Discrete Manufacturing Production Order

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Danish Ali

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Hi All,

In this post, I will cover the full cycle of discrete manufacturing production order. Following are the topics which will be defined, setup, configured and explained

Generate demand through sales order for the item FG-Mobile
Run master planning for FG-Mobile, system will propose the planned production order for FG-Mobile and planned purchase orders for the finished goods ingredients(Raw material Mobile)
Approve and Firm the production order for FG-Mobile and purchase order for Mobile
Confirm the purchase order for the raw material Mobile, post the receiving and the invoice for the purchase order
Process the production order, once the production order is reported as finished, finished good inventory will be available in sales warehouse
Post picking list, packing slip, and invoice for the Sales order

Discrete manufacturing

Discrete manufacturing is an industry term for the manufacturing of finished products that are distinct items capable of being easily counted, touched or seen. Automobiles, furniture, toys, smartphones, and airplanes are the examples of discrete manufacturing products.

Sales Order Creation

The demand has been created from sales order.

Bill of Material(BOM)

A bill of materials is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed to manufacture an end product.

For the finished good mobile BOM, I have just one line item that is Mobile. Approve and Activate the BOM version.

Operations

Operations represent the tasks that are required to produce items in your production.

Path: Production control > Setup > Routes > Operations

List down all the operations in the Operations form and link these operations with routes.

Route Group

Create routing groups to define parameters for a group of routes. You can specify how costs are calculated, how planning occurs, how jobs are managed, and the kind of feedback that you want for the group.

Resource Group

We can assign the resource group to the resources which performed the same type of work. A resource can be assigned to only one resource group. We can view the capacity load for the resource group.

Resources:

Operations resources are the resources that are used to complete the production process.

There are five resource types in AX

Vendor
Human resources
Machine
Tool
Location

Path: POrganization administration > Common > Resources > Resources

I have created three resources(Type: Human Resource) in order to complete the production of FG-Mobile.

1- Installation 2- Log setting 3- Verification

Cost Categories

You can set up and link cost categories to the operations of any selected route, and therefore, define the hourly cost and processing times of the specified route.

Routes:

A route contains the set of operations that are required to produce a product or an item.

This includes the sequence of operations, the site where the production occurs, the resource requirements that are involved, and the standard times that are required to set up and run the operations. The information that is required for scheduling the actual production is contained in the operations.

The route version has been created, approved and activated. For the FG-Mobile route, I have three operations that are Installation, log set, and verification.

Resource Requirements In Routes

In resource requirement tab, select the resource for installation (SW-Instal). Repeat this step for all the lines and select the respective resource requirements.

Cost Group

Cost groups are used to segment the manufacturing cost such as cost contribution for material, labor, and overhead.

Cost group type − Each cost group must be assigned a cost group type, which designates it as pertaining to direct material, direct manufacturing, direct outsourcing, indirect or undefined.

A cost group designated as the direct material can be assigned to items.
A direct manufacturing cost group can be assigned to cost categories.
A direct outsourcing cost group can be assigned to a product type of service, which enables you to classify costs associated with the service purchase to subcontracting activities.
An indirect cost group can be assigned to indirect costs for surcharges or rates.
A cost group designated as undefined can be assigned to items, cost categories or indirect costs.

Behavior: The behavior field is only for reporting purpose. By using this field, we can display the cost by segmentation of fixed and variable costs on the costing sheet, and in the Cost rollup by cost group form.

Profit Setting: Based on the profit settings assigned to the cost group, the BOM calculation provides a suggested sales price based on a cost-plus-markup approach.

I have created one cost group Mobile, with the cost group type Direct material, and the behavior is Fixed cost. The profit setting is defined as 50%.

Calculation Group

Path: Inventory management > Setup > Costing > Calculation groups

Run Master Planning

Since the sales order demand has been created for FG-Mobile. Business user will run the master plan

Planned Order From Master Plan

Based on the sales order demand, the master planning has generated the planned purchase order for the item "Mobile" and planned production order for the item "FG-Mobile".

Planned Production Order

Below is the screenshot for planned production order

Pegging

The pegging fast tab is displaying the required quantity is -10. Since FG-Mobile with quantity 1 is already available in the inventory, the system is displaying settled quantity -9.

Based on these records, the master planning has proposed the planned production order with quantity 9.

Approved Planned Order

Approve the planned orders.

Firm Planned Order

Firm the planned orders and system will generate the purchase order for the item Mobile and production order for the item FG-Mobile.

All Production Order

Below is the screenshot for the production order 43 generated by the system.

Production order Status "Created"

Once the production order has been created either manually or by using the master planning, the status of the production order is "Created"

Production Order Estimated

Once we run the material and cost estimations, the status of the production order is "Estimated"

Production Order Price Calculations

Below is the result once we run the estimation for production order. System has proposed the estimated consumption for the production order, once the production is RAF we can see the realized cost amount

Costing sheet is set up to pick up the cost of raw material(Mobile), operations(Installation, log settings, and verification) and overheads(Plant overhead surcharges).

Capacity reservation - Operations Scheduled

Scheduling at the operation level is the less detailed method and provides a general estimate of the production process over time. Operations scheduling does not explode the operations for the production route into jobs.

Production order - Job Scheduling

Job scheduling is a more detailed form of scheduling than operations scheduling. You can use job scheduling to schedule individual jobs or shop orders and to control the manufacturing environment. It breaks down each operation into its individual tasks or jobs. These jobs are then assigned to the operations resources that will perform them.

Production Order - Job Scheduled

Production Order - Gantt Chart

Production Overview (Status: Scheduled)

Production Order - Release

Production Overview (Status: Released)

Production Order - Start

Production Overview - (Status: Started)

Procurement Process - Confirm Purchase Order

Also, make sure to process the purchase order so that raw material inventory(Mobile) will be available for the production order picking.

Confirm the pruchase order generated thorugh Master planning.

Purchase Order - Item Registration

Since the raw material (Mobile) is serial number controlled, process the item registration and generate the serial number for all the purchase order line items