DYNAMIC 3i MANUFACTURING - GETTING STARTED

The following document assumes that DYNAMIC 3i Distribution and Financial applications are currently being utilized and that other overall system parameters such as Branches, Currencies, and G/L Chart of Accounts have already been defined.

Note.  The manufacturing modules do not work in conjunction with Average Costing. 
The costing method chosen MUST be Standard or Actual FIFO (First In First Out), LIFO (Last In First Out).
Actual costing is Beta on version. 3.1

The costing method is set in the Global System Flags Maintenance – GB2800.  Located under the Global, System Administration, Maintenances sub menu
 
Selecting ‘FIFO’, ‘LIFO’ buttons will set the system to use actual costing based upon a FIFO (First in First Out) or LIFO (Last in First Out) inventory practices.
 
Example of ‘FIFO’: If  we receive 10 units @ $10 and 10 units @ $20 and then ship 5 units, it will ship 5 units at $10 because it was received first
Example of ‘LIFO’: If  we receive 10 units @ $10 and 10 units @ $20 and then ship 5 units,  it will ship 5 uni
 
Note. In the case of FIFO or LIFO and the use of the manufacturing modules, you cannot have the sub jobs confirm flag set under the manufacturing flags.  The reason is to force capture of material actual costs.

In order to use DYNAMIC 3i Manufacturing you must have the basic prerequisite definitions as in the following steps:

1)     Products – These are defined in Product Master Maintenance – IN0100 within the inventory module maintenances.

2)     Stock – These are defined in the Stock Master Maintenance – IN0200 also under the inventory module
 
3)     Calendar – This is defined in the Calendar File Maintenance – GB1400 within the Structures and Routings module maintenances.
 
4)     Work Centres – These are defined in the Work Centre Maintenance – SR0100 within the Structures and Routings module maintenances.
 
5)     Routing File – These are defined in the Routing File Maintenance – SR0300 within the Structures and Routings module maintenances
 
6)     Bill of Material or Structure – These are defined in the Structure File Maintenance – SR0500 within the Structures and Routings module maintenances.

Step1) Products – IN0100

The Products and stock definitions mentioned above are the exact same defined and used within the DYNAMIC 3i Inventories module. 
 
When implementing DYNAMIC 3i Manufacturing, the inventory items stock record within the warehouse that is going to be used for manufacturing will have to be looked at in order to possibly have its product type changed.  Inventory items must be defined as being either ‘Finished Good’, ‘Assembly’ or ‘Fabricated Item’.  This is done by the definition of the product type within the Stock File Maintenance.
 
Step 2) Stock – IN0200

Finished Goods / Fabricated item explained.
 
If the item were a finished good then it would be set to a product type ‘5’ – Finished good.  This means it is a top-level item in the overall Bill of Material - (BOM) or structure of the item and is made up of other components or fabricated products.
 
If the item or component also holds its own Bill of Material – (BOM) then it must be defined as a product type ‘1’ – Assembly or ‘2’ - Fabricated item.  These item types can be used as components in the Structure File detail entry where as product type ‘5’, Finished Good cannot.
 
Step 3) Calendar – GB1400
 
As DYNAMIC 3i is very date sensitive and deals with production cycles then a calendar must be defined to it in order to define working and non working days.  The work centres or production centers set-up next utilize this calendar in order to schedule jobs as to the working and non-working days.
 
Step 4) Work Centre – SR0100

The primary purpose of the Production Work Centre is to define the labour costs and capacities of a machine, a piece of equipment or perhaps a department, which contains a group of machines.  It is defined as a place in which work is done.   It also holds the General Ledger Accounts for labour postings when using DYNAMIC 3i Manufacturing.

Step 5) Routing File – SR1200
 
The routing file maintenance considers the labour requirements in the sequence in which the product is manufactured and the work centre at which the operations are performed. The time for each operation is then utilized during the scheduling process.  Standard operations can optionally be set-up but are not required.

Step 6) Structure File Maintenance – SR0500

The structure definition defines the product in a hierarchical parent / component bill of material.  Structures can have a revision number.  Past and future changes are tracked using this revision number.   It also has the ability to effect component changes. The system automatically uses or ceases to use a part according to the start / stop date.  Extensive comments/instructions can be entered to each level of the structure.
 
Manufacturing Transaction Cycle:
 
The best way to learn how to use DYNAMIC 3i is to actually use it for simple day-to-day Manufacturing cycle transactions.  In the following steps It is encouraged that the application help be utilized for the specific application.
 
