CS PRODUCTION MODULE

CS WW v3.63

Tutorial
English Version

Indra Fajar Dirgantara

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Contents
CHAPTER 1 ...................................................................................................................................................................................... 1
I n t r o d u c t i o n ............................................................................................................................................................................. 1
CHAPTER 2 ...................................................................................................................................................................................... 2
P r e p a r a t i o n .............................................................................................................................................................................. 2
2.1 Terms Definition ............................................................................................................................................................. 2
2.2 General Master Data preparation ................................................................................................................................... 8
2.2.1 Calendar Setting ................................................................................................................................................... 8
2.2.2 Resources .......................................................................................................................................................... 10
2.2.3 Bill of materials ................................................................................................................................................... 13
2.2.4 Resource Routing ............................................................................................................................................... 17
2.3 Create a production order ..................................................................................................................................................... 22
CHAPTER 3 .................................................................................................................................................................................... 30
E x e c u t i o n ................................................................................................................................................................................. 30
3.1 Material Requirement Planning .................................................................................................................................... 30
3.1.1 Job order / made to order case example ............................................................................................................. 30
3.1.2 Mass production case example........................................................................................................................... 35
3.2 Resource Utilization ..................................................................................................................................................... 42
3.2.1 Create and edit resources in a production order ................................................................................................. 44
3.2.2 Re-sort Resource Usage .................................................................................................................................... 45
3.3 Production Planning ..................................................................................................................................................... 46
3.4 Production Costing ....................................................................................................................................................... 49
3.5 Reports ........................................................................................................................................................................ 52
3.5.1 System – Administration – Resources – Using.................................................................................................... 52
3.5.2 System – Administration – Resources – Overview .............................................................................................. 53
3.5.3 Master Data – Item – Print – Sets ....................................................................................................................... 53
3.5.4 Master Data – Item – Print – Part List ................................................................................................................. 54
3.5.5 Master Data – Item – Print – Production Part List................................................................................................ 54
3.5.6 Master Data – Item – Print – Set tree .................................................................................................................. 55
3.5.7 Master Data – Item – Print – In Which Set .......................................................................................................... 55
3.5.8 Add-On - Production – Resource Utilization ........................................................................................................ 56
3.5.9 Add-On – Statistic Module – Special Reports – Production – Material Usage ..................................................... 56
3.5.10 Add-On – Statistic Module – Special Reports – Production – Resource usage ................................................... 56
3.5.11 Add-On – Statistic Module – Special Reports – Production – Cost Planning ....................................................... 57
3.5.12 Add-On – Statistic Module – Special Reports – Production – Cost Actual ........................................................... 57
3.5.13 Add-On – Statistic Module – Special Reports – Production – Quantity of Resources .......................................... 58
3.5.14 Add-On – Statistic Module – Special Reports – Production - Serial Number labels ............................................. 58
3.5.15 Add-On – Statistic Module – Special Reports – Production - Production Qty Report ........................................... 59
3.5.16 Add-On – Statistic Module – Special Reports – Produciton - Production Profit Report ........................................ 59
3.5.17 Add-On – Statistic Module – Special Reports – Production – Production List ...................................................... 60
 CHAPTER 1
Introduction

CS Production module is designed for manufacturing companies to manage resources

(machines and people), materials, schedule and costing.

In general, the production module is divided into 2 major sections, the materials
management, and the resources planning.

Materials Resources Finished

Management Planning Products

Figure 1.100

Each of the sections will require different master data. All these data should be prepared
before running all the production module commands. Missing master data information
could cause a different suggestions from the system.

Requirement
This module should be supported by CS Warehouse Management System and CS
Material Requirement Planning Module. However, and independent implementation of
production planning module is also possible with some disabled features.

How to use this tutorial

This book contains many conceptual description of how to use CS Production Module,
therefore a basic knowledge of CS ERP Software philosophy is mandatory. The help
screen in every dialog window is one of the required reference in order to understand
each function completely.

Disclaimer
All features are available on version 3.6, coming soon features will be available in version
3.7. The content of this reference may change without prior notice due to routine update
and upgrade sequence.
This reference is not sold separately from the CS Production Module. All rights reserved.
Unauthorized duplicate copies of this reference is prohibited under the law of intelectual
proprietary rights.

Page 1 of 63
 CHAPTER 2
Preparation

2.1 Terms Definition

Production Planning
Production planning in CS Production Module is a set of administrative actions which
involves making sure that sufficient raw materials, people, machines are available at
the defined time schedule in order to produce finished goods products according to
the delivery schedule.

CS Production Module covers:

a. Material Requirement Planning
The system will help to calculate what material, how many, and when it is required
based on the defined orders deadline.

b. Resources Scheduling and Routing Planning

The system will help to determine which resources start when and for how long
and what is the next resources needs, and how is the utilization of the resources.

c. Production costing
The system will calculate the finished goods cost based on materials usage.

Methods
CS Production module support several methods in the production planning and lean
manufacturing concept:

a. Forward Scheduling
Forward scheduling is planning the tasks from the date resources become
available to determine the shipping date or the due date
Production Delivery
Customer Material Production
finished date to
Order Date Arrived Start Date
date customer

Figure 2.1.100

The customer due date can be different to the delivery/shipping date.

b. Backward Production Scheduling.

Backward scheduling is planning the tasks from the due date or required-by date
to determine the start date and/or any changes in capacity required

In backward production scheduling, there is a Just in Time (JIT) option available. The
JIT option will make sure that all related resources (material, people, and machine)
are scheduled to be finished or available at the exact defined time based on the
customer due date requirement not earlier nor later. See figure 2.1.101.

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 Customer
Finished Goods Production Material Purchase Order
Required Due
availability date Start Date availability date Date
Date

Figure 2.1.101

The customer due date can be the delivery/shipping date.

