Production order and stuff around that

Production order and stuff
around that
Some slides to follow up on a new year resolution where I committed
that 2020 would be dedicated to the link between Purdue levels 4 and 3.
The new years resolution was general & holistic. This slide deck takes
the specific perspective of Production order and Dynamics 365.
ECSCIA, European Centre of Supply Chain Information
Architecture

Architecture
Domain hierarchy, Purdue reference model ISA-95
Level 4
Business planning and logistics
Plant production scheduling Operations mgmt.
etc.
Establishes the basic plant schedule-Production, material
use, delivery and shipping. Determines inventory levels
Timeframe : Months, weeks days
Level 3
Manufacturing Operations Management.
Dispatching Production. Detailed production
Work unit defined. Workflow/recipe control produces
desired end products. Analyzes work data, maintains
records and optimizes the production process
Timeframe : shifts, hours, minutes, seconds
Level 2
Continuous
control
Work unit (operation). Monitor, supervisory control and automated
control of the production work process
Batch control
Discrete
control
Level 1
Continuous
control
Sensing of production with process manipulate the production work
process
Batch control
Discrete
control
Level 0 The actual production work process
“Link”

Architecture
Why dig into something as trivial as the “Production order”? Because it is one of several objects enabling what I
committed for 2020 on years eve 2019. That commitment was “Link”, a single word covering an ambition to:
1) Explore links between systems and processes on Purdue level 4 and level 3.
2) Explore the role of the external “product instance” and the internal “equipment” in the emerging IoT, AI, ML
supply chain landscape
In all its simplicity, the production order and the processes around it plays a key role in many aspects of that
CCOR
SCORDCOR
Harvest
Equipment
Equipment
Product
instance
Product
instance
Level 3
Level 4
Purdue

Architecture
Level 3
Level 4 ERP
PLM
Planning
MES
SCOR
Purdue
DCOR
CCOR
Production
order
Production
order
Positioning the production order in the process and system landscape
Equipment
Product
instance
Monitor Service Tune Operate

Architecture
A “production order” says:
-Create this product in some quantity at
this point in time
-Do it at this site (“factory”)
-Using this version of this bill of material
-Using these operations
-Using these resources
-In this order (sequence)
I.e., using this version of the route

Architecture
Picking warehouse
Picking list
Purchase
order
Production
order
Receive
Source
Make
Make
Production
order

Architecture
Production order
Item header
BOM lines
Route operation lines
Production order
The item (Product) being produced.
(Might be an assembly used in another
item) might be a discrete BOM item or a
formula item
The materials needed to build the item
The operations needed to build it

Product BOM
Product (Item) Resources
Route
Architecture
Tools
Key elements of the production order
Operations Jobs

Architecture
BOM & Route selection
Item header
BOM lines
Production orderProduct BOM
Version
Status (Active)
From date
To date
From quantity
Site Product
Route
Version
Status (Active)
From date
To date
From quantity
Site
1) Find the active BOM & route for this product (“item”)
2) More than one BOM / route? Look at Delivery date relative From-To validity, look at “From quantity” condition and look at site

Production order creation
Key it in manually
Systematically from a sales order line
Architecture
Automatically for a subassembly in another
production order (“Pegged supply”)
Manually in a project (Project accounting module)
From a planned production order out of master
planning

Architecture
Production order lifecycle
Created Estimated Scheduled Released Started
Reported
as finished
Ended
Product visible
as
“ordered” in
inventory
transaction
Inventory
transactions
created for
parts in the
BOM
Orders created
for pegged
supply
(Sub
production
and
purchase )
Start and end
Date/time
calculations
for production
(material and
resources)
Reservations
Jobs
Production
order
transferred to
shop floor, a
signal to start
execution of
production of
the order
Initiates
journal.
Populates
them as
posting logic
defines
Picking list
Route card
Job card
Closes
production
order.
Consumption
posted to final
ledger
accounts
WIP postings
reversed
Costing
actual cost
Report as
finished journal
Books finished
product into
inventory
Consumption
backflush (If set
up to do so)
Warehouse
work
WIP ledger
postings
The only status
a production
order can be
deleted in
Calculated
resource and
material
requirements
Header
BOM lines
Route
Active BOM
Active route
Defaults from
Estimated cost

