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Chapter 9: Additional Manufacturing Topics 9-1 CHAPTER 9: ADDITIONAL MANUFACTURING TOPICS Objectives The objectives are: Use Standard Task Codes Create Stop Codes Create and use Scrap Codes Define BOM Scrap and Routing Scrap Define Non-Productive Time Methods to reduce lead-time Using Multi-Level Manufacturing Using Business Notification List additional features Introduction This course contains additional manufacturing topics that are only used in some companies. The first lesson contains a description of the standard task codes feature, which can be used to display additional information on the printed routings on the production floor. Some companies need to report scrap and define planned non-productive operation time; other companies need to reduce lead time by scheduling parallel routings or operate in a multi-level production environment; others again, for example in the pharmaceutical business, need to set up serial and lot numbers to track goods from raw material to end customers. In response to differing needs, Microsoft Dynamics ® NAV 2009 provides the tools necessary to support these advanced supply chain planning topics. Additionally, this course explains the business notifications that can be used to send messages to other people in the supply chain. Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

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CHAPTER 9: ADDITIONAL MANUFACTURING TOPICS Objectives

The objectives are:

• Use Standard Task Codes • Create Stop Codes • Create and use Scrap Codes • Define BOM Scrap and Routing Scrap • Define Non-Productive Time • Methods to reduce lead-time • Using Multi-Level Manufacturing • Using Business Notification • List additional features

Introduction This course contains additional manufacturing topics that are only used in some companies. The first lesson contains a description of the standard task codes feature, which can be used to display additional information on the printed routings on the production floor. Some companies need to report scrap and define planned non-productive operation time; other companies need to reduce lead time by scheduling parallel routings or operate in a multi-level production environment; others again, for example in the pharmaceutical business, need to set up serial and lot numbers to track goods from raw material to end customers.

In response to differing needs, Microsoft Dynamics® NAV 2009 provides the tools necessary to support these advanced supply chain planning topics. Additionally, this course explains the business notifications that can be used to send messages to other people in the supply chain.

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Standard Task Codes Microsoft Dynamics NAV 2009 Manufacturing I described how to set up and maintain routings. Information such as tooling, quality measures, personnel, and comments can be defined for each operational step on the routing. Optionally, users can print this information on a routing sheet. To simplify entering this information on each routing operation, users can set up standard task codes. For each standard task code, provide a description for:

• Tooling • Quality measures • Personnel

As new routings are developed and built, the standard task code is assigned to each routing operation to reduce the amount of information entered.

Demonstration 1

The following demonstration shows you how to set up standard task codes. The standard task code in this example is used to provide information on an inspection routing operation step. Routing 1000 is modified to use the new code afterwards.

1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Setup > Standard Tasks. 3. Click New.

Enter a code and a short description for the standard task code. 4. In the Code column, type 01 and in the Description column, type

Inspection for the operation step that the additional information is connected to.

5. Click OK. 6. Go back to the Standard Tasks window, as given in step 2. 7. Select the task that you created and go to Related Information >

Std. Task > Description. Enter the text to be used on the routing sheet for that particular standard task code. This can be a procedure about how to carry out this inspection and some important notes to the production personnel.

8. Type This standard task is about inspection. 9. Click OK. 10. From the Standard Task Window, select the task you created and go

to Related Information > Std. Task > Tools. Enter a number and a description for each of the tools used in this operation step.

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11. In the No. column, type 0 and in the Description column, type No tools required.

12. Click OK. 13. Select the task you created and go to Related Information > Std.

Task > Personnel.Enter a number and a description for each of the personnel resources used in this operation step.

14. Enter the following information:

No. Description

1 Main Inspector

2 Spot Checker

15. Click OK. 16. Select the task you created and go to Related Information > Std.

Task > Quality Measures. 17. Click the drop-down arrow in the Qlty Measure Code header and

click New. 18. Enter the following information:

Code Description

A Wheels

B Frame

C Saddle/Accessories

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19. Click OK. 20. From the Standard Task Qlty Measures window, enter the following

information about the quality measures used in this inspection operation step:

Qlty. Measure Code

Description Min. Value

Max. Value

Mean Tolerance

A Wheels 2 2 0

B Frame 1 1 0

C Saddle/ Accessories

0 5 0

FIGURE 9.1 STANDARD TASK QUALITY MEASURES

This table shows an example of how quality measures can be entered in the system. Quality measures typically represent important measures on the product, such as the length. The measure must be placed between an upper and lower value with a specific mean tolerance. Otherwise the produced item is rejected in the quality inspection operation.