Manufacture In House item

A finished goods, or a semi-finished goods is a manufacture item. Though the
manufacturing process can be done in-house or in an external party. Manufacture in
house items has components / part list / materials.
To set up this switch: Master Data – Item – Properties – Manufacture In house.

Bill of materials
Bill of materials is a list of the raw materials, sub-assemblies, intermediate assemblies,
sub-components, parts and the quantities of each needed to manufacture an end
product. See Chapter 2.2.3 for more details.

Figure 2.1.102

“Delivery time” definition

There are two kinds of delivery time concept in CS Production module:
a. In case of Materials item: Delivery time means how long it needs for the supplier
to deliver the materials to our warehouse
b. In case of Semi-Finished goods or finished goods: Delivery time means how long
it needs for the production department to produce the goods.

In both kind, there are two possible options:

a. Delivery time [Base]: The required time to deliver or to produce the item without
quantity dependence.

Case Example,
A painting process in a machine needs 3 hours of process doesn’t matter how many quantity of the
item inside the machine.

b. Delivery time [Qty]: The required time to deliver or to produce the item with quantity
dependence.

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 Case Example,
An assembling process time of a car is 8 hours per car.

c. Mixed possibilities
If both delivery time [base] and delivery time [qty] is defined following formula will
be applied:

Delivery time formula:

Total delivery time = Delivery time Base + (Delivery time Qty x quantity of the item)

Case example,
A car production time is in any case needs a 3 days preparation, and additional 8 hour per car.

Entry In the delivery time [base] = 3 days, and in the delivery time [qty] = 8 hours.
So when a production order of 10 car is created, the total delivery time will be:
3 days + (8 hours x 10 car) = 104 hours (assuming 1 day = 8 workhours)

“Availability” definition
In some production process, there is a possibility that a material should be available
in the warehouse several hours/days/week before or after the production start.

Case Example:
The material 1 should be arrived in the warehouse at least 1 days before the production start, but
material 2 should be arrived 5 days before the production start for preliminary inspection.

Material 1 -1 day Assembling

Process Starts
Material 2 -5 days
28.10.2015
Figure 2.1.103

Order Related Purchase switch definition

In a job order / made to order production method, each customer order will create a
production order automatically and also will create an automatic material request for
purchase. However, user can define which part of the production items should be
order related.

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 Raw Material 1
Semi Finished [Order Related off]
Goods 1
[Order Related on] Raw Material 2
Finished Goods
[Order Related on] [Order Related off]
Raw Material 3
[Order Related on]

Figure 2.1.104

In figure 2.1.104, the system will create an automatic production order for “Finished
Goods” and “Semi-Finished Goods 1”. The system will create automatic Purchase
Order only for “Raw Material 3”.

To set up this switch: Master Data – Item – Purchase Tab – Order Related Purchase

Figure 2.1.105

Process Routing definition

Each finished goods will go through several processes before it is delivered. The
process routing defines what process, which resources used, how long the process
will take, what is the previous process and what is the next process.

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 Figure 2.1.106

Production Orders
Production order is a document that indicates how many finished products have to be
produced, when, where, with what materials, and in which resources. See Chapter
3.1.2 for more details.

Production Master Schedule

Production master schedule is a complete overview that describe how many
productions order are in queue, when they should be finished, what are the materials
needed, when are the materials should be available, where the productions took
place, how long the productions will take, and what is the current status of the
production.

Figure 2.1.107
Add-On – Production – Production Overview
Add-On-Production-Production Plan (New)

Calculating a resource usage time

In CS production module, the system will calculate the resource usage time as follow:

Page 6 of 63
End time =
Start time + lag time + preparation time + (usage duration x resource max usage x resource productivity factor) + <non-
working time>

Case Example:
A resource start to work at 08:00 AM, and the resource need 5 minutes warming up preparation, and
there is no lag time from previous process. The resource maximum usage 100%, and productivity factor
is 100%. The resource has to produce 100 pcs of goods, with 1 minute duration per each. There is 15
minutes non-working time meanwhile.

The end time of this resources will be:

End time = 08:00 + 0 minutes + 5 minute+ (100 pcs x 1 minute x 100% x 100%) + 15 minute
= 08:00 + 120 minutes = 10:00 AM
Total 120 Minutes
Preparation time : Usage duration : Non working time :
Start 08:00 AM Lag time : 0 Minute End Time:
5 Minutes 100 Minutes 15 Minutes
10:00 AM

Figure 2.1.108

Maximum Usage (%)

Maximum usage is how many production tasks can be done by a resource at the same
time.

Example: A machine can print 5 different items at the same time in a chained
conveyor. Thus, the Maximum Usage is 500%

Slot 1 : Item 1

Slot 2 : Item 2

Slot 3 : Item 3

Slot 4 : Item 4

Slot 5 : Item 5

Figure 2.1.109

Productivity Factor (%)

Productivity is a measure of the efficiency of a person, machine, and other resources.
How much the average output in a certain period of a resource compared to the other
similar resource.

Resource Utilization
The resource utilization is resource capacity divided by the production task assigned
to it.

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 A resource is capable of doing 5 production task (500% maximum usage) at the same
time in a chained slot. But only one task is assigned to this resource. That means this
resource utilization is only 20%.

Slot 1 : Task 1

Slot 2 : Empty

Slot 3 : Empty

Slot 4 : Empty

Slot 5 : Empty

Figure 2.1.110

2.2 General Master Data preparation

What are the master data required to use production module completely?
Items
(Finished goods,
Semi-Finished
goods, Raw
materials)

General Calendar
Config Setting

Production
Module

Resources
Resources
Routing

Bill of
materials

Figure 2.2.100

Red Color = Mandatory master data for minimum production module usage.

