Analyzing Shop Orders—Key Exercises

Basic Data Setup

Discrete Manufacturing Overview Racing Engine

Purpose: The purpose of this exercise is to create the required data that will be used in the Discrete Manufacturing exercises. This sets up data for your site and needs to be done only once for the Discrete Manufacturing courses exercises.

1. Set up your site for discrete manufacturing of racing engines.

General exercise for Overview of Discrete Manufacturing Data

Inventory Location

Purpose: The purpose of this exercise is to set up an inventory picking location for running functionality isolated by site.

Windows:
Inventory Locations

1. If you haven't done so already, create the inventory picking location shown in the table below.

General exercise for Entering Inventory Locations

Required Data

Inventory Part Balance

Purpose: The purpose of this exercise is to ensure that you have the correct quantity of parts for the main exercises.

Windows:
Inventory Part Currently On Hand
Receive Inventory Part

1. Open the Inventory Part In Stock window.
2. Verify you have at least the quantity of parts shown in the table below. If you do not have enough parts, receive the indicated quantity into at least two different inventory picking locations for each part.

General exercise for Receiving Inventory Part

Shop Order

Purpose: The purpose of this exercise is to set up a manually created shop order with the default information that will be modified in the main exercises below.

Note: Record the shop order numbers so that it will be easy to identify the correct shop order for the exercise.

1. Create shop orders for the parts and lot sizes identified in the table below. If the status of the shop orders is Planned, release the shop orders.

General exercise for Creating Shop Orders Manually

Main Exercises

Purpose: The purpose of these exercises is to analyze shop order information that is available on a shop order.

Windows:
Shop Order
Shop Order Statistics
Machine Operation Statistics
Operation History
Labor History
Inventory Transaction History
Shop Order Costs

You want to check the shop order history, statistics, and cost information available for a shop order for 10 electrical systems. You want to study the information:

• Before any activity has happened on the shop order.
• After work is reported on operation 10 and the component material for operation 10 is issued.
• After one electrical system has been received.
• After all electrical systems have been received and the shop order is closed.

Analysis Before Shop Order Activity

You want to study the information before any activity has happened on the shop order.

1. Open the Shop Order window and query for the shop order for this exercise. If you did not record the shop order number, query for your site, part number 21-230, and a quantity of 10. 
2. If the status of the shop order is Planned, release the shop order. Verify that no other activity has taken place on the shop order.
3. Open the Shop Order Statistics window and query for your shop order. Study the available information for the shop order.
4. Open the Machine Operation Statistics window and query for your shop order. Study the available information for each operation on the shop order.
5. Open the Operation History window and query for your shop order. No data should be found.
6. Open the Labor History window and query for your shop order. No data should be found.
7. Open the Inventory Transaction History window and query for your shop order. You will query for the shop order number in the Order Ref 1 field. The Order Ref 2 and Order Ref 3 fields are for a release number and a sequence number respectively. No data should be found.
8. Open the Shop Order Costs window and query for your shop order. Study the available information on each of the tabs. Click the WIP Status tab on the Shop Order Costs window. Verify that the value of each field is zero.

Analysis After Operation Reporting and Material Issue

You want to study the information after work is reported on operation 10 and the component material for operation 10 is issued.

1. Return to the Shop Order window displaying your shop order. Reserve the material on the shop order. Some material will be issued automatically in a later step.
2. Right-click anywhere in the window header, and click Report.
3. In the Report Shop Order Operation window, select operation 10 on which to report information. Enter 0.5 in the Mach Setup To Report field, 0.8 in the Mach To Report field, 0.5 in the Labor Setup To Report field, and 0.8 in the Labor To Report field. Save the information. Close the Report Shop Order Operation window. This reports the operation with values that are different from the expected standard values. Also, because component part 21-330 (Ignition System) is connected to this operation, the component material for this operation is issued.
4. Refresh the Shop Order Statistics window displaying information for your shop order. Find the differences between the data now and the information that displayed in the last exercise.
5. Refresh the Machine Operation Statistics window that displays information for your shop order operations. Find the differences between the data now and the information that displayed in the last exercise. 
6. Return to the Operation History window and query for your shop order. Study the information on the General tab. Click the Accounting tab and study the information.
7. Return to the Labor History window and query for your shop order. Study the information on the General tab. Click the Accounting tab and study the information.
8. Return to the Inventory Transaction History window and query for your shop order. Study the information on the General tab. There will be a transaction created for the issue of the part 21-330 (Ignition System) from the inventory location identified in the Location No field. The quantity is displayed in three data fields. The first has a value of '-' identifying the direction the inventory has moved in relation to the inventory location ( '+' means moving into the location and '-' means moving out). The second field contains the numeric quantity for the transaction, and the last field is the unit of measure for the part. The Transaction Code field contains the value BACFLUSH indicating that the material issue was made by the backflush process. Click the Accounting tab and study the information.
9. Refresh the Shop Order Costs window that displays information for your shop order. Find the differences between the information now and the information from the previous exercise. Click the WIP Status tab on the Shop Order Costs window. Verify that the value of work in process is no longer zero. Make sure you understand the source of each of the non-zero values.

