DMAS Enhancement Brief

Transcription

1 DMAS Enhancement Brief A DMAS enhancement from I/O International, Inc. Work Orders for Manufacturing & Assembly The Work Orders for Manufacturing & Assembly enhancement for iseries 400 DMAS from I/O International is designed for the DMAS user who makes new items by assembling inventoried items into a new product or applies a manufacturing process to inventoried items to make a new item, either internally or by sending the component materials to an outside vendor. This enhancement is designed to give the user an efficient way of defining the process required, creating the work orders through work order entry, preparing and shipping inventory required for the process, tracking the work orders while at the vendor s location, and receiving the finished goods items into inventory. With this enhancement, the DMAS user has a vehicle with which to look up and view anticipated finished work orders as well as receive the finished goods items into inventory similar to receiving vendor shipments. This enhancement provides a way to: Use the DMAS billing application to define work order kits and create work orders by entering the work order data similar to entering sales orders. Define manufacturing processes, each of which can describe a specific manufacturing step for the vendor to follow when performing the requested manufacturing activities. Include a manufacturing process within more than one work order kit, and each work order kit to include more than one manufacturing process. Enter unlimited text for each manufacturing process as well as a specific vendor add-on cost for each manufacturing process. Have accumulated vendor add-on costs for a work order be either included as part of the finished goods new average and last costs, or expensed to a G/L expense account. Pick and prepare the inventory to be used in the work order process by printing a pick list for the work order and picking the product to be shipped, similar to picking a normal sales order. Invoice the work order. Generate a receiving work order P/O for the purpose of receiving the finished goods items and an approval work order P/O against which the vendor s invoice for the work order process is to be reconciled and passed to accounts payable and general ledger. Generate purchase order numbers for work order P/Os such that they all start with a specific character followed by the order number of the work order, or have purchase order number generated like standard purchase orders. Print and send the approval P/O to the vendor to serve as the assembly/process work order since the approval P/O includes the entire contents of the referenced kit as comments in the generated P/O. Track finished goods inventory in process in the DMAS purchasing application as an open purchase order from the vendor performing the manufacturing/assembly process. Receive the shipment of finished goods into the warehouse similar to receiving a normal vendor shipment. 7/11/2008 9:46:00 AM EB_WO_LMA.doc Page 1

2 Post the shipment of finished goods to inventory similar to posting a normal vendor shipment. Inventory control history will reflect the transfer out of goods consumed in the manufacturing/assembly process, the generation of the P/O for the finished goods items as entered transactions, and the receipt of the finished goods shipment as a receiving transaction. Work Orders The focus of the I/O Work Order enhancement is to provide a convenient and easy method of defining manufacturing and assembly processes and creating work orders containing those processes. Picking lists can be printed for pulling the required component products from inventory and shipping them to the vendor who is to perform the assembly or manufacturing process. Since work ordes are a new type of order in order entry, various order entry functions can be used to track work orders in the process of being filled and shipped. Purchase orders are generated to track the finished goods items while in process and to receive them into inventory. Other purchasing functions can be used to track work order purchase orders being worked on by vendors. Defining the Work Order Process Standard DMAS Item Relationship functions can be used to define the processes required for work order assembly and manufacturing. If the I/O Item Features and Options enhancement is installed, it too may be used for work order process definitions. Using either file maintenance function, kit relationships work best for making these definitions. The kit parent is the item number by which the process is identified. Component items and comments within the kit define items that are required and instructions necessary to properly perform the assembly or manufacturing process. Special manufacturing processes may be defined that provide the ability to define commonly used processes one time in a master file, then add the process to a work order kit by adding a component that simply references the item number that identifies the entire process. Changes to such a process that is included in multiple work order kits can then be made in one file, affecting all work order kits in which it exists. Entering and Preparing Work Orders The process of entering work orders begins with a standard Begin order entry screen in DMAS order entry. The user indicates that the order about to be entered is a work order (a new order type for this enhancement). A standard dummy customer record (one per company) is automatically used for all work orders. To indicate the vendor who is to perform the work order process, the user selects the proper ship-to (one ship-to address is used for each possible work order vendor). The remainder of entering a work order utilizes standard DMAS order entry screens and essentially consists of simply entering the kit parent item number for the process and a quantity. Multiple kits may be entered within a single work order. Getting the items ready for shipment to the vendor is as simple as printing a pick list and picking the items like a standard sales order. If the I/O Bar Code Assisted Picking and Replenishment 7/11/2008 9:46:00 AM EB_WO_LMA.doc Page 2

