Associated Orders

Associated orders are the sales orders currently linked to a works order on the system. A works order can have a number of associated sales orders, where as a sales order detail line can only be associated with a single works order.

Allocation

Stock Allocations can be made to reserve materials / components before physically issuing them to the works order for inclusion in the work in progress.

The key difference between Stock allocation and Stock Issue is that the latter will physically move the stock out of inventory whereas the former will just reserve it.

Assembly

This is the component list to make any given product via a works order. The assembly will include the individual raw materials, previously constructed sub-assemblies and any labour or process used to create the finished item. This is also referred to as the Bill of Materials.

Auto-Allocation

This term is used to describe the process of automatically reserving stock for a works order upon its creation.

Back flush

When you build your finished goods item there may be a number of components that you automatically presume have been used without having physically either allocated them or issued them to the works order.

At the point of completion of the build, these incidental items are automatically issued retrospectively – this is called back flushing.

A good example of the type of components that you may back flush are washers; you know that washers will be required to make the finished item but they are too small to issue individually.

Another example is the labour content of a works order. It is safe to assume that some labour will have been required to complete the build process but you do not expect to issue this.

Batch Quantity

This quantity represents a multiplier that finished products should be in, to make efficient use of the materials.

An example would be if you could make 10 oil drums out of a sheet of metal, then the batch quantity for the oil drum would be set to 10 to reduce the chance of wastage of the sheets of metal. This then encourages you to build either 10, or 20, or 30 etc in a single Works Order.

Bill of Materials

This is the component list to make any given product via a works order. The bill of materials will include the individual raw materials, previously constructed sub-assemblies and any labour or process used to create the finished item. This can also be referred to as the Assembly.

Build

This term describes the completion, or partial completion, of a works order to fulfil an order or to bring into stock.

Cancel

You may cancel a works order at any time, this will allow you to return any unused components back to stock and write-off any materials if need be.

Child Works Order

A child works order is the works order generated to construct a sub-assembly.

A typical example of a child works order is if you were constructing a dining room suite you may create a child works order to construct the chair.

Completion Certificate

This is a document that can be tailored to individual product requirements but allows the user to produce a printed document that is associated with production of finished goods on a specific works order. This may be tailored to become a Certificate of Conformity or a Quality Control Certificate, as required and is available both during the build process, at the completion stage and after completion.

Component

A component is an element of a bill of materials that represents an element of raw materials or previously constructed sub assembly.

Consolidated Requests

This process is found through purchase order processing and can contain any items that have been marked as requested for purchase. The process allows the user to consolidate a number of requests for the same product on a single line of a purchase order, which can then be allocated to the works order once the purchase order has been delivered.

Cost to complete

This is a value given to the cost of the remaining materials, labour and processes to be issued to a works order before it is completed.

Default Route

This is basic route held as a default against an individual bill of materials dictating which route the item should follow by default. This can be altered from works order to works order.

Disassociate

This is the term given to the process of removing the association between a works order and any sales orders that have been set to benefit from it.

Docket

A docket is a report printed from works order processing that describes the current works order with the components, labour and processes itemised showing quantities needed.

Economic Order Quantity (EOQ)

This is the quantity that should be the minimum for a works order to ensure that the production process is economically viable.

Finished Goods

The finished goods are the end result of the works order. Once the build process has been completed the finished goods are brought back into stock as stock items.

Free WIP

Free WIP (work in progress) is a phrase to describe the quantity of a works order that has not been specifically associated with sales orders. Free WIP can subsequently be associated with other sales orders or ultimately put into stock upon completion.

Issue

A stock issue is made when you physically move the components from stock to the factory floor for inclusion within a works order. By issuing stock to a works order you are increasing your work in progress value (within the works order) and decreasing your stock value.

If you do not want to reduce your stock value but just want to reserve the item for a works order you should use stock allocation, in which case your work in progress value remains unchanged (until the actual issue takes place).

Inventory

This is a generic term used to describe your stock holding either on a quantity basis via stock control or a value basis via the balance sheet.

Kitting List

This report will list the components required for a Works Order together with: the components that have been allocated to the Works Order and those that are available to be allocated to the Works Order.

For each Works Order it also details how many of the required quantity can be built from the current stock of components.

Labour

This is an element of the bill of materials that is added to describe the costs of physically building the product. This can be set as either a price item created via sales or purchase order processing or a text item stored uniquely against the bill of materials.

Typically this element of the bill of materials is recorded as unit (normally hours) multiplied by cost prices (hourly rate).

Materials

This term refers to the items of stock that you use to build your finished product. These items may also be referred to as Components. This would exclude labour or process items in the bill of materials.

Merge

This process allows you to amalgamate a number of works orders together for the same product onto a single larger works order to benefit from economies of scale. This process will re-point any associated sales orders and allocated materials to the new works order.

Minimum Build Quantity

This is the quantity that should be the minimum for a works order to ensure that the production process is economically viable.

