INTRODUCTION TO MANUFACTURING

Compiere has added functionality to support the Manufacturing requirements of the small to mid-sized discrete manufacturing industry.
The primary purpose of Manufacturing in Compiere is to address the needs of product assembly where the process is one step and involves combining components to produce finished goods (i.e. finished assembly or value added items). It does not currently address the needs of complex shop floor production processes that require sequencing of routing steps and scheduling of labor, machine, and equipment resources.

MANUFACTURING FUNCTIONAL OVERVIEW

Compiere is adding functionality to begin supporting the Manufacturing requirements of the small to mid-sized discrete manufacturing industry.

MANUFACTURING TERMINOLOGY

Terminology

Bill of Materials	A list of components (products) required to assemble a product. Also referred to as BOM.
Component	Line item of the Bill of Materials or Work Order. Components are used to create the Product Assembly. The terms Component and Material are used interchangeably.
Work Order	Document used to track the components required to assemble a product and the assembly process.
Product Assembly	The product that is going to be assembled using a Work Order
Component Issue	Work Order transaction that moves a component from Inventory to the Work Order.
Component Return	Work Order transaction that moves a component from the Work Order to Inventory.
Assembly Completion	Creation of the finished product assembly.
Assembly Issue	Work Order transaction that moves the finished product assembly from the Work Order to Inventory.
Assembly Return	Work Order transaction that moves the finished product assembly from Inventory to the Work Order.
Work Order Movement	Work Order transaction that consumes components and creates the finished product assembly.
Push Supply Type	Supply Type indicates the sourcing method for a component. Components with a push supply type must have the component issue performed manually.

MANUFACTURING INFRASTRUCTURE

Bill of Materials functionality

Bill of Materials

Use the Bill of Materials to specify the components that are required to manufacture the product assembly, and how many of each component are required. You can define Bills of Material with any number of levels.

For more information on Bill of Materials, refer to the Bill of Materials section of the Utilities chapter.

Costing functionality

Standard Costing

You must use Standard Costing to enable product costs to be tracked using Compiere Manufacturing.
For more information on standard Costing, refer to the Costing chapter.
Work Order Execution

Work Order Execution

Work Orders

Define a work order to track assembly of a product. Enter a product assembly and quantity and then select a BOM to indicate the component requirements. Pick a warehouse and locator where the finished product assembly will be stored. You may enter dates to track the assembly schedule.

Link Work Orders and Sales Orders

You can manually create a work order and link it to an existing sales order. The sales order must be of type Standard. This functionality is for reference purposes only and will not automatically generate shipments once the work order is executed.

Work Order Types

You can create Standard, Repair, or Refurbish work orders. For Repair or Refurbish work orders, you can create a work order that accepts its product assembly as a component. This allows you to issue the same item to the work order (in addition to other components if necessary) as the item that comes out.

Work Order Components

Define the list of components and quantity required to manufacture the product assembly. This list can be defaulted from the BOM using the Copy BOM Components or BOM Explode functions. Make updates as needed before running any work order transactions. You can track component quantities issued and consumed in a work order.

Work Order Transactions

Use work order transactions to issue and return components and product assemblies and to create product assemblies. The different types of work order transactions are Component Issue to Work Order, Component Return from Work Order, Work Order Movement, Assembly Issue to Inventory and Assembly Return from Inventory. All transactions except Work Order Movement update Inventory and product costs. Accounting these transactions uses the Product Asset and Work Order Material accounts to track product moves into and out of Inventory and Work Orders.

Component Issue to Work Order Transactions

Before assembling products, you need to issue the required components from Inventory to a work order. You can only issue components listed in work order components to a work order. In the case of Repair and Refurbish work orders, you can also issue the product assembly to the work order. To automatically issue all work order components, run the Generate Push Component Lines function.

Work Order Movement Transactions

Use work order movements to manufacture a product assembly based on the component requirements in a work order. After issuing the required components to a work order, use a work order movement transaction to create the product assembly. Optionally choose to complete the product assembly and automatically move it into Inventory.

