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Acumatica Standard Manufacturing Edition

Overview

The Standard Manufacturing Edition enables you to plan the production and to manage the actual production.

The production planning enables you to build a multi-level Bill of Materials (BOM) for the end product. From a Sales Order for this end product, you  can create a production order, which will use this BOM to determine the required materials, labor, machines and tools. This edition enables you to create a master production schedule based on a forecast, on current and future sales orders, on current and future stock of finished goods based on expected and planned receipts of purchased products, on current and future stock of parts and sub assemblies, and on (?) machine and labor capacity.  Given the BOM and the master production schedule, the Material Requirements Planning feature will run, and tell when missing material should be ordered or manufactured, when the production run will start so that the customer sales order will be fulfilled on time, when assemblies and sub assemblies will be started and completed, when, and which and how much materials will be consumed during production. The MRP enables you also to get an estimate of the cost of the planned production run.

The production management enables you to capture the actual labor and machine time spent at each workcenter/step that is needed to manufacture a finished good. Also it captures the quantity of parts and sub assemblies used, as well the quantity and cost of finished goods manufactured. These actuals can be compared with the estimate. Sometimes there is no need to capture the actual usage of labor, machines and materials but, just use the estimated labor, machine usage and materials. This last option is called backflushing. Backflushing will automatically create transactions in the GL such as inventory material issues, labor time expenses and machine and other expenses.

This enables you to implement lean manufacturing, and handle efficiently the growing demand for small production orders. This is efficien since you don't need to have a huge stock of material and assemblies, and since you won't have a huge Work in Process (WIP) inventory. 

When your manufacturing is simple, and combined with your warehousing, this standard manufacturing edition is great since it includes the Acumatica Distribution suite so that your manufacturing and inventory management will be taken care of. If you also need a Warehouse Management System (WMS), this edition integrates with a WMS in the cloud very nicely.

Features

  • The Standard Manufacturing Edition

    • During the planning stage of manufacturing: 

      • Bill of Material (BOM) that contains for each finished good the parts and subassemblies that are needed to make that finished good. A phantom item can be created for an item that is used in several sub assemblies of  a the end product so that you don't have to specify that item in each applicable sub assembly.

      • Master Production Scheduling enables the plant manager to schedule when certain finished goods will be produced, and in which quantities based on a forecast, current and future sales orders, on current and future stock of finished goods, on current and future stock of parts and sub assemblies, and on machine and labor capacity. 

      • Material Requirements Planning (MRP) that calculates the quantities of parts and sub assemblies needed to make a certain amount of finished good. 

    • During the actual manufacturing:

      • Production Management captures the actual labor and machine time spent at each workcenter/step that is needed to manufacture a finished good. Also it captures the quantity of parts and subassemblies used, as well the quantity and cost of finished goods manufactured. Backflushing is possible.

Simple Production. No Master Production Scheduling. No MRP

The process flow of simple production in the Acumatica Manufacturing Edition is as follows:

  1. Create a stock item eg. baking pan/skillet

  2. Create a BOM for the item eg baking pan/skillet as follows:

    1. ​Each pan has a handle, and a metal attachment with a screw. One pan per package. For details on manufacturing a pan or skillet, click here.

    2. Workcenter 10

      1. Operation 10.1​: cast skillet in mold using a casting machine

      2. Operation 10.2: apply non-stick coating in a heat furnace

      3. Materials:

        1. Melted metal​

        2. Coating

    3. Workcenter 11​

      1. Operation 11.1: assemble baking pan​

      2. Materials:

        1. Graphite/hard plastic handle​

        2. Metal attachment

        3. Screw

    4. Workcenter 12​

      1. Operation 12.1: package baking pan

      2. Materials:

        1. Carton box

        2. Bubble packaging​

        3. Tape

  3. Create a sales order: eg. 5 baking pans/skillets. Due Oct 1, 2018

  4. Create Production Order (RO) from this sales order

  5. No production (master scheduling) planning

  6. Production Order is released

    1. BOM is applied.​

    2. Using 5, 5 handles and attachments need to  be purchased, 5 pans need to be manufactured.​​

    3. Routing is specified in BOM. Manufacturing steps for pan, assembly of baking pan

  7. Production takes place​

    1. Labor and material usage is captured. No backflush​

    2. Move WIP from one workcenter to another workcenter, till last.

  8. Production order is complete. 5 Baking pans moved to warehouse. ​

To see the above scenario but for a printed circuit board in a video, click here .

Production for many sales orders using also Master Production Scheduling and MRP

The process flow of  production for many sales orders in the Acumatica Manufacturing Edition is as follows:

  1. Sales orders:

    1. Sales order due Oct 1 2018: 5 baking pans/skllets (model bp500). Each pan has a handle, and a metal attachment with a screw. One pan per package.

    2. Sales order due Oct 3 2018: 30 baking pans (model bp500)

    3. Sales order due Oct 5 2018: 50 baking pans (model bp500)

  2. Create Production Order (RO) from this sales order

  3.  Item Baking pan has a BOM already specified. See above scenario.

    1. A handle from supplier,

    2. Metal attachment from handle supplier,

    3. Pan to be manufactured via a casting machine:

      1. Metal is melted and poured into a cast/mold

      2. Non stick coating is applied in a heat furnace

      3. For details on manufacturing a pan or skillet, click here.

  4. Production (master scheduling) planning  ??? subject to:

    1. Machine capacity​

      1. Casting: 20 skillets in 2 hours​

      2. Non-stick coating: 25 skillets in one hour

    2. Machine availability

      1. Sept 28, Oct 1, 3, 4​

    3. Labor availability

      1. 3 people for day shift (8 hours: 8am - 4pm)

        1. one for castin​g

        2. one for coating

        3. one for assembly

  5. Production Order is released

    1. BOM is applied.​

    2. Using 85, 85 handles and attachments need to  be purchased, 85 pans need to be manufactured.​​

    3. Routing is specified in BOM. Manufacturing steps for pan, assembly of baking pan

  6. Production takes place​

    1. Labor and material usage is captured. No backflush​

    2. Move WIP from one workcenter to another workcenter, till last.

  7. Production order is complete. 5 Baking pans moved to warehouse. ​

Mixed Mode Manufacturing: Make-To-Stock and Make-To-Order Manufacturing

The Acumatica Manufacturing edition can handle mixed mode manufacturing at the same time. For Make-To_Stock manufacturing you can just create a work/production order. For Make-To-Order manufacturing you can create a work/production order from a sales order in Acumatica.

When you have a mixed mode manufacturing you also have to look at your inventory management as explained in this IFS article.