21. Close all open windows.

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Demonstration 2

The following demonstration shows you how to create a new version of a routing.

1. In the navigation pane, click the Routings button. 2. Double-click routing no. 1000 (Bicycle) to open it. 3. Click Versions. 4. Click New. 5. In the Version Code field, type 2. 6. In the Description field, type Special Bike. 7. In the Starting Date field, type 1/28/2012. 8. In the Type field, select Serial. 9. Go to the Lines FastTab and type the following parameters:

Operation No. Type No. Description

10 Machine Center 110 Mike Seamans

20 Machine Center 115 Calibrating Machine

30 Machine Center 440 Inspection

40 Work Center 600 Finishing Department

10. In operation 30 (Machine Center 440), go to the Standard Task Code header, click the drop-down box and select standard code 01.

11. Change the status to Certified and click OK.

You do not need to change routing versions to add Standard Task Codes. Add Codes to the base routing and use the Forms Designer (from the Classic client), to add a standard task code to a production order. This allows a standard task to be added quickly to a specific order rather than on all orders. In the Forms Designer, with the proper license, add the Standard Task Code field to the Released Production Routing Lines window.

Create a production order for an item using this routing and the routing version selected. The standard task code is used to create detailed information for the production order routing.

1. In the navigation pane, click the Released Production Orders button.

2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 13. 5. In the Due Date field, type 2/1/2012. 6. Click Refresh. 7. Accept all default settings and click OK.

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8. Add the Routing Version Code on the production order lines by using Choose Columns and adding the field.

9. Place your cursor in the header or on the production order line. 10. Click the Actions icon (next to the expand/collapse button), then go

to Line > Routing. 11. Highlight the routing operation that includes the Standard Task Code

(operation 30) and go to Related Information > Line. 12. For example, select Quality Measures to view the quality measures

copied from the standard task code. 13. Note the production order number. 14. Close all open windows.

NOTE: This information can be printed on a routing sheet for the main routing; however, a routing version cannot be printed.

Stop Codes Stop Codes apply to Machine Centers and Work Centers. They describe reasons for planned downtime, such as:

• Vacations • Scheduled maintenance • Unplanned machine failure • Lack of personnel

Use Stop Codes to enter and record periods where equipment is not being used. Enter Stop Codes in the Capacity and Output journals and then post them to Machine Center/Work Center ledgers. These ledger entries may be analyzed later to explain and help prevent unplanned downtime. The Capacity Journal displays the Stop Code field, which needs to be added to the Output Journal.

Demonstration 3

The following demonstration shows you how to enter standard, generic Stop Codes.

1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Administration > Setup >

Stop Codes.

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3. Click New. 4. Type the following information:

Code Description

DOWN Machine Down

MAINT Maintenance

INSPECT Inspection

5. Click OK.

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Scrap Codes Use scrap codes only with machine centers to describe reasons for production order scrap. Enter scrap codes in the output and capacity journals and post them to ledger entries. These machine center ledger entries may be analyzed later to explain and help prevent excessive and unplanned scrap.

Demonstration 4

The following demonstration shows you how to create new Scrap Codes.

1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Administration > Setup >

Scrap Codes. 3. Click New. 4. Type the following information:

Code Description

ALIGN Incorrect alignment

BAD Bad material

5. Click OK.

Demonstration 5

The following demonstration shows you how Scrap Codes are used. Enter output for the released production order created earlier and record scrap quantities and reasons for stoppage during the process.

1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Execution > Tasks > Output Journals. 3. Type 2/1/2012 as the posting date on the first line of the output

journal. 4. From the Prod. Order No. header, type the production order number

of the production order that you created in Demonstration 2. 5. Add the Scrap Code header to the view (by using Choose Columns

functionality). 6. Click Explode Routing. 7. For operation 30, select scrap code BAD and type a scrap quantity of

1. 8. Click Post and click Yes to post the journal lines.

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9. Click OK and close all open windows. The next step is to view the capacity ledger entries of machine center 440 from the production order.

10. In the navigation pane, click the Released Production Orders button.

11. Go to Manufacturing > Capacities > Lists > Machine Centers. 12. Double-click your production order number to open it. 13. Go to Related Information > Order > Entries > Capacity Ledger

Entries.Note that the scrap quantity of 1, is shown in operation 30.