Assembly Issue to Inventory Transactions

Assembly issues are used to transfer the assembly from the work order to inventory. As these are generated automatically by the move transaction, the user rarely needs to do this manually. Users could possibly have a need for this if they have previously returned assemblies to the work order. The completion locator specified on the work order will be used by default, but can be overridden by the user while entering the move transaction.

Component Return from Work Order Transactions

Use component returns to return components issued to a work order but not consumed in creating product assemblies back into Inventory.

Assembly Return from Inventory Transactions

Use assembly returns to return product assemblies from Inventory back to a work order.

Work Order Complete

You can complete a work order so long as there are no open Work Order Transactions. Any material value associated with unused components or unissued product assemblies in the work order will be flushed to the Work Order Close Expense account.

WORK ORDER

Document Types

First you will need to create the Work Order Document Type and Work Order Transaction Document Type. To do this, open the Document Types window from the Main Menu.

 
Create a Document Type for a Work Order. Start by entering a name for the Work Order Document Type in the Name field and enter the Print Text you would like to use in the Print Text field.

Select a GL Category of Manual or None using the drop menu for the GL Category field.

Select Work Order as the Document Base Type using the drop menu for the Document Base Type field.
Leave the Sales Transaction check box unselected.

Select the Document is Number Controlled check box if this document is Number controlled.

You may leave the Print Format field blank and the Document Sequence field blank. The Document Sequence determines the numbering of documents.

You can leave the Document Copies set to a value of 0.

Click 'Save' and add an additional Document type for Work Order Transaction.

Enter a name for the Work Order Transaction Document Type in the Name field and enter the Print Text you would like to use in the Print Text field.

Select a GL Category of Manual or None using the drop menu for the GL Category field.

Select Work Order Transaction as the Document Base Type using the drop menu for the Document Base Type field.

Leave the Sales Transaction check box unselected.

Select the Document is Number Controlled check box if this document is Number controlled.

You may leave the Print Format field blank and the Document Sequence field blank. The Document Sequence determines the numbering of documents.

You can leave the Document Copies set to a value of 0.

Click 'Save' and then verify the Document Types using the Verify Document Types process from the Main Menu.

The Verify Document Types process ensures that there is a Document Type for all Document Base Types and creates the missing Period Controls for each Document Type.

Once you open the Verify Document Types process form the Main Menu, click 'Ok' to proceed with the verification. Once the process completes Compiere will return the results of the verification.

Calendar Year and Period

Next, you will need to open the Period for the new Document Types. The Calendar Year and Period window allows you to define the Calendars that will be used for Reporting and Period Control. Each Tenant has one or more Calendars.

You can access the Calendar Year and Period window from the Main Menu.

 
Once the correct Calendar Year is open; select the correct period from the periods tab and click the 'Edit' button to view the appropriate period in Single Record view.

From this point click the Open/ Close all button and select the Open Period action from the Period Action drop menu to open the period for all document types. Then click 'OK' to proceed.

Compiere will complete the process and return the result of the Period Action update.
To open the period for specific Document Types, select the appropriate Document Type from the Period Control tab.

Work Order Account Setup

You must specify values for the Work Order Material and Work Order Close Expense accounts in the Default tab of the Accounting Schema. Once the values are in place you can create work order classes.

Work Order Class

You can create a Work Order Class to specify the work order related document types and accounts to be used for any work order belonging to that class. This one time setup is necessary before you start defining work orders.

The Work Order Document Type will be automatically assigned to your work order when you pick the work order class. When you are creating work order transactions, they will take on the Work Order Transaction Document Type associated with the work order class picked on the work order. The accounts defined in the class will be used during accounting of the work order and its transactions.

To define a Work Order Class, select the Work Order Class window from the Main Menu.

Enter a Name for this Work Order Class in the Name field and optionally provide a description for this Work Order class in the description field.

Select a Work Order Document Type from the drop menu of the Work Order Document Type field.

Then select a Work Order Transaction Document Type from the drop menu of the Work Order Transaction Document Type field.

The Work Order Type restricts the work order classes available for selection in the work order based on its work order type.

Work order classes with no specified work order type are available for selection on any type of work order. Work order classes with a specified work order type can only be selected for that type of work order.

