Production process customization settings
These settings include a range of parameters to customize your production process to meet your business needs. This includes turning on product tracing, ordering components automatically, and selecting co-manufacturing procurement type. This is part of the Advanced Manufacturing module, which requires an add-on to your subscription. You can find production process customization settings below in your General Settings, in the Settings section of the main menu.
See Cin7 Core Support– Manufacturing for more information about the production process, workflow, and features.
Stock transfer
Transfer components to your shopfloor when you do not have enough on hand for a production order. Make stock transfer of components:
Automatic: Creates transfer orders from the connected warehouse (see logistics path) to the production order location for missing components automatically when a production order is released. Transfer orders must be completed manually when the stock is received at the destination location.
Manual: Manually create and complete transfer orders for out-of-stock components.
Automatic lets you order small quantities of components right when you need them, but creates lots of small orders which could increase your delivery costs. This is a better option if you practice just-in-time manufacturing. If you prefer to build up several production orders of demand then transfer larger amounts of components, Manual stock transfers are a better option.
Purchase order replenishment
Purchase components for delivery to your shopfloor when you do not have enough on hand for a production order. Make purchase order replenishment:
- Automatic: Creates purchase orders to the production order location for missing components automatically when a production order is released. Purchase orders must be completed manually when the stock is received.
Manual: Manually create and complete purchase orders for out-of-stock components.
Automatic lets you order small quantities of components right when you need them, but creates lots of small orders which could increase your delivery costs. This is a better option if you practice just-in-time manufacturing. If you prefer to build up several production orders of demand then transfer larger amounts of components, Manualpurchases are a better option.
Nested production order creation
A production order where a component also needs a production order is known as a nested production order. Make nested production order creation:
Automatic: Creates production orders for nested components automatically when a production order is released.
Manual: Manually create and complete production orders for nested components.
Automatic lets you manufacture small quantities of nested components right when you need them, but creates lots of small orders which may be inefficient. This is a better option if you practice just-in-time manufacturing. If you prefer to build up several production orders of demand and make nested components in larger batches, Manual nested production order creation is a better option.
Create production order from sale
Create production orders immediately when a sale order for a finished product is authorized or backordered. This setting does not affect manual production order creation or creating production orders from MRP or your reorder suggestions. This will activate two more settings,Set order status to and On order release produce.
Authorizing a sales order for a finished product will automatically create the production order for that product.
- Nested production order creation is determined by the Nested production order creation setting and with the same status as the parent order.
- Nested assembly orders must be created manually.
Activating this setting creates production orders in direct response to sale demand, but creates more smaller orders, which may be inefficient. This is a better option if you practice just-in-time manufacturing or prefer to keep only a small amount of units on hand. If you prefer to build up several production orders of demand, manufacture in larger batches, or maintain higher stock levels, you may prefer to deactivate this setting, or activate it while creating only draft orders.
Set order status to
This setting is visible if Create production order from sale is enabled. Production orders created automatically from a sale can have one of these statuses:
Draft: No resources or components are allocated. The production order must be authorized and released manually. This option is better if you want to consolidate production orders, you often edit production orders, or you need to carefully allocate resource capacity and stock.
Planned: Resource capacity is planned and allocated (see Capacity Planner). Stock components are not allocated. The production order must be manually released. This option is better if you want to consolidate production orders, or you need to carefully allocate stock.
Released: Resource capacity is planned and allocated, and stock components are allocated. The production order will be added to the Scheduler. This option is better if its important to get started manufacturing ASAP, you rarely need to edit a production order, and you have enough stock and resource capacity to absorb orders added from sales.
On order release produce
This setting is visible if Create production order from sale is enabled. It defines how many units of finished products should be made in production orders created automatically from a sale. This can be just the sale order quantity, or also take into account your stock levels. The option you choose here will depend if you prefer to keep just enough in stock to meet sales demand or if you prefer a larger stock buffer. There are three options:
Produce Quantity required: Production order quantity is the same as sales order quantity. No other product availability or settings are taken into account.
-
Produce Quantity required and maintain minimum stock level quantity: Production order quantity is calculated as sales order quantity + (minimum before reorder + reorder quantity - on order - available). Available quantity can be negative. Minimum before reorder, reorder quantity, on order, and available are taken from the Demand location of the logistics path.
Note:When retail location is different than Shopfloor location Minimum before reorder and reorder quantity to be used for calculating Quantity to Produce will be taken from Retail Location and Not Shopfloor location.
Produce Difference between available quantity and quantity required to cover a shortage: Production Order quantity is calculated as: Quantity in Sales Order - Available - On Order.
