages, including those used when a third party toller fulfils stages.
• Side release of manufacturing process.

The fixed price is set in release documents manually or automatically by the price type specified for the product item.

For example, recyclable waste cost is excluded from the cost value before expenses are allocated to released products. You can specify a separate costing item by which recyclable waste is recorded in released product cost.

Version 2.2. Finished product description

You can specify finished products for which release cost calculation is planned only at the final stage of the bill of resources. For these stages, the number of the following stage is 0. These finished products are shown on the Main tab. You can register side product release at a fixed cost at any stage. Specify side release items on the Side and intermediate product tab. Intermediate semi-finished products can be transferred to external tollers if they are outsourced to perform separate redistribution stages.

Demand for material resources

On the Materials and works tab, describe source components (materials, semi-finished products, and works) required for stage fulfillment. For semi-finished products manufactured during product release, specify a bill of resources. You can select bills of resources of semi-finished products in the Under development status. When changing the BOR status to Valid, this status must be set for all BORs of used semi-finished products. In materials, you can also specify semi-finished products manufactured and totally consumed only when fulfilling stages of a bill of resources.

For material resources, you can define a necessary material, material characteristic based on characteristics and properties of manufactured products, and other release parameters on the Materials and works tab. Besides, you can calculate standard amount of the material required to manufacture products:

• Material autoselection – the service of defining the material and its characteristics through product characteristics and release parameters during manufacturing process.
• Calculation using formula. Set a calculation algorithm of required material amount.

Click Material autoselection to open the Configure material autoselection form.

Characteristic of material required for product release can be specified in the BOR, or defined by calculation by product properties. The option is specified by the value of the How material characteristic is defined attribute. After selecting the Determined by product properties option, you can set up mapping of product and material properties by clicking configure property mapping. Material property mapping by manufactured products is configured in the form with the same name.

For example, scarf details are characterized by color and thickness. Color is defined from manufactured product color. To define thickness of material required for production, you can specify the thickness value in accordance to which the material characteristic is searched for.

Click Calculation using formula to open the Configure filter by properties and calculation using formulas form.

To calculate quantity, you can use values of product properties and a wide set of operators and functions. To set the quantity calculation algorithm, click Enter formula (the Edit formulas form).

For example, the following operands are available in the equation builder:

• Main manufactured product:
  • Quantity
  • Properties
• Finished products:
  • Quantity
  • Properties
• Materials and services:
  • Quantity
  • Properties
• Material (for the current line of the Materials and works tabular section):
  • Properties
• Contractor department:
  • Properties
• Production order (only for Production management, version 2.2):
  • Properties

You can also use the additional attributes when creating formulas:

• Product kind
• General characteristics
• Product kind characteristics

The examples of functions available for bills of resources and operations sheets in the equation builder:

• Numerical functions:
  • Power (<Base>, <Indicator>).
  • SquareRoot (<Number>).
• Trigonometric functions:
  • Sin (<Angle>).
  • Cos (<Angle>).
  • Tan (<Angle>).
• Other:
  • SelectByThreshold (<Parameter>

<Value1>,<Threshold1>

<Value2>,<Threshold2>….

<ValueN>,<ThresholdN>).

The SelectByThreshold() function returns the value matching the threshold before which the transferred value lies. For example, to describe dependence of a material consumption standard on relative density of products, you can use the following formula:

SelectByThreshold ([Products.Density]

   1, 10,

   2, 15,

   3)

If you use this formula, you will get the following result:

• If manufactured product density is 8, the result is 1.
• If manufactured product density is 12, the result is 2.
• If manufactured product density is 16, the result is 3.

Version 2.1. Material supply methods

To fulfill demands for materials, use management parameters of inventory used for a product item:

• By common method for the warehouse from which materials are supplied.
• By individual settings for the product.
• By direct specification when generating orders by demands if there are no previously set settings.

Demands for semi-finished products are fulfilled:

• By inventory management parameters. This option is suitable to supply items included in several product kinds manufactured simultaneously, because they allow generating optimal production batches by demand grouping.
• Select Produced in process check box, and then specify a bill of resources of semi-finished product. The production schedule is generated with automatic expansion of the full BOR tree by semi-finished products. Each semi-finished product manufactured in the process is pegged by inventory kind for production order. When semi-finished products manufactured in the process are released (the Product release and work performance document), they can be transferred to the following department in the manufacturing process bypassing the warehouse. The transfer option: directly to the department or via the warehouse. It is defined when registering the release.
• Production at the stage of the same BOR. The option is used for intermediate semi-finished products which are fully consumed at the following stages of the redistribution.

Costing item is required for the resources selected in the bill of resources. For semi-finished products manufactured in the process, use the predefined Semi-finished products manufactured in the process costing item.

