Visual Streamline Production Item Processing

Microsoft Word - White Paper for Production Item Processing.docxPrepared By:
Charles Magee
1 Place Alexis Nihon, Suite 800 Montreal, QC H3Z 3B8 Telephone: (514) 866-0001 Fax: (514) 866-1805 Email: [email protected]
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Production Item Processing Flow .............................................................................................. 5
Product Master....................................................................................................................................................................................................... 5
Planned Purchase Order Preparation ............................................................................................................................................................ 9
Purchase Orders Generated ........................................................................................................................................................................... 10
Warehouse Quantities at this point ............................................................................................................................................................ 14
Receiving the Purchase Orders ..................................................................................................................................................................... 16
Building the Assembled Items ...................................................................................................................................................................... 20
Customer Sales Order at this point ............................................................................................................................................................. 21
Posting the Inventory Assembly Transactions ........................................................................................................................................ 22
Invoicing the Customer Sales Order ........................................................................................................................................................... 24
Transaction History at this point .................................................................................................................................................................. 26
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Quick Overview
The general reason behind using production tickets is to generate an internal document that will trigger the build of an assembled kits and track raw materials requirements for it. This can be requirements for a customer’s order, or to keep enough of the Assembled item stocked on the shelf to meet min max or ROP/EOQ requirements.
To understand the need for Production Item Processing, the user must understand the differences between the types of kits (A-Assembled and B-Built to Order) that can be created in Visual Streamline.
Quoting from a previous FAQ: A 'B' or Built to Order kit can never be stocked as the kit. It is intended to be built when it is on a sales order. It will write a backorder record for the entered qty required to fill the kit backorder. So if your order was for 15 of KitA, and you have 2 of material A and 10 of material B available, the it will take 2 of each and back order 13 for each. So if you order based on the backorder links in PPP the system will want to order 13 of material B and you only really need another 3 to make 15 of KitA. So linking doesn't work great for B items. However the raw materials needed are committed and if they are products that are purchased for stock they will purchase to fill the kits also.
Assembled Items are stocked, the raw materials are not committed when a sales order is entered, they will write a back order to PPP file for the total backordered of the kit on the sales order also, but only if the kit inventory details flag for purchase method is set to Raw Materials. To get these to purchase enough raw materials to build the kits, you must manually adjust your stocking requirements on the raw materials.
Also for Assembled Items there is a Production Ticket business rule that allows you to commit the requirement for the raw materials and relieve it when you build the item. This requires training to use and the BR should not be turned on and off as data corruption can result.
If you would like to book consulting or training time to better understand what is available and how to use it please let us know or email George Toor.
Setup Requirements for Production Items
To enable Production Item Processing, the following requirements must be met:
Business Rule INV52 (Production Bill of Materials) must be enabled; any Assembled item have its Purchase Method set to ‘Raw Material’; any Assembled item must have its Production Item flag enabled; any Assembled item must be linked to an INTERNAL supplier (so designated via the Internal Supplier flag in the
supplier master file).
Product Master
There are 2 assembled production items used for demonstration purposes in this document:
PAI-1 (Production Assembly Item-1) whose bill of material consists of the following: 1 EA of PAI-RM-1 (cost of $10.00EA, list of $15.00EA); 2 EA of PAI-RM-2 (cost of $20.00EA, list of $30.00EA); 3 EA of PAI-RM-3 (cost of $30.00EA, list of $45.00EA).;
PAI-1 (Production Assembly Item-2) whose bill of material consists of the following: 4 EA of PAI-RM-4 (cost of $40.00EA, list of $60.00EA); 5 EA of PAI-RM-5 (cost of $50.00EA, list of $75.00EA).
Item PAI-1 is shown in the screenshot below.
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Customer Sales Order
This white paper will take you through the creation of both a production ticket and a raw material purchase order, the receiving of the purchase order and the building of the production items, in order to fulfill a Customer order for a production item.
The first step is to create a sales order for the production items as shown in the screenshot below.
The order has been created for 10 of production item PAI-1 and 20 of product item PAI-2.
