Defining Work Centers

This chapter provides an overview of work centers and discusses how to:

• Define work centers.

• View work center where-used data.

• Copy work center information.

See Also

Understanding PeopleSoft Bills of Material and Routings

Understanding Work Centers

A work center can consist of one or more people and machines, and it can represent a logical grouping of machines, a department, or a cost center. You can assign each operation or task on a routing to a work center where the operation or task takes place. Additionally, you can assign resources (crews, machines, or tools) to each work center.

Prerequisites

Before you begin to fully use the work center functionality, complete these setup steps:

1. If you want to associate different resources to work centers, you must define the resources before creating and maintaining work centers.

2. If you want to maintain work center exceptions to the production calendar, then create alternate calendar codes and create the calendar for the alternate calendar code using the Calendar Code Definition page.

   You can associate a calendar code with each work center whose operating times differ from the production calendar defined for the business unit.

3. To define conversion codes by work center, as opposed to by task, set the business unit rate maintenance to By Work Center by using the Rate Maintenance/Defaulting group box on the MFG Business Unit Options page.

4. Define conversion codes and their associated labor, machine, and overhead rates or costs within PeopleSoft Cost Management.

   You can assign a conversion code and up to four conversion overhead codes to the work center.

5. Because you must associate a WIP inventory location with each work center, these inventory locations must be defined before adding work centers.

See Also

Defining Resources

Setting Up Manufacturing Business Unit Options

Defining the Cost Foundation for Makeable Items

Common Element Used in This Chapter

Defining Work Centers

To create and maintain work centers and their associated resources, conversion codes, text, locations, departments, and distribution types by business unit, use the Work Center Definition component (WORK_CENTERS). To define overhead rates, use the Overhead Rates component.

See PeopleSoft Enterprise Cost Management PeopleBook

If you have enabled PeopleSoft Workflow and when you add a new work center, or when you change any attribute in an existing work center, the system optionally sends the Workcenter Change workflow notification to the roles that you've defined, such as an engineering manager or cost accountant.

This section discusses how to:

1. Define work center attributes.

2. Define work center resources.

3. Define work center planning options.

4. Associate conversion codes with work centers.

5. Associate conversion overhead codes with work centers.

6. View work center where-used data.

See Also

Getting Started with PeopleSoft Manufacturing

Delivered Workflows for PeopleSoft Manufacturing

Pages Used to Define Work Centers

Defining Work Center Attributes

Access the Define Work Center - Definition page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Define Work Centers).

Before defining routings, you can define a master dictionary of tasks or jobs that can be performed at work centers.

Note. If you change the average daily hours and the run rates on routing operations are expressed in units-per-day, revisit all routing operations that use the work center and adjust the run rates accordingly.

Note. The Default Queue Time field and the Queue Time Unit field do not appear if you use PeopleSoft Supply Planning.

Work Center Calendar Code

When you associate a calendar code that is different from the current runtime calendar code—or when you associate a calendar code for the first time—the system optionally sends a workflow notification to selected roles that you have defined. This workflow notifies the role, such as a production control manager, that the calendar originally used for scheduling is not synchronized with the calendar code that is specified for the work center.

See Delivered Workflows for PeopleSoft Manufacturing.

Work Center WIP Location

You can select the WIP location to which material associated with the operation is delivered for use in production. This is also the WIP location from which material is consumed upon operation or assembly completion (if the component, production area, or item's issue method is set to Issue or Replenish.)

Note. If you use consigned components, you must define both an owned location and a non-owned location. Consigned components are consumed from a non-owned location but, once consumed, can only be returned to an owned location.

See Also

PeopleSoft Enterprise Cost Management 9.1 PeopleBook

Defining Calendar Codes

Defining Work Center Resources

Access the Resources page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Define Work Centers, Define Work Center, Resources).

Costing Resource Defaults

Although these are optional fields, the system uses the crew size and machine resources information when it calculates standard labor and machine costs for items in the standard cost calculations.

In some cases, the system also uses crew size and machine resources when it calculates the per unit cost of an item, as well as the earned labor and machine amounts in PeopleSoft Manufacturing. The system only uses crew size and machine resources in labor and machine cost calculations if the value of the labor and machine rate is defined as a rate per hour, rather than a rate per unit. If the value is per unit, it's expected to be factored in and the system doesn't include it in the calculation. However, if the rate is per hour, the system uses the crew size in the calculation.