14. Close all open windows.

BOM Scrap and Routing Scrap Scrap can be pre-defined for components on the production BOM and for parent items on the routing and is defined as a:

• Percentage on the BOM • Fixed amount or percentage on the Routing

All scrap identified on either the production BOM or routing results in an increase in the amount of components needed. Additionally, scrap percentage can be added on the item card. Microsoft Dynamics NAV 2009 uses all types of scrap when calculating requirements and costs.

Item Card Scrap %

Enter items with scrap (when scrap comes from the item itself).

Production BOM Scrap %

Enter scrap when it is a result of this component in this production BOM.

Routing Scrap %

The fixed scrap quantity is the quantity in the product structure to increase gross requirements to account for anticipated loss within the manufacture of a particular product. The program automatically transfers the fixed scrap quantity from the Fixed Scrap Quantity field on the machine center card. Edit this value for each operation if there is a difference between the fixed scrap quantity at this machine center and this routing line.

Fixed Scrap Quantity

The fixed scrap quantity is the quantity in the product structure to increase gross requirements to account for anticipated loss within the manufacture of a particular product. The program automatically transfers the fixed scrap quantity from the Fixed Scrap Quantity field on the machine center card. Edit this value for each operation if there is a difference between the fixed scrap quantity at this machine center and this routing line.

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When scrap percent is entered in a routing step, by default, the scrap factor is placed on all components used in an operation. To place the scrap factor on a specific component only:

• Differentiate between that component's operation from the other components by setting different routing link codes in the production BOM and routing lines.

BOM scrap is calculated as "input to work on." Routing scrap is added to input to work on, starting with the last operation and working backwards.

For example:

1. If BOM scrap is 10 percent, then the component quantity for each is increased by 10 percent.

2. Routing scrap is calculated, starting with the last operation and multiplying the input to work on (BOM scrap) by the routing scrap percent.

3. The fixed scrap is added to the total scrap. 4. The process is repeated through all operations. 5. The end result is the total planned amount of component needed to

build the parent item.

The following example shows BOM Scrap and Routing Scrap.

• BOM scrap = 10 percent • Scrap on one Routing operation is: • Fixed = 10 • Percentage = 25 • The Quantity Per (before scrap calculations) = 1

To build ten of the parent, the planned quantity needed for the component is calculated as follows:

• BOM scrap = 10 x (1.10) = 11 (This is the input to work on)

• Routing scrap percent = (11 x 1.25) = 13.75 • Routing fixed scrap = 13.75 + 10 = 23.75

To build ten parent items, start with 23.75 (or 24 rounded) components.

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Demonstration 6

In this demonstration the following steps are carried out:

• Add scrap on a BOM for a selected item and create a production order using that BOM.

• View the production order components to determine the effect of production BOM scrap.

• Add scrap on that item's routing and create a new production order. • View the production order components to determine the effect of

routing scrap.

Perform the following steps to add scrap to components on the production BOM for the item selected.

Follow these steps to copy a production BOM and add scrap to some components:

1. From the navigation pane, click on Production BOMs button. 2. Click New. 3. Use the following information for these fields:

Field Name Data

No. 1001

Description Special Bike

Unit of Measure Code PCS

4. Click on a production BOM line (those under Type, No., Description, and so on).

5. Go to Actions > Functions > Copy BOM. 6. From the list, select the production BOM 1000 (Bicycle), and click

OK. All of the components are copied into the new production BOM. Changes can be made by adding or deleting components or changing the quantities.

7. For items 1100 (front wheel) and 1200 (back wheel), go to the Scrap % header and type a scrap quantity of 50%.

8. In the Status field, change the status to Certified. 9. Click OK.

The next step is to change the item cards of the two components to ensure that picking is done in discrete units.

10. In the navigation pane, click the Items button. 11. Double-click item 1100 (Front Wheel) to open it.

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12. In the Replenishment FastTab, go to the Rounding Precision field and change the value to 1.

13. Click OK. 14. Double-click item 1200 (Back Wheel) to open it. 15. In the Replenishment FastTab, go to the Rounding Precision field

and change the value to 1. 16. Click OK.

Next, create a released production order for the item using the production BOM version you created.

1. In the navigation pane, click the Released Production Orders button.

2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 50. 5. In the Due Date field, type 2/15/2012. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Add the Production BOM Version Code on the production order

lines by using Choose Columns and adding the field. 9. Put your cursor in the header or on the production order line. 10. Click the Actions icon (next to the expand/collapse button), then go

to Line > Components. Note the quantity required for the front and back wheels. If the production of the subassemblies is required for this production order, then the gross requirement is 75 rather than 50.