The Default check box is only available when a Work Order Type is selected.

Work order classes with a specified work order type and default checked will be automatically selected when defining that type of work order. You may choose to override this default value.

You can only have one default work order class for a given organization and work order type. This restriction is automatically enforced for you by Compiere. Making a new default selection will clear out any conflicting previous selections.

Work Order Creation

You can create Work Orders to track assembly of products. To create a Work Order, select the Work Order window from the Main Menu.

 

Select an Organization and Warehouse you want to work with. The completed product assembly will be placed in a locator of the warehouse you select.

Select a Work Order Type from the drop menu of the Work Order Type field.

Select a Work Order Class from the drop menu of the Work Order Class field. The work order classes available for selection will be restricted based on organization and work order type.

For more information on Work Order Class, refer to the previous section, "Work Order Class."

You can also associate a work order to a sales order or sales order line. To do this select Sales Order in the Source field and then select a Sales Order and optionally a Sales Order line.

Important: The Sales Orders must be Standard sales orders (not POS, for example) and the lines must be for stocked items that have a validated BOM defined. Only sales order lines with unshipped items are available for selection.

When a Sales Order Line is used as the method of work order creation, the product, quantity, and business partner information are automatically defaulted. When a work order is created with a sales order line as its source, certain things (such as product) cannot be changed.

Include a product in the Product Assembly field. Note that only stocked products with a validated BOM are available for selection.

Pick a Locator where the finished product assembly will be stored.

Then enter the quantity you want to assemble in the Quantity field. The UOM field will default to the primary UOM defined for the product assembly.

The Quantity Assembled field is automatically updated when you assemble products using Work Order Movement transactions.

The Quantity Available field is automatically updated when you move product assemblies from the work order to Inventory or return them from Inventory to the Work Order using Assembly Issue and Assembly Return Work Order Transactions.

Select the Bill of Materials from the drop menu of the BOM field. The Bill of Materials will automatically default to the Current Active, Master BOM if one is defined.

Optionally enter the scheduled dates for the product assembly job.

The Actual Date From will be automatically populated when you Prepare the Work Order document. The Actual Date to will be automatically populated once all required product assemblies are built.
Verify the correct Account date is in place for the Account Date Field.

At this point you may save. After saving you cannot update certain fields like work order type and work order class. Now you must enter the work order components in the Component tab. You can do this easily by clicking the Copy BOM Components button to copy all the components from the Bill of Materials to the Work Order Component Lines.

For more ways of adding components, see the next section "Work Order Components."

Once all of the components and their quantities are in place, you may click the 'Prepare' button to set the status of the work order to "In Progress."

For more information on Work Order statuses, refer to the section that appears later in this chapter called Work Order Statuses.

Work Order Components

Work Order Components are the line items of a Work Order. They are a listing of the material requirements for the work order. You can only issue items from Inventory to the work order if they are listed as Work Order Components. There is an exception for Repair or Refurbish Work Orders where you may issue the product assembly to the work order. The Unit Quantity Required field indicates the component number required per product assembly.

You can enter components for a Work Order manually, by clicking the Copy BOM Components button, or by performing BOM Explode. Use the Copy BOM Components button to easily copy all the standard, optional and alternate components of the Bill of Materials to the Work Order Component lines.
Use the BOM Explode function accessible from the Main Menu to exercise control in picking optional and alternate Bill of Materials components. Note that there are some restrictions if the BOM component is a BOM item itself.

For more details on BOM Explode, refer to the Bill of Materials section of the Utilities chapter.

You can always edit the work order components list after you have run a BOM Explode or Copy BOM Components process so long as the Work Order is in the Draft status.
The Quantity Available field is automatically updated when you issue components from Inventory to the work order or return unused components from the work order to Inventory using Component Issue and Component Return Work Order Transactions.

The Quantity Used field is automatically updated when you assemble products using Work Order Movement transactions.

Work Order Statuses

To change the Status of a work order, from the Work Order window, review the information in place.

Click the Prepare button to set the status of this Work Order to "In-Progress." Once a Work Order is set to "In Progress," the Work Order is released to the shop floor and the work order attributes and components may not be changed.

