Make-to-Order (MTO) production planning - Advanced¶
Requirements
This tutorial requires the installation of the following applications/modules:
In reality, many companies have complex and multiple-step manufacturing processes. The process can be through more than two steps to produce the product. They also can stock materials and products in different warehouses, so in the manufacturing process will involve many people and departments. So, when they have a manufacturing order, how do all participants plan for themself what they have to do and when? With Viindoo, we integrate Manufacturing with Inventory, Sales, Purchases, etc, to connect all the related works and help all related employees can know and plan their work. For example, when you have a sales order confirmed, we automatically generate a manufacturing order. We also can generate all the related semi-finished product manufacturing orders in line. Besides, we also can generate all the delivery slips to supply materials and stock the finished products. It will help their manufacturing process save time to plan and run more smoothly.
For easier to imagine, this article will handle a specific case in the Table manufacturing enterprise.
- Products:
The Table is assembled from table faces, table legs, and screws.
Table faces, and table legs are manufactured from wood.
The Screw is used for table assembling.
- Manufacturing Process:
First, they produce the Table legs and Table faces at the Manufacturing Warehouse. The Wood and other materials will be delivered from the Material Warehouse to the Manufacturing Warehouse.
After Table legs and Table faces are done, they will be delivered to the Assembling Warehouse. The screw is transferred from Material Warehouse to Assembling Warehouse too.
Then, when all materials are ready, the assembly process is started to finish the Table.
- Ware houses:
Assembling Warehouse: Where assemble and store the Finished Products (Tables)
Manufacturing Warehouse: Where manufacture and store Semi semi-finished products (Table Legs, Table Faces)
Material Warehouse: Where store Materials (wood and screws).
- Product Categories:
Finished Product: the category that the Table belongs.
Semi Finished Product: the category that Table faces, and Table legs belong.
Main Material: the category that the Wood belongs.
Subsidiary Material: the category that the Screw belongs.
Initial configuration¶
Enable Multi Step Route And Storage Locations¶
Go to the Inventory App, navigate to the menu Configuration > Setting, move to the Warehouse area, check the option Multi-Step Routes, and then press the button Save.
Note
When the Multi-Step Routes is activated, the Storage Locations is also activated.
Enable Make To Order (MTO) Route¶
In the Inventory app, navigate to Configuration > Routes. If the Replenish On Order (MTO) route does not show, you go to the Archived filter to find it and unarchive this route.
Unarchive MTO route and set it applicable on Products and Product Categories.
Setting Bom Of Materials¶
We have Bill of material for Table (Finished Product), Table Leg (Semi Finished Product) and Table Face (Semi Finished Product) as below:
Finished Product’s BOM (Table)
Semi Finished Product’s BOM (Table Face)
Semi Finished Product’s BOM (Table Leg)
See also
Refer to How to create bills of materials
WareHouse Routes Setting¶
Setting for Assembling Warehouse
In the Inventory app, navigate to Configuration > Warehouses, select Assembling Warehouse. Because of the need to transfer Semi Finished Products from the Manufacturing Warehouse to the Assembling Warehouse, and Materials from the Material Warehouse to the Assembling Warehouse, we need to set up Ressuply From Material and From Manufacturing as below:
Setting for Manufacturing Warehouse
In the Inventory app, navigate to Configuration > Warehouses, select Manufacturing Warehouse. Because of the need to transfer Materials from the Material Warehouse to the Manufacturing Warehouse, we need to set up Ressuply From Material as below:
Setting for Material Warehouse
In the Inventory app, navigate to Configuration > Warehouses, select Material Warehouse. If you have the need to resuplly material by auto creating Purchase order to buy material from providers , you can tick to Buy to Resupply. For purpose of simple, we can leave it by defaut now.
Note
For the purpose of simple, in this case, we only use Incoming Shipments: Receive goods directly (1 step), Outgoing Shipments: Deliver goods directly (1 step) and Manufacture (1 step). You can choose other options that depend on your real situation.