11. Close the Prod. Order Components window. Next, modify a version of the routing for the item and add scrap on the routing for the item.

12. In the navigation pane, click the Routings button. 13. Double-click version 1000 (Bicycle) to open it. 14. Click Versions. 15. Double-click version 2 (Special Bike) to open it. 16. Change the status to Under Development. 17. Add a scrap factor percentage of 10 on operation 10. 18. Change the status back to Certified. 19. Click OK. 20. Close all open windows.

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The next step is to create a production order for the item, using both the production BOM and routing versions you just modified to see the effects of the scrap.

1. In the navigation pane, click the Released Production Orders button.

2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 50. 5. In the Due Date field, type 2/20/2012. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Add the Production BOM Version Code on the production order

lines by using Choose Columns and adding the field. 9. Put your cursor in the header or on the production order line. 10. Click the Actions icon (next to the expand/collapse button), then go

to Line > Components. Note that the quantity has increased to take into account the scrap factor of 10.

11. Close the Prod. Order Components window. 12. Close all open windows.

Before proceeding, go to routing version 2 (Special Bike) of routing 1000 (Bicycle) and remove the scrap factor in operation 10.

13. In the navigation pane, click the Routings button. 14. Double-click version 1000 (Bicycle) to open it. 15. Click Versions. 16. Double-click version 2 (Special Bike) to open it. 17. Change the status to Under Development. 18. Remove the scrap factor percentage of 10 on operation 10. 19. Change the status back to Certified. 20. Click OK. 21. Close all open windows.

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Non-Productive Time This lesson discusses non-productive time and how it affects product order scheduling.

FIGURE 9.2 THE NON-PRODUCTIVE ELEMENTS OF LEAD TIME

There are three elements of non-productive time:

• Wait Time - The amount of time a completed lot or batch for an order at a machine or work center must wait before it is transported to the next machine or work center. This time is often combined with move time.

• Move Time - The amount of time a lot or batch for an order spends in transit from a machine or work center to the next machine or work center in the routing.

• Queue Time - The amount of time a lot or batch for an order spends waiting for the start of setup and processing at a particular machine or work center. (Queue time is not included in the starting or ending time for a routing operation. It is the amount of time between the end of one operation and the start of the next operation.) Increases in queue time(s) result in direct increases to manufacturing lead time and work-in-process inventories.

The three non-productive time elements introduce a lower level of scheduling at the production floor. MRP can be seen as high level scheduling of all sales and production orders in the shop. Scheduling on the lower level refers to scheduling of the individual production orders. Since this form of scheduling does not have "knowledge" of total shop load, the use of these non-productive time elements causes the system to simulate the real shop's complexity more efficiently.

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Move Time

The non-productive time element, Move time, is used when the schedule needs to take transportation time into account.

Move time is used when:

• Facilities are not physically close to one another. • Material handling equipment or personnel is constrained.

An example of Move Time is when one facility feeds a second facility with material and there is no material handling equipment between the two facilities. Periodically, a clerk comes to the first facility and transports the orders to the second facility. In this example, move time will be added to account for the time used to move the materials between the facilities.

Wait Time

Wait time is defined as the time a lot remains at a work center after an operation is completed until it is moved to the next operation. A common use for Wait time is an oven or painting process that connects two facilities. Rather than creating the drying time after the painting process as an operation, Wait time is added between the facilities. Wait time is often expressed as a part of Move time.

Queue Time

The final non-productive time element is Queue time. This is the time a lot waits at a work center before setup or work is performed. Queue time is one element in the total manufacturing lead time; therefore, it can be added to the routing. It can also be used where work accumulates in front of a facility, rather than behind it. This may indicate that the production line is not in balance or there are bottlenecks, which is common in many companies. A released production order may not find the next facility free when it arrives on station (also common in many companies).

If queue time is not used, the system generated schedule for a production order might be too optimistic. This is because the system schedules every order like it was the only one in the factory. The complexity of the orders helps to rapidly accumulate the time it takes to produce the orders on the production floor. Therefore, Queue time can be used to add time to the processes to get closer to the real production time.

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Demonstration 7

The following demonstration shows you the impact of queue time on the scheduling of the operation steps and on the total manufacturing lead time for the product.