Analysis After a Receipt

You want to study the information after one electrical system has been received.

1. Refresh the Shop Order window displaying your shop order. Verify that the status is now Started.
2. Right-click anywhere in the header, point to Material Actions, and then click Manual Receive.
3. When the Receive Shop Order window displays, select the Receive With Backflush check box. Select the Auto Report Of Operations check box. On the Inventory Receipt tab (in the Receive Shop Order window), receive one electrical system into location 2C. Save the information. close the Receive Shop Order window.
4. Refresh the Shop Order Statistics window that displays information for your shop order. Find the differences between the information now and the information from the previous exercise.
5. Refresh the Machine Operation Statistics window displaying information for your shop order operations. Find the differences between the information now and the information from the previous exercise.
6. Return to the Operation History window and query for your shop order. Find the differences between the information now and the information from the previous exercise. Study the new history records. Study the information on the General tab. Click the Accounting tab and study the information.
7. Return to the Labor History window and query for your shop order. Find the differences between the information now and the information from the previous exercise. Study the new history records. Study the information on the General tab. Click the Accounting tab and study the information.
8. Return to the Inventory Transaction History window and query for your shop order. Find the differences between the information now and the information from the previous exercise. Study the new history records. Which record is for the receipt of the electrical system? Study the information on the General tab. Click the Accounting tab and study the information.
9. Open the Shop Order Costs window and query for your shop order. Find the differences between the information now and the information from the previous exercise. Study the available information on each tab. Click the WIP Status tab on the Shop Order Costs window. Make sure you understand the source of each of the non-zero values.

Analysis After Shop Order Closes

You want to study the information after all electrical systems have been received and the shop order is closed.

1. Return to the Shop Order window displaying your shop order. Reserve the material on the shop order.
2. Right-click anywhere in the header, point to Material Actions, and click Manual Receive.
3. When the Receive Shop Order window displays, select the Receive With Backflush check box. Select the Auto Report Of Operations check box. On the Inventory Receipt tab (in the Receive Shop Order window), receive the remaining 9 electrical system into location 2C. Save the information. close the Receive Shop Order window.
4. Refresh the Shop Order Statistics window that displays information for your shop order. Find the differences between the information now and the information from the previous exercise.
5. Refresh the Machine Operation Statistics window that displays information for your shop order operations. Find the differences between the information now and the information from the previous exercise.
6. Return to the Operation History window and query for your shop order. Find the differences between the information now and the information from the previous exercise. Study the new history records. Study the information on the General tab. Click the Accounting tab and study the information.
7. Return to the Labor History window and query for your shop order. Find the differences between the information now and the information from the previous exercise. Study the new history records. Study the information on the General tab. Click the Accounting tab and study the information.
8. Return to the Inventory Transaction History window and query for your shop order. Find the differences between the information now and the information from the previous exercise. Study the new history records. Study the information on the General tab. Click the Accounting tab and study the information.
9. Open the Shop Order Costs window and query for your shop order. Find the differences between the information now and the information from the previous exercise. Study the available information on each tab. Click the WIP Status tab on the Shop Order Costs window. Make sure you understand the source of each of the non-zero values. The value of the Calc Variance field should be -10.20. The calculated variance is due to the reporting of 1.3 hours of machine and labor time instead of 1 hour on operation 10. The additional time cost is (.3 machine hours * (5 + 3) cost per hour for work center 300) + (. 3 labor hours * (25 + 2) cost per hour for labor class 1). The electrical systems cost more to produce than the standard cost for the electrical systems.