2.2.1 Calendar Setting

Calendar is a definition of workday/non workday, worktime/non worktime for
each resources.

Go to System->Administration->Calendar

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 Figure 2.2.1.100

Non Man-days
A weekly rest time/holiday for the resources.

Holidays
The standard holiday

Other Holidays
Additional holidays

Non-Working time
Additional periodic holidays

Daily worktime
Daily productive time

The system will automatically skip the non-productive time/days in the

resource scheduling.

In figure 2.2.1.100. A factory work 6 days a week. In a year only have 3

holidays, 1 day in New Year and 2 days in Christmas. The daily working shift is
08:00 – 17:00 with an hour break between 12:00 until 13:00.
08:00 09:00 10:00 11:00 12:00 Break 13:00 14:00 15:00 16:00 17:00

Multiple break time is also possible, take a look figure 2.2.1.101

08:00 09:00 10:00 Break 11:00 12:00 Break 13:00 14:00 15:00 Break 16:00 17:00

Page 9 of 63
 Figure 2.2.1.101

If there are different working time for each resources then, more than one
different calendars should be registered here. For example, if the working group
A work in the morning and working group B work in the night (figure 2.2.1.102)

Figure 2.2.1.102

2.2.2 Resources
Resources can be a worker, a machine, a group of workers, or a group of
machines.

Worker /
Group of
Workers

Resources
Machine /
group of
similar
machines

Figure 2.2.100

Go to System->Administration->Resources

Page 10 of 63
 Figure 2.2.2.101

Matchcode
Resources searching code

Group
Group is used for organizing equivalent resources

Figure 2.2.2.102

Selections
Resources can be divided into different allocations. This organization is
completely independent of the group organization by the field 'group'. In addition
resources can belong to several allocations here.

The allocations are represented by individual indications (letters, numbers or

special characters).

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 [Resource Group] [Resource Group]
Cutting Machine Printing Machine

[Resource] [Resource] [Selection]

MCH1 PRN1 Location A

[Resource] [Resource] [Selection]

MCH2 PRN2 Location B
Figure 2.2.2.103

Resource MCH1 and PRN1 is in the same location A.

Figure 2.2.2.104

Description
The description of the resource can be registered here

Calendar
This resource can have a different calendar than the default calendar. If there is
no entry, the ~default calendar will be used.

Max Using (%)

This is resource utilization percentage. Default value is 100%.

Case Example:
A working group with 3 members has similar working capacity can be defined as 1 resource.
The work procedures are implemented by in each case by a member of the group. Thus the
resources can implement 3 work procedures at the same time. Therefore a maximum using of
300% is allowed.

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 Resources 2
100%
maximum
Resources 1 usage Resources 3
100% 100%
maximum maximum
usage usage
Can be Combined
to
1 RESOURCE with
300%
Maximum Usage

Figure 2.2.2.105

Productivity Factor (%)

If a resource work slower than other similar resource, this means the productivity
factor of that resource is not 100%. For example, Resource A is capable to
produce 100 pcs per hour, meanwhile Resource B which is the
similar/equivalent resource can only produce 80 pcs per hour, that mean
Resource B productivity factor is only 80%.

2.2.3 Bill of materials

Bill of materials is a list of the raw materials, sub-assemblies, intermediate
assemblies, sub-components, parts and the quantities of each needed to
manufacture an end product.

Bill of materials could have several levels, depends on how many controlled
work in process item in a production flow.

Case Example:
A Personal computer sets contains 1 CPU, 1 Monitor, 1 Keyboard, and 1 Mouse. And the CPU
contains 1 Mother board, 1 Power Supply, 1 Hard drive, 2 pieces of RAM chip, 1 VGA card.

To create bill of materials go to the Master Data-Items-Part list

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 Figure 2.2.3.101

To view the structure of the bill of material use the “Set Explorer”

Figure 2.2.3.102

Click new to create new part list / bill of materials.

Page 14 of 63
 Figure 2.2.3.103

Item No
The material item number

Quantity
The needed quantity

Multiplier
Multiplication factor. Can be used for better information of the bill of materials.

Case Example:
To produce 10 CPU, a 12 meter of electric cable is required. And the cable itself is stored in a
roll of 12 meter.

Instead of entering 1.2 meter per CPU. It is possible to put 12 meter with multiplier 0.1.

So the information is remain clear.

Percentage
If a bill of material is a formula with percentage. The percentage can be
calculated to the weight, height, length or width.

Case example:
1 Liter of orange juice needs 30% orange, 60% water, 10% sugar.
In this case a weight percentage is needed.

Part No
Describe the part no, if more than one identical material code is needed.

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Available
Each materials can have different availability time.
Negative number means material should be available “before” the required date.

Figure 2.2.3.103

In figure 2.2.3.103 the Keyboard should be available 1 day before the required
date

Remark
Is a remark

No Print in Part list

The part list will be hidden in some printouts.

Important terms and switches:

a. Manufactured In house Flag
If an item is a Finished-Goods or Semi-Finished Goods which has a part list
then “manufacture in house” flag should be checked.
Go to Master Data Item – Properties – Manufactured In House

Figure 2.2.3.103

b. Order Related Purchase Flag

If the system should create a production order or material request
automatically when a new order of a finished goods item is triggered then
the “Order related purchase” flag should be checked.
Go to Master Data – Item – Purchase – Order Related.
Page 16 of 63
 c. Delivery Time Setting
To set up the time required to deliver the materials from the supplier to our
warehouse, or setup the time required to produce an item go to Master Data
Item – Tab Purchase – Delivery Time.