1. In the navigation pane, click the Released Production Orders button.

2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 6. 5. In the Due Date field, type 1/28/2010. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Put your cursor in the header or on the production order line. 9. Click the Actions icon (next to the expand/collapse button), then go

to Line > Routing. 10. Note the work center and machine center numbers as well as starting

and ending dates and times. Each successive operation starts when the previous operation finishes. If significant Queue Time is added to an operation, there must be a break in the schedule between the operation with the queue time and its preceding or upstream operation.

11. Note the production order number. 12. Close all open windows.

The next step is to change the Queue time on a work center or machine center.

13. In the navigation pane, click the Departments button. 14. Go to Manufacturing > Capacities > Lists > Machine Centers. 15. Double-click machine center 130 to open it. 16. In the Scheduling FastTab, go to the Queue Time field and type 2. 17. In the Queue Time Unit of Meas. Code field, select DAYS. 18. Click OK. 19. Open the production order that you just created. 20. Click Replan. 21. In the Plan field, select All Levels and click OK.

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22. Click the Actions icon (next to the expand/collapse button), then go to Line > Routing. Note that the start and end dates for work center 100 has moved to adjust for the queue time.

23. Close all open windows.

Methods to Reduce Lead – Time This lesson examines different methods available to reduce manufacturing lead-time. These methods are often used when users are producing rush orders or trying to optimize how the system models the manufacturing environment on the shop floor.

Parallel Scheduling

A parallel operation reduces total production order lead-time or throughput time. For some industries, it increases efficiency and can reduce the complexity in the BOM structure.

NOTE: The definition of parallel scheduling in this program is different from the APICS definition that says: "Parallel Scheduling is the use of two or more machines or job centers to perform identical operations on a lot of material. Duplicate tooling and setup are required." In Microsoft Dynamics NAV 2009, the definition of a parallel schedule involves doing two or more different operations at the same time on the production order.

Demonstration 8

The following demonstration shows you how to create the following:

• A new version of a selected routing, including a parallel operation. This new version is identical to the first version, which is serial.

• Two production orders, one for the routing version with parallel operations and one for the routing version with serial operations.

• The detailed schedules for the two production orders are similar to viewing the effect of parallel scheduling.

The first step is to modify the bicycle routing to its original state and then create a parallel routing version.

1. From the Role Center, click Routings. 2. Double-click routing 1000 (Bicycle). 3. Change the status to Under Development. 4. Delete operation 115.

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5. If prompted, click Yes to rename the record. 6. Select operation 40, right-click and click New Line. 7. Type the following information:

Operation Type No. Description Setup Time Run Time Concurrent Capacity

30 Machine Center 130 Final Assembly 10 20 1

8. Change the status back to Certified. 9. Click OK. 10. Double-click routing 1000 (Bicycle). 11. Click Versions. 12. Click New. 13. In the Version Code field, type 3, or accept the default number if a

no. series has been set up. 14. In the Description field, type Parallel version. 15. In the Type field, select Parallel. 16. In the Starting Date field, type 1/28/2011 (January 28, 2011). 17. Go to Actions > Functions > Copy Routing Header. Select Yes to

copy the information. Change the routing by entering a new operation.

18. Select operation 10, right-click, and select New Line. 19. Type the following information:

Operation 5

Work Center 100

Description Start

20. Add the Next Operation No. header, move it beside the No. header, and type the following:

Operation No. Next Operation No.

5 10|20

10 30

20 30

30 40

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21. The 10|20 relationship designates the parallel operations and then the two downstream operations with the same Next Operation numbers that complete the setup.

FIGURE 9.3 ROUTING VERSION FOR BICYCLE

22. Change the status from New to Certified. 23. Click OK. 24. Close all open windows.

Next, you create two production orders with different routings.

1. In the navigation pane, click the Firm Planned Production Orders button.

2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 21. 5. In the Due Date field, type 12/31/2010. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Note the production order number. 9. Close the order. 10. Create another production order using the previous steps. However,

change the due date to 1/28/2011. Add the Routing Version Code on the production order lines by using Choose Columns and adding the field.

11. Go to the Routing Version Code header and select 3 (or the version that you have just created).

12. Click Refresh. 13. Check that version 3 is in the field.

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14. Accept all default settings and click OK. 15. Open your first production order (with the standard routing). 16. Put your cursor in the header or on the production order line. 17. Click the Actions icon (next to the expand/collapse button), then go

to Line > Routing. The Production Order Routing window shows the results of serial scheduling. Chain assembly can begin only after wheel assembly is finished. Go to the second production order.