Here is a list of valid Work Order Statuses and their definitions.

Status	Description
Drafted	A work order starts out in Drafted status. You may change any work order attributes or components (with possible restrictions based on source). Once the work order information is reviewed, click Prepare to set the work order to In Progress status.
In Progress	Set a work order to In Progress status when you are ready to release the work order to the shop floor for execution. The work order is frozen for data entry and no attribute or component changes are permitted. Execute Work Order Transactions to issue components and build product assemblies. Run QA checks on the completed product assemblies and return them to the work order in case fixes are needed. Once the required product assemblies are built and verified, click Complete.
Completed	Set a work order to Completed status when all required product assemblies are built and verified. No more Work Order Transactions are permitted. Any value associated with unused material in the work order will be flushed to the Work Order Close Expense account. This includes unused components and unissued product assemblies. You can only complete a work order if there are no open work order transactions.
Voided	Set a work order to Voided status if you no longer want to proceed with execution of the work order. This action will automatically reverse all Work Order Transactions.
Closed	The work order is entirely executed and no further actions or status changes are permitted.

Work Order Transaction

Users can create a Work Order Transaction. To create a Work Order Transaction, simply open the Work Order Transaction window from the Main Menu.

 
First verify the Organization selection.

Select the Work Order from the drop menu of the Work Order field. Work orders available for selection are restricted by the organization and to those with In Progress status.

A number of fields will default from the Work Order like Product Assembly, Locator, Business Partner and Project. Select the Work Order Transaction Type from the drop menu of the Transaction Type field.

If you select Component Issue to Work Order or Component Return from Work Order, a button to Create Push Component Lines will display. Use this button to easily create Product Transaction Lines by copying from the Work Order Component list.

Override the default locator value if needed in the Locator field. Product assemblies will be issued from and returned to this locator. Components will be issued from and returned to this locator as well, though the locator used may be overridden in the lines.

If you select Assembly Issue to Inventory, Assembly Return from Inventory or Work Order Movement, the Quantity field will display in the Product region. Enter the product assembly quantity for the transaction here. You do not have to create all product assemblies in a single work order movement. You may choose to create one or more product assemblies but cannot create more than the number specified in the Work Order. The quantity value is validated - you can only issue or return product assemblies up to the number that have been created in that work order. Product Transaction Lines will be automatically created for these transaction types and must not be entered.

When performing a Work Order Movement, you can optionally choose to automatically create an Assembly Issue to Inventory transaction as well by checking the Complete this Assembly check box.
Once all of the information and required line items are in place, you may click the 'Complete' button to perform the component moves or build the product assembly.

The Complete action will perform the required component moves into and out of Inventory. The issue or return process will fail if insufficient components are available. Similarly for a work order movement, the process will fail if there are insufficient components to create the specified number of product assemblies.

You may void a work order transaction at any time so long as it is not closed. Any product moves will be appropriately reversed.

Completed work order transactions will be processed for Product Costing and Accounting using the Product Asset and Work Order Material accounts.

All work order transactions need to be Completed, Voided or Reversed before the work order can be completed.

Product Transaction Lines

Product Transaction Lines are the line items of the Assembly Issue to Work Order and Assembly Return from Work Order transactions. These lines indicate the components and quantities to be processed by the transaction.

You only need to enter Product Transaction Lines for component issues and returns. You can do this manually or by using the Create Push Component Lines button to copy from the Work Order Component list. After clicking the button, a dialog window pops up with the number of product assembly items remaining to be assembled. Accept this default quantity or update it to indicate the number of product assembly items you want to create lines for. The function will check that the required number of components necessary for a component issue is available in Inventory. Similarly the number of components available in the Work Order and not consumed in product assemblies is checked for component returns.

You can only issue items from Inventory to the work order if they are listed as Work Order Components. There is an exception for Repair or Refurbish Work Orders where you may issue the product assembly to the work order.

Product Transaction Lines will be automatically created for movements and assembly issues and returns and must not be entered. One line will be generated for the product assembly for assembly issues and returns. Work order movement transactions will generate one or more lines for consumed components and one line for the created product assembly.