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WORK IN PROGRESS / JOB COSTING

Manufacturing the correct product at the correct time is essential to be able to supply the needs of the customer base. The ability to use historical trends to forecast the likely future demand is an essential part of production planning especially if long lead times are involved. These options give you control over all work in progress and eliminate delays while ensuring maximum efficiency. It is also useful to be able to invoice directly from the WIP module and avoid unnecessary Sales Order and Invoice creation.

Overview

Job Costing / Work in Progress is the recording of the labour and materials used in production and (repair) type work. SERENADE'S Work In Progress module addresses these requirements by allowing you to create a production plan and work to that or to base production on sales orders outstanding. The production plan can be based on the next 12 periods 'forecast demand' produced in the Sales Analysis from the last 36 periods of demand history and a formula. It will also allow small 'repair'/'one off' jobs to be processed. The plan may be used to create the job details and have the necessary material allocated. The full Materials Requirement Planning (when linked to the Bills of Material) has the ability to check stock holdings and minimum stock levels for products and components and recommend/create the necessary WIP jobs and 'potential' purchase orders as necessary and to ensure that components are available when required. At production time the system can check the components of a production job (or selection of jobs) to ensure that the stock is available and time is not wasted in non-productive partial operations

Features
  • Production plan maintenance
  • Full Material Requirement Planning (allowing for stock of sub-assemblies and existing Purchase orders).
  • Ability for the MRP to produce WIP jobs to manufacture sub-assemblies or potential purchase orders. Both of these allowing for the lead time to produce or purchase stock.
  • Job creation from the production plan
  • Jobs may be subdivided in to separate tasks that may be costed separately
  • Allocation of materials when WIP jobs created
  • Jobs costed from components for job costs and sales value
  • Bulk or individual issue of materials to jobs
  • Issue of labour time to jobs and to the payroll automatically
  • Purchase Ordering of special non-stocked items to jobs that do not have to go via the Stock/Inventory module.
  • Quotations may be produced and costed and converted in to job when accepted
  • Jobs have extensive text capability to supply production instructions
  • Variance reports on finished jobs
  • Free format job sheets (as far as possible)
  • Machine utilisation and efficiency reports
  • Operator may record job on/off on factory floor as well as product wastage
  • Partial completion of jobs allows finished product to be placed in stock ready for despatch and invoicing while the job is still in production.
  • Completed jobs may be invoiced directly to the customer
  • Serially tracked components are recorded on to a job and are recorded as being used on the final (serially numbered) item.
Materials Requirement Plan

This plan is used to check the levels of stock and to suggest/place 'potential' purchase orders and WIP jobs to make sub-assemblies. The materials requirement process may include:

  • The production plan
  • Sales orders
  • Purchase orders
  • Existing WIP production for stock
  • Existing WIP required parts

The process considers:

  • Existing stock levels
  • Minimum stock settings
  • Lead times for production
  • Lead times for purchasing materials
  • Existing purchase orders

The process will:

  • Use Bills of Material to obtain the components of an assembly
  • Check the stock levels of the components and (if necessary) create requirements for the components dated for the required date plus the lead time.
  • Suggest rescheduling purchase orders that exist but will be delivered too late
  • Create 'Potential' purchase orders for raw materials
  • Create WIP jobs for sub-assemblies
Specials/Repairs

If you make special items to order or do repair/warranty jobs you may start a job without using the Production Plan, and you may allocate material to it as necessary without using the Bills of Material. This job can also be charged directly to a customer.

Made to Order

Certain stock items may be indicated as 'made to order'. When one of these is selected as an order item (in the order processing module) the system will automatically create a job to handle the production.

Text

The assembly text will be copied from the Bills of Material when the components are copied but you may amend this. In the case of 'Specials' (or prototypes) you may create the production instructions from scratch or use the bulk text when invoicing the job.

Issues/Returns

Physical issues of material to jobs can be reflected in the bulk issue process or you may enter the issues and returns individually. Completed production may be returned to stock as partial completions or as job ending returns.

Costing

Jobs may be costed as if the material was being sold or may be at cost plus and uplift or may be set as a fixed charge. When material is issued to a job the sales value (sales price) costs are automatically calculated and accumulated for the job.

Variances

If a job is created from a quotation the originally specified components and their costs are compared with what was actually issued to produce a variance report.

 

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Serrata Systems & Software Limited
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