Enterprise Resource Planning Lab. 6 | My Assignment Tutor

6 -1
Enterprise Resource Planning
Lab. 6
Objective
Understand
 Production Calendars
 Work Centres
 Operations
 Production Routes
 Production Orders
Lab. 5 demonstrates that a major aspect of managing production organisations is the
management of raw materials. Another important aspect is the management and
utilisation of shop floor resources.
A production has a production route which represents the production processes a product
undergoes to become a finished goods item. The following will establish a reduced
production route for a Laptop computer.
The management of a production environment will be explained in the lectures.
Production Calendar
Production plans require working dates and times. It is therefore necessary to establish a
calendar that will take into account work shifts and working days of a week.
The first aspect is to establish the working time for each day of the week.
Open the Working Templates Form: Organization Administration->Common-
>Calendars->Working Time Templates.
Create a new Working Time called Base.
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Create two eight-hour shifts for days Monday to Friday and a one eight-hour shift for
Saturdays.
Select New and enter the “Standard” working template shown below.
Select Monday
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Use Add and enter 6 :00 a.m. to 10:00 p.m. in the working times.
Select Copy Days.
Copy Monday to Tuesday.
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Use the Copy Day function to copy Tuesday to Wednesday, Wednesday to Thursday and
Thursday to Friday.
Select Saturday. Select Add and enter working times as 8 hr from 6 :00 a.m. to 2:00 p.m.
Close the Working Times Template form.
Working Calendar
The next step is to allocate the working times to a calendar of working days for the
organisation.
Create a working calendar called Base.
Open the Working Templates form: Organization Administration->Common-
>Calendars->Calendars
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Select New and create the “Base” calendar.
Select Compose Working Times.
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Create the Calendar from the beginning of the current year to the end of the following
year. Select Base in the Calendar field and Standard in the Working time template field.
Select OK.
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You should notice the working times for each day of the year.
Close the form.
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Create General Ledger Account
The posting of production overheads is explained in the lectures. A overhead recovery
account is required.
Create new general ledger account with code 35500 Overhead Recoveries of type Profit
and Loss, and Main Account Category of Other Exp.
Open form Main Accounts. General Ledger -> Common->Main Accounts
Select Main Account New. Enter the following information.
This creates an overhead recovery account that is used to transfer cost from the profit and
loss account to Finished Goods. The process “absorbs” the cost of manufacture into
finished goods value.
Close the form.
Inventory parameter
The basis of cost calculations needs to be established. The setup of cost calculations
varies considerably by organisations and a detailed explanation of the categories will not
be included.
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Open the Inventory parameters form Inventory Management->Setup->Inventory and
Warehouse Management Parameters
Select the Bills of Materials tab. Highlight Calculation Group, Right Mouse Click and
select View Details.
Create a new Calculation Group as follows.
Close the form
Select the Calculation Group in the parameters form.
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Select the General tab and enter a Fallback warehouse of Building 16 .
Close the form.
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Cost categories
Work Centres require a cost centre category that has an hourly cost. Cost categories
establish the cost of an operation and in turn a work centre.
Open the Cost Group form Production Control->Setup->Routes->Cost Groups
Create a cost group of CostGroup.
Close the form.
Open the Cost Categories form Production Control->Setup->Routes->Shared
Categories.
Ensure the following exist in you company and that the “Can be used in Production”
option is ticked.
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Close the form.
Open the Cost Categories form Production Control->Setup->Routes->Cost
Categories.
Enter the cost categories shown in the below form. Link the categories to the Cost Group
GostGroup. Link Worker to the User you established in Lab 1. Note the number will be
different to that shown below.
Close the form.
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Production routes can be grouped into groups. AX requires at least one production
group.
Open form Route Groups: Production Control->Setup->Routes->Route Groups
Create a Route Group of RouteGroup. Production environments cost the time of
productions on each machine. The system will only use the run time of the machine and
not setup time. Tick Runtime as shown below.
Operations
Work centres are labour centres, machines or a collection of both on the shopfloor. A
work centre might be used for several operations. The cabling department might solder
cables or fit plugs to cables. The Printed Circuit Board (PCB) machine may make many
different types of printed circuit boards. Operations will generally take a work centre
different amounts of time to complete for each product. For instance creating a
complicated PCB may take twice as long as making a simple one, with both being
performed on the same machine.
The operations that are performed on each work centres need to be established in AX.
Open the Operations form Production Control->Setup->Routes->Operations.
Enter the following operations.
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Close the form
Work Centres.
Production routes are made up of operations or production activities. However, the shop
floor is made up of what are termed work centres or resource centres. These may be
machines or labour activities. Work centres will be explained in the lecture. The
operations might vary between products but the work centres will usually not change.
Establish work centres, known as Resources in AX 2012, of a printed circuit board
machine, component install, cabling, final fitting componentry, testing and packing.
Open the Resource Group form: Organization Administration ->Common-
>Resources->Resource Groups
Use Resource Group New to enter the following Resource Group. Set the Calendar to the
Base calendar. Set the WIP postings as shown.
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Close the form.
Open the Resources form: Organization Administration->Common->Resources-
>Resources
Enter the following six resources. Some of the data will be retrieved from the shared
information.
Relate each of them to the Resource Group ResourceGroup and calendar Base. Add the
GL account codes as shown below to each resource. Note PCB Machine is of type
Machine the other resource are Human resources.
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When the resource/work centres have been created they need to be linked to the
operations that are performed on them.
Select the Cabling resource and select the Operations function.
For Cabling enter the following Operations.
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Select the General tab for CablePlug operation. Set the Site to Joondalup.
Set the cost category to Cable. Select No to default the cost codes. Set the Run cost
category to Cable
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Select the Time tab.
Set the quantity produced per hour to 3 as follows. Set the Run Time to 1, this represents
an hour.
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Select the Resource requirements tab and enter the work centre/resource that represents
where the operation will occur. See below warning message response of “No”. Tick the
Operations scheduling Box.
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When the following is displayed select NO.
Select the General tab for CableSolder operation. Set the Site to Joondalup.
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Select the Setup tab for each operation. Set the cost category to Cable for each operation.
Select No to default the cost codes. Set the Run cost category to Cable
Select the Time tab.
Set the quantity produced per hour to 5 as follows. Set the Run Time to 1, this represents
an hour.
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Select the Resource requirements tab and enter the work centre/resource that represents
where the operation will occur. See below warning message response of “No”. Tick the
Operations scheduling Box.
When the following is displayed select NO.
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Close the form.
In the same manner establish the following. Ensure Route Group is set to RouteGroup
for all.
Set the Resource Requirement first to avoid time and cost category being overwritten if
you inadvertently select “Yes” when adding a Resource Requirement. You must select
No.
For each operation set Run Time to 1

