Module 2 Configure production prerequisites

Case study 2 Production prerequisites

Exercise #1: Update the production control parameters

When you are starting to use the Production control module, you are required to do some configurations that will help the system operate according to your design and process design

The Operations manager at USMF, wants to make some changes to the policies so everything runs more efficiently. He wants to be sure routes are not allowed to be modified or have their approvals removed. In order to accomplish this, a new route operation should be created, and the effective dates updated.

Can you help the operation manager to perform this?

You will have to do the following:

Update the production control parameters

Steps

Go to Production control > Setup > Production control parameters.
Set the Block removal of approval slider to Yes under the Routes group.
Set the Block editing slider to Yes under the Routes group.
Select Save.
Close all pages.

Exercise #2: Create new production pools

USMF has been getting reports from the customers that orders are not arriving on time and that some of the delivered orders are missing pieces. One of the supervisor wants you to determine what is causing these problems so the company can find a solution.

You decide that you want more visibility into production orders that are delayed, and you want to track subcontracted production orders that are missing deliveries, production orders with missing materials and orders that are delayed due to machine failures.

How would you perform this?

You will have to do the following:

Production pool for Delayed sub contracted work
Production pool for missing materials
Production pool for machine failures

Steps

Create a production pool for delayed subcontracted work

Open Production control > Setup > Production > Production pools.
Select New to create a new pool.
Enter or select Delay-Sub in the Pool field.
Enter or select Subcontracted Work Delayed in the Name field.

Create a production pool for missing materials

Select New to create a new pool.
Enter or select MATMISSING in the Pool field.
Enter or select Materials Missing in the Name field.

Create a production pool for machine failures

Select New to create a new pool.
Enter or select MACHFAIL in the Pool field.
Enter or select Machine Failure in the Name field.
Select Save.
Close all pages.

Exercise #3: Create and manage resources

Company USMF has bought a new packing robot that will reduce the need for manual labor in the speaker packing workshop.

Workers from this group can therefore be reassigned to perform other work as the new robot becomes fully operational.

You were asked to add the robot as a resource

How would you perform this?

You will have to do the following:

Create capabilities
Assign resource to capabilities
Assign capabilities to a resource

Steps

Create capabilities

Go to Organization administration > Resources > Resource capabilities.
Select New from the Navigation bar.
Enter or select GTL-Assembly in the Capability field and Assembly in the Description field.
Select New.
Enter or select GTL-Packing in the Capability field and Packing in the Description field.
Close the Resource capabilities page.

Assign resources to capability

Go to Organization administration > Resources > Resource capabilities.
Select GTL-Assembly from the list of capabilities.
Select Add from the toolbar.
Select 5110, Assembly worker 1, in the Resource field.
Accept the default Expiration date of Never.
Enter or select 1 in the Priority field.
Accept the default Level of 0.00.
Repeat steps 3 to 7, for the resource 5111 and select Save.
Close the Resource capabilities page.

Assign capabilities to a resource

Go to Organization administration > Resources > Resources.
Select resource 5111 in the grid.
Expand the Capabilities FastTab.
Select View > All from the toolbar.
Select Add from the toolbar.
Enter or select GTL-Packing in the Capability field.
Accept the default Effective date of today's date.
Accept the default Expiration date of Never.
Accept the default Level of 0.00.
Enter or select 2 in the Priority field
Close the Resources page.

Exercise #4: Create an operation, assign relations and create a route

The company you are consulting has decided to produce a series of ebooks for a client.

The production manager at USMF, wants to create an operation for the finished good, assign relations, and create a route

Can you help the production manager?

You will have to do the following:

Create and configure an operation

Steps

Go to Production control > Operations > All routes.
Select New.
In the Name field, enter or select eBook route.
In the Item group field, enter or select TV&Video.
Select Save.
Select Route on the Action Pane then in the Maintain group, select Route details.
Select New.
In the Operation field, enter or select Assembly.
In the Scrap Percentage field, enter 20.
In the Link type field, select Soft.
Select New.
In the Oper. No. field, enter 20.
In the Operation field, enter or select Padding.
In the Scrap percentage field, enter 30.
In the Link type field, select Hard.
Select New.
In the Oper. No. field, enter 30.
In the Priority field, select Primary.
In the Operation field, enter or select Packing.
Refresh the page.
Select Save.
Close all pages.