Figure 2.2.3.105

Case Example
A CPU is a semi-finished goods item. Every time a customer order a CPU, the production order
will be automatically created, and all the related material request are triggered. The CPU
materials are: Motherboard, VGA Card, Power Supply, RAM Chip. All these materials should be
ready in the warehouse 1 day before the production start except motherboard which needs 3
days for preliminary inspection. The materials come from the same supplier which needs 3 days
to deliver to our warehouse. The production process duration of the CPU is 2 day with no
quantity dependence (doesn’t matter how much the order quantity the production duration is the
same).

Following table describes the settings of this case in the CS Production Module:

Items Manufactured Order Related Delivery Time Delivery Available

In House Flag Purchase (qty) Time
Flag (base)
CPU V V 2 Days
Motherboard V 3 Days -3 Days
VGA Card V 3 Days -1 Days
Power Supply V 3 Days -1 Days
RAM Chip V 3 Days -1 Days

2.2.4 Resource Routing

When producing an item, several resources will be used in a particular order. It
is necessary to define the order sequence and the duration of each resource
usage. This resource usage information will be used for utilization information
of all resources in the factory and for improving the efficiency and effectiveness
of a production schedule.

Create a resource routing: Master Data – Item – Resources

Case Example,
In order to assemble a CPU following resources are used:

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a. 1 Operator, duration : 45 Minutes / CPU
b. Assembling machine, Duration : 60 Minutes / CPU

The assembling machine resource start after the operator finishes his job, with 5 minutes setup
time to put the item to the machine.

In the Master Data – Item – Resources, use following setup:

Figure 2.2.4.101
Resource List

Figure 2.2.4.102
Resource Overview

Page 18 of 63
 Figure 2.2.4.103
Resource Overview
Remark
Is a remark

Predecessor
A process / a resource which executed before the current resource.

Cutting Assembling
Process Process

Painting
Process

Figure 2.2.4.104

In Figure 2.2.4.104 Cutting process is a predecessor of painting process.

Connecting / Coupling
The relation between current processes with the predecessor
There are 4 options:
1. End-Begin (common)
The current process will start when the predecessor has finished.

Figure 2.2.4.105
2. End-End
The current process end and the predecessor end is related.

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 Figure 2.2.4.106
3. Begin-Begin
The current process and the predecessor is related.

Figure 2.2.4.107
4. Begin-End (Not Common)
The predecessor begin and the current process end is related.

Figure 2.2.4.108
Lag Time
The time interval between the current process and the end time of the
predecessors.

Entries Example:
Connecting Lag Time Meaning
entries
End-Begin 3.5 Hours The beginning of the current resource lies 3.5 hours
after the end of the predecessor
End-Begin -2 Hours The beginning of the current resource lies 2 hours
before the end of the predecessor
Begin-Begin 3.7 Days The beginning of the current resource lies 3.7 days
after the beginning of the predecessor
Begin-End 8 Hours The end of the current resource lies 8 hours after the
beginning of the predecessor
Begin-Begin 25 The beginning of the current resource is appropriate
Percent for 25% of the duration of the predecessor

Start Time
The time interval before the current process start if there is no predecessor.

Entries Example:
Start time Meaning
entries
0 Days The current resource begins at the same time as the
production order.
3 Hours The current resource begins 3 hours after the production
order start.
-5 Hours The current resource begins 5 hours before the production
order start.

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Duration
Duration is how long the resource usage per 1 unit of the item.

The duration is always counted starting from the starting date of the resources
usage. This starting date is fixed either by the predecessor or by the start of
production order. Different functions can be implemented depending upon
entered value.

If the value is 0 (or no value), the resources usage ends at the end date of
production order.

If a positive value is entered, this is one duration. Input of a negative value: The
usage of resources ends before the end of production order, as much, as the
negative value indicates.

Entries Example:
Start Duration Meaning
Time Entries
entries
0 Days 0 Days The resource usage begin with the start of the
production order and ends at the production order
3 Days 0 Days The resource usage begin 3 days after the start of the
production order and ends at the production order.
0 Days 5 Days The resource usage begin with the production order
and takes 5 days long.
4 Days 3 Days The resource usage begin 4 days after the start of the
production order and takes 3 days long.
2 Days -4 Days The resource usage begin 2 days after the start of the
production order
-3 Days 5 Days The resource usage begin 3 days before the start of
the production order and takes 5 days long.
-3 Days -2 Days The resource usage begin 3 days before the start of
the production order and ends 2 days before the
production order ends.

Using (%)
This field indicates how many percent the resource is utilized.
Default entry is 100%. Which means the resource is occupied 100% and cannot
do another task.

Case Example 1:
A painting machine can paint 4 different items at the same time with the same color. Therefore
when creating the routing for item 1, the resource using (%) of the painting machine is 25%.

Case Example 2:
Mr. X is an operator of two cutting machine, he can setup two machine in the same time. Item 1
will use cutting machine 1, and Item 2 will use cutting machine 2, and the cutting process start

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 at the same time. Therefore when creating the routing for item 1, the resource using (%) of Mr.
X is 50%.

Duration Independent of quantity

The resource usage duration is quantity independent, it doesn’t matter how
many quantity of the item produced the resource usage will remain the same.

Around the clock

This flag will bypass the non-working time in the calendar setting. It is used for
24 hours working time.

Process Complete Batch Only

The next resource will start only when then current resource is finished.
If the switch is off, the next resource will start as soon as 1 quantity is
produced.
2.3 Create a production order

Order
Confirmation

Manual Material
Creation Request

Production
Order

Figure 2.3.100

Production order can be created from 3 sources:

1. Automatic creation with an order confirmation trigger.
If a finished goods item is an “Order related item”, a production order will be
created automatically whenever an order confirmation of the item is created.
2. Automatic creation with a material request trigger.
If a finished goods item is an “Order related item”, a production order will be
created automatically whenever a material request of the item is created.

