1. Microsoft® Business Solutions Axapta® V3.0 Production Training

2. BILLS OF MATERIAL (BOM)

3. Basic data for Bills of Material The Bill of Material describes the structure of a product

4. BOM There are two ways to create a BOM: –Inventory management -> Bills of material –Inventory management -> Items -> BOM A BOM Item can hold multiple versions of a BOM. Only one active BOM version can be active on a certain period for a BOM item a BOM version can not be activated until it has been approved.

5. Bill of Material – Relations & Structure Item X BOM 1 Bill of material versions -Approved -Date & Active Approved BOM 2 Item A Item B BOM 5 BOM 4 BOM 3 Item Not Approved Approved Relations between BOM and finished goods Two different tables

6. Exercise Item A –Item A1,Quantity per series = 1 pcs –Item A2, Quantity per series = 2 pcs –Item A3, Quantity per series = 0.25 pcs

7. BOM BOM line types determine how the individual BOM line is handled when manufacturing or coverage planning the BOM item BOM Line Types: –Item  Item is specified on BOMs where the item is a raw material or semi-finished item to be picked from inventory, or where the item is a service –Production  Production is used when the BOM item is produced if you want to create a sub production for the BOM line’s item number –Phantom  Phantom is used if you want BOM-type items to be exploded in the BOM when it is produced –Vendor  Use the type vendor if production is to use the work of sub suppliers, for which you want a purchase order to be created automatically

8. Exercise Create the following items and BOM: –Item number = TblLamp, Name = Table Lamp, Item type = BOM, Inventory model group = DEF, Dimension group = STD-DIM, Warehouses = MW, Item group = Lamps –BOM description for Table Lamp = Table Lamp, Approved by = TJO. Use this BOM for production starting from today.  Item number = Lamp, Item name = Lamp Phillips, Item type = Item, Inventory model group = DEF, Dimension group = STD-DIM, Warehouses = MW, Quantity per series = 1 pcs, Item group = Parts  Item number = Shade, Item name = Lamp Shade, item type = Item, Inventory model group = DEF, Dimension group = STD-DIM, Warehouses = MW, Quantity per series = 1 pcs, Item group = Parts  Item number = ItemA, Quantity per series = 1 pcs

9. Exercise Create new item, Item number = LAcc, Item name = Table Lamp Accessories, item type = BOM, Warehouses = MW, Item group = Parts. BOM Name = Lamp accessories, which consists of the following BOM lines: –BPItem1, Item type = Item, Warehouses = MW, Quantity per series = 1 pcs, item group=Parts –BPItem2, Item type = Item, Warehouses = MW, Quantity per series = 1 pcs. Item group=Parts Create new finished good item, item number = TblLampAcc, Item name=Table Lamp w/ Acc, Item group = Lamps, DEF, STD-DIM Create new BOM version based on BOM Table Lamp using Copy function for Table Lamp w/Acc, Called it BOM Tbl Lamp with Accessories –Add LAcc to BOM Tbl Lamp with Accessories, Line type = Production, Quantity per series = 2 pcs –Activate it as the active version Create production order for Table lamp w/ Acc. Quantity = 1 pcs. Estimate the production order (Observe whether sub production is created after estimation)

10. Exercise Modify BOM Tbl Lamp w/ Acc by changing LAcc BOM line type from Production to Phantom Create production order for Table lamp w/ Acc. Quantity = 2 pcs. Check the BOM in production order Estimate the production order (Observe whether Phantom BOM has been broke down)

11. Exercise Create the following items and BOM: –Item number = FG, Name = Item FG, Item type = BOM, Warehouses = MW, Approved by = TJO, Item group = Lamps. BOM Name = BOM FG.  Item number = I3, Item name = Item 3, Item type = Item, Warehouses = MW, Item group = Parts, Quantity per series = 1 pcs, Line type = Item  Item number = I4, Item name = Item 4, item type = item, Warehouses = MW, Item group = Parts, Quantity per series = 3 pcs, Line type = Vendor, Vendor account = 3000 Create a production order for item FG, Quantity = 5 pcs. Estimate the production order and see in the Subcontractor work (Production -> Inquiries -> Subcontractor work) Observe the purchase order created