There are zero on hand for both production items, so both have been backordered in their entirety
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Warehouse Quantities at this point
Even though the customer order that was created was for two different productions items (PAI-1 and PAI-2), from this point forward, the document will only be dealing with the productions PAI-1 and its raw materials.
Shown below are the warehouse quantities for the production item PAI-1 at this point in the Production Item pro
At this point the key warehouse quantities for the Production Assembled Item PAI-1 are as follows:
OnHand ................................ 0 since PAI-1 is a new production item never yet built;
Committed ................. 10 based on customer quantity ordered;
ProductionRequired ........ 0
OnOrder................................ 0
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Shown below are the warehouse quantities for the first raw material PAI-RM-1 of production item PAI-1 at this point in the Production Item processing.
Note that even though an assembled item requiring this raw material has been committed to an order as shown on the previous page, the raw materials have not been committed.
At this point the key warehouse quantities for the first raw material PAI-RM-1 of Production Assembled Item PAI-1 are as follows:
OnHand ................................. 0 since PAI-1 is a new production item never yet built, therefore raw materials have never been ordered;
Committed ........................... 0
OnOrder ................................ 0
Planned Purchase Order Preparation
After creating a sales order for production items that are not currently on hand, the next step is to run Planned Purchase Order Preparation. Its purpose is twofold:
to create purchase orders for the required raw materials; to create a production ticket for the assembly of the production item.
The screenshots below show the required steps.
To create Production Ticket for Customer orders:
If you want the system to pick up the requirements based on the sales order that was entered into the system, you need to run PPP with the settings indicated.
NOTE running PPP for Production items only will not trigger system to pick up requirements for order. You need to include both Production Items and Include Back orders.
Assembled item
Raw materials
To check for additional raw material requirements outside of Production Items:
The Include Raw Materials in Run will pick up any additional requirements for the raw materials in the Productions Items that have been found. This option is only available when the Production Items box is checked.
You can reserve stock qty’s on hand to the production ticket also. This can be done by using the auto link with Open P/Os button.
Upon clicking on the Generate Button the above Generate Options will appear:
A Creates a production ticket only with NO raw materials requirement
B Creates a production ticket and also creates the raw materials requirement as requisition
C Creates a production ticket and also creates raw materials requirements as a Purchase Order.
To create Production Ticket for Stock levels for Assembled item
If you want to have the system create a Production Ticket for the min/max or ROP/EOQ quantities on an Assembled item, you must check the Production Items flag, as well as the Include Items for Stock.
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Purchase Orders Generated
After running the Planned Purchase Order Preparation for the backordered production items, performing the validation and generation, we can invoke the Purchase Order Maintenance screen to see the generated purchase order and production ticket.
The screenshot below shows the generated documents.
The purchase order that was generated for the raw materials is displayed as a normal purchase order.
The production ticket that was generated for the production items is displayed in green.
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Assembled Items Production Ticket
Shown below is the Production Ticket that was generated as a result of the backordered production items.
This screen was launched from the folder icon beside the quantity field on the production ticket.
Note that the line type is Back Order and the original customer order number is referenced.
This screen was launched from the folder icon beside the Production Item.
Note that the raw materials are extended requirements based on the quantity of the Production Item.
Note the reference to ‘Production Ticket’.
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Shown below is the printed copy of the Production Ticket that was generated as a result of the backordered assembled items.
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Raw Materials Purchase Order
Shown below is the Purchase Order for production item raw materials that was generated as a result of the backordered production items.
This screen was launched from the folder icon beside the quantity field on the production ticket.
Note that the line type is Work in Process and the production ticket number is referenced.
Note the reference to the production ticket number.
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Shown below are the warehouse quantities for the production item PAI-1 at this point in the Production Item processing
OnHand ................................ 0 since PAI-1 is a new production item never yet built;
Committed ........................ 10 based on customer quantity ordered;
OnOrder ............................... 0
ProductionReserved........ 0
InProduction ..............10 based on the creation of a production ticket.
This screen was launched by zooming (F5) on the In Production quantity.
Note that the production ticket number is referenced.
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Note that even though an assembled item requiring this raw material has been committed to an order as shown on the previous page, the raw materials have not been committed to the order, but rather the raw materials have been designated as required for production and linked to the appropriate Production Ticket, thus reducing the availability.
