WORK ORDERS

WORK ORDERS OVERVIEW

Actual manufacturing takes place in the Work Orders module. Work orders are generated automatically from either sales orders or estimates, can be generated by MRP or are entered manually.

Work orders can be for specific customers or for stock.  Work orders can have multiple start and finish dates, or a program is available which converts each set of dates into a separate work order.

All work orders go through the following sequence of events although not all steps are necessary for all companies.

ENTER WORK ORDERS

Work orders are manually created or edited through this program.  Start and finish dates are assigned, the order is designated for a customer or for stock, any special instructions are provided, and estimated costs (based on current standard costs) are calculated.  As production occurs, actual costs are posted to this screen for comparison with estimated costs.

ENTER WORK ORDER ROUTINGS

The parent product’s routing from the Routings module is copied into the work order routing file when the work order is created.  The work order routing can be modified for this one order without affecting the item's standard routing.  If no standard routing exits, you can enter a work order routing from scratch.  Any changes made to the routing will be reflected in the cost rollup performed in the work order entry screen.  As production occurs, actual labor hours are posted to this file for comparison with estimated hours.  Once the work order routing is created, a backlog of labor hours is created against each applicable work center.  A work order routing is not mandatory in order to use Work  Orders.

ENTER WORK ORDER BILLS OF MATERIAL

The parent product’s bill of material from the Bills of Material module is copied into a work order bill of material file.  Components may be modified, deleted, or added for this one order without affecting the standard bill of material.  This feature is ideal for custom manufacturing where products are subject to options.  If there is no bill of material, you may enter one from scratch.  As materials are issued to or purchased for the work order, they are posted to this file for comparison with estimated quantities.  A work order bill of material is not mandatory in order to use work orders.

RELEASE WORK ORDERS

When work orders are ready for production to begin, they are released through this program, which creates an actual start date in the work order file and produces an optional shortage report.  If not needed, this step can be skipped by specifying in SD-B  Work  Orders Defaults that all work orders be released when first entered.

PRINT TRAVELERS & PICK LISTS

A shop traveler may be printed at any time.  Each traveler consists of a header, work order schedule, job schedule, routing, and bill of materials.  Text and graphical print formats are available.  A pick list can be printed for use in pulling components from stock.

PRINT LABOR CARDS/LABELS

The system produces two documents for recording daily labor: a 3 x 5 labor ticket, or a 1x 3-1/2 label which can be affixed to a daily time card.  Collecting labor is not a requirement for using the work order system.  The Data Collection module provides an alternative means of collecting labor in which the employees can use the computer as a time clock and report their own labor directly via bar code or keypad date entry.

ENTER LABOR

Labor and setup are recorded so that work orders can be costed at either actual rates from the payroll file or standard rates from the work centers.  Fixed and variable overhead can be specified to be costed as a percentage of labor or as a fixed hourly rate.  Labor can be entered via WO-M  Batch Labor Entry, WO-F  Enter Labor, or the Data Collection module.

ISSUE MATERIALS

Materials may be issued to work orders from stock, either individually or as complete sets of the work order bill of material. WO-G  Issue Materials updates the work order header and work order bill of materials files so that real time work order status is available on the screen and via reports.

ENTER MISC/EXTRA COSTS

If you are using the Estimating module and you have specified miscellaneous costs against specific routing sequences (such as for tooling) or extra charges (for items such as engineering, packaging, etc.) within your estimate, this program provides the means of entering actual miscellaneous and extra costs and descriptions directly to the work order.

ENTER FINISHED PRODUCTION

Finished goods or subassemblies are received into stock so that they are available for shipment or for use in other assemblies.  Partial completions can be entered.  Finished goods can be entered into inventory at standard cost or actual cost, which is then used as the cost of goods sold or a cost to be rolled up into the next level assembly.

CLOSE/CANCEL ORDERS

Completed work orders are formally closed so that no further transactions can be conducted.  Eventually closed orders will be moved to the archive files using SM-J-B Archive Work Orders.  You can also use this program to cancel work orders.

WORK ORDER REPORTS

A variety of reports help track and monitor the manufacturing process.  Work order status may be tracked through the Work Order Status report, and work orders may be listed and prioritized in the Work Order Schedule.  The Work Center Backlog report provides a prioritized listing of all remaining routing sequences for each work center.  A dollar projection of estimated shipments is made through the Projected Shipments report, and direct labor for each employee may be listed for review and optionally posted to Payroll via WO-L-E Print/Post Labor to Payroll.

The Work  Orders module is designed to work equally well for job shops, make-to-inventory manufacturers, and custom (make-to-order) manufacturers.

If your products are subject to options, the Features & Options module allows various product options to be selected from windows within order entry.  These options are automatically passed over to work orders via SO-N  Convert Sales Orders to Work Orders, thereby creating custom bills of materials on-the-fly.