Production order lifecycle
Created Estimated Scheduled
Released
Started
Reported
as finished
Ended
Architecture

Architecture
Estimation
Calculate required material
Calculate required capacity
Product BOM
Route
Calculate cost
(estimate)
Resource
cost
Item cost
Material
requirement
Resource
requirement
Generate
inventory
transactions for
BOM lines
Generate orders
for pegged supply
Inventory
transaction
Purchase
orders
(Sub)
Production
orders
Production
order cost
Replace phantom
items
Resource perspective
Material perspective

Architecture
Scheduling
Operations scheduling Job scheduling
Operations scheduling schedules “Big boxes”
(less detail) in big steps
Job scheduling schedules “small boxes” (more detail)
in small steps.
Operations and Job scheduling can be combined.
If combined, operations scheduling is executed first

Architecture
Scheduling
Operations scheduling
Resource
Resource
Resource group
Based on time bucket : day
Job scheduling
Resource
Capacity
reservations
Jobs  tasks
Resource group
Resource type
Throughput time
Priority
Job( task) type
Based on time : Start-stop time
Resource
requirements
Time bucket
Start
time
End
time
Resource
Resource
Route transactions Job transactions

Architecture
Releasing
Dynamics 365
MES
Shopfloor control moduleRelease
Production
order

Architecture
Starting production order
Start for partial
quantity
Start for whole
quantity
Start range of
operations
Production
order
From
operation
To
operation
Print picking
list
Picking list
Optional
Item and resource
consumption
Quantity
Item
BOM version
Route version
flushing
principle
= “Start”

Architecture
Report as finished
Post transaction Update FG inventory
Reporting as
finished can be
done for full
quantity or for
partial quantity
(“good quantity”)
Item and resource
consumption
If flushing principle = “Finish”
It is also possible
to report error
quantity
(Unplanned
scrap)
Report unplanned scrap

Architecture
Ending
Calculate cost (actual)
Actual
Resource cost
Actual Item
cost
Production
order cost
Cost price of
finished item
Reverse WIP ledger
postings
Post to ledger
WIP
accounts
Final
accounts
Indirect cost
Resource consumption
Material consumption
Receipt of product
Closed
order

Planning -> Execution
Architecture
MPS
Master
production
schedule
Planned
Production
order(s)
Scheduling/
Sequencing
Plan
Execute
Detailed
schedule Start
MAKE
End
Master
planning
Estimation
Cost
Quantity
Production
order(s)

Architecture
Picking list journal Logs the material used (posting of consumption), the
items picked for the order
Route card journal Logs the resources used, the time spent for each
operation
Job card journal Logs the resource (and worker) used, the actual
working time spent for each job
Report as finished journal Logs release from production into finished goods
inventory

Architecture
Execute
Start
MAKE
End
Picking list
journal
Route card
journal
Job card
journal
Report as
finished journal
Transaction
Production order
Document
Material
consumption
Route consumption
(Working time, good
quantity…..)
Report as
finished (full or
partial quantity)
Costing
“Do it”
“Book what
happened”
Items Operations Jobs

Architecture
MES
ERP
Route card
journal
Job card
journal
Start
MAKE
End
Depending of job level setting

Architecture
Execute
Start
MAKE
End
Picking list
journal
Route card
journal
Job card
journal
Report as
finished journal
Transaction
Production order
Manual posting
Systematic (back)flush
Device/scan reporting
Financial
update
Receive to
inventory

Architecture
Execute
Start
MAKE
End
Production order
Product Flushing principle
Start : Post consumption
when starting the order
Stop : Post consumption
when ending the order

Architecture
Creating a production order (manually)
Open
Production
order form
Create
Production
order
Select
Item
Product
(Item)
master
Item defaults
BOM
Route
Quantity
Edit order
Edit BOM
Edit route
Release
Production
order
BOM Route
Make item
Estimate
Schedule
Journal
postings
Start Report as finished
End

Architecture
The product object
A product of the type “product master” is a
representation used when the actual
implementation of the product can have
variants, i.e. there is some configuration of
dimensions (Size, Color, Style) to define what
it will be
Product
Product master
“Product” and “Item” are two words for the same thing.
If anything tells them apart it might be that the term “product” is more often used for the BOM top node (the
result of producing something) while the term “item” is often also used for parts in BOMs
A discretely defined product. “This is exactly
what it is”

Architecture
The product object
Finished product
Semi finished
product
Raw material
Part
Product
“Product”, one word
for many things.

