Batch Balancing Shop Order Requisitions—Key Exercises

Basic Data Setup

Inventory Part

Purpose: The purpose of this exercise is copy the discrete paint parts needed for the rest of the Discrete Manufacturing exercises from site 1 to your site.

Windows:
Copy Parts To Site
Background Jobs

Note: If you already have these discrete paint parts copied to your site, you do not need to do this exercise.

1. In the From area, enter 1 in the Site field.
2. Enter 810 in the Comm. Group 2 field. The parts belonging to commodity group 810 have part numbers with the format 81-nnn.
3. In the To area, enter your site in the Site field.
4. Click OK.
5. Wait for the background job to complete. When it finishes, the parts will be copied to your site.

Inventory Part Planning Data

Purpose: The purpose of this exercise is to set up the planning data for the inventory parts on your site so they can use the discrete paint data.

Windows:
Inventory Part/Planning Data

1. If you haven't done so already, set the values to the values in the table below in Inventory Part/Planning Data.

General exercise for Purchased Inventory Part

General exercise for Manufactured Inventory Part

Inventory Part Manufacturing Data

Purpose: The purpose of this exercise is to set up the manufacturing data for the inventory parts on your site so they can use the discrete paint data.

Windows:
Inventory Part/Manufacturing

1. If you haven't done so already, set the values to the values in the table below in Inventory Part/Manufacturing.

General exercise for Manufactured Inventory Part

Inventory Part Estimated Material Cost

Purpose: The purpose of this exercise is to set up the estimated material cost for the purchased inventory parts on your site so they can use the discrete paint data.

Windows:
Inventory Parts

Note: If you query for your site, a lead time code of Purchased, and part numbers that match 81-%, the records returned should be in the same order as in the table below. Moving the Estimated Material Cost column close to the Part No. column will make checking your place in the list easier. Some of the values contain decimal components.

1. If you haven't done so already, in the Inventory Parts window, set the values to the values in the table below.

General exercise for Purchased Inventory Part

General exercise for Manufactured Inventory Part

Part Revisions and Product Structures

Purpose: The purpose of this exercise is to set up the part revisions and product structures on your site so they can use the discrete paint data.

Windows:
Product Structure
Product Structure/Product Structure

Note: The destination revision number will automatically be changed from the source revision number to the next higher integer. Therefore, you must change the site to your site and change the revision number to match the source revision number. In addition, the Structure Type field will default to a value other than Manufacturing if another value exists. Verify that the Structure Type field displays Manufacturing.

1. If you haven't done so already, copy the manufacturing structure revision for each part in the table below from site 1 to your site. (Right-click and then click Copy Structure Revision.)
2. For each part copied to your site, set the structure alternate to Buildable.

General exercise for Copying Revisions

Part Revisions and Recipe Structures

Purpose: The purpose of this exercise is to set up the part revisions and recipe structures on your site so they can use the discrete paint data.

Windows:
Recipe Structure
Recipe Structure/Recipe Structure

Note: The destination revision number will automatically be changed from the source revision number to the next higher integer. Therefore, you must change the site to your site and change the revision number to match the source revision number. If the destination phase-in date does not change when the destination revision number changes, choose the destination revision number by clicking List. In addition, the Structure Type field will default to a value other than Manufacturing if another value exists. Verify that the Structure Type is Manufacturing.

1. If you haven't done so already, copy the manufacturing structure revision for each part in the table below from site 1 to your site. (Right-click and then click Copy Recipe Revision.)
2. For each part copied to your site, set the structure alternate to Buildable.

General exercise for Handling Structure Alternates

Work Centers

Purpose: The purpose of this exercise is to set up the work centers on your site so they can use the discrete paint data.

Windows:
Work Center

1. If you haven't done so already, copy each work centers in the table below from site 1 to your site. (Right-click and then click Copy Work Center.)
2. For each work center that copied to your site, set the costs for cost sets 1 and 2 to the values in the table below.

General exercise for Setting Up Work Center

Labor Classes

Purpose: The purpose of this exercise is to set up the labor classes on your site so they can use the discrete paint data.

Windows:
Manufacturing Labor Class

1. If you haven't done so already, copy the labor class in the table below from site 1 to your site. (Use the Duplicate command to make it easier.)
2. For the labor class copied to your site, set the costs for cost sets 1 and 2 to the values from the table below.

General exercise for Setting Up Labor Class

Routing Revisions

Purpose: The purpose of this exercise is to set up the routing revisions so they can use the discrete paint data.

Windows:
Routing

Note: The destination revision number will automatically be changed from the source revision number to the next higher integer. Therefore, you must change the site to your site first and then change the revision number to match the source revision number. Otherwise, an overlapping date range may result. In addition, the Routing Type will default to a value other than Manufacturing if another value exists. Verify that the Routing Type is Manufacturing.

