mfg bill of material guide - ecisolutions.com

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Manufacturing with

TEAM-DESIGN! Manufacturing/Bill of Materials Manual

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Bill of Material Processing in TEAM-DESIGN!

DESCRIPTION OF THE TEAM-DESIGN! MANUFACTURING APPLICATIONS................................... 5 GENERAL OPERATIONAL RULES........................................................................................................... 7 YOUR COMPANY VENDOR NUMBER .................................................................................................... 9 PARENT ITEM CONSTRUCTION ............................................................................................................ 10 COMPONENT ITEM CONSTRUCTION................................................................................................... 12 BILL OF MATERIAL CREATION ............................................................................................................ 14 SHOP PROCESS ROUTING CODES......................................................................................................... 20 ASSIGN SHOP PROCESSES TO COMPONENTS ................................................................................... 22 OVERVIEW OF MANUFACTURING PROCEDURES IN TEAM-DESIGN! ........................................... 27

Bill of Material Proposal Usage ............................................................................................................... 29 Printing Manufacturing Labels ................................................................................................................. 37 Printing Shop Floor Process Tickets ........................................................................................................ 39 Ordering Components (Creating Stock Purchase Orders) ........................................................................ 41 Parent Assembly Transactions.................................................................................................................. 47 Finishing Up ............................................................................................................................................. 51

REPORTS .................................................................................................................................................... 53 Master Bills of Material Report................................................................................................................ 53 Component Material Usage Report .......................................................................................................... 54


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DESCRIPTION OF THE TEAM-DESIGN! MANUFACTURING APPLICATIONS

The manufacturing process in TEAM-DESIGN! involves several modules including Bill Of Materials, Shop Process Routing and Stock Purchase Orders. These modules are combined to produce a very efficient way for the refurbisher or manufacturer to quote items, produce shop floor routing tickets, order items they normally do not stock based upon requirements and finally, complete the job with an accurate invoice to the customer. The program allows the assignment of unlimited “components” (and quantities) to “parent” part numbers. The combined List, Cost and Sell values of these components are then used to determine the final List, Cost, and Sell of the parent item. These parent part numbers are then used in proposals as you would any other normal inventory item. Some components may require “Shop Process Routing” wherein they must move through the shop floor and undergo specific activities such as sandblasting, teardown, painting, etc. The module allows for this procedure and generates documents which can inform each department of the required workload. This module uses “single-level” bill of material logic. That is, components may NOT have their own bill of materials that then have their own bill of materials that also have their own bill of materials and so on. It is NOT designed to allow the construction of extraordinarily complex items such as the space shuttle.


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GENERAL OPERATIONAL RULES

The following list of criteria represents MANDATORY rules for proper operation of the BOM module:

• It mandatory that ALL PARENT inventory items to be used in a Bill Of Material

have YOUR company vendor number assigned to them. This is the same vendor number previously established by you in “System | Setup | System Configuration | Miscellaneous”

• Inventory items used for both Parent and Components must already exist in the

Inventory master file. You are not allowed to create Bill of Material items “on the fly”.

• Inventory items (both Parent and Component) must have the “Auto-Cost Item”

feature turned on in their respective inventory master profiles. This will ensure the cost of the item is recorded as “actual” cost against the proposal thus maintaining the correct job costing since no Accounts Payable invoice will be received against the item.

• Inventory items (both Parent and Component) should have special “Revenue

Posting Codes” assigned which do not use the normal “Work In Process” general ledger accounts. You would probably substitute another inventory asset account number.


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YOUR COMPANY VENDOR NUMBER

This is a depiction of the screen where “YOUR Internal Vendor Number” is entered in the main menu option “System | Setup | System Configuration| Miscellaneous”.

You should have your company set up as a vendor in TEAM-DESIGN! Then insert your vendor number in this system configuration screen. You will also use this vendor number on the “parent” inventory items that are manufactured.