18. Put your cursor in the header or on the production order line. 19. Click the Actions icon (next to the expand/collapse button), then go

to Line > Routing. This window shows the results of parallel scheduling. The parallel processing of Operation 10 and Operation 20 end on the same day and time. This is valuable time saved when working on a rush order.

Send-Ahead Quantity

Another feature in routings that can be used to reduce the manufacturing lead-time is send-ahead quantity. Send-ahead quantities are defined for each routing operation, specifying a portion of the lot or batch sent on to a subsequent operation.

The next operation is started when the send-ahead quantity is produced.

For example, if ten parts are determined as a send-ahead quantity, the next operation can begin when these ten parts are finished in the actual operation.

Start of the next operation = 10 minutes setup time + (10 pieces * 5 minutes run time) + 5 minutes wait time.

As a result, the next operation can be started 65 minutes after the actual operation starts.

NOTE: Use the following formula to calculate the send-ahead quantity: Start of the next operation = setup time + send ahead quantity * run time + wait time + move time + queue time (at next operation).

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Concurrent Capacity

Concurrent capacity can be set up on both the machine center and the routing:

• Concurrent capacity on the machine center defines how much available capacity the system must concurrently plan for one operation at a machine center. The user enters a number of machines or persons that work concurrently at this machine center on the machine center card. This factor reduces the production lead-time of the order. The user must not enter a value that is greater than the Capacity field on the machine center card. Increasing the concurrent capacity specified on the work center or machine center card increases the amount of time available.

• Concurrent capacity on a routing indicates how many machine center resources work on an operation at the same time. Increasing concurrent capacity decreases the manufacturing lead-time but does not affect the amount of time available. For example, processing requires a run time of four hours. By using two machines, the run time can be reduced to two hours.

Multi-Level Manufacturing Multi-level manufacturing enables a company to manage all production order levels of a manufactured item. This means that production orders are created that consist of a parent item and one or more required subassemblies with reservation links in between. All the production orders that are part of the same end item order are shown in the same window, the released production order Window. This provides the Production Planner with a good overview of related production orders; however, this kind of scheduling creates a lot of restrictions because of the reservation links between related orders. Therefore, this must only be used in production environments where there is a need to have a visible relationship between production orders. Otherwise, it is the role of the MRP engine to make sure all requirements for components are fulfilled.

Multi-level production orders are useful in a make-to-order (MTO) environment, in which manufactured items are not stocked, but produced specifically for a customer sales order.

Multi-level production encourages mixed mode manufacturing. This is an attempt to manufacture the same mix of products (make-to-stock (MTS), make-to-order, and so on) on a daily basis. Mixed mode manufacturing tends to promote a steady consumption of materials and resources. The goal of mixed mode manufacturing is to build all product lines according to daily demand.

Consumption Journal for Multi-Level Manufacturing

In a multi-level manufacturing environment, the Consumption Journal is used the same way it is normally used to record component usage. The Calc. Consumption Function brings in all of the required components from subassembly production orders. Ensure that you filter on the parent production order number.

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When you record production for a multi-level production order using the output journal, enter all production lines with the following procedure:

1. Enter the first line of a production order 2. Explode the routing and enter the processing time and completed

quantities. 3. Enter the second line of the same production order, explode that line,

and enter the processing time and completed quantities. 4. Enter the remaining lines on the production order in the same

manner.

Another option is letting the program explode all of the lines of the production order and entering processing time and quantities for each operation line.

To illustrate, run the Output Journal as follows.

1. In the navigation pane, click the Departments button. 2. Go to Departments > Manufacturing > Execution > Tasks >

Output Journals. 3. Select a released production order. 4. Select Explode Routing.

FIGURE 9.4 OUTPUT JOURNAL

Each line of the make-to-order released production order with a routing is exploded in the journal.

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Business Notification The manufacturing area uses Business Notification to improve the control and effectiveness of purchasing and production. Business Notification generates e-mail messages when conditions in Microsoft Dynamics NAV 2009 are met. Messages are sent to:

• Employees • Suppliers • Partners • Customers

Notifications can be set up:

• For production problems, such as a delay in completion or a delay in starting a production order.

• To inform buyers when productions BOMs are updated or closed.

Once business notification setup is complete, manufacturing uses the following procedure to prepare and send notifications.

Business Notification Worksheets can only be accessed in the Classic client.

