Production Order – Routing Scenario

SAP Business One Version 9.3

PUBLIC

PUBLIC

Welcome to the Production Order – Routing Scenario training topic.

In order to take this course, you should first complete the Bill Of Materials and the Basic Production
Process training topic.

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 Objectives

At the end of this topic, you will be able to:

▪ Create and manage production order with routing

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At the end of this topic, you will be able to:

▪ Create and manage production order with routing

 Business Example

▪ OC WoodTrend produce wooden furniture.

▪ For complex manufacturing, OC WoodTrend defined bill

of materials with routing that include sequenced stages
and date dependencies.

▪ They want to start producing these bill of materials.

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▪ OC WoodTrend produce wooden furniture.

▪ For complex manufacturing, OC WoodTrend defined bill of materials with routing that include
sequenced stages and date dependencies.

▪ They want to start producing these bill of materials.

 Bill of Materials with Routing
White Cabinet BOM
Route Stage Components
Stage 1 - Cutting Cutting Machine
Machine Operator
Wooden Plates
Stage 2 - Sanding Sanding Machine
Machine Operator
White Cabinet
Stage 3 - Painting Painting Machine
Machine Operator
Resource
White paint
Stage 4 - Assembly Carpenter Items
Hinges
Shelves
Handles
Screws

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In this scenario we examine the production process of a White Cabinet bill of materials.
There are 4 stages in the production process of the cabinet: Cutting, Sanding, Painting and Assembly
as shown in the image.
This bill of materials is copied to the Production Order.

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 Production Order with Routing

Right click

Choose what
you want to
display

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This is a production order for the White Cabinet bill of materials.

As explained in the Bill of Materials topic, a bill of materials with routing consists of several stages
where each stage groups a set of items and resources that are relevant for the stage.
In the image we see two of the stages. Beneath each stage we can see the components related to that
stage. This display can be adjusted from the context menu or from the Go To menu at the top of the
screen.
In addition, production orders with routing allow optional automated calculation of date dependencies
between the route stages. The system can automatically schedule the start and end dates of both
item and resource components to more relevant dates. This will be further discussed in the next slides.

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 Routing Date Calculation Field
From the production order header:

Routing Date Calculation

On Start Date
On End Date
Start Date Forwards
End Date Backwards

Effects on stages

✓ Start Date Resource capacity

✓ End Date allocation

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When using production orders with routing, it is important to understand how the Routing Date
Calculation field and function works.
This definition in the production order can affect the start date and end date of each row in the
production order as well as the resource capacity allocation in the row.
Depending on the routing date calculation value, it may also affect the start date and due date in the
header.
Date scheduling is also relevant for item components because their row start date impacts the MRP.
OC WoodTrend manage resource capacity to make sure a given resource is available during production
and to be able to plan production ahead.

There are four methods of routing date calculation: On Start Date, On End Date, Start Date Forwards,
and End Date Forwards.
Let us examine them in the next slide.

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 Routing Date Calculation – Stage Dates and Resource Consumption

On Start Date ▪ Resource is allocated to the start date in each stage

Doesn’t affect
dates in the stages
On End Date ▪ Resource is allocated to the end date in each stage

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The start date and end date in the header are the time range for the consumption of the component
in the production order.
However different calculation methods may set different start and end dates of the stages within this
range.

With methods: On Start Date and On End Date, there are no date dependencies between stages in the
order.
The start date of all stages is defaulted from the start date of the header.
The end date of all stages is defaulted from the due date of the header.
With the On Start Date method, resources are allocated to the stage start date and with the On End
Date method, resources are allocated to the end date of the stage.

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 Routing Date Calculation – Stage Dates and Resource Consumption

On Start Date ▪ Resource is allocated to the start date in each stage

Doesn’t affect
dates in the stages
On End Date ▪ Resource is allocated to the end date in each stage

▪ Resource allocation starts from the start date of the first stage
Start Date ▪ The end date of a stage sets the start date of the next stage
Forwards ▪ The end date of the last stage sets the due date in the header

▪ Resource allocation starts from the end date of the last stage
End Date ▪ The start date of a stage sets the end date of the previous stage
Backwards ▪ The start date of the first stage sets the start date in the header

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The other two methods are more sophisticated:

With the Start Date Forwards method the start date from the header is copied to the start date of the
first stage. Then if there is not enough capacity to meet the planned quantity of the resource, the
system continues to allocate resource capacity in the coming days until all planned capacity is fully
allocated. The end date of this stage is the last day of capacity allocation.
The next stage start date is the the end date of the previous stage.
When the last stage is reached, the end date is set to the header’s due date.
Note that capacity allocation is calculated from the beginning of the day.

The End Date Backwards method works similarly but starting from the end date of the last stage.
The header’s due date is copied to the end date of the last stage. Then if there is not enough capacity
to meet the planned quantity of the resource, the system continues to allocate resource capacity for
each day backwards, until all planned capacity is allocated. The start date of this stage will be the last
day of capacity allocation.
The previous stage end date will be the start date of the last stage calculated.
When reaching the first stage, the start date is set to the header’s start date.
Note that capacity allocation is calculated from the end of the day.

Also note that with these two methods the production order will only consider a capacity type called:
Single Run Capacity. This type of capacity assumes that only one resource can be used at a time.
To learn more about resource capacity, refer to the Resource Capacity training.