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PARENT ITEM CONSTRUCTION Parent items are those items that are actually used within a proposal when quoting a customer. Parent items consist of “components” (described later in this text) which are used to create the actual item. For example, a special inventory item (i.e. parent) may consist of a desk, chair and filing cabinet. The desk, chair and filing cabinet are considered to be “components”.

You must first create a master record for EACH parent item you intend to sell. These are normal inventory items and are established under “Inventory | Maintenance”.

Generally speaking, the typical “parent” item has a vendor assigned that represents YOUR company since you are usually “constructing” this item yourself. Thus, when TEAM-DESIGN! generates purchase orders from the proposal, a purchase order is created for YOURSELF that indicates the parent items which must be built.

The vendor number assigned to a parent item should be your vendor number.


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IMPORTANT: When creating a parent item, the “Stock P/O Vendor” field indicated on the screen below MUST be left empty.

The “Stock P/O Vendor” field should be left blank on a parent inventory item.


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COMPONENT ITEM CONSTRUCTION

Component items are normal inventory items which are used to create a “parent” (described earlier in this text).

Create component items are you would any other normal inventory item via the main menu option: “Inventory | Maintenance”.

Note that the master vendor number on the component item could be any vendor.


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IMPORTANT: It is critical that the “Stock P/O Vendor” field depicted below contain the actual vendor from whom you will order this product. This vendor number can be completely different from the vendor number used to create the master record.

If you leave this field blank, the system WILL NOT create stock purchase orders for the component. Remember, the normal purchase orders created from proposals only reflect parent items. If these parent items are built from components, then the system must know from what vendor they should be ordered within the Stock Purchase Order module.

The “Stock P/O Vendor” field on a component item must contain the number of the vendor from which you will order the component items.


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BILL OF MATERIAL CREATION When you create a Bill of Material in TEAM-DESIGN!, you are adding a parent item to the Bill of Material module and then attaching inventory item components that make up that parent inventory item. To create (or modify) a Bill Of Material for an inventory item, simply execute the main menu option “Inventory | Bills Of Material | Maintenance”. Please note that these examples are based on the premise that you have already created the actual inventory items to be used (both parent and component) in the main Inventory Maintenance screens.


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You will be presented with a listing of pre-existing “parent items” which have had a Bill of Material assigned to them. To create a new Bill Of Material, simply select “Edit | Add” or the appropriate icon. You will be presented a listing of all items in inventory. (IE, all items created in the inventory module. This listing will contain both parent and component items.) Select the parent item from the listing. To modify an existing Bill Of Material on a parent item, simply highlight the desired record and “double-click” the mouse.


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You will now be presented with the Bill of Material master profile for the parent part number. To begin entering the Bill Of Material assigned to the parent item, simply select the “Add Component” button.

Select the “Add Component” button to begin creating or editing the Bill of Material for this parent item.


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You will again be presented with a list of items in inventory. Simply highlight the desired component and “double-click” to retrieve it into your Bill Of Materials.


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As you continue to select component items, they will appear in the component listing and the parent values for List, Cost and Sell will begin to accumulate. Please note that as you select components, the default quantity to use is one. To change this value, simply highlight the desired record, position the cursor to the quantity column and press <enter>. You will then be allowed to enter a new quantity.

You can change the default component quantity of one by highlighting and pressing enter.


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This process continues until you are finished adding inventory items to the Bill Of Material. Please note that upon making ANY changes to a Bill Of Material you MUST press the “ReBuild Values” button to recalculate and confirm the parent part number values for List, Cost and Sell.

If you have come in to change a Bill of Material on a parent item, you must press “Rebuild Values” to recalculate the new, accumulative List, Cost and Sell.


