What is minimum stock level ?

The minimum stock level is that level of stock below which stock should not be allowed to fall. In case of any item falling below this level, Production or Purchase needed to replenish the stock. 


Some system have the ability to assist user to generate a list of stock needed for their production planning or planned purchase order to take place from supplier. 


Do you have any system in place to assist you or you are still using excel for the control ? 


vivienne @ www.mrp.com.my

Your itinerary please...

Your itinerary please...

There's 9 1/2 months left to 2012.  You're taking your organization on a trip. Where are you going?  Does everyone know? vivienne @ www.mrp.com.my

Jobs/Work Order/Production Order or Manufacturing Order workflow

Jobs/Work Order/Production Order or Manufacturing Order are used to make "outputs", which are finished items and subassemblies, using "inputs", which are the labor, materials, and subcontract services used to make the outputs.

What are the  Jobs/Work Order/Production Order or Manufacturing Order workflow ?

Step 1 – New Job/Work Creation

• Generate job/Work either directly from sales order line for custom to make items or
  
  
• Generate job/Work  in response to net demand (means when your Stock level is below safety level as set and production needed to replenish them) 

Step 2 – Job/Work Release

• Release job/Work when your work center is ready or available
  
• Print job Order with Process and component detail. 

Step 3 – Job/Work Processing

• Request and Issue components to jobs, there are 2 option here :
  
  
  • Option A – You can Print an issue list to store for picking stock that require by the job, then after that enter the entries in the system or 
  • Option B – Make issue entries directly, print issue list then get storekeeper to pick stock
    
    
• Sometime your Job/Work might have outsourcing to 3rd party, in this case, base on the Job creation, user can generate Purchase Order for 3rd party subcontract services also if applicable
  
• After job feed back from shop floor, user enter job routing sequence completions and/or labor hours
  
• Receive POs for subcontract services
  
• Enter manufactured job receipts from Shopfloor  

Step 4 – Close Job 

Vivienne @ www.mrp.com.my

Small Accounting software VS Manufacturing Software

Wondering why there are many companies using only small accounting software but not integrated manufacturing software ? 

Because they have not aware of the availability of manufacturing software in the market and what is the software can do. many small companies are fully aware of the limitations of general accounting software and excel spreadsheets, but are busy and never find the time to upgrade to a manufacturing software package. they are also fear and are worry of manufacturing software might be too costly to implement, too difficult to implement, and too hard to use.  Are you one of them ? 

Vivienne @ www.mrp.com.my

How are BOMs costed?

How are BOMs costed?

The Cost Rollup calculates a total estimated cost for the BOM parent. Each purchased component has an estimated cost from inventory. Each work center is given hourly rates for setup, labor, and manufacturing overhead which get applied to each routing sequence. Estimated costs for subcontract services are maintained in routing sequences. The Cost Rollup calculates all these costs up through all the subassemblies in the product structure to arrive at the total estimated cost for the BOM parent.


If the BOM includes secondary outputs, a portion of the parent item’s cost is allocated to each output on a percentage basis.

What is the BOM estimated cost used for?

BOM estimated costs are helpful for product pricing decisions. You also benefit by continuous monitoring of work center hourly rates, which keeps you in touch with your item labor and overhead costs.

Is the BOM estimated cost compared to actual job cost?

Not directly. When the job gets created from the parent item’s BOM, the program calculates an estimated job cost. If you modify the job’s BOM specifications, the estimated job cost gets changed accordingly. It is the estimated job cost that gets compared to actual job cost. 


Vivienne @ www.mrp.com.my