NOTE The message bar may appear with a message that states, "There exist no relation for operation Padding.” The route contains the order of operations and the assignment of operations will occur in the next steps.
Go to Production control > Setup > Routes > Operations.
Select New.
In the Operation field, enter or select eBook.
In the Name field, enter or select eBook assembly.
Select Relations.
Select New.
In the Route group field, enter or select Discrete.
Expand the Setup section.
In the Formula field, select Capacity.
In the Costing resource field, enter or select 1211. A dialogue box appears informing that the default time and cost values from the costing resource will be inserted. Select Yes to continue.
In the Route relation field, enter or select eBook route created in previous steps and Route code should be set to Route.
Select Save.
Close all pages.

Exercise #5: Create a simple BOM without a version

You have been asked to assist the product designer at USMF and show her how to create a simple BOM for a new light cabinet.

You will approve the BOM using employee 000020, Julia Funderburk.

You will use the parameters on the right

Name: Light Cabinet
Item group: Audio
Site: 1pa
Item:
M0005 Enclosure
M0006 Binding posts
P0002 Speaker Damping Foam
Quantity for each item: 1

You will have to do the following:

Create a simple BOM

Steps

Go to Product information management > Bills of materials and formulas > Bills of materials.
Select New.
In the Name field, enter or select Light Cabinet.
In the Site field, enter or select 1.
In the Item group field, enter or select Audio.
Select Save.
In the Bill of materials lines section, select New.
In the Item number field, enter or select M0005.
Select New.
In the Item number field, enter or select M0006.
Select New.
In the Item number field, enter or select P0002.
Select Bill of materials on the Action Pane then in the Maintain group, Select Approval and choose 000020, Julia Funderburk.
Select OK.
Select Save.
Close all pages.

Exercise #6: Create a BOM in the BOM designer (Bonus)

The new product designer at USMF has received a new specification for the enclosure side of a cabinet.

She has requested your assistance.

You see that an item is not set up for this specification, so you only need to create a simple BOM with component lines.

Use employee 000020, Julia Funderburk, to approve the BOM.

Create a BOM titled “High Quality Speaker” and assign it to the Audio item group at site 1. Use the BOM designer to add items with warehouse 11 and the following quantities:

1 qty of M0008/High End Cabinet/Black
2 qty of M0002/Mid-Range Speaker Unit
1 qty of M0009/Protective Corners

You will have to do the following:

Create a BOM in the BOM designer

Steps

Go to Product information management > Bills of materials and formulas > Bills of materials.
Select New.
In the Name field, enter or select High Quality Speaker.
In the Site field, enter or select 1.
In the Item group field, enter or select Audio.
Select Bill of materials on the Action Pane then in the Maintain group, select Designer.
Select BOM lines on the Action Pane.
Select Add to component BOM.
In the list, find and select M0008 / High End Cabinet / Black.
Select OK.
Select BOM lines.
Select Add after line.
In the list, find and select M0009 / Protective Corners.
Select OK.
Select BOM lines.
Select Add before line.
In the list, find and select M0002 / Mid-Range Speaker Unit.
Select OK.
Close the Designer page.
Refresh the Bill of materials page. This will populate the previously created BOM formula lines.
In the list of Bill of materials lines, find and select the row for M0002 / Mid-Range Speaker Unit.
Set Quantity to 2.0000.
In the Action pane, select Approval in the Maintain group in the Bill of materials tab.
Select 000020, Julia Funderburk.
Select OK.
Close all pages.

Exercise #7: Create a BOM with a version

The sales department has reported that there is a high demand for rosewood colored speakers instead of the traditional black.

You are asked to prepare for the manufacture of more rosewood colored speakers by creating a version, making a copy of the existing BOM, removing item M0008/High End Cabinet/ Black and add item M0008/High End Cabinet/Red for a quantity of 1.

