qad routings implementation
DESCRIPTION
QAD Routings Implementation. Sheri Forrest – RFBP Nadia Truxell – Logan Consulting. Routings – Introduction. Introduction Ralcorp Frozen Bakery Products Routings - Why Use them? Routings – Implementation at Ralcorp Review Process Changes – Scheduling, Backflushing - PowerPoint PPT PresentationTRANSCRIPT
QAD Routings Implementation
Sheri Forrest – RFBPNadia Truxell – Logan Consulting
Routings – Introduction
• Introduction• Ralcorp Frozen Bakery Products• Routings - Why Use them?• Routings – Implementation at Ralcorp• Review Process Changes – Scheduling, Backflushing• Review GL Transactions with Routings - Variances• Reporting Needs
Introduction – Sheri Forrest
• Ernst & Young-Auditor– Manufacturing– Banking– Entrepreneurial Services
• Ralcorp Holdings, Inc. –Finance Manager Frozen Bakery Division Responsible for financial and management reporting for 9 plants.
– 9 QAD implementations– Upgrade from 7.2 to EB2– Major re-implementation completed in 2009– Routings– BOM Standardization
Introduction – Nadia Truxell
• Operations/Materials Manager – Scherdel Sales & TechnologyAutomotive Supplier of Springs and StampingsImplemented QAD
• Project Manager – Logan ConsultingQAD Implementations and Business Process ConsultingAutomotiveFood & BeverageConsumer GoodsIndustrial Products
Introduction – RFBP
Bread, Griddle, and Cookie products for Industrial, Foodservice, and Retail markets
9 Manufacturing plants across the US and Canada Advanced Repetitive processing
Why Implement Routings?
• Efficiency
• Utilization
• Productivity
Why Implement Routings?
Productivity
Efficiency X Utilization
Routings – Why Implement?
Routing = Sequence of Operations used to define the production process for a finished good item or sub-assembly
• Capacity Planning – Work Center and Department Load
• Improved production reporting
• Improved variance reporting – Labor Costs reported at Standard
• Ability to compare actual to standard
• Lays framework for more sophisticated shop floor RF process
Routings – Effects
EFFECTS OF ROUTINGS
The system uses routing data to:
o Calculate the cost of producing an item
o Calculate the time it takes to manufacture an item
o Schedule operations for work orders and repetitive schedules
o Backflush components in the Repetitive and Advanced Repetitive modules
o Calculate work center and department load
o Print routings for work orders
o Obtain operation feedback using programs in Shop Floor Control, Repetitive, and Advanced Repetitive
o Calculate component yield when Use Op Based Yield is Yes in MRP Control
Routings – RFBP Implementation
Routing “999” for all Items
No Labor Costs booked at time of backflush – Method Variance
No visibility for Capacity planning/Department/Work Center Load
Routings – RFBP Current State
Routing “999” for all Items
No Labor Costs booked at time of backflush – Method Variance
No visibility for Capacity planning/Department/Work Center Load
Routings – Future State
QAD Routing Implementation - Phase 1
Create Routings to measure standard Machine and Labor Time
Provide ability to obtain improved reporting at a production line level
Lay the framework for a more sophisticated reporting process and standard methodology for creating costs for manufactured items.
Project Timeline
Routings - Setup
DepartmentsWork CenterRouting MaintenanceAlternate Routing MaintenanceItem Site Planning Maintenance
Departments
Departments
Use Department Maintenance to define departments and set up labor capacity and general ledger (GL) accounts for each department.
Department – Code representing Department within Plant:Current State: 53000 = Ogden, 53500=FridleyDiscussion Point
Define Accounts and Sub Accounts for:Cost of ProductionLaborBurdenLabor Usage VarianceLabor Rate VarianceBurden Usage VarianceBurden Rate Variance
Accounts Default from Product Line Maintenance or Work Order Account Maint
Work Centers
Work Center Maintenance
Use Work Center Maintenance to define work centers, which are production areas with one or more people or machines having identical capabilities.
Work center data controls processing in four areas:
o Scheduling: When a routing operation is specified at this work center, lead time fields (Operation, Queue Time, Wait Time, and Machines per Op) default to those for the routing.
o CRP: Capacity for this work center is the number of machines in a work center (machines/work center) multiplied by the number of available hours (from Calendar Maintenance).
o Costing: Manufacturing costs are calculated in Routing Cost Roll-Up. Labor costs are calculated by multiplying the setup and run times at each operation by the setup rate and labor rate. Burden costs use machine burden rate, labor burden rate, and labor burden %. Subcontract costs are taken from subcontract cost at the operation level.
o Accounting: Each work center belongs to a department, which determines the GL accounts that track variances, labor and burden costs.
