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Shop Floor Control - Flow of Processing
OverviewThe Flow of Processing section helps you learn how to operate the software for the first time and provides a guideline for operating the Shop Floor Control module after it has been installed. The best way to understand this section is to study it in conjunction with the Operations section of this manual.
Flow of Daily ProcessingThe Shop Floor Control daily processing tasks can be done either for single work orders or for batches of work orders. Daily Processing refers to the procedures performed each day when using the Shop Floor Control module. Depending upon the volume of business your company handles during most daily operations, the following actions could take place: work orders are created and released to the floor, travelers and pick lists are printed, material is issued, purchase requisitions are generated, purchase order receipts recorded, labor performed and entered, subcontract services received, any necessary adjustments are made, and completed jobs are closed.
Scheduling is an important part of Shop Floor Control and as each job is opened it can be scheduled. Read How Work Order Scheduling Works for details on maintaining your shop floor’s schedule.
To audit the flow of daily processing, registers are printed for work orders before an update takes place. A Work Order Detail Report lists all work orders from all sources for one or a range of work orders.
Creating New Work OrdersWhen a work order is initially created, it is considered a planned work order by the Shop Floor Control module. Planned work orders identify scheduled jobs that have not been released to production. Quoted work orders can also be created that are useful when creating jobs for a specific customer. Neither planned or quoted work orders can have materials committed or labor posted to them. Purchase Requisitions, Purchase Orders, and PO Receipts can be assigned/updated to planned work orders. No other transactions are allowed until the job is opened.
The process of creating a new work order differs for each of the three Shop Floor Control work order categories. I = Inventory Work Order is a work order for a standard item that is contained in the Inventory Master File, and that probably has a bill of material describing how it is manufactured. Although category ‘I’ work orders may be used if the AddonSoftware Bill of Materials module is not in use, in this situation the entire bill of material must be input each time a category ‘I’ work order is entered. When it is determined that additional units of an inventory item are needed, a work order is opened via the Work Order Entry task for a given quantity of production. If the AddonSoftware Bill of Materials module is installed, this is a very simple task for category ‘I’ work orders, requiring little more than the entry of the finished goods (or assembly ) part number and the production quantity.
Work Order Entry task explodes each of the work order’s required assemblies (including any phantom bills of material) into the necessary operations, materials, and subcontracts. Next, the Work Order Entry task will prompt for the appropriate scheduling code. Manual schedules will need entries for each requirement within the operation to be scheduled. Forward scheduling will require scheduled start date; backward scheduling will require scheduled completion date.
Finally, the Work Order Entry task will display any material shortages. If there are no shortages, and the job is ready to be released to the floor, you may do that from the Release Work Order display. You will be able to flag the job for inclusion in the next batch of pick lists and work order travelers.
If an operation must be changed due to a routing adjustment (refer to Balancing the Work Order Schedule), this can be done at any time through the Operations Requirements option of the Work Order Entry task.
NOTE: When an order is received for a modified standard product two courses of action are possible. The first course of action is to choose an inventory item that is very nearly the same as the desired modified product. Open a new work order as category ‘I’, posting labor and material actually used. These will show up as variances. The second course is to build the work order as category ‘N’, non-stock , entering the finished goods part number which is the most similar standard product as a component and making the necessary modifications to the work order.
N =Non-Stocked Work Orders are for custom items or any item that is not contained in the Inventory Master File. A category ‘N’ work order may be an order to build an item that is very nearly the same as a standard, stocked item except for a few modifications; or it may be a completely custom project unlike any existing bill of material. A category ‘N’ work order is generally created as a result of a specific customer order or a Request for a Quotation and may be entered for the purpose of preparing a cost estimate or quote. The Quote status allows tracking of customer quotes until the job is ready to be opened.
When a category ‘N’ work order is opened via the Work Order Entry task, you are prompted to enter a description of the item, revision date, production quantity, customer, and sales order number. Then, since no bill of material exists for the project, the required raw materials and sub-assemblies may be entered if a work order cost estimate is desired or if a pick list is to be produced.
If the work order is for a modified standard item as described above, it may be easiest for the operator simply to enter the finished goods part number that is similar to the custom item being produced, explode the bill of material, and make the necessary modifications. (Unlike category ‘I’ work orders, the material requirements for category ‘N’ work orders may be modified.)
Operation codes must be entered so that labor hours may be accumulated in the work order and posted to the general ledger when the work order is closed. However, the entry of labor hour estimates is optional. If the ‘N’ work order was entered as a modification of a standard finished good , the operation codes and labor hours required for the finished good will be in place after the bill of materials explosion takes place. These labor steps may be modified or added to.
The next phase in creating a category ‘N’ work order is to enter any required special purchases or subcontracts. These items are included in the work order so that they will be incorporated into the project’s estimated cost. If the work order is based on another bill of material, any subcontract in that bill will be included.