Availability is calculated from:
1. The Reorder level set up for the product at the Shop floor location.
In case if Reorder level is not set up, then Minimum Before Reorder and Reorder Quantity set up in the product document header are considered. See Low Stock Reorder for more information on Reorder levels.
2. The Minimum Before Reorder specified for set up in General Settings → Purchase process customisation.
In case if this setting is set to Every location, then Availability is calculated (summed) for all locations. If this setting is set to Product, then Availability is calculated (summed) for Shop Floor and Retail locations only.
These calculations only apply to Released orders, Draft and Planned orders will always use the sale order quantity. Core will check component availability whenever the order changes from one status to another, and you'll be given the option to update the production order quantity or keep it the same.
Waste write off
In the course of production some wastage can appear. These can include intermediate or semi-finished products which are unsuitable for production or finished goods which are unsuitable for sale. Waste costs can included as part of your production costs, or posted to an expense account.
Posted to expense account: Cost of waste is based on the sales price and posted to the specified expense account. Price tier for waste posting is selected in the Production BOM - Cost of wastage section.
Included into production cost: Cost of waste is included in the production cost, allocated to finished products according to costing method (sales value method or net realizable value method) selected in the Production BOM - Finished products output section.
Waste posting account
When Waste write off: Posted to expense account is selected, this dropdown field becomes visible showing expense accounts.
Procurement in co-manufacturing operation
Components for co-manufacturing operation can be procured in three ways:
Sell components - Buy finished products: Select when components and semi-finished products listed in a co-manufacturing production operation are sold to co-manufacturer. The finished or semi-finished product is then bought from the co-manufacturer. In this procurement mode, co-manufacturing suppliers also require a customer entry which Cin7 Core will generate automatically. The co-manufacturer, not you, is the owner of the components, and the cost of the finished product does not include the cost of the components.
Transfer components - Buy finished products: Select when components are transferred to co-manufacturer for production of a finished product. You own the components, not the co-manufacturer, and the cost of the finished product includes the cost of the components.
These two modes work well if you manufacture in-house. However, this is unnecessarily complex if you fully outsource your production and do not store production components. If this is your case, you will want to choose:
Purchase components - Buy finished products. Components can be drop-shipped from supplier to co-manufacturer but you keep ownership of the components.
Transfer finished products to storage location
After production, finished products can be stored in the same location or transferred to another location of your organization. Delivery locations for each finished product of a production BOM can be specified within the BOM, and also within a production order. Cin7 Core will then generate the necessary transfer orders upon production run or production order completion.
Don't transfer: No transfer orders will be generated when the production run or order is completed. Delivery fields of production BOM and production order will be hidden.
On production run completion: Transfer orders for finished products from the production location to the delivery location will be generated when you complete a production run. If no delivery location has been specified in the production BOM or production order, the destination will be the Demand location of the logistics path.
On production order completion: Transfer orders for finished products from the production location to the delivery location will be generated when you complete a production order. If no delivery location has been specified in the production BOM or production order, the destination will be the Demand location of the logistics path.
If you prefer to send your finished products to sale locations as soon as they're ready, you should send them when you complete the production run or production order. This will generate more frequent but smaller transfer orders which could increase your delivery costs. If you prefer to transfer large quantities of many different products, you can choose not to transfer automatically, and create your own transfer orders.
Production order/run additional attribute set
Due to a large number of different requirements from system users, it is quite frequent that there will be a need to collect and store additional information that is not in the default production process fields. We have included the ability to create custom fields or additional attributes that can be linked to a production order/run. Selecting an attribute set from the drop-down menu will cause the custom fields from this set to appear in the Logs and attributes tab of your production order and the Attributes tab of a production run.
Production operation additional attribute set
Selecting an attribute set from the drop-down menu will cause the custom fields from this set to appear in the Production run tab of your production order, where the production operations are listed. You will need the Production orders – Edit completed operations permission to input data to additional attributes after an operation is completed.
Production output additional attribute set
Selecting an attribute set from the drop-down menu will cause the custom fields from this set to appear in the output window of your production process. You will need the Production orders – Edit completed operations permission to input data to additional attributes after an operation is completed.
Product tracing
Cin7 Core allows you to track components of a finished product either all of the time, some of the time, or optionally at the production BOM level. Finished product and components must have either a batch and/or serial number to be tracked. Please see Production component tracking and traceability for more information.
Production documents
This setting manages the order components are shown when printing production documents. The options are according to screen order (the order they were added to the BOM), alphabetically by name, or alphabetically by SKU.