12. Some BOM setup in Item table Inventory management -> Items -> References tab BOM Unit –Item’s consumption unit in production. The unit specified is used in the BOM line when attached to a BOM Phantom –For BOM items only, it can be specified whether the item is to be handled as a phantom item. Phantom items are a sort of hidden BOM item. Its lines are exploded in productions. BOM line type will be automatically set to phantom Release –When selected, the material consumption for the item in a production will be released manually if item dependent consumption is selected in production parameters. Auto-report-as-finished –When checked, a BOM journal is created and posted automatically when a sales order is invoice updated. Once sold, the BOM item is exploded, component items are drawn from inventory, the BOM item is added to inventory, and all associated costs are posted by the system

13. BOM Journal Bills of material enables you to report bills of material as finished by clicking the menu button BOM, and then the function button Reporting-as-finished. You can either post reporting-as-finished directly by selecting Post now or record it in the BOM journal for final processing. Posting this type of journal generates an inventory receipt of the BOM item and an inventory issue of the items comprising the BOM

14. Bill of Material Designer Drag and Drop All levels are shown A total overview of BOM and Route

15. BOM Scrap Inventory management -> Items -> Bom -> Lines -> Setup -> Constant/Variable scrap By using the scrap fields, the known or expected scrap can be specified and then attached to each individual BOM line Scrap value is used to calculate corrected raw material consumption on BOM lines and consists of a value for Constant scrap and/or a Variable scrap Variable scrap is indicated as a percentage Constant scrap is specified in units, and is independent of how many items are produced

16. Exercise Whenever we produce ItemA, we always require 10% more of Item A1 Setup the BOM scrap Create a production order for ItemA, Quantity = 100 Estimate and check the estimated consumption

17. Exercise When we setup the BOM line, consumption is always Variable by default. Go to Item A, in one of the BOM component (such as Item A1), set consumption = constant 1 pcs Create a production order for Item A, 10 pcs and Estimate. Check the estimated consumption

18. Calculating BOM Before calculating a BOM, ensure that there are cost prices for all the BOM lines. (Inventory management -> Items -> Price/discount tab) It is possible to exclude a BOM line from the calculation by deselecting the field Calculation on the tab General of the BOM line An item can be attached to a Cost group (Inventory management -> Setup -> Bills of material -> Cost group). Cost groups are used when calculating BOMs to divide the cost price for a BOM into various groups Cost groups are also used to calculate the sales price for the BOM The result of the BOM calculation can be seen in an overview from the items table (Inventory management -> Items -> BOM -> Calculation)

19. Exercise Setup cost prices for all components for Item A, with the following: –Item A1, unit cost price = 10, qty per series = 1 pcs –Item A2, unit cost price = 20, qty per series = 1 pcs –Item A3, unit cost price = 30, qty per series = 1 pcs Calculate BOM consumption for Item A How much is cost price /unit of Item A? EUR 60 What’s the total cost price for 10 pcs of Item A? EUR 600

20. Exercise Attach MAC cost group to Item A1, Item A2 and Item A3 Item A1 has constant consumption 20 pcs for each production, regardless of the production quantity. Modify the BOM line Do BOM calculation again for Item A, Quantity =10 pcs (observe that sales prices will be calculated based on profit setting) How much is the total cost price for Item A1? 200 How much is the total cost price for item A? 700 How much is the sales price per unit for Item A? 105 Cost price per unit item A : 70 Do BOM calculation again for Item A, Quantity =1 pcs. How much is cost price per unit for item A? 250

21. Sub contractor Three types of subcontractor work: Purchase, Production Operation Purchase subcontracting : BOM line type = Vendor, Item type = Item Operation subcontracting : Route type = Vendor and Work center type = Vendor Production subcontracting : Sub BOM line type = Vendor, All operations in route must use work center of vendor

22. Exercise In the future, a purchase order for Handyman Co. (vendor account no. 3009) will be created for the item White paint (RM-Paint/W) in the production of Lamp shade white 30 cm (S-Shade/W30). Update the BOM accordingly. Create a production order for the Lamp shade white 30 cm and estimate it. Check that the estimation has created a purchase order for item RM-Paint/W. Check the purchase order appears in the Subcontractor work form.