Version 2.2. Material supply methods

A material supply option is selected in the Material receipt method field on the Materials and works tab. The following material receipt methods are available: 

• Supply. Supply on a regular basis.
• Provide on pegging basis. Demand for the material must be provided on pegging basis within the bill of resources. You can specify supply format for materials which are not usually provided on pegging basis.
• Produce by BOR. The option is used for semi-finished products manufactured during product release. A bill of resources is required for them. If the BOR is not specified explicitly, the "main BOR" text is displayed in the field. Exploding is made automatically by the BOR with the Main BOR flag.
• Produce on stage (unavailable for the first stage and the only stage of the BOR). The field displays consumption of intermediate semi-finished products whose release was registered at the previous stage. Specify this stage in the Method of receiving materials field. The field is required.

When using Production management, version 2.2, you can select BORs for the quantity which is not a multiple of the manufactured product quantity to release semi-finished products manufactured in the process. If the BOR for semi-finished product manufacture is not specified, the main BOR is selected automatically when generating the stage.

In case of demand for the semi-finished product of different stages of the order, or other production orders, the release batch will be generated for overall quantity. It allows you to minimize the quantity of available semi-finished product release when there is no multiplicity by release quantity between manufactured products and the semi-finished product. You cannot select BORs for the quantity which is not a multiple of the manufactured product quantity if Master data and settings – Master data and sections – Manufacturing – Production management, version 2.1 is selected. It is a limitation for the transition period.

For the stages specified on the Materials and works tab, you can specify source components (materials and works) required to fulfill the stage. For the resources selected in the BOR, specify a costing item by which the resource cost will be included in the cost of the finished product.

Standard labor costs

On the Labor costs tab, specify labor demand which is set to the precision of work kinds. In the Work assignment field, specify components of operations performed by a work kind with separate lines.

Work kind. Labor activity processes which have a unified performance character and/or general rules of rationing and rates. You can find work kinds in the Manufacturing – Labor costs – Kinds of employee activities list. In the work kind name, you can provide a brief description, specify a job title, and assignee category. For the work kind, you can specify an arbitrary unit of measure to count employee output, and minimum assignee qualification category. In the tabular section on the Rates tab, specify rates by periods for all employee qualification categories who can participate in work performance.

To calculate the demand for labor resources – work kinds, click Calculation using formula on the Labor costs tab. The calculation procedure corresponds to the material resource calculation.

Standard cost indicators of output are calculated by work kind rates.

Work kinds. Labor activity processes which have a unified performance character and general rationing rules. You can find work kind For the stages specified on the Materials and works s in the Manufacturing – Labor costs – Kinds of employee activities list. In the work kind name, you can provide a brief description, specify a job title, and assignee category. For the work kind, you can specify an arbitrary unit of measure to count employee output. Standard cost indicators of output are calculated by work kind rates.

Tools for working with the BOR list

There are several filters to search for information in the Bills of resources list.

Filtering by BOR status (the Status field) allows you to divide BORs by readiness for usage in production:

• Under development is a BOR draft. You can make any changes. The status is not used in production. When the BOR is returned to the Under development status, the application offers to check whether the BOR is used. It allows you to decrease the risk of unreasonable impact of changes on all manufactured product kinds which use the manufactured product in its components.
• Valid is a valid BOR which can be used in production. This status does not allow you to edit main information of the BOR.
• Closed is a previously used BOR which is unavailable for using now. You cannot edit closed bills of resources.

In the Product field, you can select all BORs in which the manufactured product is an output (for example, to select a production option).

In the Material field, select BORs in which this item requires supply. This filter is suitable when you need to estimate the scope of item usage, or register replacement for other options.

By the Work center kind field, you can filter BORs having the specified work center kinds at their stages. This filter is used to estimate usage of the work center kind, and control corrections when changing BORs.

The filter by the Setup option field allows you to select BORs in which the specified setup option is used for equipment. This filter is used to estimate usage of setup options, and control corrections when changing BORs.

By the Used in orders field, you can filter BORs specified in production orders that have any status, except for Closed.

Filter results are graphically shown if you set the List view mode for the tabular section.

To work with the items of the Bills of resources list, the following service opportunities are available:

• Set status. The BOR status can be set from the list without opening a BOR form.
• Product BOR. Filter of all BORs for products which are the main for the selected BOR. It helps you analyze all production options described by different BORs.
• BOR tree allows you to expand the whole product structure including data on semi-finished products manufactured in the process.
• Set as the main one. The current BOR changes its status to main. The number of bills of resources valid for the products simultaneously is not limited. However, only one of them is defined currently as the main one for the whole enterprise, or separately for the selected department. When generating the documents, the main BOR is used by default.
• Compare bills of resources. Service to find differences in the product structure for the selected BORs.
• Create on the basis. The BOR is used as a parameter which defines boarders of permitted actions:
  • Standard cost estimate. The cost is estimated if the specified BOR is used.
  • Material substitution permission. Material substitution is approved only for the specified BOR.