1. Follow the path to Manufacturing > Execution > Business Notification Worksheets.

2. Select a code in the Notification Code field by either using the AssistButton or typing in the code.

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3. Click the Line button and then Suggest Notification Lines from the Notification Worksheet.

FIGURE 9.5 BUSINESS NOTIFICATION WORKSHEET

4. Enter filters, if needed, based on the setup for the code chosen in the

Notification Code field. 5. Click OK, after the filters are entered. 6. An information window appears stating how many lines are found

for this notification.

FIGURE 9.6 BUSINESS NOTIFICATION MESSAGE

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7. Accept the message. 8. If deleting a row, you receive an information message indicating that

the lines are created and they are going to be deleted by continuing on.

9. To view the lines, click the Line button and then Notification Lines. From the Notification Line window, delete lines using the Functions button. It is also possible to view the document from the Show button.

10. Review the lines, and then press Esc and go to the notification worksheet.

11. Select Functions > Send To Business Notification to send the notifications.

12. Select to either send only new notification lines or send all notification lines and click OK in the message box that appears.

Families In addition to production orders for specific items or for groups of make-to-order and assemble-to-order (ATO) items on a sales order, production orders can be generated for a family of items.

• A production family is a group of individual items whose relationship is based on the similarity of their manufacturing processes.

One positive effect can be optimizing the company's material consumption as follows.

• A company uses a sheet of metal in the production of large circles, which are in demand.

• Every time the large circles are stamped out, there is a lot of scrap. Some of the scrap is used to produce small squares, which are not used as often.

• Therefore, every time large circles are produced, small squares are produced at the same time, and the production order is for both large circles and small squares.

All items for a family are included on one production order. An example of a family production order is the manufacture of similar parts from the same material, such as metal parts cut from a metal sheet.

The families are located in Departments > Manufacturing > Product Design > Families.

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The process, set up a family for hubs, is illustrated in the following figure. Designate a routing number and each component of the family is listed individually.

FIGURE 9.7 HUB FAMILY

A production order can be created using family as the source. In this case, the production order must be generated manually.

Demonstration 9

The following demonstration shows you how to create a family production order for the hub family.

The first step is to create a hub family.

1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Product Design > Lists > Families. 3. Click New. 4. In the No. field, type 101009. 5. In the Description field, type HUB Family. 6. In the Lines FastTab, type the following information:

Item No. Description Unit of Measure Quantity

1150 Front Hub PCS 1

1250 Back Hub PCS 1

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7. Click OK. The next step is to create a production order.

8. In the navigation pane, click the Firm Planned Production Orders button.

9. Click New. 10. In the Source Type field, select Family. 11. In Source No. field, select 101009 (HUB Family). 12. In the Quantity field, type 10 13. In the Due Date field, type 1/28/2010. 14. Click Refresh. 15. Accept all default settings and click OK.

FIGURE 9.8 PRODUCTION ORDER FOR HUB FAMILY

Each item included in the family is listed when the production order is scheduled.

16. Close the production order.

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Summary This course examines a range of additional planning topics that can be used in more advanced production situations; for example, assigning standard task codes, defining scrap, and non-productive time, as well as reducing manufacturing lead times. This shows the flexibility and adaptability of Microsoft Dynamics NAV 2009 Manufacturing that can be used to model all types of production environments for small and mid-size manufacturers.

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Lab 9.1 - Additional Manufacturing Topics Scenario

As the Production Planner and super user at Cronus, you are assigned to set up the following additional manufacturing topics in the system.

Lab 9.1: Create Standard Task • Create a standard tasks dealing with maintenance.

Step by Step 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Setup > Standard Tasks.

Enter a code and a short description for the standard task code.

3. In the Code column, type 02 and in the Description column, type Maintenance for the operation step that the additional information is connected to.

4. Click OK. 5. Go back to the Standard Tasks window, as shown in step 2. 6. Select the task you have created and go to Related Information >

Std. Task > Description. Enter the text to be used on the routing sheet for that particular standard task code. This can be a procedure about how to carry out this inspection and some important notes to the production personnel.

7. Type Normal maintenance. 8. Click OK. 9. From the Standard Task Window, select the task you created and go

to Related Information > Std. Task > Tools. Enter a number and a description for each of the tools used in this operation step.

10. In the No., column, type 0 and in the Description column, type No tools required.

11. Click OK.

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12. Select the task you created and go to Related Information > Std. Task > Personnel.Enter a number and a description for each of the personnel resources used in this operation step.

