CHAPTER 3: PRODUCTION BILL OF MATERIALS

Transcription

Chapter 3: Production Bill of MaterialsCHAPTER 3: PRODUCTION BILL OF MATERIALSObjectivesThe objectives are: Production Bill of Materials (BOM) Production BOM Advanced Features Production BOM ReportsIntroductionThis chapter introduces the basic concepts regarding Bill of Materials (BOM)and its significance in the production process.Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement3-1

Manufacturing I in Microsoft Dynamics NAV 2009Manufacturing Product DesignMicrosoft Dynamics NAV 2009 Manufacturing I helps manufacturers controlthe manufacturing environment by providing the following functionality: Production Bill of Materials (BOM) Routings InventoryAnother way to describe the production process is to say that a person can userecipes to make things: the Production BOM is the list of ingredients, the routingtells the person what to do with the ingredients to obtain a finished product, andthe finished product is stored and sold as inventory.The manual also shows that production orders keep a queue of what users plan tomake, as well as what they will work on next. Additionally, the planningfunctions tell users what to make or buy and when they need to make or buythose items.In Microsoft Dynamics NAV 2009 Manufacturing I, the Product Design menuhelps users understand the creation of a manufactured item in the followingways: Defining a finished good and its components. Putting the items together into a Production BOM. Creating the steps involved in the routing.Production Bill of MaterialsA BOM is a list of all components and subassemblies needed to make a finalproduct or finished good. The list contains the description, the quantity, and unitof measure.3-2Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement

Chapteer 3: Prodduction Bill of MaterialsThe end- reesult of a Prodduction BOMM can be one ofo the following: Subassemblly (used in another item) Finished good (an item reeady for sale))FIGURE 3.1 PRODUCTTION BOMAs shown ini the examplle , a bicycle isi made of maany components andsubassembllies (frame, tiires, chain asssembly, and sos on); these area the bicycle'sbill of mateerials. Thus, to manufacturre or assemblee one bicycle, you need onneframe, two wheels, 72 sppokes, and soo on.The differeent levels withhin the BOM illustrate the parent-compoonent relationnship,otherwise knownkas a multi-levelmBOOM. This meanns that every componentoccupies a certain level withinwthe hieerarchy. Leveels define the parts that maake upthe item thaat is being prooduced. This is known as a level code. ThereTare amaximum ofo 50 levels inn Microsoft DynamicsDNAAV 2009.Note that a level 0 denottes a finished product (insoofar as the maanufacturer issconcerned).In the illusttration, Cronuus Internationnal assembles bicycles as oneo of its prodducts.This is showwn by the levvel 0 (finishedd good) designnation of the bicycle. Howwever,if Cronus Innternational ordersobicyclee tires from annother manuffacturer, then thesewill be connsidered finishhed goods or levell0 by thaat manufacturrer (but not byyCronus Inteernational).Low level codescwill be covered furthher in this chaapter.It is possiblle for an itemm to be both a subassembly and a finisheed good, forexample, iff a part is sommetimes sold asa a spare part of another ittem. The itemmslisted on thhe production BOM are commponents.Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement3-3

Manufacturing I in Microsoft Dynamics NAV 2009The production BOM is used when production orders are created and is used bythe Planning Worksheet to show what needs to be made or purchased.Once the production order is certified, changes to the components are often madeby creating a new version of the production BOM rather than changing theoriginal production BOM.Production BOM HeaderStart by looking at the fields in a production BOM, and then create one. In thenavigation pane, click Production BOMs New. To create a production BOM,complete the following fields in the header:3-4FieldCommentsNo.This field identifies the BOM. It must be unique and have amaximum of 20 characters. The number field can be set todefault, using No. Series in the manufacturing set up, or canbe manually created.In a company where each production BOM is used on onlyone item (a 1:1 relationship), the production BOM number isoften set up to be the same number as the item it is connectedto.DescriptionThis field contains the BOM description so that its particularuse is easily recognized.Unit ofMeasureThis field is used as a basis for recalculation factors in theBOM line item. The unit of measure used on a productionBOM must also be set up in the Item Units of Measure table(from the Item card) before a production order can becreated. This topic is examined later in the chapter.Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement

Chapter 3: Production Bill of MaterialsFieldCommentsStatusThis field indicates the status of a BOM. The valid statusesare: New Certified Under Development ClosedNewThe status is automatically set to New when creating a newBOM and it is editable.CertifiedThe program allows a BOM with the status of Certified to beused for production planning and orders. A Certified BOM isnot editable and an error message displays if a user attemptsto use a non-Certified BOM.Under DevelopmentThis status indicates that a Certified BOM is undergoingedits or changes. After the edits or changes have beencompleted, the status must be changed back to Certified.This is not used in Cost Rollup for the item. (Refer to theManufacturing Costing training course for more informationon cost roll up.) Cost is not calculated with this status.ClosedThis status indicates that the BOM is no longer used.(Similar to the Block option used elsewhere in MicrosoftDynamics NAV 2009.) This is not used in Cost Rollup forthe item.SearchNameThis field can be used to search for a BOM when its numberhas been misplaced. It defaults from the description and canbe up to a maximum of 30 characters. This field can beedited to create a more pneumonic search name.Version Nos.This field shows the version number series applicable to theProduction BOM. You can choose a number series from theNo. Series table or leave it blank.Last DateModifiedThis field tracks the last date the BOM was edited orchanged.Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement3-5