Architecture
Product of the type “Product
master”
Product master dimension
group
Product variant
Characteristic values like
Size, Color, Style
The result of selecting a specific
combination of product
dimensions
Holds the domain definition for
the product variants at can be
defined for this specific product
master
Shirt
Small, Large, X-Large
White, Blue, Green
Long sleeve, short sleeve
Variant A: Small, Blue, Long
Variant B: Large, Blue, Long
Variant C: Small, Green, Short

Architecture
Production type, Order type
BOM
Formula
Planning item
None (Buy item)
Production type Order type
Purchase order
(Buy item)
Production
(Make item)
Kanban
(Lean)
Product

Architecture
Product
Item model group
Defines behavior when grouping
products for in accounting
(inventory posting)
(“Stocked” if used in production
control)
Valuation
Item group
Lot size
Order quantity
Cost price

Architecture
Production group
“Production groups establishes links between production orders and ledger accounts”
https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/create-production-groups
Production group LedgerPosting profileProduction order Ledger account

“BOM” (in this ERP context) describes:
Architecture
This is the structure and content
In this version
Product BOM
At this site
In this time window
When produced in this quantity
Specifies parts on nodes (levels), quantities & criteria
A BOM can exist in several versions
A BOM can be specified for a site (“factory”)
A BOM can be specific for a time period, a window
A BOM can be specific up to a certain produced quantity
Version Site Time
window
Quantity
window

Architecture
Product BOM
Version
Status (Active)
From date
To date
From quantity
Site
Approved
BOM ID
BOM Name

Architecture
Product BOM
Product (Item)
Product BOM
Version Version
A product can be realized through several BOMS

Architecture
Product BOM
Product (Item)
Several products can refer to he same BOM (although that is a rare case)
Product (Item)

Architecture
Phantom Item
BOM
Route
Item header
BOM lines
Production order
BOM
A Phantom item in a product BOM is replaced by its own underlying BOM and route when inserted in
a production order
Phantoms items offload some processes (for
instance design/engineering) the burden of
specifying details

Architecture
Product BOM
Approved
An approved BOM can be locked for editing

Architecture
BOM Line(s)
Item
The ”part”, “Component”, “product”,
“Ingredient”) this line represents. For
instance; when making a “complete
wheel”, BOM lines would hold “Tire”,
“Rim” etc.
Quantity Per Quantity
UI : Dynamics 365 “BOM
designer”
https://docs.microsoft.com/en-us/dynamics365/supply-chain/production-control/bill-of-material-bom
The number of item needed to build
either one of the top node or the
quantity needed for the value specified in
“Per series”
The number /quantity of units the BOM
is bult in.
Example : The product is “bottle of beer”,
Per series = 1000 bottles. Then quantity
of item “bottles caps” would be 1000
(one cap per bottle). The amount of yeast
needed for 1000 bottles could be “1 kilo”
(I don´t know…)
Product BOM
Service Item
Special case representing purchase of an
outsourced operation

Architecture
Product BOM
Site
BOM Line
Item Picking warehouse
If a BOM is site specific, then it is possible to specify
A warehouse where the item will be picked from for each
BOM line

Architecture
Product BOM
BOM Line
Item Line type : Supply strategy
Supply strategy
Item : Part that generates demand on inventory
Phantom: Placeholder representation of parts that will be inserted in the production order
Pegged supply : Bought or Semifinished , creates a sub –production or PO from the production order
Vendor : specifically for subcontracting, behaves like “pegged supply”, PO will be created

Architecture
Product BOM
BOM Line
Item Operation number
Default, all component demand is placed at production start. Setting the operation number on the BOM
line can change this so that component demand is placed at the time of the operation instead
Route

Architecture
Route, a map for the product journey through production resources and operations.

