In addition to the above-mentioned factors for distribution environments, the major factors shaping system usage in manufacturing environments include the definition of product structure, variations in production strategy, and lean manufacturing practices.
Definition of Product Structure Information Master bills and master routings define product and process design, with optional bill and routing versions. Their identifiers are assigned to relevant manufactured items and specified on production orders. Planned engineering changes are identified using date effectivities for each bill and routing version; date effectivities can also be identified for material components . The master bill and routing information provide the basis for costing and planning calculations. Routing information is optional, and some firms coordinate production activities without it.
The order-dependent bill and routing for a production order initially reflect the assigned master bill and routing, and can be manually maintained to identify a custom configuration. The system models a multilevel custom product configuration using order-dependent bills and multiple linked production orders tied to the sales order.
Variations in Production Strategy Selling stocked product involves a make-to-stock production strategy, where sales forecasts typically drive end-item replenishment. A make-to-order production strategy often requires stocked components, where replenishment may be driven by component forecasts. The production order for a make-to-order product is typically linked to a sales order. A make-to-order product may have make-to-order components, so that multiple linked production orders are tied to the sales order. The linked production order(s) can be generated during sales order entry, by planning calculations, or by manual assignment.
Lean Manufacturing Practices Lean manufacturers often require auto- deduction of material and resources, bin replenishment of floor stock material, orderless reporting of production, and/or constraint-based scheduling of manufacturing cells .