3. Manual creation, without any other process trigger.

How to create the production order manually:

Create a new production order: Add-on – Production – Combined – New

Page 22 of 63
 Figure 2.3.101
Production Order Basic Data

TAB BASIC DATA

Production No
Auto generated by the system or manually typed.

Description
Description of the production

Status
The current status of the production (manual input).

Text
Auto Updated information

Prod. Location
Production location

Storage (Dest)
The destination storage for the finished goods item of the current production order

Storage (Prod)
Production Storage of the current production order

Storage (Main)
If the main material storage is not identical with the configured main storage, fill in
the material storage here. From this storage the material will be taken when
production material is transferrred to the production storage.

Quantity

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The quantity of the produced items. In the disassembly mode, the material
quantity.

Defect Quantity
The defect quantity

Production start
Start date and time of the production

Production deadline
End date and time of the production

Transaction
Underlying transaction in case of an order related item.

Parent Production
In a multilevel bill of materials, the production order is generated level by level in a
child-parent relationship

Remark
Remark field

Approved
Approval of a production order. An IQ102 or supervisor authorization level is
required to approve a production order.

If production order is not approved, the production result cannot be entered.

Use Only Free Resource

If this checkbox is activated, only unoccupied resources will be used for the
production steps.

If a resource is needed but occupied, the production step will be executed as soon
as the needed resource is available.

Freeze
In normal case the flow of the production steps is re-calculated whenever the data
of the production order is changed.

If this flag is set, no re-calculation is initiated and the flow of the production is not
changed.

No Update from order

Flag is set: If the underlying customer order or the underlying parent production is
changed, no more actualization of the data of the actual production order takes

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place. Normally changed date e.g quantity, deadline or storage from the customer
order are transferred automatically to production order.

Disassembly
In normal case the main item is created during production process. If this flag is
set the the set-items will be created from the main item during production.
(E.g. Disassembling a car into its parts)

Finished
Material Goods 1
2
Material Material
1 3
Material

Finished
Finished Finished
Goods Goods 2 Goods 3

Figure 2.3.102
Left: Assembly, Right: Disassembly

Use Last Purchase Price

In normal case the average purchase price of the material items is used to
calculate the production cost. If this checkbox is activated, the last purchase price
of the material items will be used.

Finished
Flag marks a completed production order. The flag is set automatically on supply
of the total quantity.

Booked
This flag marks a production order which is completely booked in the financial
account. The flag is maintained automatically by the financial account module.

TAB PROPERTIES

Page 25 of 63
 Figure 2.3.103
Production Order Properties

Cost Center
In normal case the cost centers are assigned in the master data of the impersonal
accounts. If the actual production has to be booked to a special cost center, enter
the cost center here. This input has priority.

Cost Unit
In normal case the cost units are assigned in the master data of the impersonal
accounts. If the actual production has to be booked to a special cost unit, enter the
cost unit here. This input has priority.

Calendar
In normal case the standard calendar or the calendar of the resource is used. If a
production uses it’s own calendar this calender has to be referenced here.

Defect storage
A common defect storage is defined in the configuration. If the defect finish goods
of the actual production have to booked to a spacial defect storage, this storage
can be defined here.

Actual user
The reminder will be set to this user at the resubmission date

Resubmission Date
The reminder date
TAB MATERIALS
A production set is the sum of all items, which are required for the associated
production order. With the creation of production order, the set of items needed
(bill of material) are copied into the production set. The set can be modified for

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each production order. The current condition of the production set is represented
in the form of a list.

Figure 2.3.104
Production Order Materials

New
Add new material into the set. Adding material in this dialog will not change the bill
of material (master data item part list).

Edit
Edit the material in the set. Editing the material information in this dialog will not
change the bill of material (master data item part list).

Delete/Delete All
Delete the material in the set. Deleting the material information in this dialog will
not change the bill of material (master data item part list).

Copy part list

Copy a material set from another item master data.

Reload
Reload the material set information from the item master data (Bill of material)

[ 1/n ] and [ * ]
Input a multiplication or divisor factor.

Page 27 of 63
 Figure 2.3.105
Production Order Material – New / Edit

Quantity
The quantity of needed material. In case of disassembly, the quantity of finished
goods product.

Multiplier
The multiplication or division factor.

Multiplier can be use also for:

1. In an assembling production
Use the [1/] button and type the actual material usage before every finished
good delivery.

2. In a disassembly production
Use the [1/n] button and type the resulting quantity of the finish goods before
every delivery.

Part no
Each component can be set with its own name. With electronic building groups
e.g. resistances can to be designated with 'R1' ... 'R..'.

Page 28 of 63
Repeated call of a component

In special cases it can become necessary a component is called several times in

the parts list (e.g. cable with different lengths).

The same item-no. can often be used in a set, as long as it is guarantee that in
addition a different part-no is indicated in each case. If item-no and part-no of an
existing component are shown, then the existing component is overwritten by the
new data.

This field is taken over from the original set with creation of production set.

Available
Enter the period of time when the actual material has to be available after start of
production. See chapter 2.2.3

Deadline
If another date to a current component than for production order is to be
considered, the deviating date is to be registered here. If no special date is
registered here, the deadline of the production and the contents of “Available„ will
be used.

Purchase Price
The average price or the last price of the material

Storage No
In case the material is stored in a different warehouse than the defined warehouse
of the production order

Following data are carried by the system automatically and serve for information:

Quantity accounted
Total quantity of the component, which will be deducted by the stock due to
current production order.

Available quantity accounted

Total quantity of the component, which will be deducted by the free quantity due
to current production order.

Requested quantity
Quantity of the material request, which will be produced due to current
production order.