Architecture
Product
Route
Version
Validity from
Validity to
From quantity
Name
Site A version of a route
refers to a site
Approval
Approval
Active
A route can be valid from a
certain quantity
A product can be produced through several versions of a route.
A route version is specific to a site.
Different route versions can apply depending of the quantity to be produced
Route
One product, many route versions
Number

Architecture
Operation Operation Operation
Route
Operation number Operation number Operation number
The “operation number” sets the order
(sequence) of the operation in a specific route.
Several operations can have the same
operation number if they occur in parallelPriority Priority Priority
Scrap % Scrap %Scrap %
Operation Operation
Operation
Scrap % indicates how much of the output
from the operation that is failed in the context
of this specific routeSequence
Parallel
Operations (and jobs) are the activities
performed in the route.
Routes can be simple sequential (a “queue” of
operations) or complex networks (operations
having more than one predecessor operation).
Routes always end with one single operation.
“Parallel” operations are a special case
between sequential and complex
Operations (and jobs) are performed by
resources.
Resources
Material
Product (item)
A route defines the activities needed to create
a product (Item) and their order. Executing a
route creates instances of that item
Operations (and jobs) consumes materials

Architecture
Route
Operation Sequence
Simple (Strictly Sequential)
Complex (Parallel and Sequential)
“Secondary operation”: When running several resources in
parallel, one being the primary and the others secondary, third…
“Simple” or “complex” route network
Multiple operations have
the same “next operation”
Each operation have
a unique “next operation”
Multiple operations have
the same “next operation”
Order of execution is defined by
The “priority” value
Route: operation sequence

Architecture
Route, pegged supply
An item marked as “Pegged supply” in the BOM line triggers creation of a second production order for that BOM line
when estimating the initial production order.
Pegged supply
BOM line
Production order 1
Route 1
Production order 2
Route 2
der 1
der 1
der 1
der 1
der 1
der 1
der 1
der 1

Architecture
Route group
“Route groups” determines how
time/quantity consumption/cost is
posted for production orders using
this routes assigned to the group
Cost category
“Cost categories” provides a way of
classifying cost for operations in a
route.
Run cost
Set up cost
Quantity
Cost price per Company/ site
Route group, consumption posting & costing
Costing resource “Costing resource” : The resource
used for cost estimation. Might be
another resource than what is
actually used when producing
Resource
requirements
“Resource requirements” are the
resources actually needed for
execution of an operation. Can differ
from “Costing resource”

Architecture
Lean work cell
Lean work cell
A “Lean work cell” is used in LEAN
manufacturing processes (Flow, Pull
system, Kanban)
Resource group
Can be a

Architecture
https://docs.microsoft.com/en-us/dynamics365/supply-chain/production-control/routes-operations
Operation relations in routes
Go read it from the source….

Architecture
Operations are defined independently of routes. An operation can be used in many routes.
The performance/behavior of the operations is to some extent context dependent, it depends of the
relation the operation has to other objects in the specific route.
Operations in routes are assigned operation numbers. The operation number indicates the order of the
operation in that specific route. It is not an identifier of the operation.
Operation
Route 1 Route 2
Route 3 Route 4
Operation XYZ
Operation XYZ
Resource ABC Operation XYZ
Operation XYZResource DEF
Resource GHI
Resource JKL
Operation
number “3”
Operation
number “10”
Operation
number “10”
Operation
number “5”

Architecture
Operation : Setting attributes for all routes or relational
Settings for operations can be general, i.e. apply to all routes or be specific for the operation in a relation
to a certain route.
The behavior is specified controlled through the route code for the operation.
Relation specific attributes are specified on line level for the targeted route-operation relation
Operation 1, general level
Route 1
Route 2
Route 3
Route 4
Route code = ”All”
Route 5OPERATION 1
Route code =
”Route”
Operation 1, line level in specific route
Attributes
Attributes

Architecture
Operation
Setup time Run time Queue time Transit time
Run time is stated for
Processing the
process quantity
Process quantity
Efficiency %
Resource load
“Resource load” states the
number of resources the
operation requires in parallel.
Resource(s)
Operations (and jobs) are preformed by
resources
Operation
Resource requirements
(the needed resources)

