Feature-Production-Plan

Production Plan

A Production Plan helps in production and material planning for the Items planned for manufacturing. These production items can be committed via Sales Order (to Customers) or Material Requests (internally).

Production Plan helps the user to plan production against multiple Sales Orders or the Material Requests. Also, it helps in Material Procurement planning for the raw material item, based on the quantity of finished products to be manufactured.

To access the Production Plan list, go to:

Home > Manufacturing > Production > Production Plan

1. Prerequisites 
Before creating and using a Production Plan, it is advised that you create the following first:

• Item
• Material Request
• Sales Order
• Bill Of Materials
• Routing

2. How to Create a Production Plan 
As mentioned earlier, a Production Plan can be used for planning the manufacture of Items against Sales Orders or Material Requests.

The common steps are:

1. Go to the Production Plan list, click on New.
2. Select whether to get items from a Sales Order or a Material Request.

A Production Plan can also be created manually where you can select the Items to manufacture.

2.1 Production Against Sales Orders

1. Select option as Sales Order from the ‘Get Items From’ drop-down list. The system will show the filters, using that you can pull the Sales Orders for the production. You don’t need to use all these filters if you have only a few Sales Orders in a particular time frame.

2. Click on Get Sales Orders to fetch sales orders based on the above filters.

3. Click on ‘Get Items for Work Order’ to fetch the items from the above Sales Orders. Items only for which a BOM is present will be fetched.

4. On expanding a row in the Items to Manufacture table, you’ll see an option to ‘Include Exploded Items’. Ticking this includes raw materials of the sub-assembly items in the production process. 5. If “Consolidate Items” is ticked and saved, items with the same BOM are combined into a single item with the combined total planned quantity.

2.2 Production Against Material Requests

1. Select option as Material Request from the Get Items From drop-down list. The system will show the filters, using that we can pull the Material Requests for the production.

2. Click on ‘Get Material Request’ to fetch material requests based on the above filters.

3. Click on Get Items for Work Order to fetch the items from the above material requests.

2.3 Fetching Sub Assembly Items 
Clicking on ‘Get Sub Assembly Items’ will fetch Sub Assembly Items from the BOM of the Finished Good Items, in the table above.

2.3.1 Sub Assembly Items 
User will get option to make In House (Work Order) / Sub-contract Purchase Order / Material Request for Purchase against the Sub-assembly items using Manufacturing Type.

If user wants to make Material Request for their Sub-assembly items as well their Final Raw Materials then they have to select the Manufacturing Type as “Material Request” for Sub-assembly items and then they have to click on the button “Get Items for Purchase Only” to fetch Sub-assembly items in the Material Request Plan Item table.

2.3.2 Combining Sub Assembly Items 
If there are Finished Goods that share the same Sub Assembly Item, the Sub Assembly Items can be combined. The criteria for combination would be to have the same Item, Warehouse, BOM and Manufacturing Type.

In this way a common Work Order can be made to bulk create Sub Assemblies for various Finished Goods.

2.3.3 Skip Available Sub Assembly Items or Skip Available Raw Materials 

If users enable the checkbox ‘Skip Available Sub-Assembly Items’ or ‘Skip Available Raw Materials’, the system will consider the Projected Qty which is available in the bin to calculate the required quantity for sub-assembly items or raw materials. To understand this, consider the following case.

Example 
To produce 1 qty of Item A, 1 qty of Item B (sub-assembly) is required, and to produce 1 qty of Item B, 1 qty of Item C is required.

• In the production plan, Item A has a quantity of 100 to produce.
• Against Item B already work order created for 20 qty which is not completed and 20 more qty available in the stock. Which meant total 40 qty is available in the Projected Qty
• Against Item C already purchase order created for 40 qty which is not completed and 20 more qty available in the stock. Which meant total 60 qty is available in the Projected Qty
• If Skip Available Sub Assembly Items enabled, while calculating the required qty for Item B

• Reqd Qty = Required Qty (as per BOM) – Projected Qty (in BIN)
• Reqd Qty = 100 – 40
• Reqd Qty = 60

• If Skip Available Raw Materials enabled, while calculating the required qty for Item C

• Reqd Qty = Required Qty (as per BOM) – Projected Qty (in BIN)
• Reqd Qty = 100 – 60
• Reqd Qty = 40

2.4 Planning for Material Requests 
Clicking on the ‘Get Items for Purchase Only’ button will fetch the required raw material Items in the Material Request Plan table. For example, to manufacture 200 plastic canes, you need 100 raw plastic Nos but have only 20 in your Warehouse, then clicking this button will add a row with 80 in the Required Quantity column (make sure Skip Available Raw Materials is enabled).

If partial materials are available in a different warehouse and you want to perform a material transfer and create a purchase entry for the remaining quantity, use the “Get Items for Purchase / Transfer” button. Here, you need to specify the warehouse from which the transfer should be made. If you select the parent warehouse, the system will check stock availability in its child warehouses and suggest transferring materials from those child warehouses.

Use the following checkboxes to perform certain actions:

• Include Non Stock Items: To include non-stock items in the material request planning. i.e. Items for which ‘Maintain Stock’ checkbox is unticked. Refer the Item page for more details.
• Include Subcontracted Items: To add subcontracted Item’s raw materials if include exploded items is disabled.
• Skip Available Raw Materials: If enabled, the system will consider items with a shortfall in quantity. Formula to calculate Required Qty: Required Qty = BOM Required Qty – Projected Qty
• Example: Item A has 50 qty in stock and 20 qty in a Material Request (with a pending Purchase Order). To complete production, 100 qty is required.

• If the “Skip Available Raw Materials” checkbox is enabled, the system will calculate the required quantity as: 100 – (50 + 20) = 30
• If the “Skip Available Raw Materials” checkbox is not enabled, the system will calculate the required quantity as: 100, ignoring the available stock or incoming quantities.

• For Warehouse: User can set the Warehouse for which they want to create the material request. When creating Stock Entries during the production process, the system will look for raw material stock in this Warehouse.

2.4.1 Download Material Request Plan 

On click of “Download Material Request Plan” button the User will get the Excel sheet with the raw materials that are needed to complete this Production Plan. User can select the Warehouse to check the available quantity in the respective Warehouse. On click of “Download Material Request Plan” a popup will open to select warehouses. If user wants to Run plan for multiple warehouses then they can select those warehouses in the Popup to download the plan in the excel sheet format. Excel sheet will look similar to:

2.5 After Submitting 
Once the Production Plan is submitted, the User gets an option to make Work Orders for the production items and Material Requests for the raw materials. Users can also set the Status as Closed in the Production Plan.

2.5.1 Closing a Production Plan 
There could be occurrences where a Production Plan is partially complete and is going to be discontinued. This could happen due to reasons such as:

• One of the items was independently produced outside the Production Plan.
• A change in plans occurred and pending items will not be produced.

In cases like these, Users can set the Production Plan status to Closed, so that no new Work Orders or Material Requests are created against it.

The same can be Re-opened.

2.6 Making work order for the sub-assembly items 
User will get option to make Work Order / Sub-contract Purchase Order / Material Request for Purchase against the Sub-assembly items using Manufacturing Type.

If user wants to make Work Order for sub-assembly items then select the Manufacturing Type as In House and submit it. After Submit you have to click on the button Create -> Work Order / Subcontract PO