23. WORK CENTER

24. Working time calendars A working time calendar needs to be specified for the work center group/work center that calculates the total time available based on the periods throughout the day when there is available time The times are used to calculate start and end times for operations, and therefore form the basis for calculating the total capacity for the work center/work center group The capacity availability times are generated on the basis of a working time template Working time templates are created in Basics -> Setup -> Calendar -> Working time template and Calendars are created in Basic -> Calendars

25. Exercise Create a new working time template called WorkHours with the following details: –Monday – Thursday:  8:00 AM – 12:00 PM  1:00 PM – 05:00 PM –Friday:  8:00 AM – 11:30 AM  1:30 PM – 05:00 PM –Saturday and Sunday  Weekend

26. Exercise Create new calendar called WorkCalendar Set the working time from 1/1/2005 till 12/31/2005 based on Working time template = WorkHours

27. Work Center Parameters –Efficiency % –Operation scheduling % –Work center Times –Ledger account data –Work center properties –Route groups Work Center type : –Machine –Human Resources –Tools –Vendor Calendar : –Working Time Template –Working Time Calendar Work center group Work center Work Centers are used to complete a production process Basic data for Work Centers

28. Work centers Basic -> Work center groups Work centers are used to manage the capacity of the company’s production apparatus Work centers are used on two levels: work center groups and work centers If a vendor type work center is used, the vendor account number must be specified

29. Operation scheduling and efficiency percentage An operation scheduling percentage and an efficiency percentage must be specified for the work center group/work center. These percentages specify to which extent capacities are available for the work center/work center group in connection with operation scheduling Operation scheduling percentage : shows the maximum percentage of the daily work center capacity that can be operation scheduled per production Efficiency percentage : reduces or increases the duration of the individual jobs scheduled on the work center –Scheduling time = time x 100/efficiency percentage

30. Ledger If, during production processing, the work center consumption should be posted on the basis of the company’s work centers, this must be reflected in the ledger setup for the work centers/work center group

31. Scrap percentage A scrap percentage can be specified for a work center/work center group which will then be suggested for the jobs/operations that are executed using the specific work center/work center group Scrap percentage * 100/(100-scrap percentage) = additional consumption percentage.

32. Cost groups Using cost groups, costs can be grouped during calculations. This makes it easier to categorize costs and detect deviations, thereby gaining a better overview of time and material consumption in a production. A series of profit setting/profit percentages can be created for each cost group. When a BOM is calculated, the desired profit setting is specified Cost groups for items and cost categories are specified in the Cost group field. An operation is attached for setup, process, or quantity to the cost category. Cost groups and profit settings are setup in Inventory management -> Setup -> Bills of material -> Cost groups

33. Finite capacity (limited capacity) Finite capacity –The capacity will be limited. With limited capacity, operations or jobs are scheduled on the basis that it is not possible to book more capacity than what is available on the work center group or work center. With unlimited capacity (if the field is not selected), already reserved capacity on a work center group or work center is not taken into account, which renders subsequent reservations

34. Capacity planning Capacity planning is a production parameter which defines the orders to be taken into account when production scheduling If project is selected, production scheduling will include capacity reserved for projects from the Project module If Planned orders is selected, production scheduling will include planned orders

35. Cost categories Production -> Setup -> Routes -> Cost categories The cost category determines the cost price for the work center and defines costs in relation to the specified processing or setup time, or a process quantity The cost categories can be specified on the work center group/work center, or on the operation relations As with items, cost categories have a cost group attached, which is used in BOM calculations to calculate the sales price for the item based on the specified profit setting

36. Exercise Modify the following cost categories –Proce : cost price = 20, cost group = WCC –Setup : cost price = 10, cost group = WCC

37. Routing group Production -> Setup -> Routes -> Routing groups The routing group ensures that both estimates and BOM calculations are carried out the way the company requires Routing group determines whether automatic route consumption should be allowed If company uses job management during the job scheduling process, the level of detail in job management is also created on the routing group and is hence attached to the work center Using routing groups, route parameters can be created for a group of routes or operations rather than creating them for each separate route.