Page 29 of 63
 CHAPTER 3
Execution

3.1 Material Requirement Planning

In CS Production module, the material availability can be planned in several ways, the
initial setup of the item and the valid and accurate stock information are the critical
part for the planning process.

3.1.1 Job order / made to order case example

In a job order/made to order manufacturing the system will use the backward
scheduling principle for material planning.

Customer
Finished Goods Production Material Purchase Order
Required Due
availability date Start Date availability date Date
Date

Figure 3.1.1.101
Backward production planning

This method require a certain customer deadline date as a critical point to plan
everything.

Case example,
A factory produce a custom made to order CPU. The salesman will receive the order from a
customer with a certain delivery date. The factory has to produce the requested product and deliver
it in time.

The factory has no material on stock, due to the fast movement and fast changing CPU
components, so the factory will plan to buy the material only when the customer order is received.

The production time of the CPU is 1 day, the delivery time of the material from the supplier is 1
days with a general delivery time buffer of 1 day.

The customer order is 19.10.2015 and the deadline is 30.10.2015, the customer order 2 units of
CPU.

Solution
Step 1:
Create the bill of material of the CPU is as in figure 3.1.1.102:

Figure 3.1.1.102
Bill of materials

Page 30 of 63
Step 2:
All the materials has to be arrived in the factory 1 day before the production start.
In the part list setup, -1 days should be entered in the “available” field.

Figure 3.1.1.103

Step 3:
The production order of the finished goods will be raised when the customer order
received, and all the materials has to be purchased when the customer order
received, this means the finished goods item and the materials items has to be
“Order Related Purchase” item.

Figure 3.1.1.104

Step 4:
The CPU item is a manufacture in house item. Set this switch on.

Figure 3.1.1.105

Page 31 of 63
Step 5:
The delivery times for the CPU is 1 day / per CPU and the material is 1 days doesn’t
matter the quantity.

Set the delivery times in the master data – item – purchase tab

Figure 3.1.1.105
CPU Delivery Time

Figure 3.1.1.106
Materials Delivery Time

Step 6:
Set the general delivery buffer time, in System – Administration – General.

Figure 3.1.1.107

Step 7:
Create the order confirmation of the customer with the deadline 30.10.2015

Page 32 of 63
 Figure 3.1.1.108

As soon as order confirmation is booked, following chain of actions in the system

is happening:

Material Request
Production Order Purchase Order Date:
25.10.2015
Begin Date:
(JIT option is On)
28.10.2015
19.10.2015
Deadline: (JIT option is off)
30.10.2015 Deadline:
27.10.2015

Calculation formula:

Production Begin date = Order Confirmation Deadline - Finished Goods Delivery Time (base) -
(Finished goods delivery time (qty) * order quantity)

Production begin date = 30.10.2015 – 0 days – (1 days x 2 unit) = 28.10.2015

Production Deadline = Order Confirmation Deadline

Page 33 of 63
Production deadline = 30.10.2015

Purchase Order Date (JIT) = Order confirmation deadline – finished goods total delivery time –
material availability – supplier delivery time – general delivery time buffer

Purchase Order date = 30.10.2015 – 2 days – 1 days – 1 days – 1 days =

25.10.2015

Purchase Order Deadline (JIT) = Order confirmation deadline – finished goods total delivery time
– material availability

Purchase Order Deadline = 30.10.2015 – 2 days – 1 days = 27.10.2015

Purchase Order Deadline (Non JIT) = Order confirmation deadline – finished goods Total delivery
time – material availability

Purchase order deadline (non JIT) = 30.10.2015 – 2 days – 1 days = 27.10.2015

Purchase Order Date (Non JIT) = Today’s date

Purchase order date (Non JIT) = today’s date

Notes:
To turn on the JIT (just in time) option, open the material request and click the
“Order Just In Time”. To make it default, make a ~MUSTER material request for it.

Figure 3.1.1.109

Page 34 of 63
 Result Screenshot

Figure 3.1.1.110
Order Confirmation

Figure 3.1.1.111
Production Order

Figure 3.1.1.112
Material Request

3.1.2 Mass production case example

In a mass production or made to stock manufacturing there is no customer order
deadline as a trigger for material planning.

The planning department create a series of production orders with the date and
deadline based on their forecast data.

Usually the mass production has a repeated product with the same bill of materials.
Therefore the material planning should consider the current stock availability, the
minimum stock should be available, the current material request, the current
purchase orders and the minimum purchase quantity.

Case Example,
A CPU manufacturer produce a standard model of a CPU for the mass market. The forecast data
shows that in December they will need 25 unit of the CPU, and in January 10 unit of the CPU.

The production time of the CPU is 1 day, the delivery time of the material from the supplier is 1
days with a general delivery time buffer of 1 day.
All materials should arrive 1 day before the production start.

Page 35 of 63
Solution:
Step 1:
Create the Bill of materials as in figure 3.1.2.100

Figure 3.1.2.100
Bill of materials

Step 2:
All the materials has to be arrived in the factory 1 day before the production start.
In the part list setup, -1 days should be entered in the “available” field.

Figure 3.1.2.101
Set the available day

Step 3:
The CPU item is a manufacture in house item. Set this switch on.

Figure 3.1.2.102
Set the manufactured in house flag

Step 4:
The delivery times for the CPU is 1 day / per CPU and the material is 1 days doesn’t
matter the quantity.

Page 36 of 63
Set the delivery times in the master data – item – purchase tab

Figure 3.1.2.103
CPU Delivery Time

Figure 3.1.2.104
Materials Delivery Time

Step 5:
Set the general delivery buffer time, in System – Administration – General.