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SHOP PROCESS ROUTING CODES

The system allows the creation and assignment of “Shop Process Routing Codes”. These codes are used to define specific processes such as sandblasting, painting, etc. that component items must undergo prior to the building of their associated parent item. These process codes are user-defined and can be up to five (5) characters in length. This screen indicates the main menu option used to develop Process Routing Codes:


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As with all maintenance screens in TEAM-DESIGN!, the selection of “Edit | Add” will allow the addition of a new record. You may use any unique designation of up to five (5) characters in length along with a short descriptive text concerning the process.


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ASSIGN SHOP PROCESSES TO COMPONENTS

This procedure is used to designate the various shop floor processes (i.e. sandblasting, painting, fabric replacement, etc.) that selected components must undergo as the parent item is being assembled.

This screen merely indicates the main menu option used to access the shop process routing maintenance screen:


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Once the components that have existing processes are displayed, selecting the “Edit | Add” menu option will present the following screen. This screen depicts ALL of your existing inventory items. Select the desired component that you wish to assign shop routing processes.


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This screen indicates the shop processes assigned to the component. Simply press the “Add Component” button to begin assigning processes. Please note that Shop Process Routing Codes were developed earlier in this manual.


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You will now be presented with the available Shop Process Routing Codes created earlier. Simply select the desired process.


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Continue assigning Shop Process Routing Codes in this manner until you are finished.


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OVERVIEW OF MANUFACTURING PROCEDURES IN TEAM-DESIGN!

Now that we have established all of the necessary maintenance screens it is time to use the parent item in a proposal. The following pages depict the basic processes that a manufactured item undergoes as it moves through the system. Please note that explanations of how to create a proposal and purchase order within TEAM-DESIGN! are not described in these pages. Also, it is important to understand that many of these processes are entirely optional. Only YOU can determine which documents and procedures should be followed in your own organization.

However, the COMPLETE procedure can be described as follows:

• Use the parent item in a proposal • Create a purchase orders from the proposal • Print manufacturing labels for the shop floor • Print process routing slips for the shop floor • Extract the components from the parents • Create stock purchase orders for the extracted components • Receive the components on the stock purchase orders • Inform the system that xxx number of parents have been assembled • Receive the proposal purchase orders and invoice the parent


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Bill of Material Proposal Usage

Using a parent part number in a proposal is actually quite simple and not much different from using standard items from the inventory. When the new item has been added to the proposal, simply position the cursor to the “Item Number” field. This field has two buttons (Catalog and Options) directly above it. Press the “Catalog” button to retrieve a parent part number.

When adding a Bill of Material parent item on a Proposal, you MUST retrieve the parent item from inventory using the “Catalog” button. Simply typing in the catalog number will NOT bring in associated component values.


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You will be presented with the standard inventory lookup screen. Simply highlight the desired parent item number and “double-click” to select it from the screen.

The parent item will be retrieved from the inventory module along with the associated List, Cost and Sell values.

The total List, Cost and Sell in the Proposal detail line item is the cumulative total of the components making up the inventory parent item number.


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You are allowed to view the component structure by selecting the option “View | Components” while in the detail screen of the line item.


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You will be presented with a display that shows the assigned components and associated quantities that were established in the Bill Of Materials module. Please note that you are NOT allowed to edit the component list in this screen. Editing must be done in the Bill of Materials module (Inventory | Bill of Materials | Maintenance).


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You may also add additional “options” to a line item by pressing the “Options” button in the detail line item screen. You will then be presented with the “Search Catalog Options” window which is virtually identical to the standard inventory search window with one MAJOR difference. That is, when you select an item from this screen (after pushing the Options button), the item is added to the “SIF Attributes” for the parent item in this proposal ONLY (ie, the Bill of Materials master in the Inventory Module is not changed or updated).. In addition, the “option(s)” that are added will increase the List, Cost and Sell values of the proposal line item.


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These additional “options” can then be viewed by selecting “View | Attributes” from the menu.