38. Exercise Because our factory only measure cost based on Setup and Process of work center/operations, activate only Setup and Process job types (Activation, job management, working times, and Capacity). Adjust STD routing group to meet the requirements

39. Exercise Create a work center group G-Inject (Group of Injection machines), Machine type, with the following details: –Ledger  WIP Issue = 60086, WIP Account = 15165  Costing Issue = 60085, Offset account = 15193 –Routing group = STD –Cost Categories:  Setup = Setup  Process = Proce –Times  Setup time = 1 hour  Run time = 2 hour –Operation scheduling percentage = 100% –Finite capacity = Yes –Calendar=WorkCalendar –Efficiency percentage = 100% –Which contains the following work centers Inject 1, Inject 2 Create a work center group G-Assy (Group of assembly workers), Human resources type. The detail setup is the same as G-Inject. G-Assy consists of the following workcenters AssyL1 (Assembly Line 1) and AssyL2 (Assembly Line 2) Check work center capacity by using Inquiry -> Capacity load

40. ROUTES

41. Routes Production -> Routes A route may be defined as a series of interdependent work processes designed to describe the workflow in the production of one or more items An operation refers to a task or process connected with the production of an item, including the necessary details for an efficient production schedule Production processes are established through Routes and Operations When creating a production order, the route is copied from the item base data to the production order, meaning that it is the route of the base item that is copied over to the production route.

42. Routes The sequence of and connection between these are determined by the content of the Oper. No. and Next fields The first operation of the route is the one with the lowest operation number, above 0 (zero). The production route is ended by specifying 0 (zero) in the Next field for the last operation

43. Operations Production -> Setup -> Routes -> Operations The operation values in relation to items and routes are created and edited with the Relations button Each relation contains information used when updating production orders. This includes work center, route, consumption calculation, cost categories, work center alternative, measurement, times and overlap quantity

44. Route relations Article X Route 1 Route 2 Not Approved Approved Relations between route and finished goods Route version Date & Active Approved Two different tables Operation 10 Operation 20

45. Exercise Create the following operation: –Injection –Assembly Using Operation relation, attach Injection operation to G- Inject and Assembly operation to G-Assy. Observe that all work center setup are copied to the operation (such as cost categories, working times etc). –Item code = All –Route code = All

46. Exercise Create and activate a route for Item A. For producing item A, Item A1 and Item A2 are put into Injection operation and then with Item A3 will go to Assembly operation. Create a production order for Item A, qty = 10 pcs Estimate and check the estimated consumption How much is the estimated cost price per unit for Item A? 152

47. PRODUCTION PROCESS

48. Production Process Created Cost Estimation Operation Scheduling Job Scheduling ReleaseStartFinishedCosting Created individually On the basis of: BOM Route base data Expected: Material cost Route cost Work center Group/date Work center time Oper. Jobs Gantt chart Production documents: Operation/job cards Route cards Shop floor control Inventory documents: Picking list Consumption registration Aut. Material consumption based on route feedback Journals: Quantities Time consumption Ledger transactions: Material cost Route cost

49. Created Creation of production orders can be initiated from –Master Planning –Sales Order line –Manually Master Planning

50. Created Copy

51. Cost Estimation Calculate Expected cost using –Material Cost –Resource Cost –Quantity overhead Calculate through all levels Present result –One line summary –Detailed per calculated transaction

52. Scheduling –Operation scheduling –Job scheduling Gantt Chart –Gantt overview –Shows operations along with jobs –Color setup (One color per production or per job type) –Histogram with work center load

53. Release Change status for overview Production papers printed –Operation/Job cards –Route cards

54. Start Inventory picking list printed Shop Floor Control Material and route consumption can now be entered Manual or automatic posting of journals All postings goes into WIP

55. Finished Journals –Quantities –Hours used Shop Floor Control –Finished

56. Costing Finalize the production Calculate actual cost and post in G/L. Compare estimated and actual cost on top level and details

57. Production Summary Paperless environment – less errors and no lost production orders on the shop floor Better control of resource utilization Flexible route and BOM structure that help you reduce maintenance costs Strong Master Planning functionality

58. …thank you for your attention Questions?