Define BOM
A multilevel BOM can be defined in this window. To do so, users define a finished goods product – and all the raw materials that are required to produce it – with precise specifications for the quantities and warehouses involved.

Production Order
The production capabilities allow users to create three types of production orders: a standard order, which is created from an existing bill of material; a special order, which is built from scratch; and a disassembly order, which is used to disassemble finished goods and put components back into inventory. Production orders can be created for “make” items with a planned status and later released to the shop floor. Components assigned to a finished goods item can be issued to the production order manually or using the back flush method. Components can be substituted or added. The solution also supports partial completion of production orders, giving complete flexibility and control of work orders. Users can view planned quantity versus completed and rejected quantities, and they can monitor the due dates of the order. Customer sales orders can be referenced on a production order, allowing users to check the status of the item while it is in work-in-process.

Receipt From Production
This feature allows users to receive completed production orders into finished goods inventory.

Issue For Production
This feature allows users to issue raw material components to specific production orders.

Define Forecasts
This feature allows users to predict demand based on forecasts, instead of relying solely on received orders. Forecast calculations help users foresee future demand for the product and adjust material planning accordingly. These demand forecasts can be used as an additional requirement in the report.

Material Requirements Planning (MRP)
SAP Business One offers a simple yet powerful planning system that helps production planners or buyers schedule and manage items for production or purchasing based on a variety of criteria:

Planning Wizard
The planning wizard steps users through the process of creating planning scenarios in five easy steps. Users define the planning horizon, which can be viewed in weeks or days. They also can opt to exclude nonworking days from the production and purchase planning. Scenarios can be run for a range of items or item groups. The user selects the desired criteria in the scenario, such as existing stock levels, open purchase orders, sales orders, work orders, and inventory that reached its minimum stock level, as well as predefined sales forecasts. Once a scenario is executed, the solution presents a recommendation to “make” or “buy” items in a recommendation report. Numerous drill-down options are available to allow planners to view the net requirement calculations and view the actual documents driving the gross requirements.
Exception warnings and visual queues are also available; these help users identify orders that need to be expedited. Planning scenarios can also be saved as “simulations;” users can run a series of “what if?” scenarios without impacting the recommendation report.

Order Recommendation Report
From the recommendation report, planners can automatically select recommended production orders and purchase orders for automatic creation. If an item needs to be outsourced, the system allows planners to easily convert a production order to a purchase order. Purchase orders to the same vendor can be optionally consolidated into one order, streamlining the purchasing process.

Manufacturing reporting options include:

• Open Work Order – Summarizes all work in progress and displays the corresponding work orders with just one click.
• Bill of Materials – Displays an overview of all product BOMs at each requested level and with different degrees of detail.

Find out how SAP Business One has helped Yak Pak make their manufacturing operation more efficient and more profitable Read More...

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