Sheri Forrest RFBP Nadia Truxell Logan Consulting Routings Introduction Introduction Ralcorp Frozen Bakery Products Routings Why Use them Routings Implementation at Ralcorp ID: 621312
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Slide1
QAD Routings Implementation
Sheri Forrest – RFBP
Nadia Truxell – Logan ConsultingSlide2
Routings –
Introduction
Introduction
Ralcorp Frozen Bakery Products
Routings - Why Use them?
Routings – Implementation at Ralcorp
Review Process Changes – Scheduling, Backflushing
Review GL Transactions with Routings - Variances
Reporting Needs Slide3
Introduction – Sheri Forrest
Ernst & Young-Auditor
Manufacturing
Banking
Entrepreneurial Services
Ralcorp Holdings, Inc. –Finance Manager Frozen Bakery Division
Responsible for financial and management reporting for 9 plants.
9 QAD implementations
Upgrade from 7.2 to EB2
Major re-implementation completed in 2009
Routings
BOM StandardizationSlide4
Introduction –
Nadia Truxell
Operations/Materials Manager – Scherdel Sales & Technology
Automotive Supplier of Springs and Stampings
Implemented QAD
Project Manager – Logan Consulting
QAD Implementations and Business Process Consulting
Automotive
Food & Beverage
Consumer Goods
Industrial ProductsSlide5
Introduction – RFBP
Bread, Griddle, and Cookie products for
Industrial, Foodservice, and Retail markets
9 Manufacturing plants across the US and Canada
Advanced Repetitive processingSlide6
Why Implement Routings?
Efficiency
Utilization
ProductivitySlide7
Why Implement Routings?
Productivity
Efficiency X UtilizationSlide8
Routings –
Why Implement?
Routing = Sequence of Operations used to define the production process for a finished good item or sub-assembly
Capacity Planning – Work Center and Department Load
Improved production reporting
Improved variance reporting – Labor Costs reported at Standard
Ability to compare actual to standard
Lays framework for more sophisticated shop floor RF processSlide9
Routings –
Effects
EFFECTS OF ROUTINGS
The system uses routing data to:
o Calculate the cost of producing an item
o Calculate the time it takes to manufacture an item
o Schedule operations for work orders and repetitive schedules
o Backflush components in the Repetitive and Advanced Repetitive modules
o Calculate work center and department load
o Print routings for work orders
o Obtain operation feedback using programs in Shop Floor Control, Repetitive, and Advanced Repetitive
o Calculate component yield when Use Op Based Yield is Yes in MRP Control Slide10
Routings –
RFBP Implementation
Routing “999” for all Items
No Labor Costs booked at time of backflush – Method Variance
No visibility for Capacity planning/Department/Work Center LoadSlide11
Routings –
RFBP Current State
Routing “999” for all Items
No Labor Costs booked at time of backflush – Method Variance
No visibility for Capacity planning/Department/Work Center LoadSlide12
Routings – Future State
QAD Routing Implementation - Phase 1
Create Routings to measure standard Machine and Labor Time
Provide ability to obtain improved reporting at a production line level
Lay the framework for a more sophisticated reporting process and standard methodology for creating costs for manufactured items.Slide13
Project TimelineSlide14
Routings - Setup
Departments
Work Center
Routing Maintenance
Alternate Routing Maintenance
Item
Site Planning MaintenanceSlide15
DepartmentsSlide16
Departments
Use Department Maintenance to define departments and set up labor capacity and general ledger (GL) accounts for each department.
Department – Code representing Department within Plant:
Current State: 53000 = Ogden, 53500=Fridley
Discussion Point
Define Accounts and Sub Accounts for:
Cost of Production
Labor
Burden
Labor Usage VarianceLabor Rate Variance
Burden Usage VarianceBurden Rate Variance
Accounts Default from Product Line Maintenance or Work Order Account MaintSlide17
Work CentersSlide18
Work
Center
Maintenance
Use Work Center Maintenance to define work centers, which are production areas with one or more people or machines having identical capabilities.
