System Preparation for Manufacturing Implementation: Implementation Activity

In this implementation activity, you will learn how to prepare the system for specifying manufacturing-specific settings.

Attention:
This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that based on requests from customers, SweetLife Fruits & Jams has decided to assemble customized juicers. The company has organized a work center where workers assemble juicers from parts bought from the Squeezo Inc. vendor.

As an implementation manager, you need to prepare the system for the specification of manufacturing-specific settings.

Process Overview

In this activity, to prepare the system for the implementation of manufacturing functionality, you will do the following:

  1. On the Numbering Sequences (CS201010) form, make sure that the numbering sequences for manufacturing batches and entities have been created
  2. On the Chart of Accounts (GL202500) form, make sure that the GL accounts required for the manufacturing processes have been created
  3. On the Posting Classes (IN206000) form, make sure that a posting class that will provide posting settings to the items involved in manufacturing has been created
  4. On the Warehouses (IN204000) form, make sure that the warehouse and locations to be involved in manufacturing have been created and defined properly
  5. On the Availability Calculation Rules (IN201500) form,make sure that the availability calculation rule that will be used for calculating availability of items involved in manufacturing has been created
  6. On the Replenishment Classes (IN208800) form, make sure that the replenishment class for items being manufactured has been created
  7. On the Item Classes (IN201000) form, make sure that the item classes that will provide default settings for items involved in manufacturing have been created and defined properly
  8. On the Stock Items (IN202500) form, create a stock item for a juicer, which will be assembled
  9. On the Stock Items (IN202500) form, create a stock item for a juicer part, which will be purchased
  10. On the Employees (EP203000) form, specify the appropriate setting for an employee that will be involved in manufacturing
  11. On the Order Types (SO201000) form, review the settings of the SO order type and configure the TR and QT order types, which will be involved in the manufacturing processes
  12. On the BOM Preferences (AM101000) form, review the basic settings related to bills of material
  13. On the Production Preferences (AM102000) form, review the basic settings related to production management

System Preparation

Before you start specifying the general settings to prepare the system for manufacturing implementation, you perform the following instructions:

  1. Sign in to a company with the U100 dataset preloaded; you need to sign in as a system administrator with the gibbs username and 123 password.
  2. On the Enable/Disable Features (CS100000) form, enable the following features:
    • Manufacturing
    • Material Requirements Planning
    • Product Configurator
    • Estimating
    • Advanced Planning and Scheduling
    • Engineering Change Control
    • Manufacturing Data Collection

Step 1: Reviewing Numbering Sequences

In a production system, you would need to create all of the numbering sequences that will be used in the system for manufacturing batches and entity identifiers. These numbering sequences have been defined in the U100 dataset for simplicity; you will verify that they have been created and review the settings of one of the numbering sequences. Do the following:

  1. Open the Numbering Sequences (CS201010) form.
  2. In the Numbering ID box of the Summary area, click the selector button.
  3. Notice that the following predefined numbering sequences are listed in the lookup table that opens:
    • AMBATCH
    • AMBOM
    • AMCOST
    • AMCTP
    • AMDIS
    • AMECO
    • AMECR
    • AMEST
    • AMFCST
    • AMMATL
    • AMMPS
    • AMPLAN
    • AMPROD
    • AMVSHIP
    • AMWIP
  4. Select AMBOM (which is the numbering sequence created for numbering bills of material), and review its settings as follows:
    1. Notice that the Manual Numbering check box in the Summary area is cleared, which means that bills of material will be numbered automatically.
    2. Notice that BOM000001 is specified in the Start Number column of the only row, which is the number of the first bill of material.

The system will use these numbering sequences on the relevant forms involved in the manufacturing processes.