This facility works in tandem with the batch quantity, for example, you build oil drums and you can make 10 drums from one sheet of metal. However it is only worth setting up to build drums if you have 50 or more to make.

In this case you would set the batch quantity to 10 and the minimum build quantity to 50.

Dimensions Works Order Processing will then assist you to make the best decision on what quantity to build.

You need 20; Dimensions will suggest building 50 (based on the minimum build quantity).

You need 55; Dimensions will suggest building 60 (based on the batch quantity of 10).

Over build

The Over Build quantity is the suggested amount by which you should increase your production. This occurs when using the New Orders Order wizard where Over Build might be suggested to meet any production rules you have specified.

Parent Works Order

A typical example of a parent works order is a works order for a dining room suite where you have created a number of child works orders for the table and chairs. All these individual works orders are amalgamated onto a single parent works order.

Production Priority

This is a number, associated with a works order, that helps to prioritise the allocation of materials to works orders. This allows you to specify which works orders get serviced first. Numbers range from 1 to 99, with the lower numbers indicating a more urgent requirement.

Progress Order

This is a function within the works order module that allows a user to move either all or some of the production quantity from stage to stage.

A user may wish to progress the works order from the welding station to the finishing station.

Projected Cost

This is the value of issued materials, labour and processes plus the cost to complete. This figure represents the latest projection of how much the works order will actually cost.

Projected Stock

The Projected stock level is the Physical - Outbound commitments + Inbound commitments. This stock level is displayed on the Free stock window.

Outbound commitments are stock quantities required to fill Sales Orders and component quantities required to fill Works Orders.

Inbound commitments are work in progress quantities available from Works Orders. This includes WIP associated with Sales Orders and Free WIP.

Quantity per unit

The number of units of the component needed to produce one unit of the works order. If the Quantity per unit is 4 and the Works Order is for a quantity of 5, the system will calculate that 20 units of the component are required.

Reverse Issue

This process is the exact opposite of issuing materials to a works order and is used to 'undo’ issues that have been made previously such that materials are placed back into stock. This process reduces the WIP on the works order and increases the stock value and is based on the same cost that the original issue was made.

Routes

A route is a collection of stages or milestones that a works order needs to go through before it can be completed.

A factory may have a number of alternative routes that a works order could travel, each of which may have different stages representing a different process along the way.

Each works order may be assigned to a single route and a default route is held within the Bill Of Material settings. The default route may be changed when the works order is created if required.

Scrap

Any materials or finished items that are unusable can be scrapped. The costs are accounted for and tracked in the works order, however the materials or finished goods are not returned to stock.

Stages

A stage is an individual element of a route that represents an activity, milestone or holding area. The system allows different quantities of the works order to be held at different stages along the route.

For example, you build oil drums and this process falls into the following stages:

1) guillotine

2) forming

3) welding

4) painting

5) inspection

6) packing

You are building a works order for 60 drums, however 5 have failed inspection and have been returned for repainting. The status of your works order stages is now therefore:-

1) guillotine – 0 items

2) forming – 0 items

3) welding – 0 items

4) painting – 5 items

5) inspection – 0 items

6) packing – 55 items

Stock Allocation

Stock Allocations can be made to reserve materials / components before physically issuing them to the works order for inclusion in the work in progress.

The key difference between Stock allocation and Stock Issue is that the latter will physically move the stock out of inventory whereas the former will just reserve it.

Sub-assembly

A sub-assembly is a component required to build an assembly stock item which in itself is an assembly. Sub-assemblies will have their own bill of materials and works order. A works order of this kind is called a child works order.

Top Level Works Order

A top level works order is a works order that was created to fulfil the original need either from a sales order or a stock replenishment. If a customer requires a dining room suite and this exists as a bill of materials consisting of items that also require works orders then the top level works order would be the works order for the dining room suite.

Unders & Overs

This term is used to describe excess production to meet an order or under production due to wastage etc.

A typical example would be a works order created to produce 5,000 widgets, due to some rationalisations you may exceed the production and create 5,001. This additional widget created is known as an over.

Dimensions Works Order Processing will divide the total cost of the build by the final number of finished goods created. Therefore if you build 5,001 items with the same materials, the cost per item will be slightly cheaper than was expected. However if you issue the expected number of materials yet only complete 4,950, then the cost per item will be more than expected.

On completion of the works order the actual cost of the production is used to move the stock back into inventory and subsequently assigned to any sales orders that the stock is allocated to.

Works Order

A works order is an instruction to build a finished item from a list of components (Bill of Materials), while tracking its progress through the production stages, resulting in a finished goods item.

Works Order Control

This is a function within the works order module that allows the user to enquire upon, alter and progress currently outstanding works orders through the production process.

Work In Progress (WIP)

This term refers to the accrued cost of manufacture (materials, labour etc) while the product is being built. Once the item has been built the cost is removed from work in progress and transferred to the stock.

Write Off

Any materials or finished items that are unusable can be written off therefore keeping the cost with the works order but no longer holding them physically in stock.