The system only uses crew size and machine resources for runtime labor and machine calculations. Setup times, for example, are typically of fixed duration and amount. Therefore, it is assumed that you have already factored in crew size and machine resources when you define them.

To better understand an item's cost calculation and the earned labor cost calculations, consider these equations. For setup time operations, the item's cost calculation equation is:

(Setup labor or machine rate per hour) × (Setup time [in hours]) = Setup cost

(Setup cost) ÷ (Item's average order quantity) = Per unit setup cost

When calculating earned setup costs in PeopleSoft Manufacturing, the system calculates the setup cost for the production quantity. It does not divide by the average order quantity.

For runtime operation, the cost calculation equation differs, depending on whether the labor or machine rate is a rate per unit or rate per hour. If it's a rate per unit, then the applicable per unit item cost equation is the labor or machine rate per unit. To calculate the earned labor or machine run cost, the system uses this equation:

(Run labor or machine rate) × (Units completed) = Cost

If the labor or machine rate is a rate per hour, then the applicable per unit item cost equation is as follows:

To calculate the earned labor or machine run costs in production, the system multiplies the per unit cost by the quantity completed at the operation.

The system copies the resources to the task when you enter the work center for the task. It copies the resources to the routing when you specify the task for an operation, or, if you are not using tasks, when you specify the work center for the routing operation. If you choose not to define resources, you can enter the crew size and number of machines used in the work center here.

Resources Used on Work Centers

If you use PeopleSoft Supply Planning, you must enter at least one resource in the resource list (crew or machine) at each work center. PeopleSoft Supply Planning only uses the priority that you define on the routing.

Note. To specify a resource on a task or routing, first associate it with the work center in which the task or operation is performed.

Changing the resources for a work center does not change the resources for any routing operation that is using the work center. Furthermore, you cannot delete a work center resource if it is being used on a task or routing.

The system only copies primary resources when it copies routings to production.

Defining Work Center Planning Options

Access the Define Work Center - Planning Opts page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Define Work Centers, Define Work Center, Planning Opts).

Resource Class	Because work centers are modeled as aggregate resources in PeopleSoft Supply Planning, define each work center as either an aggregate resource by time or an aggregate resource by unit. Values are: Time: You can plan for all resources based on the amount of time available in the time bucket that you select. Unit: You can plan for all resources based on the number of units the resources can produce in a time bucket. The default resource class is Time.
Bucket Size	Enter the summation period, the period over which you are aggregating. Values are Daily, Weekly, and Monthly. The default is Weekly.
Allocation Strategy	Enter a value to specify how you plan to spread the time and unit over the bucket size. Values are Start, Finish, and Proportional. This determines whether if the task is stretched across two or more buckets—in its entirety—is placed in the first bucket, the last bucket, or spread proportionally across all buckets. The default is Proportional.
Availability %	Define a percentage of the total capacity time that the resource is available for use. You might take into consideration scheduled maintenance or include a buffer for unexpected repairs when you define the percentage. You can change the resource availability percentage for all the aggregate resources. The default is 100.
Ignore Violations	Select to prevent the solvers from analyzing and resolving capacity issues impacting the work center. When this check box is selected, capacity issues—although not recognized by the solvers—will appear in the PeopleSoft Supply Planning Violations workbench if they are before the capacity fence defined for the planning instance. By selecting the Ignore Violations check box on noncritical work centers, you enable the solvers to ignore these work centers and focus on critical work centers for capacity repair. Select this check box to generate what-if scenarios.
Continuous Scheduling	Select to complete the corresponding operation in a single run of continuous valid calendar time, with no gaps allowed between shifts. This field is used as a routing operation default.
Ignore Capacity	Select to prevent solvers from considering the corresponding operation as required capacity for the work center. This field is used as a routing operation default.

Capacity Multiplier/Units Set

This is used by the system to determine the available capacity on a work center. Because these sets are effective-dated, you can use the Capacity Multiplier/Units grid to vary the work center's available capacity over time.

If you define the work center as an aggregate resource by time, the system uses the capacity multiplier to represent the number of identical work centers that exist for scheduling purposes.

