Understanding Product Data Entry for Process Manufacturing
You use the Enter/Change Process program (P3003) to enter a process. You define a process item with ingredient relationships. Relationships also determine information about co-products, by-products, intermediates, and substitutions. You also enter batch information, batch quantity and unit of measure for the process.
After you enter a process, you must enter the process operations. Operations define the work centers and labor standards that are required to manufacture the process item.
To enter the process operations, you must provide:
Work center and operation sequence for the process.
Hours for any machine, labor, setup, move, and queue time that you might incur.
For operations that you set up as outside operations, you must specify a supplier and indicate that a purchase order is required.
If you are using activity-based costing, you can enter an activity code for each operation sequence to indicate how you want the system to account for the operation. To activate the Activity Code field, you must select activity-based costing in the Advanced Cost Accounting Constants program (P1609).
After you define operations for each process, you must enter the ingredients. These ingredients are the raw materials or items that are combined during operations to produce the process item.
When entering process ingredients you can provide:
Ingredients for each operation.
Minimum and maximum grade or potency ranges that apply to the ingredients.
Substitute ingredients that the system uses when the primary ingredient is not available.
Percentages of applicable ingredients that the system uses.
When entering grade and potency information, you can only enter grade or potency values for an ingredient, but not both. You can only enter grade or potency information for items that are defined as lot-controlled.
You can enter substitute ingredients for components within the parent item. You can use substitute items if you encounter quality issues, inventory shortages, or supplier problems with the original component. The system highlights an ingredient's item description to indicate a substitution. Specify ingredient substitution for a specific process. Use item cross references for global substitutions.
You can enter as many ingredients in the form of percentages as necessary, but the sum of the percentages must equal 100 percent. The system uses the batch size to calculate percentages of the process for each ingredient. You should verify that each ingredient can convert to the process unit of measure, either by using the item unit of measure conversion or the standard unit of measure conversion.
You can enter production and cost information based on demand for a specified feature. You specify an issue type code that identifies how the system issues each component from stock. You identify how many days before or after the start of the process that a component is needed. You also identify the percentage of demand for a specified feature and the percentage that is used to calculate the cost of the feature.
Many process steps create multiple outputs. You can enter co-products, which are usually the main products that companies sell to customers, or by-products, which are produced as a residual item to the process steps.
Intermediates are products that are produced from ingredients in the process. Intermediates are not a finished product, but they do proceed to the next operation in the process. Intermediates enable you to track the quantity of output of any operation in a work center at a specific time. You can define intermediates, in different units of measure, by item or by quantity. You can set up one intermediate per operation, but you cannot define an intermediate for the last operation in the routing instruction.
Use the Where Used Update program (R30520) to change multiple processes. For example, you can use this program to replace an old ingredient with a new one. When you run this program, you can review the report to verify changes.
You can use this program to perform various types of mass updates:
Replace one ingredient with another.
Delete a process item.
Change effectivity dates for a process item.
Change the quantity per assembly value for a process item.
Change the issue type code.
Change the unit of measure.
Use data selection to specify the process items that you want to change. Use processing options to define the change. This program finds all occurrences of the item (as an ingredient) in the Bill of Material Master File table (F3002) and updates the process. You can also update an ingredient that has past or future effectivity dates.
You can run this program in either proof or final mode. In proof mode, the system generates a report of the proposed changes for review, but it does not update the data. In final mode, the system generates a report that lists the changes and updates the data according to the selected choices.
To make changes to a process and remove the old records, run the program twice. First, create the new records and then delete the old ones.
The system stores the changes in the Bill of Material Master File table. It does not automatically update the existing parts lists, MRP calculations, and costing information.
The program updates:
Low Level Code field in the Item Master table.
Net Change Flag field in the Item Branch File table (F4102).