Streamlining the Production Order process for faster productivity

I run a manufacturing business, most of our products are custom made to size using a Production BOM that we update the quantities on. On many orders we have multiple products to make, that use the same SKU, this is an issue in the current Production Order/Production Run process. The Production Order requires the consolidated total of quantity for materials used (forcing us make the calculation manually) and the Production Run needs to be amended to reflect the correct quantity values for each product (because it divides the total quantity in the Production Order by the quantity of Products to produce). Then we have the Inventory Transfer process that requires you to do additional steps to complete the transfer in order to have the available stock quantities in order to start the Production Run. This is causing a lot of additional entry work in the Production Process.

I feel the Production Module needs to be changed in order to have a streamlined process for Production Orders.

Lets clarify Production Orders and Production Runs;

Production Order, is created from the demand, either independent Sales or a required stock quantity on hand for immediate sale.

Production Run, A Production run is when you are making a large quantity of a near identical products, which you may continue to add Production Orders to the Production Run until the production run is either started or completed. There can be a number of Production Orders associated in the Production Run.

This could be resolved if there was the ability to select a Production Method from within the Production BOM;

Production Method is: Stand alone Production Order or Consolidate in Production Runs.

Or a check box: Allow to be consolidated in Production Runs.

Upon Production Order creation; if the Production Method is set to Consolidate in Production Runs, you can add it to an existing Production Run of the same SKU Leave it as an independent Production Order (this way the order could be produced as priority). 

If the Production Method is set to Stand Alone Production Order, A Production Order is created and a Production Run is not required.

There currently is a COMPLETED button at the top of a Production Order page, but it does not consume material in a BOM if used and an Output Item is not Created (this is a big problem if used), but it needs to be used to complete the Production Order after a Production Run is.

Production Orders need the same functionality as the Production Run, this way you can Start Suspend and Complete a Production Order without the need of a Production Run.

When a Production Run is completed, it needs to mark all the Production Orders within the Production Run as completed, then these orders can be Picked and Packed.

Stock Transfer created upon Production Order creation;

I don’t believe this is the best approach for this, the Production cannot be completed until the Transfer is completed which adds additional steps, and what happens when you need to add wastage to the order or you needed to update the materials used for the Production, you would need to update the stock transfer to accommodate the additional materials consumed which would involve undoing the and redoing the transfer. Or in the event the initial quantity was entered incorrectly, it is quite a procedure to correct.

The stock transfer would not be required if the Production order had the ability to consume the stock from the Inventory location set in the logistics path.

logistic Paths - The Shop Floor setting in the Logistic Paths causes issues with Inventory that is why you currently need the Inventory Transfers (as described above), and when creating the Production Order; customers are set to a location and the Production Order selects the Location based on the customer, but the Production takes place in another Location which means the Production Order Location needs to be changed every time you create a Production Order.

Logistics Paths Solution - If you were to add the Work Centre to the Logistics Path and we could link the Work Centre to the Components Location, the Work Centre would consume stock from that location.

A Work Centre should be able to be assigned to a Production Bom - Just allow another line to be added like the Finished Products and Resources

Shop Floor - Not sure if you even need this, I think it can be replaced with Work Centre, you just need Work Centre’s to filter Production Orders on the Production Order Screen. Employees only need to see the Production Orders that relate to the Work Centre they work in or are currently working on.

This would allow the following functionality.

You can filter the Production Orders by the Work Centre’s; Inventory is consumed from its storage location it is set to. Inventory Transfer is no longer required for each Production Order as it is consumed stock directly from its Location - you would only do an Inventory Transfer if you are transferring bulk stock to another Location. You would no longer need to change the Location on a Production Order, the Production Order would automatically be assigned to a Work Centre which was set in the Production BOM. We no longer have Production Runs unless a Production Order was assigned to a Production Run consolidating Production BOM's with the same SKU.

Let’s say you have another location that has another Work Centre where a particular Product is made, and you do need to Transfer Stock to that Location from a Main Warehouse Location.

Then you would Create the Location and the Work Centre and that Production Bom would have that Work Centre assigned to it. You would need to be able to select those Production Orders in that Work Centre and generate a Stock Transfer, you print the Transfer to be actioned and the Transfer is marked Completed when the Stock arrives at the new Location.

A Work Centre would need to be linked to a Location (this make sense right!) When a Production Bom is set to a Work Centre it needs the stock in that Location, a number of Production Orders in that Work Centre, needs the required stock at its linked location, an inventory report can show what stock needs to be transferred to complete the tasks and maintain minimum stock levels in that location should any be set.

Production Orders could also show insufficient stock highlighted in red, from the Production Order when that Stock item becomes insufficient. You would then know which orders you can complete immediately, and it would prompt employees to initiate a Stock Transfer or supplier order.

The above would streamline and simplify the Production Order Process significantly and will work for most production business scenarios.

If you think this would work for you or not, we need your feedback.