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Sage Manufacturing V3
What is it?Manufacturing is a manufacturing system linked to Sage Line 50 accounting package. It is aimed at the SME market. What does it do?It helps you choose what to make in any period. It raises the purchase orders to buy the materials required. It creates the paperwork for the production facility. It works out how much each item should cost to make based on the size of the run. It records actual time taken and tells you the difference to what was expected.
How does it work in practice?
Establish requirements and make a planBefore you start you need to define Bills of Materials (BOM)’s for standard products and Estimates for specials / one off / variable products. To choose what to make in a period you need to decide if you want to build for stock, or to fulfil sales orders. If fulfilling sales orders, do you want to make it as soon as possible or just in time to ship. Your choices may depend on the current capacity, batch sizes or a host of other possible reasons. The system offers you many ways to put items into a production plan and you can use all of them in one plan. a) Scan of sales orders – forward planning b) Scan of Sales orders backwards planning c) Scan of minimum stock levels d) Scheduled build e) Manual addition of items to make
Backwards/Forwards planning. These options will work out which orders need to be made in which production plans and give you the option of putting them into those plans. Backwards planning will put them in the last plan possible to have them made just in time to meet the due delivery date on the Sales order. (it is important when backwards planning to ensure that Sales orders have due dates on them, this can be done by applying a search in Sage to show all SO’s with no Due date) Forwards planning will make them as soon as possible.
Stock Levels Sage has minimum stock levels associated with each product. The software will scan all stock levels to find those below the minimum stock levels and suggest putting them into the plan. Note with all scanning the system suggests a quantity to put into the production plan, you can alter these quantities or choose not to make them.
Scheduled Build You can have automatic scheduling of quantities to build for stock
Manual Entry You can simply add items to a production plan at will. Check the plan is workableThe plan will not be workable if you do not have the materials required or if they can not be supplied in time. The plan will not be workable if you do don’t have the people available to do the work The plan will not be workable if you do not have the machine availability for all the operations. Manufacturing will scan the material requirements and see what is required, it will highlight materials that will not be available in time based on the default suppliers (you can select an alternative supplier with a shorter lead time to make the plan workable even though this may incur additional costs) Manufacturing will show the machine loadings and any potential machine conflicts i.e. two works orders at the same time on the same machine. Using drag and drop you can re-schedule a works order later or onto an alternative machine. Manufacturing will show the labour requirements so you can check you have the manpower to do the work. The “what if” planning mode allows you to experiment / juggle work around to make best use of capacity. You can also add additional assemblies or sub assemblies to the plan to fill in any gaps. Move jobs to other plans etc. Order MaterialsWhen you are happy with your plan re run material requirements and this time choose to raise purchase orders for required items. You may wish to alter quantities in order to reach price breaks with suppliers or to replenish stock levels at the same time. Put Plan into production – Create works ordersYou have a workable plan, materials are on their way (perhaps already arrived) now you put the plan into productions. This creates a list of works orders to be done during the production period. How long is the production period? It depends on what you are making, a sandwich factory may plan a day at a time, a specialist engineering company may use a month, it is all down to you and your individual business needs, Manufacturing will automatically create plans daily, weekly, fortnightly, four-weekly or monthly. You could however, create 4-4-5 weekly plans or any other date range manually. Receive Materials / Quarantine – InspectPrior to going into production and during production materials will be arriving. The software provides ISO 9000 compliance for materials trace ability, on receipt materials are recorded, the batch is identified and labels attached to stock to clearly identify which batch they are from. When allocating materials you can optionally specify which batch to use. Once goods are received they can optionally go through quarantine / inspection before being available to production. Inspection notes are attached to the batch. Goods are normally received only against purchase orders, un-ordered goods can not and should not be accepted. (You can however, make a GRN adjustment should you wish to receive un-ordered goods) As stock arrives you can drill down to see what works orders the goods are for. Allocate stock to works ordersStock can be allocated to works orders as soon as it arrives, it can also be de-allocated and re-allocated to other orders should production plans need to be changed “on the fly”. Once all the stock for a works order is allocated you are ready to start production of the item. Print Works OrdersThe printed works order is made up of up to four separate reports The route card shows, which operations need to be done in what sequence and has space for manual recording of times taken. The picking list says what items need to be issued from stock The operation card tells individual operators what materials to use, and what parts to make, with which machines, allied to this are any special instructions and the current drawings to use. The Job Sheet gives and overview of the job and gives space for times to be recorded, if this works order is for a multi-stage job then individual stages are consolidated here. Finished goods, scrap etc are all recorded, additional raw materials can be issued against scrap or production run reduced. Record finished goodsUpon completion of a works orders, the finished goods are entered into stock, these are immediately available to be processed by Sage sales order processing. Drill down allows you to see what sales orders correspond to a works order so it is easy to immediately allocate / dispatch goods from the GRN module.
Record TimesThis can be done in either timesheet mode or job mode. In time sheet mode each individual maintains time sheet for their hours and records which works orders/operations they worked on during the timesheet and the time spent against each. In operations mode, the times recorded on the cards are entered against the works orders / operations. (Time sheets mode does allows for un-allocated time to be identified) Time recording can also be done through shop floor data collection systems. Management ReportingThere are many built in reports already in Manufacturing, however, using Crystal reports you can write your own, the software automatically detects Crystal reports and adds edit / new buttons to it’s menus so the whole process is very simple. You can also create reports using Access Reports. Either way reports once created can be run from the system just like the built in reports. Commonly management needs to know:-
Production will want to know:-
Additional Sage Manufacturing FeaturesBOM’sLabour requirements including set up/clean up times Equipment requirements Unlimited number of components Re-costing facility for different batch sizes Selective replacement of components in BOMs Operations required (Not all operation have to print operation sheets eg movement of job from once station to another, is a task but it does not need a sheet) Sub-Contract operations Trial kitting Re-sequencing of operations Maximum build quantities from available stock Immediate stock transfer (by passes manufacturing processes) Tree view of Bom’s and sub-assemblies Quality Standard, validity dates, mark up on cost to derive selling price, user definable fields, search option to filter records (just like Sage) Attached documents Drawings register Latest costings, break down of costs. Copy BOM’s to create basis for variant BOM’s EstimatesEstimates are built up out of one or more stages, each stage will have it’s own works orders. Each stage can use Standard stock items and/or sub assemblies / finished goods. Additional operation / labour requirements. Non-stock / special order items. Miscellaneous costs. Print estimate option Copy estimate as basis for new estimate / variant Re-Cost estimate Convert Estimate into a BOM. Attached documents Full Job Costing Prospects Database
Production PlanningFind – Search for existing works orders / future plans for items so as to consolidate manufacturing batches.
Stock ProfilingProfiling shows how stock is planned to be used, highlights any future stock levels going negative or below minimum stock levels. Excellent tools for determining optimum stock levels / order size.
Works OrdersCosts can be allocated to Jobs created from estimates when the invoice is received and additional costs added at will. Ready to build scan, scan to see if works orders can be started, identifies hold ups. Manual addition, the materials have not arrived, you have two hours non – productive time, what do you do?, build something for stock from the available raw materials, using trial kitting in BOM you find out what you can make, and just manually add a works order to the production plan, print it and get them working.
Purchasing
Other Features
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