Manufacturing I in Microsoft Dynamics NAV 2009Production BOM LinesThe production BOM lines show the components. Components can be items orproduction BOMs, usually called Phantom BOMs. Fill in the following fields:FieldCommentsTypeUse the drop down arrow to select from the followingoptions: Item Production BOM BlankItemThis option lets users select an item from theinventory item file in the production BOM. If the itemis a produced item and has a production BOM, thecomponents are automatically considered when theBOM is exploded.Production BOMThis option utilizes a phantom BOM in the line.BlankThis option is used to add a comment after aproduction BOM line. Comments do not carrythrough to production orders.3-6No.Choose an Item No. or production BOM No. to use onthis line.Quantity perThis usually indicates the quantity of the componentrequired for the production of one production BOMitem. If using a calculation formula, the amount in thefield is multiplied by calculation specifications tocompute the quantity.CalculationFormulaThis field is used to determine how the Quantity perfield must be calculated. Select one of the followingoptions: Blank (the quantity is not calculated) Length (Quantity Length * Quantity per) Length * Width (Quantity Length * With *Quantity per) Length*With*Depth (Quantity Length * With *Depth * Quantity per) Weight (Quantity Wight*Quantity per)Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement

Chapter 3: Production Bill of MaterialsFieldCommentsUnit of MeasureCodeUse the drop down arrow to select the unit of measureused by this production BOM line. It defaults from theitem or production BOM card. You may use aconsumption unit of measure by entering newinformation in the Item Units of Measure table.Scrap %Enter the percentage of scrap expected for thiscomponent when it is being used in this productionBOM. Scrap on the production BOM line increasesthe required amount of the component item selected.For example, if the scrap percent is 20 (for 20%), theQuantity per is 1, and the amount of the parent part is10, then (10 X (1 .20) 12 components arerequired. There are other types of scrap calculationthat can be entered elsewhere in Microsoft DynamicsNAV 2009. The types are discussed later.Routing Link CodeThese codes are used to relate material to anoperational step. They are discussed in detail inanother section. A BOM cannot be Certified usingrouting link codes unless the codes have beenassigned to the operational steps on the routing.Position/Position 2/Position 3In these fields, you can define different inventoryplacements that refer to ancillary materials, such as aworking drawing.Production LeadTimeEnter the time required to prepare the item on the linefor production. Use D for Days, Y for Years, and soon.During replenishments planning, the value in this fieldoffsets the due date of the component on that line inthe production BOM. The program makes thefollowing calculation:Component Due Date (Finished Good StartingDate) - (Component Production Lead Time).Starting Date andEnding DateThese can be specified for each line item in the BOMto show the valid dates for the component. Thesefields are used in execution of the batch processesExchange Production BOM item and Delete ExpiredComponents.CommentsComments can be entered for the entire productionBOM, as well as for its individual components.Create a Production BOMAs previously mentioned, a production BOM is created to determine thematerials required to manufacture or assemble a specific item.Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement3-7

Manufacturing I in Microsoft Dynamics NAV 2009Demonstration 1Follow these steps to create a production BOM:1. In the navigation pane, click the Production BOMs button.2. Click New.3. Use the following information for these fields:Field NameDataNo.1003DescriptionBasic BikeUnit of Measure CodePCSThe unit of measure on the production BOM has to be listed in the item Units ofMeasure table for any item it is used with.4. Move to the production BOM lines, and use the followinginformation:TypeNo.DescriptionQuantity perUnit of Measure CodeItem1100Front Wheel1PCSItem1200Back Wheel1PCSItem1300Chain te that the Description and Unit of Measure Code fields are automaticallypopulated when the item number is entered.5. In the Status field, select Certified.6. Click OK.Copy BOMThe creation of a new BOM can be streamlined using the Copy BOM function.Once the components have been copied to the new BOM, users can makechanges or augmentations.3-8Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement

Chapter 3: Production Bill of MaterialsDemonstration 2Create a new production BOM that is similar to the first one by following thesesteps:Follow these steps to create a production BOM:1. In the navigation pane, click the Production BOMs button.2. Click New.3. Use the following information for these fields:Field NameDataNo.1004DescriptionBasic 2 BikeUnit of Measure CodePCS4. 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, choose the production BOM 1000 (Bicycle), and clickOK.7. All of the components are copied into the new production BOM.Changes can be made by adding or deleting components or changingthe quantities.8. Check that the Status field is New.9. Click OK.NOTE: While maintaining a production BOM or production BOM version, theStatus field must be set to New (the starting default) or Under Development. Fora production BOM to be available for use in production orders, MRP, and itemcost calculation, the status must be Certified.Changing or Correcting Production BOM linesIf a production BOM is changed, users have two options: Change the production BOM itself (if changes are not tracked). Create a version (required if the company tracks engineeringchanges).Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement3-9

Manufacturing I in Microsoft Dynamics NAV 2009EXAMPLE: The company engineer determines that to improve the quality of aproduct, a change must be made to the components. This is sometimes called anengineering change order (ECO). Rather than creating an entirely newproduction BOM, the current one is updated by creating a version. This allowsthe company to maintain the original production BOM in case it is needed forreference, but to use the updated production BOM in production. Using versionsalso maintains the product structure if the production BOM is used in manyitems.For example, a BOM version is created to comply with a legal requirement that abell should be included in the specifications from November until February. TheProduction Planner can send an email to the Sales Manager requestingconfirmation if the specifications are correct.Demonstration 3Follow these steps to change a BOM:1. From

The production BOM is used when production orders are created and is used by the Planning Worksheet to show what needs to be made or purchased. Once the production order is certified, changes to the components are often made by creating a new version of the production BOM rather than changing the original production BOM. Production BOM Header Start by looking at the fields in a production BOM .