About Bill of Materials and Manufacturing

Bill of Materials uses resource values set in the BOM operation, while Estimating, Planning and Works Orders use resource values set in the cost heading.

To use Bill of Materials with Manufacturing, you must ensure that Nominal, Overhead Nominal and Overhead Recovery % values are the same on the BOM operation and in the cost heading.

You must set up cost headings, resource groups and resources. Resource groups take values from cost headings. Resources take values from the resource groups. You can amend the values for resource groups and resources. However, if you don't use the same values for the resources and the cost headings, there will be cost discrepancies when you integrate Bill of Materials with Manufacturing.

• MPS (Master Production Schedule)

• Getting started with Sales Order Processing

• Sales Forecasts

• Make to Stock

• Make to Stock

• About Bill of Materials

• Estimating

• Estimating

• Purchase Order Processing

• MRP (Material Requirements Planning)

• Works Orders

• Stock items

• Confirm goods received

BOM A stock assembly and process costing system, which provides facilities to specify the structure of finished items in terms of sub-assemblies and components.s (bill of materials), estimates Forecast project costs, based on expected costs of labour, machinery and operation times. In Manufacturing, estimates are produced for one-off items or non-repetitive batches., sales forecasts The best estimate of future requirements. This is used as input to the MPS (Master Production Schedule). Forecast orders received should be subtracted from the forecast to leave a residual forecast in the master schedule. Total demands can then be calculated as orders plus residual forecast for each time period., items to make for stock and sales orders are all added to the list of items in demand in the MPS Master Production Schedule (MPS). The planning of production (usually end item production), to satisfy current and forecast sales orders. The sum of MPS items must equal the agreed sales and operations plan for the items over each planning period. Planning periods are normally a month or a four week period. Items planned within MPS are exploded by MRP (Materials Requirements Planning) to produce the material and capacity requirements. module.

From the Master Production Schedule (MPS) list, a Material Requirements Planning (MRP) schedule is generated which recommends purchase orders or works orders be created to fulfil the demand.

When goods are received they are placed in stock and this allows fulfilment of sales orders.

If you are working in a repetitive batch environment, you can use the Trial Kitting option in Bill of Materials. Trial Kitting checks whether you can build a specified quantity of any BOM. It identifies and displays shortages.

Planning allows you to calculate and display the resources required to satisfy sales orders (Make to Order) and production for stock (Make to Stock). If the materials are not in stock, you can raise purchase orders for them in the Purchase Order Processing module.

The information from the Bill of Materials module feeds into the plan.

Once you have sufficient stock, you can generate works orders to fulfil the BOM. You can generate works orders in the following ways:

• From a plan.
• By direct entry.
• From the Trial Kitting window.

From the works order, you can allocate and issue the stock. When the works order is complete, the stock requirements are posted are sent to the Stock Control module. You can then proceed with your sales orders in the Sales Order Processing module.

Note: Purchase orders can be raised in the MRP module.

You may produce one-off jobs. In this situation, the estimate feeds into the plan.

Information for the estimate is drawn from the Stock Control module and from the Labour, Machine and Operations registers. You enter all expected costs for each stage of the job under eight job cost types.

When you turn the estimate into a works order, you can raise purchase orders for the works order in the Purchase Order Processing module.

From the works order, you can allocate and issue the stock. When the works order is complete, the stock is recognised in the Stock Control module. You can then proceed with your sales orders in the Sales Order Processing module.