Lets look at the steps required to do some basic Manufacturing transactions:
 
Create a job for a finished good.
Confirm Material usage against the job.
Confirm Labour usage against the job
Confirm the job.
 
Create a job:
 
To create a job in DYNAMIC 3i the Job Entry – PC0100 is used.   This is found under the Manufacturing, Production Control, Job Processing sub menu.  Upon entry you define the warehouse and the product that you wish to enter a job for. The product must be a manufactured item as defined in step 2 above.  The application will then perform a miniature Manufacturing Resource Planning (MRP) analysis (displayed for information on the application).  You may then enter the quantity required and then either the Start-date or Stop-date (Due date).  The application will calculate the other.   It will then generate and display the job number with an option to view Critical Materials or Work Centres if analysis deems any of these is a concern.  You may then save the record upon which the job number is actually created into DYNAMIC 3i.
 
Confirm Material Usage:

After the job is entered then it must be printed in order to have material usage recorded against it.   This is done by the Production Order Print – PC2100 found under the Production Control, Work Order and Listings sub menu.
Job Material usage can be done either manually or automatically.  The Job Confirmation are found under the Manufacturing, Production Control, Material Confirmation sub menu

Manual Material Usage – PC3100 relieves inventory based upon actual usage per the component.  Upon entry the job is queried upon and then the usage of the detail components entered against in the detail portion of the application.

Automatic Material Usage – PC3200 relieves the inventory levels based upon the Bill of Material/Structure and standard quantities required.  It does exactly the same thing as if you used manual material usage (above) and entered each detail line for the quantity required displayed.

Note.  Both Manual AND automatic can be used together in order to do Material Usage.  Example.  A job could have Automatic Material Usage done and then use Manual Material Usage to record the over use of one specific material used.  By utilizing both Automatic and Manual in this case keying entry is reduced.

Confirm Labour Usage:

Job Labour usage is optional within DYNAMIC 3i.  Labour tracking is enabled in the Global System Flags – GB2800 under the manufacturing tab.  It can be set to None, Manual or Automatic.  Labour usage confirmations are found under the Manufacturing, Production Control, Labour Confirmation.  In order to do the Labour Usage Automatic Update – PC6100, the DYNAMIC 3i Time And Attendance (TA) module must be used.  If this module is not being used and labour is being tracked then Labour Usage must be done manual through Usage Entry – PC4100.

Upon entry the employee is queried upon and then the times and jobs, sub jobs and operations worked upon entered.

Confirm the Job:

Job Confirmation is the final step in the DYNAMIC 3i Job cycle.   Job Confirmation can also be done manually or automatically.  The confirmations are found under the Manufacturing, Production Control, Job / Sub-Job Confirmation sub menu.

Manual Job Confirmation – PC5100 allows the job / sub to be confirmed using information that deviates from the standard in some way. The amount of labour time and materials must first have been entered into Labour Usage Entry – PC4100 and Material Usage Entry – PC3100 (or Automatic Material Usage - PC3200) respectively.   Manual Job Confirmation – PC5100 is also useful when the item is deemed as an inventory second or is not going directly into inventory but is actually being utilized on another job.   A provision to transfer the quantity to the other job is provided to do this.

Automatic Job Confirmation – PC5200 allows for what is known as ‘Back-Flushing’.  Upon entry the job being confirmed is queried upon and then the total quantity of the item produced entered.  The application then automatically does ALL of the material usage and relieves inventory at the standard quantities required (based upon the Bill of Material / Structure definition) for entered quantity.  It also puts into stock the quantity entered of the item the job was for.  Using Automatic Job Confirmation – PC5200 assumes the stock to be moved into inventory as Prime stock.

Lets look at some more involved manufacturing analysis.

- Create forecasted demand of an item to DYNAMIC 3i.
- Analyze the overall demand placed on the system (Manufacturing Resource Planning – MRP).
- Inquiry as to the suggestions made by the system analysis (Master Production Schedule – MPS).
- Extract system suggestions into the procurement of the component raw material by way of DYNAMIC 3i purchasing and actual job creation to manufacture the fabricated or finished goods.

Create forecasted demand:

Within DYNAMIC 3i forecasts of either sales or production can be done in order to place demand on the system.  These forecasts can be posted to the system as either real data or simulated data so as to analyze demand for ‘What if’ scenarios.

Sales forecasts are forecasts of what MAY be required in order to satisfy any sales demands.