13. Enter the following information:

No. Description 1 Cleaner

14. Click OK. 15. Select the task you created and go to Related Information > Std.

Task > Quality Measures. 16. Click the drop-down arrow in the Qlty Measure Code header and

click New. 17. Enter the following information:

Code Description

D Hub

18. Click OK. 19. From the Standard Task Qlty Measures window, enter the following

information about the quality measures used in this inspection operation step:

Qlty. Measure Code

Description Min. Value Max. Value

Mean Tolerance

D Wheels 2 2 0

20. Close all open windows.

Lab 9.2: Scrap Code

During wheel assembly, there is a risk of ruining the front and back wheels by careless adjustments to the mounting.

• Create a scrap code to reflect operator error. • Create a machine center for hub (because scrap cannot be posted to

work centers) and add it to the routing for the Bicycle, item 1000. • Create a production order for 30 bicycles. • While posting output, scrap three hubs.

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Step by Step

The first step is to create a scrap code.

1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Administration > Setup >

Scrap Codes. 3. Click New. 4. Type the following information:

Code Description

OPER Operator error

5. Click OK.

The next step is to create a machine center for hub (because scrap cannot be posted to work centers) and add it to the routing for the Bicycle, item 1000.

1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Capacities > Lists > Machine Centers. 3. Click New. 4. Select the General FastTab. 5. In the No., field, type HUB. 6. In Name field, type HUB. 7. In the Work Center No. field, select 100. 8. Go to the Posting FastTab. 9. In the Direct Unit Cost field, type 1.00. 10. In the Flushing Method field, select MANUAL. 11. In the Gen. Prod. Posting Group field, select MANUFACT. 12. Go to the Scheduling FastTab. 13. In the Capacity field, type 1. 14. In the Efficiency field, type 100. 15. In the Queue Time field, type 0. 16. Click OK. 17. In the navigation pane, click the Routings button. 18. Double-click routing no. 1000 (Bicycle) to open it.

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19. Change the status to Under Development. 20. Go to the Lines FastTab and change operation 10 with the following

parameters:

Operation No. Type No. Description

10 Machine Center HUB HUB

21. Change the status to Certified. 22. Click OK.

The next step is to create a production order for 30 bicycles.

1. In the navigation pane, click the Released Production Orders button.

2. Click New. 3. In Source No. field, select 1000 (Bicycle). 4. In the Quantity field, type 30. 5. In the Due Date field, type 1/28/2010. 6. Click Refresh. 7. Accept all default settings and click OK. 8. Note the production order number. 9. Close the production order.

The final step is to post in the output journal three scrapped hubs due to operator error.

1. In the navigation pane, click the Departments button. 2. Go to Departments > Manufacturing > Execution > Tasks >

Output Journals. 3. Delete all existing lines. 4. Type the number of the production order you have just created. 5. Click Explode Routing. 6. Select Operation 10. 7. In the Scrap Code field, select OPER. 8. In the Scrap Quantity field, type 3. 9. Click Post and click Yes. 10. Close all open windows.

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Lab 9.3: Scrap in Production BOM

Wheel assembly is so poor at Cronus that they anticipate 10 percent scrap of item 1100, Front Wheel and item 1200, Back Wheel.

• Set this up in the production BOM 1000.

Step by Step

1. From the navigation pane, click the Production BOMs button. 2. Double-click Production BOM 1000 to open it. 3. Change the status to Under Development. 4. For items 1100 (front wheel) and 1200 (back wheel), go to the Scrap

% header and type a scrap quantity of 10%. 5. In the Status field, change the status to Certified. 6. Click OK. 7. Close all open windows.

Note that there is no need to change the rounding precision of these two items, as it has already been performed in Demonstration 6.

Lab 9.4: Send Ahead Quantity

It is determined that the first three operations in the assembly of item 1000 (Bicycle), can send output from a given operation to the next operation as soon as the individual item is finished.

• Modify the routing to reflect this.

Step by Step

1. In the navigation pane, click the Routings button. 2. Double-click routing no. 1000 (Bicycle) to open it. 3. Change the status to Under Development. 4. For operations 10, 20 and 30, go to the Send-Ahead Quantity field

and type 1. Since operation 40 (Control) does not deal with material consumption, the Send-Ahead Quantity field for this operation is left blank.

5. Change the status back to Certified. 6. Click OK. 7. Close all open windows.

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Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter

1.

2.

3.

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