After all operations, materials, and subcontracts have been entered, it will be time to schedule the job. Manual schedules will need entries for each requirement within the operation to be scheduled. Forward scheduling will require scheduled start date; backward scheduling will require scheduled completion date.
Finally, the Work Order Entry task will display any material shortages. If there are no shortages, and the job is ready to be released to the floor, you may do that from the Release Work Order display. You will be able to flag the job for inclusion in the next batch of pick lists and work order travelers.
R = Recurring Work Orders are for a recurring cost such as shop supplies, supervisory labor, maintenance, etc. Most category ‘R’ work orders will have been created during the module installation, though it may be necessary to add or modify a category ‘R’ work order from time to time. Recurring work orders for capital projects, for example, will need to be opened and closed on an ongoing basis.
When a category ‘R’ work order is opened in the Work Order Entry task, usually only labor hour estimates will be made. If the stock is required for a recurring work order, it should be picked from uncommitted units and issued to the work order as described below.
NOTE: Each category of work order allows entry of comments that may be used for engineering specifications, packaging and shipping instructions, etc. Printing Work OrdersUse the Work Order Printing task to print a traveler copy of the work order that will show the required materials, labor, purchases, and comments.
Committing Material to Work OrdersThe materials required for category 'I' (Inventory) and 'N' (Non-stock) work orders are automatically committed when the work order is released. They can also be committed or adjusted manually using the Materials Commitment Entry task. Material is not committed for category 'R' (Recurring) work orders. When committed, the required inventory items are unavailable for other uses. It is very important that the materials section of all 'N' work orders be carefully managed. If any materials are added or changed after material commitment has taken place, the additions/changes must be made in both the Work Order Entry and Materials Commitment Entry tasks. Printing Pick ListsPick lists are printed by the Pick List Printing task, and the stock is picked. Creating Purchase OrdersIf the AddonSoftware Purchase Order Processing module is installed, a purchase order must be entered for any material that is being specially purchased for a work order, if it is not set up as an inventory item. The Create Purchase Requisitions task will create Purchase Requisitions which can be turned into POs. When the purchases are Non-Stock items, the work order number for which the items are being ordered displays on the detail line created in the Purchase Requisition or Purchase Order.
Items can also be set up as inventory items with the special order checkbox marked in Inventory Item Maintenance/Warehouse Master. These items will be automatically added to purchase requisitions created in Shop Floor control. This feature is useful if the work order is to be produced again in the future.
As an alternative to creating Purchase Requisitions, Non-Stock items may be entered manually in Purchase Order entry, and the work order number entered on the detail line.
Issuing Material to Work OrdersThe items that are successfully picked are issued to their respective work orders via the Materials Issues Entry task. Issues are verified against the Materials Issues Register. When the Materials Issues Register is updated, the Work-in-Process account is debited and the appropriate inventory accounts are credited.
Entering Labor HoursAs labor is applied to the work orders, employee time sheets are used to enter the labor hours and completed quantity. Production can also be entered to track yield throughout the job. Data entry takes place via the Time Sheet Entry task.
Timesheet entry is verified against the Time Sheet Register. When the Time Sheet Register is updated, the Work in Process account is debited and the appropriate shop labor accounts are credited. If the AddonSoftware Payroll module is in use, Time Sheet Entry may be used in place of the Payroll Daily Entry.
Recording Purchase Order ReceiptsIf the AddonSoftware Purchase Order Processing module is installed, the Purchase Order Receipt Entry task will record the receipt of any material that was specially purchased for a work order (to do this, enter the work order number in the WO field during Purchase Order Entry). When the receipt is posted during the Purchase Order Receipt Register update, the Work in Process account is debited and the Purchases account is credited. Making Necessary AdjustmentsOccasionally, labor transactions are posted to the wrong job or a significant price variance may occur in a purchase order receipt. The Cost Adjustment Entry task makes adjustments easy by allowing you to recall the transaction and make the change. The Cost Adjustment Register update makes all the necessary postings and corrections. Closing Work OrdersOnce a work order is complete and all labor, materials, and subcontract costs associated with it have been entered, the work order may be marked for closing with the Work Order Close Data Entry task. A work order partial close is also allowable if the number of units completed in the work order is different from the scheduled production quantity on the work order. The Work Order Close Data Entry should also be used to close any category ‘R’ work order that is to be permanently closed, such as a work order for a capital project.
Whenever a batch of work orders has been closed, print the Closed Work Order Detail Report. This report shows all detail information for each closed work order and is meant to be the file copy of the work order.
Print and verify the Closed Work Order Summary Register. When the verification is complete, run the update to the register. The update will credit the Work in Process account and debit the close to and variance accounts. How Work Order Scheduling WorksThe AddonSoftware Shop Floor Control module can help you to schedule your workflow. Each work order is scheduled when it is opened, using infinite scheduling techniques, either forward from the scheduled start date or backward from the scheduled completion date. With the infinite technique, it is assumed that there is an infinite number of hours available at each operation. Obviously, this is not true, and it is sometimes necessary to prioritize and reschedule certain events.