Work center data controls processing in four areas:
o Scheduling: When a routing operation is specified at this work center, lead time fields (Operation, Queue Time, Wait Time, and Machines per Op) default to those for the routing.
o CRP: Capacity for this work center is the number of machines in a work center (machines/work center) multiplied by the number of available hours (from Calendar Maintenance).
o Costing: Manufacturing costs are calculated in Routing Cost Roll-Up. Labor costs are calculated by multiplying the setup and run times at each operation by the setup rate and labor rate. Burden costs use machine burden rate, labor burden rate, and labor burden %. Subcontract costs are taken from subcontract cost at the operation level.
o Accounting: Each work center belongs to a department, which determines the GL accounts that track variances, labor and burden costs. Slide19
Work
Center
Maintenance
Work Center: Enter Code representing the Work Center within a Department
Machine: Enter standard headcount (staffing) required to run this work center. This functions as a sub record of the work center.
Department: Select the Department Code for the Work Center
Mach/Op: Leave as default (1)
Setup Crew: Optional – Reference Only
Run Crew: Optional – Reference Only
Labor Rate: Enter the Average Labor Rate per hour required to run this Work Center. Slide20
Routing MaintenanceSlide21
Routing Maintenance
Routing Code: Code Representing Product/Family manufactured through a Work Center
Existing Convention: 53001-01 (Routing 1 on Ogden Line 1)
Operation: Enter “0” for Machine Hours, “5” for Labor Hours, “99” for Backflush
Start Date: Enter beginning effective date of the Routing
Work Center: Enter the Work Center associated with this Routing
Description: Enter the Description associated with this Routing
Run Crew: Defaults from Work Center Maint – Reference Only
Run Time: Enter the amount of time it takes for one unit of this item/family to be processed. Use Routing Maintenance Rate Based to enter units/hr
Auto Labor Report: Check Box to report labor at standardSlide22
Alternate Routing MaintenanceSlide23
Alternate Routing Maintenance
Use Alternate Routing Maintenance to assign approved alternate routings to items and sites. When an item can be made different ways, using different operations, work centers, machines, and perhaps different components. Each of these is called an alternate.
Item Number: Enter the Item Number the Alt Routing is associated with.
Site: Enter the site where the Item is manufactured.Slide24
Item-Site Planning Slide25
Scheduling ConceptSlide26
Backflush TransactionSlide27
GL Impact – Backflush with LaborSlide28
GL Impact - ExamplesSlide29
GL Impact - Variances
Labor Usage Variance
Labor Rate Variance
Burden Usage Variance
Burden Rate Variance
Method VarianceSlide30
Rep Operations Acct ReportSlide31
RFBP Custom Report
Labor Variance Report: 99.29Slide32
RFBP Custom Report
Labor Variance Report
Selection criteria
ID: Leave blank or specify a range
Work Order: Leave blank-repetitive/Specify range –discrete work order
Site: Enter site range
Line: Leave blank or specify a range
Work Center: Leave blank or specify a range
Machine: Leave blank or specify a range
Routing: Leave blank or specify a rangeOperation: Leave as default or run for 0, 5, 99Department: Leave blank or specify a rangeEffective date: Specify a rangeReport Total: Check for a single operation, No check for the default.Slide33
RFBP Custom ReportSlide34
Routings – RFBP Implementation
Routing Implementation Challenges
Data collection- not all need information currently collected.
Data Input- scarce resources, training.
Data integrity- Shop floor data accuracy and completeness questionable.
Current ‘Home-grown’ production reporting system providing needed information—Why change?
QAD out-of-the-box reporting tools inadequate.
Additional steps to the new item setup process at the plant.
Interpreting routing data- What does it mean? How will we use it?Slide35
Routings - RFBP
Questions?