PRODUCTION ORDERS IN NAV


PRODUCTION ORDERS IN NAV
…a short guide about NAV Production Orders, based on MSDN Online NAV help.

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PRODUCTION ORDER PURPOSE
General Definiton : “Production Order – an order that initiates the manufacturing process”

Wikipedia Defintion:
A production order is an order issued within a company to produce a specific quantity of material within a certain timeframe. A production order may be issued pursuant to a sales order, and its issuance triggers a number of events. If components in the bill of materials are in stock, reservations are generated for those items; if they are not in stock, then requisition orders may be generated. Requisition orders may also be generated for production that occurs externally to the firm. Planned costs for the order are also generated and capacity requirements are generated for the work centers.”
https://en.wikipedia.org/wiki/Production_order

NAV PERSPECTIVE: “Production orders are the central components of the Microsoft Dynamics NAV’s manufacturing functionality. Production orders can be used to capture cost. However, there are other ways to capture costs, it depends upon business requirements.”

NAV PRODUCTION ORDERS FEATURES
Production orders contain the following information:
-Products planned for manufacturing
-Materials required for the planned production orders
-Products that have just been manufactured
-Materials that have already been selected
-Products that have been manufactured in the past
-Materials that were used in previous manufacturing

Production orders are the starting point for:
-Planning future manufacturing
-Controlling current manufacturing
-Tracking of finished manufacturing

Production orders go through five different statuses:
-Simulated
-Planned
-Firm Planned
-Released
-Finished
NB: is not possible to change the status of a production order manually.

PRODUCTION ORDERS TYPES
Simulated Production Order – SPO
The Simulated Production Order (SPO) is unique based on the following characteristics:
-It is not real.
-It does not influence order planning.

“As its name implies, it is not real and the main purpose is for quoting and costing,”
SPO does not influence the planning of orders. Planning (MPS and MRP, discussed in other chapters) neither considers nor is affected by simulated production orders. Also, a simulated production order cannot be used as a template because it disappears when its status changes.

Planned Production Order – PPO
The Planned Production Order (PPO) has the following characteristics:
-PPOs affect capacity requirements.
-PPOs serve as good workload estimates.
-PPOs need careful planning.

PPOs are similar to released production orders and provide input to capacity
requirements planning by showing the total capacity requirements by work center or machine center.
A PPO represents the best estimate of the future work center or machine center load based on available information. Typically, they are generated from planning, but can also be created manually. Because they are erased during subsequent planning generations, manual creation is not practical.
The PPO generation in planning results in a suggested “planned order release” that includes quantity, release date, and due date. The planning system logic is based on the replenishment system, reorder policies, and order modifiers that it encounters in the net requirements planning process.

Firm Planned Production Order – FPPO
The Firm Planned Production Order (FPPO) has the following characteristics:
-FPPOs can be manually changed.
-FPPOs are placeholders.
-FPPOs are created from planning, manual creation, or sales orders.
-FPPO creation results in a planned order release.

Planning cannot change an FPPO, but the Production Planner can make changes manually to the production order. The Production Planner can automatically create an FPPO from a sales order.

An FPPO acts as a placeholder in the planning schedule for some future job released to the floor.
An FPPO can be generated from planning or created manually or from sales orders. They are not erased during subsequent planning.
An FPPOs generation in planning results in a suggested planned order release that includes quantity, release date, and due date. The planning system logic is based on the replenishment system, reorder policies, and order modifiers that it encounters in the net requirements planning process.
To view an FPPOs impact in Microsoft Dynamics NAV 2009, look at the load for each work center or machine center on the firm planned production order’s routing.

Released Production Order – RPO
The Released Production Order (RPO) has the following characteristics:
-RPOs do not indicate product removal.
-RPOs are not always created immediately after a sales order.
-RPOs can record material consumption from a product output.

“When a production order has been released, it does not necessarily mean that materials have been picked or the job has physically moved to its first operation.”
In an MTO (Make-to-Order) environment, it is not unusual to create a released production order immediately after the entry of the sales order.
Actual material consumption and product output can be recorded manually with an RPO. In addition, automatic flushing of consumption and product output only occurs for RPOs.

Finished Production Order – FPO
The Finished Production Order (FPO) has the following characteristics:
FPOs are terminal. An FPO is an order that, for some reason, has been terminated. Usually, the order has already been manufactured.
FPOs can track back to other orders. FPOs are used for statistical reporting and to maintain the ability to track back to other orders (for example, sales, production, and purchase).
FPOs can never be changed. The ability to track back to a finished production order allows you to review the detailed history.

NB:Finished Production Orders cannot be posted to or deleted.
The status of a production order is changed to Finished to maintain historical information and to complete accounting and/or automatic flushing entries.

Production order: Source Types
Note that the Source Type for this order is Item. Three Source Types are available for a production order:
-Item
-Family
-Sales Header

Item – An item production order is wanted when one production order for each individual line of a sales order is appropriate.
Family – A Family production order is needed when a group of items always needs to be manufactured together.
Sales header – A sales header production order is appropriate when you want to produce all items of a sales order from one production order. This is useful in a large project environment where there is a relatively long manufacturing leadtime.

Scheduling\Rescheduling a production order

Backward scheduling begins from the ending date and proceeds backward to the required starting date.
Forward scheduling begins at the starting date and proceeds forward to the finishing date.

“The program automatically schedules the order to be completed one day before the due date.”

PRODUCTION SCHEDULING PROCESS FLOW

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