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 Required Days Calculation
Resource Planned
Quantity in the stage = 12

Day 1 Day 2 Day 3 Day 4

Available
single
run capacity: 4 6 4 10

Capacity Allocation Required days

#1 Start Date 4 2
Forwards: 6 2.5
Stage start date Stage end date
End Date 2 10 1.5
#2 Backwards: Stage start date Stage end date

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Let us examine this scenario for the Start Date Forwards and End Date Backwards methods.
We examine the effect on start date and end date of a stage and on resource capacity allocation.

In our scenario, the resource planned quantity in the stage = 12.

The available single run capacity is set to 4 in day 1, 6 in day 2, 4 in day 3 and 10 on day 4.

When using the Start Date Forwards routing date calculation, the system starts to allocate the
available capacity to reach the capacity needed for this stage, from the start date of the stage (day 1).
To allocate 12 resource units, the system consumes the entire 4 units from day 1, then another 6 from
the day 2, and lastly, another 2 of the 4 units available on day 3. This also means that it takes 2 full
days of the resource available time + 2 out of 4 resource units which equals half a resource day.
Therefore the required days = 2.5 days.

When using the End Date Backwards routing date calculation, the system starts to allocate from the
end date of the stage (day 4).
The system consumes the entire 10 units available on day 4 and another 2 out of the 4 available in day
3. With this method the required days = 1.5 days.

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 Total Days Calculation

Total days =
Components Required days Waiting days Total days Required Days
+ Waiting Days

Stage 3 – Painting: 1.5 day 1 2.5

Resource: 1.5
Painting Machine
Resource: 0.5
Machine Operator
Item:
White paint

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There are several calculation fields in the production order that provide information about times in
production. This training covers a few of them.

This is an illustration of a stage in our bill of materials – the painting stage.

For each resource row there are calculated required days. The required days of the stage is the
maximum required days value of all resource rows in the stage.
We also learned about the Waiting Days field in the Bill of Materials training. This is a manually added
value that reflects waiting times between stages.
For the cabinet, after the painting stage is done, 1 waiting day is needed for the paint to dry.
These Waiting Days are added to the Required Days and sum up to the Total Days value of 2.5.

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 Production Time Calculation

Components Production time

Stage 3 – Painting: 10 hours

Resource: 10 hours
Painting Machine
Resource: 5 hours
Machine Operator
Item:
White paint

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The resource Production Time is the planned resource quantity expressed in time (according to the
time per resource unit field in the resource master data).
In this case it is a total of 10 hours for the painting machine and 5 hours for the machine operator.
To calculate the production time of a stage, the system simply takes the largest production time of all
resource rows in the stage – in this case it is 10.

It is important to understand the main difference between Production Time and Required Days values.
For example, the Production Time in the row may represent the actual machining time of a resource
whereas the Required Days is the total time that the resource has to be allocated to this task overall.

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 Routing Recalculation

A change is done in the production order

Routing Date Calculation Update now

Updates the start and end date of stages and rows

Updates resource capacity allocation

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In a production order with routing, manual changes made in the production order header or rows may
require recalculation of row dates and resource capacity allocation.
The system does not trigger this update automatically, but instead allows the user to decide whether
to update the rows or not.
To indicate to the user that an update is advised, the button Update Now turns red as shown in the
image.

At OC WoodTrend there is a need to recalculate stage dates when the production start date is
postponed and the routing date calculation is Start Date Forwards.
Once the production manager changes the start date in the header of the production order, the
Update Now button turns red. The production manager chooses the button and a system message
appears asking the user for permission to update the rows date accordingly.
A similar procedure happens, when a certain resource is replaced with another resource. Since the
new resource has a different production time and available capacity, the production manager chooses
the red button to update stage start and end dates and the resource capacity allocation.

Refer to the document: How to Work with Resources and Production in SAP Business One 9.3 to find
the list of conditions that trigger the button to turn red.

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 Issue for Production – Routing Scenario

Issue Components – Selection Criteria

Route sequence

Route stage
Cutting Possible to issue
components per route stage
Sanding
Painting
Assembly
Status

…
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After a production order is released, the production manager in OC WoodTrend issues components to
production one stage at a time.
Issuing components from a production order with routing, can be done per route stage.
From the Production Order context menu, He chooses the option Issue Components which displays the
Issue Components – Selection Criteria window. From this window he can adjust the stages or
components to issue.
Remember that only manual issue items are available for issue.

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 Summary

Here are some key points about production order with routing:

▪ A production order with routing is based on a BOM with routing and composed of stages.
▪ Each stage may contain several component rows and different production calculations at the stage
level.
▪ The routing date calculation method:
▪ Can set date dependencies between the different stages and update the stage dates
accordingly.
▪ Can set the resource capacity allocation according to the single run capacity defined for the
resource.
▪ Manual changes made in the production order header or rows may raise the need to recalculate
row dates and resource capacity allocation. When the system recognizes this scenario, the Update
Now button turns red, alerting the user to choose the button and thus activate this update.

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Here are some key points about production order with routing:

▪ A production order with routing is based on a BOM with routing and composed of stages.
▪ Each stage may contain several component rows and different production calculations at the
stage level.
▪ The routing date calculation method:
▪ Can set date dependencies between the different stages and update the stages dates
accordingly
▪ Can set the resource capacity allocation according to the single run capacity defined
for the resource
▪ Manual changes made in the production order header or rows may raise the need to
recalculate row dates and resource capacity allocation. When the system recognizes this
scenario, the Update Now button turns red, alerting the user to choose the button and thus
activate this update.

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