Production forecasts are presented to the system, as this quantity WILL be manufactured.

Forecasts can be entered for yearly (broken down into month) or weekly.  These entries are found under the Forecasting And Planning, Forecasting And Planning, Forecast Data Entry sub menu.

To create forecasted demand a forecast calendar for the warehouse must be defined.  Upon entry and query of a warehouse in any of the forecast data entries you will be asked to create a forecast unless one already exists.  If a forecast already exists then the application will display the appropriate dates available.

Yearly Sales – PP0100 is the simplest to use for your first set of forecast entry / analysis.

Upon entry the warehouse is queried and then the product that is being forecasted entered.  The quantities (in this case broken down into monthly buckets) are entered based upon the date being displayed as being the due date of the qty required.  Example for 30-APR-08 I expect to need 250 of item ‘A’ so 250 would be entered beside date.

After any entry or update, forecasted data it must be posted to the system in order to allow the Manufacturing Resource Planning  (MRP) analyze it.  This is done by way of the Plan – Master Schedule Posting – PP1300.  It is found under the Forecasting And Planning, Forecasting And Planning sub menu.  It is by this application that the data in the forecast table can be presented to the system as ‘Real’ or ‘Simulated’ data.  Entering anything other then an ‘R’ in the 2 character Run type, will generate and present the forecasts to the system as the code entered. Example: Think of real as LIVE production and anything else as a TEST environment.  Entering ‘S’ will create the forecasts as simulated data for analysis and will not harm any real data already existing.  Entering ‘R’ will post to actual LIVE production data for analysis.

Analyze the Overall Demand:

In DYNAMIC 3i the Manufacturing Resource Planning (MRP) is done by the Requirements Explosion – RP0100.  This application is found under the Manufacturing, Requirements Planning, Updates sub menu.  Upon entry you decide what set of data is to be analyzed by entering the ‘Run Type’.  As discussed above it is here that the system will either analyze Real posted data for a simulated set of posted data.  Either way, the system analyzes the demand placed upon the manufacturing system.  It compares material and/or labour requirements for real and/or simulated data to available inventoried quantities and manpower.   It also automatically takes into account the current inventory levels, purchases of raw material coming into the system and current jobs that may be creating finished/fabricated goods.

When the requirement explosion is run a series of suggestions are created in the Production Planning module (PP).  These suggestions can be viewed along with all requirements in the Master Production Schedule - PP2100 on a product detail level.

Note.  These suggestions are valid for the state at which the system was in at the time it was analyzed by the Requirement Explosion – RP0100.

System Analysis (Master Production Schedule – MPS):

The Master Production Schedule is where ALL suggestions and posted requirements can be seen on an item level detail.  The Master Production Schedule Maintenance – PP2100 is found under the Manufacturing, Forecast And Planning, Master Schedule sub menu.  As with the forecasts and requirements explosion the Master Production Schedule can be queried upon to display Real of Simulated data.  Upon entry the data that you wish to see is entered by way of the Run type entered.  Entering ‘R’ will display LIVE production data where as entering anything else will look for the associated entered code of simulated data.  The warehouse and product is then queried upon.

The detail display of this application will show all of the requirements on the right hand side of the screen and then the actual orders, purchase orders, jobs, transfers and any suggested ones there of, in order to meet the demand required to its opposing right hand screen requirement.

Updates can be done directly on the Master Production Schedule – PP2100.  Quantities and dates can be modified and saved.  Note however the Requirements Explosion should be run again in order to allow the system to re-evaluate itself after any changes are done.

Extracts:

To complete the cycle the suggestions and data on the Master Production Schedule – PP2100 can be extracted into its required modules by one of three extract updates.  These updates/extracts are found under the Manufacturing, Requirements Planning, Updates sub menu.

Purchase Requirements Report / Extract – RP1200 extracts all suggested purchase orders generated by the system into the purchasing module for procurement of raw material to be used in the manufacturing process.

Inter-Warehouse Transfer Report / Extract – RP2000 will create actual Inter-warehouse transfers into the respective warehouses required in order to move inventory levels around to meet demand.  This is only if the Multi-Warehouse capabilities of DYNMAIC 3i are being utilized.

Planned Orders Due for Release – RP1700 will create actual jobs in the Production control module (PC) to manufacture the items.

For further information see also the Manufacturing Process on our web-site as well as the On-line Manufacturing Overview Webinar.
Note. Menu and screen dumps may be different on the overview in comparison to your release.  However, the system flow is the same