Step 2: Reviewing the GL Accounts

In a production system, you would need to create the GL accounts that will be used in manufacturing; these accounts have been predefined in the U100 dataset for simplicity. In this step, you will verify that these accounts have been created. Do the following:

  1. Open the Chart of Accounts (GL202500) form.
  2. Notice that the following accounts are listed in the table:
    • 12500, Work in Progress for Manufacturing
    • 51000, Accrued COGS - Direct Labor Costs
    • 51050, Accrued COGS - Fixed Overhead Costs
    • 51060, Accrued COGS - Fixed Machine Costs
    • 51070, Accrued COGS - Fixed Tool Costs
    • 51100, Accrued COGS - Indirect Labor Costs
    • 51150, Accrued COGS - Variable Overhead Costs
    • 51500, COGS - WIP Inventory Variance
    • 51600, COGS - Scrap Expense

The system will insert these accounts on the relevant forms, enabling their use throughout the manufacturing processes.

Step 3: Reviewing the Posting Class

In a production system, you would need to create the posting class that will be used in manufacturing. This posting class has been predefined in the U100 dataset for simplicity. In this step, you will verify that this posting class has been created as follows:

  1. Open the Posting Classes (IN206000) form.
  2. In the Class ID box of the Summary area, select MFGI.
  3. Go to the General tab, and notice that Posting Class is selected in the Use WIP Account From and Use WIP Variance Account From boxes. This means that the system will copy these accounts from the posting class, and the accounts can be changed on the item level if necessary.
  4. Notice that the following settings are specified on the GL Accounts tab:
    • Work in Process Account: 12500 - Work in Progress for Manufacturing
    • WIP Variance Account: 51500 - COGS - WIP Inventory Variance

Step 4: Reviewing Warehouse and Location Settings

In a production system, you would need to create a warehouse and its locations that will be dedicated to manufacturing or specify manufacturing-related settings for an existing warehouse and its locations. In the U100 dataset, a separate warehouse has been created and all required settings have been specified. In this step, you will review the settings for this predefined warehouse and its locations and for a warehouse that is not involved in manufacturing. Do the following:

  1. Open the Warehouses (IN204000) form.
  2. In the Warehouse ID box of the Summary area, select WORKHOUSE.
  3. Make sure that SWEETEQUIP is selected in the Branch box.
  4. On the Locations tab, do the following:
    1. Notice that the following check boxes are selected in the rows with the MTL and MGI locations, which will be used for storing materials and manufactured items, respectively:
      • Include in Qty. Available
      • Sales Allowed
      • Receipts Allowed
      • Production Allowed
      • Transfers Allowed
      • Inventory Planning
    2. Notice that the following check boxes are selected in the row with the DMTL location, which will be used for storing defective materials:
      • Receipts Allowed
      • Transfers Allowed
  5. Notice that the following settings are specified on the GL Accounts tab:
    1. Work in Process Account: 12500 - Work in Progress for Manufacturing
    2. WIP Variance Account: 51500 - COGS - WIP Inventory Variance
  6. Go to the Inventory Planning tab, and notice that all check boxes are selected in the Inventory Planning Settings section.
  7. In the Warehouse ID box of the Summary area, select EQUIPHOUSE (this warehouse is not involved in manufacturing).
  8. Go to the Locations tab, and notice that the check box in the Inventory Planning column is cleared for all rows.
  9. Go to the Inventory Planning tab, and notice that all check boxes in the Inventory Planning Settings section are cleared.

Step 5: Reviewing Availability Calculation Rules

In a production system, you would need to create an availability calculation rule that will include additional settings related to documents used in the manufacturing processes. This availability calculation rule has been predefined in the U100 dataset for simplicity. In this step, you will review settings of the rule. Do the following:

  1. On the Availability Calculation Rules (IN201500) form, open the MFGITEMS rule.
  2. Notice that the following check boxes are selected:
    • Deduct Qty. on Issues
    • Deduct Qty. on Sales Orders
    • Deduct Qty. Shipped
    • Deduct Qty. Allocated
    • Deduct Qty. on Back Orders
    • Deduct Qty. on Production Demand Prepared
    • Deduct Qty. on Production Demand
    • Deduct Qty. on Production Allocated
    • Include Qty. on Receipts
    • Include Qty. on PO Receipts

    With these settings, the quantities of items that are issued, shipped, added to sales orders, allocated to sales orders, added to back orders, and allocated to production orders will be deducted from the available quantity; the quantities of items that are included in inventory and PO receipts will be added to the available quantity.