3 enhancement is installed, work orders can be picked by utilizing the RF hand held devices. Either way, the sending warehouse picks and prepares work order items for shipment as it would any sales order. A packing list may be printed if desired. When the items leave the warehouse, the work order is completed by running the invoicing function (although no invoice is actually printed). Generating Work Order Purchase Orders The actual removal of work order component items from inventory (within the DMAS database) occurs when the work order purchase orders are generated (a receiving P/O and an approval P/O for each work order) from the original work order. At that time, the work order component items are removed from the warehouse database. The finished goods item is shown as on order for the warehouse (in the receiving P/O) and is reflected as coming from the vendor performing the assembly or manufacturing process. The new average and last costs for the finished goods item are calculated (including vendor add-on costs if they are not being expensed) and placed into the receiving P/O. The total vendor add-on costs are calculated and placed into the approval P/O (either with the inventory G/L account number or the expense G/L account number, depending on the tailoring option selected). Tracking the Work in Process The warehouse can readily view out-bound work orders by using the DMAS Work with Orders function and the DMAS Order Status / Inquiry function (in DMAS billing). With these functions, the user can see which work orders are going to which vendors. The user can use the DMAS Work with Inventory Demand by Item function (in DMAS purchasing) to view work orders that have been invoiced but not yet fully transferred to work order purchase orders. 7/11/2008 9:46:00 AM EB_WO_LMA.doc Page 3

4 The warehouse that is anticipating the finished goods can quickly determine how many of which items are in-process from any or all vendors by using the DMAS Work with Purchase Orders function (in DMAS purchasing). Since each work order purchase order is supported by a vendor master record, the user merely looks at any purchase orders coming from that vendor. A dummy vendor is suggested if assembly or manufacturing work is done internally. Both the DMAS Work with Purchase Orders function and the Vendor Search / Inquiry function may be used to view inbound, work order purchase orders. Receiving the Finished Goods Item The I/O Work Order enhancement utilizes the receiving functions within the DMAS purchasing application to process work order receipts by utilizing the receiving purchase order generated from the original work order. If the I/O Bar Code Assisted Receiving and Put-Away enhancement is installed, work order shipments can be received by utilizing the RF hand held devices. Either way, upon the arrival of a work order shipment, the receiving warehouse receives the shipment as it would any vendor shipment. The same put-away process is also used when placing the work order receipts into the appropriate warehouse bin locations. Consequently, work order inventory is allocated to inventory and available to sales entry as soon as the receiving process records the receipt (if DMAS allocation is turned on). As for standard receipts, inventory is updated and costs updated for the finished goods item when the receipt is posted and the purchase order is reconciled when purchasing day end is run. Reconciling / Approving the Vendor Invoice The I/O Work Order enhancement utilizes the approval functions within the DMAS purchasing application to reconcile and approve vendor invoices against the approval work order purchase order that was generated from the original work order. The approval process handles any additional vendor add-on costs for the finished goods item such as the vendor cost for performing the assembly or manufacturing process, passes the invoice to accounts payable for payment and passes G/L transactions to general ledger so that either the finished goods inventory account can be properly posted or the selected expense account is posted, depending on the tailoring option selected. SUMMARY In summary, the I/O work enhancement for DMAS gives you a powerful and efficient way of creating, picking and preparing work orders for shipment, producing complete manufacturing instructions for the vendor, booking the finished goods item to the warehouse, tracking the work order P/O while in process, and receiving the shipment into the warehouse. It gives you an effective way of making sure that work orders are always accounted for and that the warehouse can quickly determine which items are coming from which vendors. And, perhaps most important, it can be implemented rapidly within your business, because it is not some offline, standalone application it s an already developed solution, specifically designed by I/O International to be fully integrated in real-time with DMAS, the enterprise platform that is the foundation of your systems. 7/11/2008 9:46:00 AM EB_WO_LMA.doc Page 4

5 I/O International stands ready to help you with any and all aspects of implementing this enhancement as needed, from initial consultation, to customized services, hardware, and ongoing support. In addition, we ve developed a number of other enhancements to DMAS. If you re interested in the I/O Inter-Warehouse Transfer enhancement, you might also want to consider: Item Features & Options Inter-Warehouse Transfers Bar Code Assisted Picking and Replenishment Bar Code Assisted Receiving and Put-Away For more information about these or other DMAS enhancements, please contact: Joel Kabe (770) jkabe@iointernational.com -or- Timothy LuBell (914) tlubell@iointernational.com Enhancements for iseries 400 DMAS from Suite 2002 Pinewood Business Center Somers, New York iseries and iseries 400 are registered trade marks of International Business Machines Corporation DMAS is a trade mark of Infor (previously Agilisys, Aperum, Software Solutions, Inc.) IBM is a registered trade mark of International Business Machines Corporation Copyright I/O International, 2004, 2006, 2007, /11/2008 9:46:00 AM EB_WO_LMA.doc Page 5