Employee 000020, Julia Funderburk must approve the version.

Do not activate the BOM because the item is not ready for use yet.

Use the specifications given at right

Item number: 72708
Item name: High Quality Speaker Rosewood
Item group: Audio
Item model group: FIFO
Storage Dimension group: SiteWH
Tracking Dimension group: None
Warehouse 11
Approved by: 000020, Julia Funderburk

You will have to do the following:

Create a BOM with a version

Steps

Go to Product information management > Products > Released products.
Select New.
In the Product number field, enter or select 72708.
In the Product name field, enter or select High Quality Speaker Red.
In the Item model group field, enter or select FIFO.
In the Item group field, enter or select Audio.
In the Storage dimension group field, enter or select SiteWH.
In the Tracking dimension group field, enter or select None.
Select OK.
On the Action Pane, select Manage inventory.
Select Default order settings.
In the Default order type field, select Production.
Under the Inventory FastTab, In the Default warehouse field, enter or select 11.
Close the page.
On the Action Pane, select Engineer.
Select Designer.
Select BOM.
Select Create version.
In the Name field, enter or select High Quality Speaker Rosewood.
Select Yes in the Copy field.
In the Site field, enter or select 1.
Select OK.
In the Item number field, enter or select D0004.
Select OK.
In the tree, select Item number: 72708\M0008 / High End Cabinet.
Select BOM lines.
Select Delete.
Select BOM lines.
Select Add before line.
In the list, find and select M0008 / High End Cabinet / Rosewood.
Select OK.
In the tree, select Item number: 72708.
Select BOM.
Select BOM versions.
Select Approval. Select 000020, Julia Funderburk.
Select Yes in the Do you also want to approve the bill of materials? field.
Select OK.
Close all pages.

Exercise #8: Configure costing policies

At USMF, you need to set profit-settings to help sales personnel calculate an accurate sales price after considering all costs for cabinet item D0002.

You should also be able to view the costing sheet to analyze the cost breakdown

Can you help the sales personnel?

You will have to do the following:

Update the profit settings on the item
Review the costing sheet setup
View the calculation details on the item

Steps

Go to Product information management > Products > Released products.
Use the Quick Filter to filter on the Item number field with a value of D0002.
In the list, select D0002 to open the details page.
Expand the Manage costs FastTab.
Select M9 cost group to open the cost group details page.
Select Edit.
Set Profit percentage to 40.00.
Select Add.
In the Profit-setting field, select Profit 1.
Set Profit percentage to 70.00.
Select Save.
Close the page.
On the Action Pane, select the Engineer tab.
In the BOM group, select BOM versions.
Under the Bill of materials lines, select M0005 to open the Product information dialog.
Select M0005 item number (not product number) to open the Released product details page
Select Cost group M2 in the Manage costs FastTab to open the Cost group details page.
Select Edit.
Set Profit percentage to 30.00.
Select Add.
In the Profit-setting field, select Profit 1.
Set Profit percentage to 60.00. Select Save.
Close the page.
Close all pages.
Go to Cost management > Indirect cost accounting policies setup > Costing sheets.
In the tree, select Root\Cost of Conversion\COC-Material\COC - M2 - Cabinets comp.
Review the structure of the costing sheet.
In the tree, select Root\Cost of Conversion\Overhead on Conversion\COC - OVH4 - Labor overhead\Indirect labor cost - Rate per process time.
Review the Absorption basis, and Rate FastTabs values.
In the tree, select Root\Cost of Conversion\Overhead on Conversion\COC - OVH4 - Labor overhead.
Select OVH4.
Set Profit percentage to 80.00. Select on Save.
Close all pages.
Go to Product information management > Products > Released products.
Use the Quick Filter to filter on the Item number field with a value of D0002.
Select the D0002 link to open the Released product details page.
On the Action Pane, select the Manage costs tab.
In the Set up group, choose Item price.
Select the Pending prices tab.
Select Calculate item cost.
In the Costing version field, enter or select 10.
Select OK.
Select View calculation details.
Select the Costing sheet tab.
Analyze the cost breakdown for the cabinet D0002.
Close all pages.