Many tasks will assist you in determining what requirements have and have not been scheduled for each operation. The intent of these tasks is to notify you if there are any scheduling problems, then assist you in the correction of these problems. Identifying What is on the ScheduleThe Dispatch Inquiry task can be used to display all jobs that are scheduled for a work center. It is useful for a shop foreman or any person involved in keeping the workflow moving. You can use it to determine where a scheduled job is currently at and from where it is coming. You can use this information to determine how quickly each job should appear at your work center.
You may display a weeks’ worth of work to see what is coming down the line. You can also include planned or quoted work orders to review their impact on your schedule.
The Dispatch Report task is similar to Dispatch Inquiry. You can use it daily to print a list of each scheduled job split out by work center. The current operation and feeding operation are both listed. Or print the entire work week to determine a whole weeks’ worth of work. Include planned and quoted work orders for a view of all potential upcoming jobs.
Checking for Scheduling ProblemsThe Load Balance Inquiry task graphically displays the amount of work scheduled compared to the hours available for each operation. Use it to visually inspect the load at each work center.
The Production Exception Report will print all jobs that are past due based on the date required assigned by the scheduler. Use it to spot jobs that are running late and that need to be rescheduled.
The Bottleneck Analysis Report allows you to enter a percentage of utilization and then reports any operation that is scheduled over that utilization. Use it to identify which scheduled jobs are creating each bottleneck. A Bottleneck is an operation that is scheduled for more labor hours than that resource has the capacity to complete. A resource that has demand that exceeds capacity is considered to be a bottleneck.
Resolving Scheduling ProblemsUse the Operation Code Maintenance task to reduce your queue time. Scheduling problems can be resolved and schedules recalculated. One way to ‘squeeze’ a schedule is to reduce the queue time planned for each work center. This will have the effect of shortening lead times and compressing the schedule into a shorter window of time. If the queue time for a work center is adjusted, you will probably wish to recalculate your schedules.
Use the Shop Floor Calendar Maintenance task to reallocate resources, a way of resolving scheduling issues involving your resources. If a certain work center is overloaded, you may wish to reallocate some employees to that work center. Doing this will reduce the hours available in one center and increase the hours available in another.
Another way to resolve a scheduling problem is to adjust operation requirements for alternate routings. If you have a work center where you have several machines that are capable of similar processes, you may resolve a scheduling problem by moving some of the work from the overloaded machine to an alternate machine. You can do this in the Work Order Entry task by accessing the Operation Requirements option. Simply move to the line defining the overloaded operation and change the operation code to the available operation.
You will not wish to reschedule certain jobs. If circumstances exist that require a specific schedule, you can freeze that schedule in the Work Order Entry task by selecting the Schedule Work Order option. Change the scheduling method to ‘M’ for manual schedule. Next review the schedule in the Operation Requirements option. Adjust any dates as necessary.
You can use the Batch WO Rescheduling task to recalculate the schedule of selected work orders based on current parameters. Use it to change schedules based on adjustments to the Shop Floor Calendar or queue times. Remember, work orders with a manual scheduling method that allows you to define the schedule by manipulating factors (not considered by the module) will not be rescheduled. Period End ProcessingThe primary tasks of the period end process are to verify the Work in Process General Ledger Accounts, close and reopen recurring work orders, and move the transaction detail information for all closed work orders to a transaction history file. Print the Work Order Header Report in work order sequence, choosing open work orders only and as of the period ending date. The reported total should tie to the total of all general ledger WIP accounts. Verifying the Work In Process AccountsPrint the Work Order Header Report in work order sequence, choosing open work orders only and as of the period ending date. The reported total should tie to the total of all general ledger WIP accounts. Closing the Recurring Work OrdersAfter all the labor, materials, and subcontract costs for the period have been entered and all completed category ‘I’ and ‘N’ work orders have been closed, the Close Recurring Work Orders task should be run. This task will close all recurring work orders that have had activity in this period (except those that may have been closed via Work Order Close Data Entry).
The Closed Recurring WO Detail Report is run to provide a file copy of the detail information for each recurring work order.
Print and verify the Closed Recurring WO Summary Register. When the verification is complete, run the update to the register.
Printing the Closed Work Order Variance ReportRun the Closed Work Order Variance Report to see the detailed variance account postings by work order number. This report is not essential to the closing process and may be run at any time during the period. Performing Work Order Period End ProcessingThe Period End Update moves the detail information from each closed work order (all categories) to the Work Order Transaction History file, leaving only the header information. It then reopens all the recurring work orders that were closed by the Close Recurring Work Orders task. Special Report ProcessingThe Shop Floor Control module reports that are not needed for regular daily or periodic processing should be run as needed. The reports listed below are on the Shop Floor Reports menu.
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