Step 6: Reviewing Replenishment Classes

If in a production system the Inventory Replenishment feature is enabled on the Enable/Disable Features (CS100000) form, you would need to create replenishment classes that will be used for items being manufactured. These replenishment classes have been predefined in the U100 dataset for simplicity. In this step, you will review the settings of the replenishment classes. Do the following:

  1. Open the Replenishment Classes (IN208800) form.
  2. Notice that a class with the Manufacturing replenishment source in the Replenishment Source column is displayed in the table. This class will be used for items to be manufactured.
  3. Notice that a class with the Purchase replenishment source is displayed in the table. This replenishment class will be used for items to be purchased.

Step 7: Reviewing Item Classes

In a production system, you would need to create one or multiple item classes that will provide default settings to newly created items involved in manufacturing. Two item classes have been predefined in the U100 dataset for simplicity. In this step, you will review settings of the item classes. Do the following:

  1. Open the Item Classes (IN201000) form.
  2. In the Item Class Tree of the left pane, select JUICERCFG. This item class provides default settings for new configurable juicer items.
  3. On the General tab, do the following:
    1. In the General Settings section, notice that the Stock Item check box is selected.
    2. In the Posting Class box, notice that MFGI is selected.
    3. In the Default Warehouse box, notice that WORKHOUSE is selected.
    4. In the Availability Calculation Rule box, notice that MFGITEMS is selected.
    5. In the Unit of Measure section, notice that the Divisible Unit check boxes are cleared. This means that the system will operate with only integer quantities of items in transactions and documents.
  4. Go to the Inventory Planning tab, and notice that a row with the PRODUCTION replenishment class has been added.

    This indicates that items of the class will be manufactured.

  5. In the Item Class Tree, select JCRCFGPRT. This item class provides default settings for new part items for configurable juicers.
  6. On the General tab, do the following:
    1. In the General Settings section, notice that the Stock Item check box is selected.
    2. In the Posting Class box, notice that MFGI is selected.
    3. In the Default Warehouse box, notice that WORKHOUSE is selected.
    4. In the Availability Calculation Rule box, notice that MFGITEMS is selected.
    5. In the Unit of Measure section, notice that the Divisible Unit check boxes are cleared. This means that the system will operate with only integer quantities of items in transactions and documents.
  7. Go to the Inventory Planning tab, and notice that the row with the PURCHASE replenishment class has been added.

    This indicates that items of the class will be purchased.

Step 8: Creating a Stock Item Being Manufactured

You will create a stock item for a juicer that makes juice from soft fruits and berries. Do the following:

  1. On the Stock Items (IN202500) form, add a new record.
    Tip:
    To open the form for creating a new record, type the form ID in the Search box, and on the Search form, point at the form title and click New right of the title.
  2. In the Inventory ID box of the Summary area, type CFJSOFT.
  3. In the Description box, type A configurable juicer for soft fruit, vegetables, and berries.
  4. In the Item Class box of the General tab (Item Defaults section), select JUICERCFG. The system copies the settings of the item class into the following boxes of the section:
    • Type: Finished Good
    • Valuation Method: Average
    • Posting Class: MFGI
    • Default Warehouse: WORKHOUSE
  5. On the Inventory Planning tab, in the Source box of the Production Order Defaults section, select Manufacturing.
  6. On the Manufacturing tab, specify the following:
    1. In the Dflt Mark For box of the General section, select Production.
    2. Select the Make-to-Order Item check box.
    3. In the Scheduling section of the tab, notice that the Check for Material Availability check box is selected.
  7. On the form toolbar, click Save.