OnHand ................................ 0 since PAI-1 is a new production item never yet built, therefore raw materials have never been ordered;
Committed .......................... 0
ProductionRequired . 10 based on the creation of a production ticket;
Available ...................-10 based on OnHand – Committed – ProductionRequired;
OnOrder ..................... 10 based on the creation of the purchase order;
BackOrder ............................ 0
ProductionReserved ........ 0
InProduction ....................... 0
This screen was launched by zooming (F5) on the Production Required quantity.
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Shown below is an attempt to receive the Production Ticket.
So let’s receive the purchase order for the raw materials.
Production Tickets cannot be received. They must be processed as a Build Assembled Items transaction.
We can however receive the purchase order for the production item’s raw materials.
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Shown below are the reports generated after receiving the purchase order for the raw materials: the Backorder Flush Report; and the Stocking Report.
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Shown below are the warehouse raw material quantities after receiving the raw materials purchase order.
OnHand ...................... 10 since purchase order for raw materials was received;
Committed ........................... 0
ProductionRequired ..... 10 based on the creation of a production ticket;
Available ...................... 0 based on OnHand – Committed – ProductionRequired;
OnOrder ....................... 0 since the purchase order for raw materials was received;
BackOrder............................. 0
ProductionReserved . 10 since purchase order for raw materials was received;
InProduction ....................... 0
This screen was launched by zooming (F5) on the Production Reserved quantity.
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Building the Assembled Items
The actual building of the production item is accomplished via Inventory > Processing… > Inventory Transactions (Build Assembled Items).
Upon identifying the Production Ticket, the transaction is auto-populated with the production items that need to be built.
Processing the transaction will flush the production items to the appropriate customer order(s).
Once the Production Ticket was identified the transaction details were auto-populated with the production items.
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Customer Sales Order at this point
After processing the Building of the Assembled Items from the Production Ticket, the order for which the Production Ticket was generated has been flushed (as shown below).
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Shown is the Inventory Transaction Register.
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Shown below are the warehouse production item and raw material quantities after building the production items on the production ticket.
OnHand ........................ 0 since building of PAI-1 used up the raw material;
Committed........................... 0
ProductionRequired ... 0 no longer required once production ticket was built;
Available ............................... 0 based on OnHand – Committed – ProductionRequired;
OnOrder ................................ 0
BackOrder ............................ 0
ProductionReserved ... 0 no longer reserved once production ticket was built;
InProduction ....................... 0
OnHand ...................... 10 since PAI-1 was just built;
Committed ........................ 10 based on customer quantity ordered;
ProductionRequired.........0
OnOrder ................................0
BackOrder ..................... 0 no longer backordered as building against the production ticket flushed the backorder;
ProductionReserved ........0
InProduction ................ 0 no longer in production, as we just built it.
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Shown is the Sales Order Invoice Register.
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Shown below are the warehouse production item quantities after invoicing the customer sales order for the production items. The raw material quantities are not shown as they were not affected in any way.
OnHand ........................ 0 since the order was invoiced;
Committed ................... 0 since the order was invoiced;
ProductionRequired.........0
OnOrder ................................0
BackOrder .............................0
ProductionReserved ........0
The screenshots below show the transactions for the production item.
Both screenshots show the same transactions, however, in the first screenshot, the footer section shows details for the first transaction,
In the second screenshot, the footer section shows details for the second transaction.
The first transaction for the production item is the building of the assembled item.
The Source details reflect the production ticket number and the reference number entered in the transaction
The second transaction for the production item is the shipment confirmation.
The Source details reflect the customer order number.
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The screenshots below show the transactions for one of the raw materials from the production item.
Both screenshots show the same transactions, however, in the first screenshot, the footer section shows details for the first transaction,
In the second screenshot, the footer section shows details for the second transaction.
The first transaction for the raw material is the stock receipt for the purchase order generated by the order for the production item.
The Source details reflect the purchase order number.
The second transaction for the raw material is the removal of raw material for the building of the production item.

Visual Streamline Production Item Processing

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