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You will then be presented with a window depicting the additional “options” that have been added to the parent item. Please note that these additional options (i.e. SIF Attributes) can be optionally printed on documents such as proposal, purchase orders, invoices, etc. Components are NEVER printed on documents such as proposals, purchase orders, invoices, etc. They only appear on the manufacturing labels (described later in this document).


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Printing Manufacturing Labels

The module has the ability to produce a pre-formatted “manufacturing label” for the factory floor. These “labels” are printed by selecting a series of purchase orders generated by the system.


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Enter a purchase order number in the appropriate field on the Manufacturing Labels print screen (or select one by clicking on the Purchase Order Number button). After you hit “Accept”, the purchase orders selected will appear in the large white “Purchase Orders to Retrieve” rectangle.

Upon selecting “Print”, TEAM-DESIGN! locates all items within the purchase order(s) and prints a manufacturing label for EVERY component of EVERY parent part number on the order. For example, if a quantity of five (5) parent items are ordered and the parent item is comprised of three (3) different components such as: One Chair, Two Lamps and One Desk, then fifteen (15) labels will be printed. There will be 5 for the chair, 5 for the lamps and 5 for the desks. This label indicates the original purchase order number, proposal, customer, parent part number (and options) and the quantity of the component which must be manufactured.


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Printing Shop Floor Process Tickets If you wish to print Shop Floor Process Tickets for the components, simply select the main menu option “Inventory | Bills Of Material | Manufacturing Documents”. Again, enter the desired proposal purchase order numbers.


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Ordering Components (Creating Stock Purchase Orders)

These procedures are used to generate Stock Purchase Orders for the components which are necessary to manufacture their associated parent item. If you wish to create Stock Purchase Orders for the components of each parent item on a proposal purchase order, they must first be “exported”. This option is selected also via the main menu option “Inventory | Bills Of Material | Manufacturing Documents”. Again, simply key in the appropriate proposal purchase order numbers:


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Once the components have been exported, they must be imported into the Stock Purchase Order module.


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Select the import option as depicted below:


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Confirm that you wish to import the components:


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It’s magic! Suddenly a bunch of stock purchase orders have been created using the “Stock P/O Vendor” that was assigned in the inventory master profile of the component. You may now print these orders as normal, send them to the appropriate vendors and later receive them as usual. Please refer to the standard TEAM-DESIGN! manual for guidance on printing and receiving Stock Purchase Orders.


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Parent Assembly Transactions The following procedures depict how to “inform” TEAM-DESIGN! that a certain number of parent items have now been assembled. These procedures will increase the quantity on hand of the parent and reduce the quantity on hand for the associated components. Select the inventory transactions quantity adjustments menu option:


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You will be presented with following data entry screen: Select the appropriate PARENT inventory item number and enter the quantity assembled. IMPORTANT: The “Transaction Type” MUST be “Bill Of Material”. This transaction type triggers TEAM-DESIGN! to locate the associated components and reduce their quantity on hand while simultaneously increasing the parent quantity on hand.


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If you wanted to check your work, simply view the transactions for the desired inventory items. The screen below depicts the transaction screen of the parent:


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The screen below depicts the transaction history for one of the components of the previously discussed parent item:


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Finishing Up

You would now access the original proposal purchase order, mark the parent(s) as being received and then invoice the customer as usual. That’s it…


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REPORTS

The module currently produces two (2) different reports:

The “Master Bills Of Material” prints the component breakdown of each parent part number.

The “Component Material Usage” produces a listing of each component and indicates ALL parent part numbers to which it is associated.

To print a report, select “Inventory | Bill of Materials | Reports”.

Master Bills of Material Report

OPTIONS: Selecting “Update Parent Values” will rebuild the List, Cost and Sell of the parent item based upon the values of its components. Selecting “New Page On Group” will cause one page to be printed for EACH parent part number and its associated components. This feature assists those users who wish to create a book of all Bills of Material.


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Component Material Usage Report

OPTIONS: There are no special options associated with this report.