Figure 3.1.1.107

Step 6:
Create two production orders.
Dated: 5.11.2015 with 25 quantity and 30.11.2015 deadline
Dated: 20.12.2015 with 10 quantity and 31.12.2015 deadline

Create a new production order: Add-on – Production – Combined – New

Page 37 of 63
 Figure 3.1.2.105
Production Order 1

Figure 3.1.2.106
Production Order 2

Page 38 of 63
Step 7:
Run the MRP calculation. Go to Master Data – Material Request – Create.

Figure 3.1.2.107
Item Selection

Enter an item selection if not all kind of material needs to be calculated. Usage
example, if in one MRP session only one item group should be processed then
an item group filter is necessary.

Figure 3.1.2.108
Address Selection

Enter an address selection if not all supplier needs to be calculated.

Page 39 of 63
 Figure 3.1.2.109
Configuration of material request

Create until date (empty = all)

Calculate all required material until a defined date. Empty means calculate all
required material for indefinite time.

Calculation based on stock quantity (no = available quantity)

If switch set, the calculation will be based on the pure stock on hand quantity. If
switch is not set, the calculation will be based on the available quantity.

The available quantity = On hand stock qty – order confirmation qty – production
order qty.

Consider Available substitute items

If switch set, the substitute item stock quantity will be considered before deciding
to buy a material

The system will calculate the material needed with following formula:
Calculation Consider Formula
based on Substitute
stock
quantity
V V New request qty = Minimum Stock qty - On stock qty - Substitute item qty – requested
qty – purchased qty
V X New request qty = Minimum Stock qty - On stock qty – requested qty – purchase qty
X V If Minimum stock > available qty:
New request qty = Minimum stock - Available qty – Requested qty – purchased –
Substitute Item qty

If Minimum stock < available qty:

New request qty = Available qty – requested – purchased – substitute item qty

X X If Minimum stock > available qty:

New request qty = Minimum stock - Available qty – Requested qty – purchased

If Minimum stock < available qty:

New request qty = Available qty – requested – purchased

Page 40 of 63
 Figure 3.1.2.110
Material Requirement Calculation Result

The system will automatically calculate and split the required materials in
separate material request per items and deadlines.

Deadlines calculation are based on the production orders start date -1 days,
because all the material should be arrived 1 day before the production start.

The purchase order date are calculated based on the supplier’s delivery time +
general delivery time buffer.

NOTES: If the required item is a manufactured in house item, then the

result will be a production order, instead of purchase order.

Figure 3.1.2.111
Resulting Material Requests

Page 41 of 63
3.2 Resource Utilization
When all production order are created either automatically or manually, the resources
set will be copied from the item master data – resources to the production order.

To see the resources of a production order, go to: Production Order – Tab Resources.

Figure 3.2.100
Production Resources

New
To add new resource to this production order

Edit
Edit resource information

Print
Print the visualization graph for the resource usage.

Figure 3.2.101
Print Parameter

Page 42 of 63
With sub production
The chart will display the child production order

Include Material
The chart will display when the material should be ready

Include Resource Usage

The chart will display which resources are used

Sub production on new page

The child production order will be displayed in the new page.

Resources
usage duration
Production
Deadline

Material
Availability date

Figure 3.2.102
Resource print

The system will consider the working calendar, and will skip the non-working time
accordingly.

To see all resources in all production orders in a certain period, go to add-on –

production – resource utilization

Enter a period of view

Figure 3.2.103
Enter a period of view

Page 43 of 63
 Figure 3.2.104
Resource Utilization view

There are 3 different color in each bar:

The percentage describes the utilization of the resources. If a resource is able to do

5 task at the same time, but only 1 task assign to it, then the utilization will be less
than 80%.

3.2.1 Create and edit resources in a production order

Go to: Production Order – Tab Resources – New / Edit

Figure 3.2.1.100
Production Resource Edit

When a production order is created, the default resources will be copied from the
item master data – resources setting.

Page 44 of 63
 If the resources setting in the production order is changed, the resource in the item
master data will remain unchanged.

If the begin time of the resource is different from the production order begin date
or the end of the predecessor, then “Absolute” switch should be turn on, and enter
the correct date and time.

Figure 3.2.1.101
Absolute start time

The percentage of finished process could be entered in the Finished [%] field. It
will give a different color in the resource chart print.

Figure 3.2.1.102
Finished [%] progress

75% progress is
finished

Figure 3.2.1.103
Finished [%] progress in chart

3.2.2 Re-sort Resource Usage

In some case resources will be overlapping one another it is usually indicated in
the resource utilization chart as a red bar, because the utilization of the resource
will be more than 100%. See figure 3.2.2.100.

Figure 3.2.2.100
Resource utilization chart

Page 45 of 63
 One of the possibilities is the user change manually the start date and time until
the resource is not overlapping.

The system can resort the overlapping resource automatically,

Go to CS Extension Module – Add-On – Resort Resource usage

Figure 3.2.2.101
Simulation or change

Figure 3.2.2.102
Result

The system will detect which resources are overlapping one another. If in the
“Simulation” mode, no changes will be occurred. If in “Change” mode, the system
will search the most proper time which is not overlapping with another resource
and change the production order accordingly.
3.3 Production Planning
If all production order data with the material planning and resource routing already in
the database. The system could help to determine when is possible for an item
requested to be produced based on current availability of the materials and resources.
However the production planning function here is designed for giving a suggestion to
the user when is the possible time to produce something.

Page 46 of 63
Case Example,
In a CPU manufacturing company, the current resource usage is as follows

Figure 3.3.100
Production Planning

24 October 2015 and 25 October 2015 is a non-working day.

Then the company want to plan to produce 15 CPU.

Go to Add-On – Production – Planning

Figure 3.3.101
Production Planning

Items
Enter the item name here

Quantity
Enter the desired quantity

Deadline
Enter the desired deadline of the production

Search for possible deadline

If not checked, the system will test the entered deadline whether it is possible or not.

