Production Order Processing

Macola ES’s Production Order Processing (POP) package provides a comprehensive yet easy to use manufacturing planning and execution solution if your business is involved in sales kitting or light assembly. You can also use this as a stepping stone for a full ERP system in the future.

Important advantages of Production Order Processing are:

• Plan and manage materials in production
• Simple, yet powerful, production order and reporting environment
• Online inventory adjustments
• Automatically create production orders from sales orders
• Integrate with Material Requirements Planning (MRP)
• Maintain value added costs for full absorption costing
• Full cost accounting integration from production

What makes Macola ES's streamlined manufacturing solution special is the different ways it can be used to support your operations and the different sized companies it can accommodate.

For very small companies and those running with minimal staff, the entire process of taking a sales order, creating multiple levels of dependent production orders and recording multilevel completions can be accomplished in only three transactions. Yet, the system can also be used by much larger firms with discrete responsibilities in customer service, materials management, production planning and control. And it is parameter driven to allow tailoring of the system to fit your unique environment.

The key is that Production Order Processing is a flexible manufacturing planning and execution system that supports multiple business environments, company sizes and types of industry.

Value-added cost maintenance
POP's Value Added Cost Maintenance functionality allows you to define numerous cost types to represent value added costs applied during production. These could include variable allocation of labor and overhead for each unit. This provides you additional breakdown of costs that have traditionally been posted to a Work-In-Process (WIP) variance account. This also provides further granularity in reporting cost of goods sold and cost of expenses within your income statement.

Scheduling using Manufacturing Shop Calendar
Due dates can be tied to a manufacturing shop calendar, which manages days open for production. Item manufacturing lead times are used to backward schedule from due dates to compute the start date of the manufacturing order. If the start date or the due date falls on a day that the production department is closed for production, the system will automatically select the previous workday to meet customer due dates.

Seamless integration with other modules
Macola ES's streamlined manufacturing solution integrates your production needs by allowing you to pull a production order automatically from Order Entry (O/E), copy one from Material Requirements Planning (MRP) or enter one manually. If you are not using MRP, you can manually create orders or consolidate O/E orders using a consolidation process that calculates the demand of a manufactured item over user-defined periods. Lower level manufacturing orders can also be created for dependent material using item settings. With POP, you can tie production to customer demand, inventory transactions and General Ledger (G/L) accounting entries for inquiry and reporting purposes.

Once unreleased production orders are created, the user can generate a Production Schedule that lists all production orders in start date sequence so that the production planner knows what orders to release and work on each day to ensure timely completion and delivery to the customer. There is also a Visual Scheduler that allows the planner to visually see the load on the shop floor and interactively reschedule production orders to take into account changes in schedule or capacity using drag and drop.

Once units are completed, POP uses a backflush transaction to update raw materials and finished goods inventory. The user can enter additional transactions to account for scrap and excess usage. The POP backflush also includes the Value Added Costs to ensure that these costs are included in the cost of the finished goods. You can accept the planned costs or report actuals. A Production Advice prints a report per manufactured item providing information on the sales order that it fulfilled.

Detailed production order inquiry capability
POP takes advantage of Macola ES's extensive drill-down capabilities. The Production Order Inquiry links information about production orders with information related to their source, component makeup, and transaction generation. Several components of this inquiry are also used in other Macola ES packages. Drill-down push buttons allow you to drill-down and access multi-level standard and captured costs, customer order, reported production and dependent order information.