Architecture
Job scheduling
Operation scheduling

Architecture
Worker data
Skill Title
Courses Certificates
Resource
Resource type = Human resource
RequirementJob
Job scheduling, resource selection

Architecture
Requirements, Requirements type
Resource group
Resource type
Resource
Capability
Requirement
Is defined on

Architecture
Worker data
Skill Title
Courses Certificates
Resource
Resource type = Human resource
Resource type

Architecture
Requirements, Requirements type
Operation Requirement
Requirement types
Job Requirement
Requirement types
Resource types
Resource types
Resource
Resource
Operations and jobs places requirements on resources
Has
Has
Are met by
Are met by
Date from
Date types
Date from
Date types

Architecture
Resource
Resource
Resource
Resource
Resource group
Resource
Resource
Resource
Resource
Resource group
Resource
Resource
Resource
Resource
Resource group
Time bucket Time bucket Time bucket
Resources must be part of a resource group to be available for scheduling and production.
Resources can move between resource groups
Resources can only belong to one resource group in each time bucket .

Architecture
Resource
Resource group
Working time
calendar
Efficiency
percentage
Capacity
calendar

Architecture
Resource
Capability Capability : What a resource can do
Priority
Several resources can have the same
capability
Priority controls order in scheduling.
Lowest priority is chosen first
Properties
Properties links resources to calendars, used in scheduling. Properties can be assigned to working periods,
meaning that the period can only be filled with a resource having a matching property

Architecture
Company
Site
“Location or branch office where a company does
business”
https://docs.microsoft.com/en-
us/dynamics365/customerengagement/on-
premises/developer/site-entity
“A legal entity”

Architecture
Company
Site
Warehouse Warehouse
Site
Warehouse Warehouse
A company can covers several sites. A site can hold several warehouses

Architecture
Warehouse
Raw material
Resource
Receipt location output location
Finished goods
https://docs.microsoft.com/en-us/dynamics365/supply-
chain/production-control/production-output-location
Defined from
1) Production order header
2) Last resource in route
3) Resource group for last operation in route
4) Output location defined on warehouse defined on the production
order
Defined on
1) Resource group (https://docs.microsoft.com/en-us/dynamicsax-
2012/appuser-itpro/set-up-and-define-resource-groups-for-
operations-resources)
2) 2)
Input location

Dynamics manufacturing concepts
Discrete manufacturing Process manufacturing Lean manufacturing
BOM, Resource, Route,
production orders
Formulas, batch production
orders
Flow and Kanban,
independent of routes and
production orders
Architecture

Architecture
Subcontracting, two options
Route
Purchased service Outsourced operation
Resource type = VendorService item on BOM line type = vendor
Purchase order Route operation
Vendor Vendor

Architecture
Subcontracting
Product BOM
Version
Route
Version
Product BOM
Version
Route
Version
Service item
on BOM line
type = vendor
(Option)
Resource type = Vendor (Option)
Need to use
subcontracting?
Set up in house
BOM and route
version(s)
Set up
subcontracting
BOM and route
version(s)
Subcontracting
In house

Architecture
Formula and batch production order
-Used for continuous production processes.
-Formulas rather than discrete bills of material
-Generates “batch controlled formula items” rather than discrete items
-Resource and route management uses the same functionality as discrete manufacturing
Batch order
“Production order for a formula item”.
They are created the same way and can
share order number ranges
=

Architecture
a capacity grouping kind of a “plant”. Groups resource groups.
“A production unit is an administrative unit that is a collection of resource groups. A production unit can
contain multiple resource groups, but a resource group can be assigned to only one production unit. A
production unit reflects the physical layout of production resources and has no effect on transactions or how
they are processed.”
https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/set-up-a-production-unit
Production units links to site.
Production units are optional
Production unit

Production order and stuff around that

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Production order and stuff around that

Similar to Production order and stuff around that (20)

More from Stefan Harrstedt

More from Stefan Harrstedt (20)

Recently uploaded

Recently uploaded (20)

Production order and stuff around that