For example, suppose that you define a work center as an aggregate resource by time with weekly buckets, and it has a capacity multiplier of 2, with an effective date of March 5, 2005. Then, beginning on March 5, 2005, PeopleSoft Supply Planning treats this aggregate resource as two identical work centers that it can use simultaneously for jobs. If the work center has 40 hours of available calendar time in a weekly bucket, then the available capacity for the bucket, based on a capacity multiplier of 2, would be 80 hours total. PeopleSoft Supply Planning uses this capacity multiplier to determine the work center's available capacity until the next capacity multiplier becomes effective.

If you define the work center as an aggregate resource by unit, the system uses the capacity units to represent the number of units that can be produced on that work center in an entire bucket (assuming a calendar of 24 hours per day, seven days per week, during the entire bucket).

For example, suppose that you define a work center as an aggregate resource by unit with weekly buckets. If this resource has capacity units of 100 with an effective date of April 10, 2005, then, beginning on April 10, 2005, PeopleSoft Supply Planning treats this work center as being capable of producing 100 units per week (based on a calendar of 24 hours per day, seven days per week). The actual available capacity for this work center is then calculated by factoring in the actual production calendar during each weekly bucket. If the work center has 40 hours of available calendar time in a weekly bucket, then the available capacity for the bucket, based on a capacity unit of 100, would be (100 units × 40 hours per week) ÷ (24 hours per day × 7 days per week) = 24 units. PeopleSoft Supply Planning uses these capacity units to determine the work center's available capacity until the next capacity multiplier becomes effective.

Associating Conversion Codes to Work Centers

Access the Define Work Center - Conv Code page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Define Work Centers, Define Work Center, Conv Code).

Enter the conversion code that you want to associate with the work center.

Conversion Codes

The system copies conversion codes and their associated labor, machine, and overhead rates and costs into the item's routing when you assign the work center to a routing operation. The system uses the conversion codes to calculate the cost of the operation using the work center. Conversion costs are optional, but if you define them, the system can calculate the labor, machine, and overhead costs associated with manufactured items during cost roll-ups. When the routing is copied, the system uses PeopleSoft Manufacturing costs to calculate the earned labor, machine, and overhead costs that are added to the WIP inventory value when operation or end item completions are recorded.

Conversion Rates

The system displays the conversion rates from the Costing Conversion Rates page. The rates displayed are from the frozen conversion rate and costs that were updated during the last cost update and revaluation. When production costs are updated using a selected cost type and version, the system copies the conversion rates and conversion overhead rates—which are used to calculate the item cost—into a frozen conversion rate record. The system uses those frozen rates to calculate earned labor, machine, and overhead costs when end items are completed at operations or to stock.

Additionally, the system uses the rates to calculate the cost of end items scrapped during manufacturing. You must have a labor or machine rate or cost for each costing operation time type specified on the routing. For example, suppose that you enter a costing labor setup time on the routing. There must be a corresponding labor setup rate per hour for the system to calculate the operation cost and include it in the item's cost.

See Also

Defining the Cost Foundation for Makeable Items

Associating Conversion Overhead Codes to Work Centers

Access the Define Work Center - Conv Ovhd Codes page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Define Work Centers, Define Work Center, Conv Ovhd Codes).

Enter the overhead code that you want to associate with the work center. The system displays the overhead rates from the Conversion Ovhd Codes page. The rates appear from the frozen conversion overhead rates and costs that were updated during the last cost update and revaluation. When production costs are updated using a selected cost type and version, the system copies the conversion rates and conversion overhead rates—which are used to calculate the item costs—into a frozen conversion rate record. The system uses those frozen rates to calculate earned labor, machine, and overhead costs when end items are completed at operations or to stock. You can associate up to four codes with a work center.

Note. The system copies the overhead rates and costs into the item's routing when you assign the work center to a routing operation. The system uses these codes to calculate the cost of the operation that uses the work center.

See Also

Defining the Cost Foundation for Makeable Items

Creating Work Center Groups

To create and maintain work center groups, use the Work Center Groups (EN_WC_GRP) component.

PeopleSoft Manufacturing enables you to define work center groups. That way, in PeopleSoft Supply Planning you can analyze aggregate capacity and detail resource usage for a subset of work centers contained in a planning instance.

To create a work center group, all work centers must share the same:

• Allocation strategy

• Resource class

• Bucket size

Page Used to Create Work Center Groups

Defining Work Center Groups

Access the Work Center Groups page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Work Center Groups).