When creating a tree of product structure by the BOR, you can enable or disable the display of stages, manufactured products, materials, and labor costs.

Operations sheets

Operations sheet is a kind of standard information which defines fulfillment parameters of a technological operation group. In the application, operations sheets are specified in the Manufacturing – Master data – Operations sheets list.

By method of usage, operations sheet can be main and nested. With the nested operations sheet included in the main one, you can describe the most frequent manufacturing operation groups – nested route. When creating the operation schedule for work centers, manufacturing operations from nested operations sheets are considered in the line structure of the general technological process.

Operations sheets assigned in the bill of resources by manufacturing process stages drill down stages to technological operations.

Based on the operations sheets selected in the stages, you can fill in bills of resources (click Fill in with operations sheets of stages in bills of resources).

In operations sheets, click Configure operations sheet content to refuse from using manufacturing operations, finished products, materials, and labor costs. When filling in route sheets and printing operations sheets, parameters that were excluded from use in operations sheets will be filled in by BOR data.

Calculation of demand for material resources and required work kinds corresponds to resource calculation used within bills of resources.

The Application factor in bills of resources attribute allows you to use operations sheets in the bills of resources which describe resource consumption standards for the quantity of released products which is different from the standard quantity selected in operations sheets. It is available only for Production management, version 2.2.

Manufacturing operations

Operation is a manufacturing operation continuously performed on one work center of the department by one or several employees on one or several simultaneously processed and assembled products. For planning purposes, describe the standard duration of one operation using the following parameters:

• Quantity is a number of iterations for complete fulfillment.
• Operation time is the main (standard) time of operation performance per manufactured product (or standard quantity).
• Setup time. This time is usually common for batches of different volume, thus allowing you to accept this time as conditional constant when performing an operation.
• Load is a work center load when performing the operation. The attribute is available only for work centers loaded simultaneously.

One production stage combines several operations. The operation is not an equivalent of a manufacturing process stage.

Using substitute materials

When it is impossible to supply required materials on time, you can use items which have similar properties instead.

Substitute materials are product items (with characteristics) which can be used in manufacturing process instead of materials specified in the BOR.

Using substitute materials includes two steps:

• Register substitution permission
• Apply the substitution

You can register material substitution permission using the Manufacturing – Master data – Material substitution permission documents which set limits of using substituted items (the Action field on the Main tab):

• In any case.
• For the specified production order.
• For the specified product item of manufactured products.
• For the specified bill of resources.
• For the specified item of the bill of resources.

You can specify group substitution when several material items are substituted for several items of other materials with specified quantity of source materials and substitute materials. Specify a group of substituted items in the Substituted material set tabular section on the Substitution tab. Specify a group of new materials in the Set similar to the substituted materials tabular section on the Substitution tab.

In production management, version 2.1 scheme, register substitution in a BOM of a production order line manually before creating a production schedule. On production schedule diagnostics, if a production order cannot be fulfilled as there is no source component, you can get recommendations for allowed substitutes for this component. The order will be supplied with these substitutes on the demand date. Automatic substitution (when main components are not supplied) is not available during production schedule calculation. Use substitutes based on the available permissions consciously.

In Production management, version 2.2 scheme, select a substitute material when working with the Production stage documents. Actions on production schedule diagnostics are similar to the recommendations described above.

Selecting assignees

Manufacturing process assignees are individuals or organized groups of individuals – teams. Configure options of work assignee selection when specifying production department parameters. Team is made up of individuals (the Individuals list) for collective performance of any kind of work.

Manufacturing process assignees are organized groups of individuals – teams. Team is made up of individuals (the Individuals list) for collective performance of any kind of work.

Specify a team list in the Manufacturing – Labor costs – Teams workplace.

Team staff is defined when registering labor costs using the Manufacturing – Labor costs – Employee output documents.

Include individuals in a team without limitation on selection of a company and a department which a team member has joined, and without considering a labor compensation system set for an employee. One employee can be included in several teams at the same time.

To close work for one employee, it is not required to generate teams.

You can specify standard estimation of employee efforts to achieve a common result in a team using the labor participation rate (LPR). When registering the output, use the LPR to calculate individual planned accruals to a team member. When registering the output, you can also allocate the work performed among employees included in a team considering the hours worked and tariff rates. Select indicators considered during allocation of the work performed when specifying production department parameters.

Team members and contribution of each participant to product release are specified during manufacturing process and recorded when registering the output.

For each team member, you can specify their own labor participation rate (LPR). To close work for one employee, you can generate a team consisting of this employee only. You can specify team members during the manufacturing process.

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