Operation
Resource
Process Qty Site
Cost Cat.
Resource Rq.

Component
Component
12
Joondalup
Components Component

FitScreen
Final Fit
6
JOONDALUP FinalFitFinalFit

FitLaptop
FitMobile
Final Fit
Final Fit
5
10
JOONDALUP FinalFit
JOONDALUP FinalFit
FinalFit
FinalFit

PackMobile Pack
PackLaptop Pack
PCBComplex PCBMachine
PCBSimple PCBMachine
12
15
JOONDALUP Pack
JOONDALUP Pack
Pack
Pack

6
0
JOONDALUP PCB PCB

90
JOONDALUP PCB
JOONDALUP Test
JOONDALUP Test
PCB

TestLaptop
TestMobile
Test
Test
4
10
Test
Test

This relates work centres to cost categories and establishes the cost per hour.
Close the forms so that the Main Menu is displayed.
Production Route
The operations need to be configured into a production route. This establishes the order
in which manufacturing operations occur to create a finished goods product.
Open the Released Products form: Product Information->Commons->Released
products
Highlight the LatopComp product. Select the Engineer tab. and select [production] Route
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Select New on the upper part of the form, Versions.
Place the cursor on Route Number, right click and choose view details.
Create a new Route Number using the New button. This allows products to have
multiple routes or allows routes to be amended.
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Enter the LatopComp item number and Site of Joondalup.
Close the form.
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Select the Route Number in the Route Number field. Add Site.
Select New in the bottom half of the form.
Create the route shown in the below form. The process quantities can be amended from
the standard relationship established when the operation was related to a work centre.
The numbering in increments of 10 is a convention that allows new operations to be
added e.g. Oper No. 15.
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Select Approve from the functions at the top of the form.
Select your employee and tick Approve.
Select Activation.
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Close all forms.
Plan a Production Order
Create a Sales Order for 50 LaptopComp computers. Only Confirm the order do not
deliver or invoice the order. It does not matter what price or customer is entered. Make
sure the order is confirmed.
Execute Master Scheduling: Master Planning->Periodic->Master Scheduling
Open the Planned Order form: Master Planning->Common->Planned Orders
Highlight the demand that has been created from the sales order of 50 and select Route.
You will notice that the production of LatopComp has been provisionally scheduled on
each Resource.
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Close the Route form.
Select the Firm function,
Select OK to create a Production Order.
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Open the Production Orders form: Production Control-> Common->Production
Orders-> All Production Orders
Highlight the production that has been created and select BOM. The form shows the
items to be picked for the production.
Close the form.
Choose Route option. The operations to manufacture the product are displayed.
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Close forms
END

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