To define a work center group:

1. Enter a description of the new work center group.

2. Add the work centers to the group.

3. After you've added all the work centers, select the common allocation strategy, resource class, and planning bucket size.

4. Click Save to create the work center group.

Viewing Work Center Where-Used Data

Using the Review Work Center Where Used component, you can view the tasks, routings, and production that are associated with a selected work center. On all pages in this component, you can control the data and pages that you see by changing the Search field selection. Initially, the page automatically displays the choice that mirrors the page; for example, the value is initially Only Tasks for the Work Centers Used on Tasks page. You can change this to Search All or to search for Only Tasks, Only Routings, or Only Production.

If you select Select All after entering the business unit and work center, the system populates all pages in this group with data. If you select only the default, the system populates only the current page with data, after you click the Search button.

If you select something other than the default or Search All, you access the page that corresponds with your choice. For example, if you are on the Work Centers Used on Tasks page and you select Only Routings, you access the Work Centers Used on Routings page. Then, click the Search button to view the routings that are associated with a specific work center. You can change the selected options, which appear by default from the previous page, before you click Search.

This section discusses how to:

• View work centers used on tasks.

• View work centers used on routings.

• View work centers used in production.

Pages Used to View Work Center Where-Used Data

See Also

ENS1006 - Work Centers Where Used Report

Viewing Work Centers Used on Tasks

Access the Used on Tasks inquiry page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Review Work Center Where Used, Used on Tasks).

Select the Subcontracted check box if the task is a subcontracted operation.

Select the Count Point check box if the operation step is a count point. Count points enable you to record assembly completion information at preset operations. The default for this field comes from the Define Task - Definition page or the Routing Definition - Summary page.

Viewing Work Centers Used on Routings

Access the Used on Routings inquiry page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Review Work Center Where Used, Used on Routings).

Viewing Work Centers Used in Production

Access the Used in Production inquiry page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Review Work Center Where Used, Used in Production).

The system displays all production that uses the work center. It segregates production information by those items in a production area—using production IDs and the items that are managed by production schedules. In the case of production IDs, it displays the production IDs that have an operation that uses the work center. For all other production, the system displays the production area and the item ID in which it is produced. In both cases, it displays the operation sequence along with the operation's status, start date, start time, due date, and due time.

See Also

Defining Routing Operations

Copying Work Centers

Rather than entering new work centers from scratch, you can copy a work center and then make changes. Additionally, if another business unit's work centers have similar attributes, you can copy data from one business unit to another and then change the information for the specified business unit.

This section discusses how to:

• Copy work centers.

• Copy work center WIP locations.

Pages Used to Copy Work Centers

Copying Work Centers

Access the Copy Work Centers - Work Centers page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Copy Work Centers, Work Centers).

Target Defaults

Copy Attributes

You can copy the resources, text, and associated attachments from the source work center to the target work center. You can make the default that you want to overwrite an existing target work center overwrite work center with information from the source work center.

You can change the selections on an individual basis, including deselecting the Copy WC check box, if you decide not to copy the original work center.

If you select Leave Blank as the default work center in the page header, enter the work center codes for the target business unit. If the target work center already exists in the target business unit, and you select the Overwrite check box, the system deletes all existing target work center data and replaces it with the source work center data.

If the WIP inventory locations specified on the source work center do not exist in the target business unit—or if you are using different levels of locations in the two business units—enter the WIP locations for the target work centers on the Work Center WIP Locations page.

Note. If you copy the resource information along with the work center, the resources must already exist in the target business unit. If they do not exist, the system displays an error message and does not copy the work center.

Copying Work Center WIP Locations

Access the Copy Work Centers - Work Center WIP Locations page (Manufacturing Definitions, Resources and Routings, Tasks and Work Centers, Copy Work Centers, Work Center WIP Locations).

Owned Area and Non-Owned Area	Enter both the owned and the non-owned inventory storage areas. Specify all inventory locations if the target business unit is different from the source business unit. The system displays the number of storage levels, such as Lev 1 (level 1), Lev 2 (level 2), Lev 3 (level 3), and Lev 4 (level 4), defined for each storage area.
Save	The copy is completed when you click Save.

See Also

Structuring Inventory