1. If you haven't done so already, copy the manufacturing routing revisions for each part in the table below from site 1 to your site. (Right-click and then click Copy Routing Revision.)
2. Set the routing alternate for each part copied to your site to Buildable.

General exercise for Copying Revisions

Manufacturing Lead Time

Purpose: The purpose of this exercise is to set up the manufacturing lead time for the inventory parts on your site so they can use the discrete paint data.

Windows:
Lead Time Calculation
Cumulative Lead Time Calculation
Background Jobs

1. Calculate the manufacturing lead time for all parts in your site. Use average capacity and the maximum time of machine or labor.
2. Verify that the background job completed without error.
3. Calculate the cumulative lead time for all parts in your site.
4. Verify that the background job completed without error.

General exercise for Calculating Manufacturing Lead Time

Part Costs

Purpose: The purpose of this exercise is to set up the costs for the manufactured inventory parts on your site so they can use the discrete paint data.

Windows:
All Parts Cost Calculation
Copy Costs To Cost Set One
Background Jobs

1. For all parts in your site, calculate the costs for cost set 2 and product code ID of 810.
2. Copy the costs from cost set 2 to cost set 1 for all the 81-% parts in your site.

Note: If you get messages about zero cost for the discrete paint parts, check to see if any of the possible problems listed in the next note is the cause.

3. Verify that the background job completed without error. View the details to check that there are no messages about zero cost not being allowed for the parts.

Note: If the value for any of the discrete paint parts is zero, the problem is likely to be one of the following:

• If the Inventory Value field contains zero, the part cost steps were not completed.
• One or more of the Estimated Material Cost field values was not set correctly.
• One or more of the product structures was not copied or was not set to Buildable.
• One or more of the routings was not copied or was not set to Buildable.
• One or more of the work center cost values was not set correctly.
• One or more of the labor class cost values was not set correctly.

Note: If it is difficult to find the source of the discrepancy, it may be helpful to compare the part cost of the parts in your site with those in site 1 using the Part Cost window. 

General exercise for Part Cost Calculation

Required Data

Shop Order Requisitions

Purpose: The purpose of this exercise is to set up manually created shop order requisitions to simulate demand for the parts to be batch balanced. Requisitions would normally be created by MRP, master scheduling, or other planning processes, based on existing demand.

Note: In the empty column, record the requisition numbers so that it will be easy to identify the correct requisitions for each exercise.

1. Verify that you have shop order requisitions with a status of Proposal Created. If not, create the requisitions manually.

General exercise for Creating Shop Order Requisitions Manually

Main Exercises

Purpose: The purpose of this lesson is to balance the requisition demand of a manufactured component within the requisition demand of its parent parts.

Windows:
Batch Balancing
Batch Balancing/Parent Part Requisition
Shop Order Requisition
Shop Order Requisition/Shop Order

You are the person responsible for balancing and releasing the shop order requisitions for paint into balanced batches. Today you need to:

• Balance the requisitions for the various colors of paint to consume the batch of paint base to be made this week.
• Balance the paint end items (various colors of paint in different sized containers) with the batches of the various paint colors.
• Release the balanced batch of requisitions to create the shop orders.

Batch Balancing Paint Base

Balance the requisitions for the various colors of paint to consume the batch of paint base to be made this week.

1. Open the Batch Balancing window.
2. Query for the requisition created for the 81-400 part (paint base). Verify that the Parent Part Requisition tab shows the parent part requisitions for white, black, and gray paint.
3. In the table on the Parent Part Requisition tab, select the three requisitions that were created for this exercise. Verify that the Selected Qty field in the header displays 147 as the quantity needed of the component batch for the selected requisitions. In addition, the Remaining Qty field should display 53. This represents an under-utilized batch for the paint base.
4. You decide to increase the quantities on each of the three requisitions. In the table on the Parent Part Requisition tab, change the quantity for the 81-200 part to 120. Change the quantity for the 81-210 part to 65. Change the quantity for the 81-220 part to 80. Select the three requisitions again. Verify that the Selected Qty field is now 199.75 and the Remaining Qty field is 0.25. You decide this is close enough because you know that the yield, quantities per assembly, and other factors will not always result in an exact match.
5. Save the changes.
6. With the three records still selected in the table, right-click in the header and then click Create Balanced Batch.
7. Click Yes when the window about whether it is OK to continue when the quantity to balance does not equal the selected quantity displays.
8. Verify that the records in the table now have a value for the Balance ID field and that the value for Header Req No field matches the value for the Requisition No field in the header.