Setting Routes On Product/Product Categories¶
There are two options to set up routes for products. One is to set up routes on each particular product and another is to set up routes on the product category then, all products belonging to this category will follow the category’s routes setup. If the routes are set up both on the product and the product category, the setup on the product will have higher priority.
On Product: Navigate to Inventory > Products, choose a specific Product and click to Inventory Tab, at the Routes field, select necessary routes for product.
On Product Category: Navigate to Inventory > Configuration > Product Categories, choose a specific product category, at the Routes field, select necessary routes for product category.
For simplicity and easily of management, you can only set routes for product categories. When you do that, please unactive the route on product. As mentioned at the beginning, we have four categories here: Subsidiary Material, Main Material Category, Semi-Finished Product Category, and Finished Product Category. These product categories are configured as below:
Set routes for Subsidiary Material Category
To transfer materials (screws) from the Material Warehouse to the Assembling Warehouse, we set up the routes including MTO and Assembling: Resupply Product from Material.
Set routes for Main Material Category
To transfer materials (wood) from the Material Warehouse to the Manufacturing Warehouse, we set up the routes including MTO and Manufacturing: Resupply Product from Material.
Note
To achieve auto supply materials in case the inventory is not enough for the manufacturing by creating Purchase Orders. We need to add the Buy route to the Routes field on Product/Product Category and set the provider in the Product form.
Set routes for Semi Finished Product category
To manufacture Semi Finished Product (table legs, table faces) and then send them to Assembling Warehouse, we set up the routes including MTO, Assembling: Supply Product From Manufacturing, Manufacture.
Set routes for Finished Product category
To manufacture Finished Product (table), we set up the routes including Manufacture.
Note
To be able set routes on product category, the route must be set applicable on Product Categries, refer to the articles How to understand pull and push rules in supply routes.
If you want to achieve auto-creating a Manufacturing Order after Sale Order Confirmation, we need to set the MTO route for the Route field on Product/Product Category, refer to Make-to-Order (MTO) production planning.
Configuration the Manufacturing Leadtime¶
In fact, estimating manufacture time helps to make the manufacturing plan exactly and avoid manufacturing late. This can be achieved through Manufacturing lead time that setup on product form and Security Lead time of Manufacturing setting. In our case, we do configuration for the semi-finished product with a Manufacturing lead time of 10 days, and a Security Lead time of 2 days.
Set Manufacturing lead time
Security Lead time
Performing the manufacturing¶
Now, we will create a table maufacture order and see wheather the semi product maufacture orders (table face, table leg) are auto generated or not. Beside that, we expect that the material (Screw) is auto transfer from Material ware house to Assembling Warehouse and the Semi Finished Product (Table Face and Table Leg) is auto transfer from Manufacturing ware house to Assembling Warehouse (in this case, the semi-finished products’ inventory number is equal to 0).
Otherwises, we will see the semi-finished product’s Mannufacturing Orders and the transfers were auto-generated.
Semi-finished product’s Mannufacturing Orders
You can check the Scheduled Date of the semi-finished product’s Manufacturing Orders (Table Face, Table Legs), it will be automatically calculated based on the setup of the manufacturing lead time for semi-finished products and a security Lead time previously.
To help the user easier to planning or adjust the planning, you can track manufacturing orders through gannt view. In the gannt view, the user can easily to aware of the manufacturing order’s level and make plan to them. Navigate to Manufacturing > Operations > Manufacturing Orders, choose the Gantt view.
You can see the related manufacturing order and their level. You also can re-plan the time to start them by dragging the gantt.
Transfers
For warehouse keeper can keep tracking transfers, reveive or delivery goods effectively, navigate to Inventory Menu, group Opreration Types by WareHouse, then we can select Receipts or Delivery Orders to see all of transfer that we need to handle.
To find the specific manufacturing order’s transfers, we can use the Source Document filter with the value which is the manufacturing order’s name.
After manufature orders and transfers are generated, we can confirm transfer and done manufacture order by order. Refer more details at manage manufacturing process