The Materials Planning System is designed
to automate the handling of materials used in the manufacturing
industry. At the heart of the system is a Bill of Materials Subsystem
that allows the user to enter a Bill of Materials for each product
produced. The Bill of Materials may be exploded down to 9 levels.
Additionally, the Materials Planning System
allows the user to create work orders, issue inventory
to the work orders and post finished items into inventory.
Many reports are included with this system.
These reports are used to gather information on the status
of the work orders and inventory items.
The user can enter the standard cost
for each of the raw material items used in manufacturing.
The system can calculate the new standard cost for 1 or more
finished assemblies automatically. The system calculates the new standard
costs by adding up all of the labor hours for each operation. By
using the overhead and labor rates in all subassemblies, plus
the materials used, the new standard cost is computed.
During the issuing of parts update,
inventory records are added to the Inventory Control
Transaction file. These transactions are processed by
the Inventory Control System. This system uses the item's
average cost when issuing items to production. The Materials Planning
System uses the Standard Cost when posting finished assemblies back
into inventory.
As each work order is completed, the manufacturing statistics or
Month to Date and Year to Date production yields are update for
each finished assembly or subassembly. This information can be printed
using the Inventory History Report that is included in this package.
The following guide lines should be used when
starting the Materials Planning system:
1. Install the Inventory Control System
The Materials
Planning Requires the use of the
Inventory Control System.
2. Be certain that you have added an Inventory Item
Code for each of the raw materials,
subassemblies, and finished
product.
NOTE: The Materials Planning System treats all Manufactured
products as inventory items. If a product code is not defined in the inventory
masterfile, the code can't be used by the Materials Planning system.
3. Install the Materials Planning System.
4. Define each Production and Work Station
that you will be using in the manufacturing process. The programs
required to do this step are located on the Materials
Planning Maintenance menu.
5. Enter the Bill of Materials for each product that
you are going to be manufacturing.
Once you have completed the steps above, you
may enter work orders ,issue parts and post finished production.