Work Center Maintenance
Work Center: Enter Code representing the Work Center within a Department
Machine: Enter standard headcount (staffing) required to run this work center. This functions as a sub record of the work center.
Department: Select the Department Code for the Work Center
Mach/Op: Leave as default (1)
Setup Crew: Optional – Reference OnlyRun Crew: Optional – Reference Only
Labor Rate: Enter the Average Labor Rate per hour required to run this Work Center.
Routing Maintenance
Routing Maintenance
Routing Code: Code Representing Product/Family manufactured through a Work CenterExisting Convention: 53001-01 (Routing 1 on Ogden Line 1)
Operation: Enter “0” for Machine Hours, “5” for Labor Hours, “99” for Backflush
Start Date: Enter beginning effective date of the Routing
Work Center: Enter the Work Center associated with this Routing
Description: Enter the Description associated with this Routing
Run Crew: Defaults from Work Center Maint – Reference Only
Run Time: Enter the amount of time it takes for one unit of this item/family to be processed. Use Routing Maintenance Rate Based to enter units/hr
Auto Labor Report: Check Box to report labor at standard
Alternate Routing Maintenance
Alternate Routing Maintenance
Use Alternate Routing Maintenance to assign approved alternate routings to items and sites. When an item can be made different ways, using different operations, work centers, machines, and perhaps different components. Each of these is called an alternate.
Item Number: Enter the Item Number the Alt Routing is associated with.
Site: Enter the site where the Item is manufactured.
Item-Site Planning
Scheduling Concept
Backflush Transaction
GL Impact – Backflush with Labor
GL Impact - Examples
GL Impact - Variances
• Labor Usage Variance• Labor Rate Variance• Burden Usage Variance• Burden Rate Variance• Method Variance
Rep Operations Acct Report
RFBP Custom Report
Labor Variance Report: 99.29
RFBP Custom Report
Labor Variance ReportSelection criteria
• ID: Leave blank or specify a range• Work Order: Leave blank-repetitive/Specify range –discrete work order• Site: Enter site range• Line: Leave blank or specify a range• Work Center: Leave blank or specify a range• Machine: Leave blank or specify a range• Routing: Leave blank or specify a range• Operation: Leave as default or run for 0, 5, 99• Department: Leave blank or specify a range• Effective date: Specify a range• Report Total: Check for a single operation, No check for the default.
RFBP Custom Report
Work Center Part WO ID Date WO Status Type
Labor Rate
Quantity Complete Setup
Expected Hours
Actual Hours
Standard Labor
Actual Labor
Macine/Head Count
Act Head Count
Effi ciency Var Act Cs/Hr Rtg CS/HR Std Variance
WO Variance
50514 068615180310 7905332 1/18/2010 R Labor 16.04 2112 0 23.18 178.5 $3,315.21 $2,863.14 8.33 7.44 0.1 11.83152 91.12 $452.07 ($2,491.36)50514 068615180310 7905332 1/18/2010 R Machine 0 2112 0 2.78 24 $0.00 $0.00 0 0 88.02817 758.99998 $0.00 $0.0050514 068615180310 7905332 1/19/2010 R Labor 16.04 156 0 1.71 16.69 $244.87 $267.71 8.33 8.35 0.1 9.34667 91.12 ($22.83) ($240.25)50514 068615180310 7905332 1/19/2010 R Machine 0 156 0 0.21 2 $0.00 $0.00 0 0 78.00312 758.99998 $0.00 $0.0050512 fb010032 7908487 1/18/2010 R Labor 16.04 6 0 1.18 23.05 $202.04 $369.72 2.53 3.84 3.6 0.2603 5.09 ($167.68) ($350.81)50512 fb010032 7908487 1/18/2010 R Machine 0 6 0 0.47 6 $0.00 $0.00 0 0.9 1 12.89 $0.00 $0.0050512 fb010032 7908487 1/25/2010 R Labor 16.04 6 0 1.18 16.77 $202.04 $268.99 2.53 2.97 2.6 0.35778 5.09 ($66.95) ($250.08)50512 fb010032 7908487 1/25/2010 R Machine 0 6 0 0.47 5.65 $0.00 $0.00 0 0.9 1.06194 12.89 $0.00 $0.0050512 fb010028 7908488 1/18/2010 R Labor 16.04 30 0 5.17 59.56 $865.19 $955.34 2.5 3.23 1.8 0.50369 5.8 ($90.15) ($872.38)50512 fb010028 7908488 1/18/2010 R Machine 0 30 0 2.07 18.46 $0.00 $0.00 0 0.5 1.62514 14.5 $0.00 $0.0050512 fb010028 7908488 1/19/2010 R Labor 16.04 39 0 6.72 73.65 $1,124.74 $1,181.35 2.5 3.07 1.7 0.52953 5.8 ($56.60) ($1,073.49)50512 fb010028 7908488 1/19/2010 R Machine 0 39 0 2.69 24 $0.00 $0.00 0 0.5 1.62501 14.5 $0.00 $0.0050512 fb010028 7908488 1/20/2010 R Labor 16.04 39 0 6.72 59.44 $1,124.74 $953.42 2.5 2.48 1.4 0.65612 5.8 $171.33 ($845.56)50512 fb010028 7908488 1/20/2010 R Machine 0 39 0 2.69 24 $0.00 $0.00 0 0.5 1.62501 14.5 $0.00 $0.0050512 fb010028 7908488 1/21/2010 R Labor 16.04 37 0 6.38 161.76 $1,067.07 $2,594.63 2.5 3.6 4.2 0.22873 5.8 ($1,527.57) ($2,492.31)50512 fb010028 7908488 1/21/2010 R Machine 0 37 0 2.55 44.92 $0.00 $0.00 0 1.1 0.82369 14.5 $0.00 $0.0050512 fb010028 7908488 1/22/2010 R Labor 16.04 49 0 8.45 14 $1,413.14 $224.56 2.5 3 0.1 3.50005 5.8 $1,188.58 ($89.05)50512 fb010028 7908488 1/22/2010 R Machine 0 49 0 3.38 0 $0.00 $0.00 0 -0.1 ? 14.5 $0.00 $0.0050512 fb010028 7908488 1/25/2010 R Labor 16.04 30 0 5.17 46.92 $865.19 $752.60 2.5 2.54 1.4 0.63939 5.8 $112.59 ($669.63)50512 fb010028 7908488 1/25/2010 R Machine 0 30 0 2.07 18.47 $0.00 $0.00 0 0.5 1.62425 14.5 $0.00 $0.0050512 fb010028 7908488 1/26/2010 R Labor 16.04 39 0 6.72 73.96 $1,124.74 $1,186.32 2.5 3.08 1.7 0.52731 5.8 ($61.57) ($1,078.46)50512 fb010028 7908488 1/26/2010 R Machine 0 39 0 2.69 24 $0.00 $0.00 0 0.5 1.62501 14.5 $0.00 $0.0050512 fb010028 7908488 1/27/2010 R Labor 16.04 39 0 6.72 0 $1,124.74 $0.00 2.5 3 -0.2 ? 5.8 $1,124.74 $107.8650512 fb010028 7908488 1/27/2010 R Machine 0 39 0 2.69 0 $0.00 $0.00 0 -0.1 ? 14.5 $0.00 $0.0050512 fb010028 7908488 1/28/2010 R Labor 16.04 39 0 6.72 0 $1,124.74 $0.00 2.5 3 -0.2 ? 5.8 $1,124.74 $107.8650512 fb010028 7908488 1/28/2010 R Machine 0 39 0 2.69 0 $0.00 $0.00 0 -0.1 ? 14.5 $0.00 $0.0050512 fb010042 7908489 1/18/2010 R Labor 16.04 19 0 3.78 29.96 $620.90 $480.56 2.53 2.96 1.4 0.63418 5.02 $140.34 ($419.85)50512 fb010042 7908489 1/18/2010 R Machine 0 19 0 1.5 10.13 $0.00 $0.00 0 0.5 1.87561 12.69 $0.00 $0.0050512 fb010042 7908489 1/19/2010 R Labor 16.04 65 0 12.95 92.78 $2,124.14 $1,488.19 2.53 2.68 1.2 0.70058 5.02 $635.94 ($1,280.50)50512 fb010042 7908489 1/19/2010 R Machine 0 65 0 5.12 34.67 $0.00 $0.00 0 0.5 1.87484 12.69 $0.00 $0.0050512 fb010042 7908489 1/20/2010 R Labor 16.04 37 0 7.37 47.52 $1,209.12 $762.22 2.53 2.41 1.1 0.77862 5.02 $446.90 ($644.00)50512 fb010042 7908489 1/20/2010 R Machine 0 37 0 2.92 19.73 $0.00 $0.00 0 0.5 1.87533 12.69 $0.00 $0.00
Routings – RFBP Implementation
Routing Implementation Challenges• Data collection- not all need information currently collected.• Data Input- scarce resources, training.• Data integrity- Shop floor data accuracy and completeness
questionable.• Current ‘Home-grown’ production reporting system providing
needed information—Why change?• QAD out-of-the-box reporting tools inadequate.• Additional steps to the new item setup process at the plant.• Interpreting routing data- What does it mean? How will we
use it?
Routings - RFBP
Questions?