Page 47 of 63
If checked, the system will test the entered deadline whether it is possible or not, then
repeat the check by increasing date by date until the system find a possible deadline.

Figure 3.3.102
Production Planning

If an entered deadline is not a possible date, the system will indicate a yellow mark.

Top Priority
An activated switch means:
All material which is reserved for other productions can be used. All resources are
available without restrictions and independent of reservation by other productions.

If the switch is not activated, only the not reserved quantity of the material will be used
(The rest will be purchased) Resources will be used only if they are not reserved by
other productions.

Substitute Items allowed

If this switch is activated, also the substitutes of the material items will be used for
production.

The result from above example with “search for possible deadline” function is:

Page 48 of 63
 Figure 3.3.103
Production Planning

Figure 3.3.104
Resource Utilization overview

The production will start on 21.10.2015 10:06 and will skip the holiday and ends at
26.10.2015 14:21

3.4 Production Costing

In CS Production module there is a built in functionality to calculate the Cost of goods
Manufactured / Cost of goods sold.

The COGM and COGS components example:

Figure 3.4.100
COGM & COGS components

Page 49 of 63
All the direct and indirect cost can be entered as a part list of a finished goods items.

What to control:
1. Basically all the material cost will use the sum of average purchase price of all
materials. However the user can decide the pricing calculation based on the
average purchase price or the last purchase price.

2. The other cost except the material will use a standardized accrual costing.

Example:

Figure 3.4.101
Part list

In figure 3.4.101, the CPU has several materials as the components. The cost of the
produced CPU per unit will be the sum of all purchase price of the components.
Important Notes: Since the average purchase price will always change from time to
time, the production cost will be calculated based on the average purchase price at
the time of production delivery booking.
If the purchase price in the production order should be maintained/remain the same
as when the production order is created, a “Freeze” switch should be activated in the
production order.

Page 50 of 63
 Freeze

Figure 3.4.102
Production Freeze

If the last purchase price of the material should be use instead of the average
purchase price, switch on “Use last pu. Price” switch.
The planned cost will be listed in the item master data part list.
The Actual cost will be listed in each production order of that item.
More detail example:

Figure 3.4.103
Part list with factory overhead and operational expense

Page 51 of 63
 Important configuration:
In order to maintain the production cost of a finished goods, following switch in the
System – Administration – General should be set:

Calculate set-prices
switch should be set

Figure 3.4.104
General Config – Calculate set prices

Recommended Reading for more details in costing: CS Accounting Module reference

book.
3.5 Reports
3.5.1 System – Administration – Resources – Using
This report will display the usage of the resource in a certain defined period.

- Choose one of the resource

- Choose a period filter

Figure 3.5.1.100

Page 52 of 63
 To print this list go to : Add-On- Statistic module – Special Reports – Production
– Resource usage.

3.5.2 System – Administration – Resources – Overview

This menu will display a graphical GANTT of the resource usage in a certain
defined period.

- Choose one of the resource

- Enter a date period

Figure 3.5.2.100
3.5.3 Master Data – Item – Print – Sets
This menu will display the bill of materials / part list of a finish goods item include
the material sufficiency status.

Figure 3.5.3.100

Page 53 of 63
3.5.4 Master Data – Item – Print – Part List
This menu will display the bill of materials / part lists including the sub part list.

Figure 3.5.4.100

3.5.5 Master Data – Item – Print – Production Part List

This menu will display the bill of materials / part lists.

Figure 3.5.5.100

Page 54 of 63
3.5.6 Master Data – Item – Print – Set tree
This menu will display the structure of the bill of materials/part list.

Figure 3.5.6.100

3.5.7 Master Data – Item – Print – In Which Set

This menu will display the material usage in which finished goods item. The
opposite functionality of print part list.

Figure 3.5.7.100

Page 55 of 63
3.5.8 Add-On - Production – Resource Utilization
This menu will display a visual chart of a resource utilization in a certain period

Figure 3.5.8.100

3.5.9 Add-On – Statistic Module – Special Reports – Production – Material Usage

This menu will display the list of material usage in a certain period and/or a
certain production order.

Figure 3.5.9.100

3.5.10 Add-On – Statistic Module – Special Reports – Production – Resource usage

This menu will display the list of resource usage of a certain resource in a certain
period and/or a certain production order.

Page 56 of 63
 Figure 3.5.10.100

3.5.11 Add-On – Statistic Module – Special Reports – Production – Cost Planning

This menu will display the material cost and resource cost of a finish goods item
based on the item master data as a planned and standard cost.

Figure 3.5.11.100

3.5.12 Add-On – Statistic Module – Special Reports – Production – Cost Actual

This menu will display the actual material cost and resource cost a finished
production.

Page 57 of 63
 Figure 3.5.12.100

3.5.13 Add-On – Statistic Module – Special Reports – Production – Quantity of

Resources
This menu will display the production result in one month based on the quantity
of production of a resource.

Figure 3.5.13.100

3.5.14 Add-On – Statistic Module – Special Reports – Production - Serial Number labels
This menu is used for creating a serial number labels of a finished product.

Page 58 of 63
 Figure 3.5.14.100

3.5.15 Add-On – Statistic Module – Special Reports – Production - Production Qty

Report

This menu will show the production delivery quantity report of a production order.

Figure 3.5.15.100

3.5.16 Add-On – Statistic Module – Special Reports – Produciton - Production Profit

Report

This report will show the cost comparison between the bill of material with the
actual cost and actual sales price.

Figure 3.5.16.100

Page 59 of 63
3.5.17 Add-On – Statistic Module – Special Reports – Production – Production List
This menu will display the complete information of production order in a certain
period.

Figure 3.5.17.100

Page 60 of 63
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