Batch Balancing End Items

Balance the paint end items (various colors of paint in different sized containers) with the batches of the various paint colors.

Note: You decide to balance the white paint first.

1. Click the Parent Part Requisition tab if it is not the active tab. Right-click the requisition for the 81-200 part (white paint) and click Call Batch Balancing to open a new Batch Balancing window.
2. In the table on the Parent Part Requisition tab, select the two requisitions that were created for this exercise for the 81-101 and 81-102 parts. Verify that the Selected Qty field in the header displays 78 as the quantity needed of the component batch for the selected requisitions. In addition, the Remaining Qty field should be 42. This represents an under-utilized batch for the white paint.
3. You decide to increase the quantities on both requisitions. Change the quantity for the 81-101 part to 8. Change the quantity for the 81-102 part to 5. Select the requisitions again. Verify that the Selected Qty field now displays 120 and the Remaining Qty field displays 0.
4. With both records still selected in the table, right-click in the header and then click Create Balanced Batch.
5. Verify that the records in the table now have a value for the Balance ID field that matches the previous balance ID and that the value for the Header Req No field matches the value for the Requisition No field in the header.
6. Close the Batch Balancing window for the white paint and return to the Batch Balancing window for the paint base.

Note: You decide to balance the black paint next.

7. Right-click the requisition for the 81-210 part (black paint) on the Parent Part Requisition tab and click Call Batch Balancing to open a new Batch Balancing window.
8. In the table on the Parent Part Requisition tab, select the requisition that was created for this exercise for the 81-112 part. Verify that the Selected Qty field in the header displays 42 as the quantity needed of the component batch for the selected requisitions. In addition, the Remaining Qty field should display 23. This represents an under-utilized batch for the black paint.
9. You decide to create a requisition for black paint in a different size container. Click the Query Where Used tab to see the other parts that use the 81-210 part as a component.
10. Select the record for the 81-111 part. Right-click and click Create Shop Order Requisition.
11. Click OK to acknowledge the message about the requisition.
12. Refresh the Batch Balancing window. Click the Parent Part Requisition tab and record the requisition number of the requisition just created.
13. For the new requisition for the 81-111 part, change the value for the Qty field to 11.
14. Select both requisitions. Verify that the Selected Qty field now displays 66 and the Remaining Qty field displays -1. You decide that this is allowable because you know the need for the fixed scrap quantity of 2 is only used when changing between paint colors and you will ensure that the one shop order for the black paint in 2 liter containers will directly follow the shop order for black paint in 20 liter containers.
15. With both records still selected in the table, right-click in the header and then click Create Balanced Batch.
16. Click Yes when the window about whether it is OK to continue when the quantity to balance does not equal the selected quantity displays.
17. Click OK when the window about whether with the message about the total quantity being less than the selected quantity displays.
18. Verify that the records in the table now have a value for the Balance ID field that matches the previous balance ID and that the value for the Header Req No field matches the value for the Requisition No field in the header.
19. Close the Batch Balancing window for the black paint and return to the Batch Balancing window for the paint base.

Note: You decide to balance the gray paint next.

20. Right-click the requisition for part 81-220 (gray paint) on the Parent Part Requisition tab and click Call Batch Balancing to open a new Batch Balancing window.
21. In the table on the Parent Part Requisition tab, select the two requisitions that were created for this exercise for the 81-121 and 81-122 parts. Verify that the Selected Qty field in the header displays 74 as the quantity needed of the component batch for the selected requisitions. In addition, the Remaining Qty field should display 6. This represents an under-utilized batch for the gray paint.
22. You decide to increase the quantities on the requisition for the 81-121 part. Change the quantity for the 81-121 part to 8. Select the requisitions again. Verify that the Selected Qty field now displays 80 and the Remaining Qty field displays 0.
23. With both records still selected in the table, right-click in the header and then click Create Balanced Batch.
24. Verify that the records in the table now have a value for the Balance ID field that matches the previous balance ID and that the value for the Header Req No field matches the value for the Requisition No field in the header.
25. Close the Batch Balancing window for the gray paint and return to the Batch Balancing window for the paint base.

Releasing a Balanced Batch

Release the balanced batch of requisitions to create the shop orders.

Note: Due to the dependencies between the levels, you decide to release the entire batch at one time. It would also be possible to release one level at a time.

1. Right-click anywhere in the header and click Release - Balance ID.
2. Close the Batch Balancing window.
3. Open the Shop Order Requisition window and query for the requisitions used and created during this exercise.
4. Click the Shop Order tab.
5. For each requisition in the batch just balanced, verify that the value displayed in the Order No field in the table are the same while the values for the Release No field differ.