Step 9: Creating a Stock Item for a Component Being Purchased

You will create a stock item for a component of a configurable juicer: a grating disc with medium peeling, which will be purchased from the Jalooza vendor. Do the following on the Stock Items (IN202500) form, which is still open:

  1. On the form toolbar, click Add New Record.
  2. In the Inventory ID box of the Summary area, type GRDISC03.
  3. In the Description box, type Grating disc for medium peeling (for configurable juicers).
  4. In the Item Class box on the General tab (Item Defaults section), select JCRCFGPRT. The system copies the settings of the item class into the following boxes of the section:
    • Type: Finished Good
    • Valuation Method: Average
    • Posting Class: MFGI
    • Default Warehouse: WORKHOUSE
  5. In the Default Issue From box of the Warehouse Defaults section, select MTL (which is the location where components for juicers will be stored).
  6. In the Default Receipt To box, select MTL.
  7. On the Vendors tab, do the following:
    1. On the table toolbar, click Add Row.
    2. In the Vendor ID column of the row, select JALOOZA.
    3. Notice that a lead time (7) is specified in the Lead Time (Days) column.
  8. On the Warehouses tab, notice that a row for WORKHOUSE has been added.
  9. In the Last Cost box on the Price/Cost tab (Cost Statistics section), type 39.90.
  10. On the form toolbar, click Save.

Step 10: Selecting Employees Involved in Production

Three employees will be involved in juicer assembly: two workers and one manager. You will mark one of these employees, Carlos Cruz, as being involved in production. Do the following:

  1. On the Employees (EP203000) form, open the EP00000027 – Carlos Cruz employee.
  2. In the Employee Settings section of the General tab, select the Production Employee check box.
  3. On the form toolbar, click Save.

For the other two employees, Casey Burrows and Gladys Peters, the Production Employee check box has already been selected.

Step 11: Configuring Sales Order Types

You will review the settings of the SO order type and configure the TR and QT order types, which will be used in the manufacturing processes. Do the following:

  1. On the Order Types (SO201000) form, open the SO type.
  2. Go to the Manufacturing Settings section of the General tab, and notice that the following check boxes are selected:
    • Allow Production Orders - Approved
    • Allow Production Orders - Hold
    • MTO Order
  3. In the Order Type box, select TR.
  4. In the Manufacturing Settings section of the General tab, select the following check boxes:
    • Allow Production Orders - Approved
    • Allow Production Orders - Hold
    • MTO Order
  5. On the form toolbar, click Save.
  6. In the Order Type box, select QT.
  7. In the Manufacturing Settings section of the General tab, select the Allow Estimating check box.
  8. On the form toolbar, click Save.

Step 12: Reviewing Bill of Material Preferences

In a production system, you would need to specify the basic settings related to bills of material to be able to start implementation of the manufacturing processes. These settings have been predefined in the U100 dataset for simplicity. In this step, you will review the bill of material settings. Do the following:

  1. Open the BOM Preferences (AM101000) form.
  2. On the General tab, review the settings as follows:
    1. Notice that AMBOM is specified in the BOM Numbering Sequence box. The system will use this numbering sequence for bill of material identifiers when you create a bill of material on the Bill of Material (AM208000) form.
    2. Notice that A is specified in the Default Revision box. The system will copy this value when you create a bill of material on the Bill of Material form.

Step 13: Reviewing Production Preferences

In a production system, you would need to specify the basic settings related to production management to be able to start implementation of the manufacturing processes. These settings have been predefined in the U100 dataset for simplicity. In this step, you will review the production settings. Do the following:

  1. Open the Production Preferences (AM102000) form.
  2. Notice that the following settings have been specified in the Numbering Settings section:
    • Move Numbering Sequence: AMBATCH
    • Labor Numbering Sequence: AMBATCH
    • Material Numbering Sequence: AMBATCH
    • WIP Adjust Numbering Sequence: AMWIP
    • Cost Numbering Sequence: AMCOST

You have prepared the system for the implementation of manufacturing functionality.