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09dis60s-configurable product

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09dis60s-configurable product

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    Unit 9Configurable Products

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9-ii Supply Chain Management Workshop?Student Guide

    Unit 9Configurable Products Unit Introduction .............................................................................................................. 1

    Unit Objectives .......................................................................................................... 1

    Terminology ............................................................................................................... 2 Configurable Products Foundation.................................................................................. 3

    Planning Bills .................................................................................................................. 4

    Use of Features and Options Items ........................................................................... 5

    Features and Options Example ............................................................................ 7

    Configurable Products Comparison .......................................................................... 8

    Kits....................................................................................................................... 9

    Assortments....................................................................................................... 10

    Invoice Flag ........................................................................................................ 11

    Kit and Assortment Order Processing Cycle ........................................................... 12

    Features and Options Order Processing Cycle ....................................................... 14

    Final Assembly (FAS) Processing ..................................................................... 15

    Final Assembly Scheduling ................................................................................ 16

    FAS Production Reporting ................................................................................. 17

    Orders Not Released Report ............................................................................. 18

    Final Assembly Order Receipt ........................................................................... 18

    Order Acknowledgment ..................................................................................... 18

    Pick Confirm ...................................................................................................... 18

    Billing ................................................................................................................. 18 Configuration Management ........................................................................................... 19

    On-Line Sales Order Configuration ......................................................................... 22

    Configuration Structure ........................................................................................... 23 Configurable Products Review ...................................................................................... 24

     Table of Contents 9-i

List of Figures

    Figure 9-1. The Key Products Supporting Configurable Products.................................. 3 Figure 9-2. Production Planning/Forecasting Bill of Material .......................................... 4 Figure 9-3. Use of Planning Bill ...................................................................................... 5 Figure 9-4. Multi-Level Planning Bill ............................................................................... 7 Figure 9-5. Kit Bill of Material.......................................................................................... 9 Figure 9-6. Assortment Bill of Material.......................................................................... 10 Figure 9-7. Kits and Assortments Example .................................................................. 12 Figure 9-8. Kits and Assortments Order Entry and Maintenance Processing ............... 13

    Figure 9-9. Component Selection ................................................................................. 14 Figure 9-10. Final Assembly Scheduling Process ........................................................ 15 Figure 9-11. FAS Relation to MPS ............................................................................... 16 Figure 9-12. FAS Production Reporting ....................................................................... 17 Figure 9-13. Configured End Items from Common Parent ........................................... 19 Figure 9-14. Configuration Management Work Flow Improvement............................... 20

    Figure 9-15. On-Line Sales Order Configuration .......................................................... 22 Figure 9-16. Configuration Structure Example ............................................................. 23

     List of Tables

    Table 9-1. Use of Planning Bill ....................................................................................... 5 Table 9-2. Configurable Products Comparison .............................................................. 8 Table 9-3. Invoice Flag ................................................................................................. 11

9-ii Supply Chain Management Workshop?Student Guide

Unit Introduction

    This unit covers the component-based and configurable product options within Supply Chain functions in BPCS. This unit discusses kits, assortments, features and options, and configurable items. These products are parent items whose components may need to be sold individually as end items or spare parts. This unit also covers the concepts involved in setting up and processing these items.

    Unit Objectives

    At the end of this unit you will be able to:

    ? Describe the different types of component-based and configurable products. ? Set up a kit and an assortment.

    ? Set up a planning bill of material for use with Final Assembly Scheduling. ? Create a customer order for Final Assembly Scheduling. ? Describe meanings of kits, assortments and planning bill inventory consumption.

     Configurable Products 9-1

    Terminology

    Listed below are terms presented in this unit.

    An item with a single-level planning bill of material used for grouping Assortment

    components. All components are optional. No history is tracked for

    the parent item.

    Product that provides configure-to-order capability. Order Entry users Configuration

    are prompted through the product options, validate selections, calculate Management

    costs and prices, and transfer that information directly to

    manufacturing. It ensures valid, buildable combinations of product

    options and passes complete process and material detail to the shop

    order.

    A planning bill of material with feature groups, standards and options. Features and Options

    Features and options items may be multiple-level bills of material.

    They are processed through Final Assembly Scheduling (FAS) with

    shop orders.

    Procedures for scheduling, releasing, executing, controlling, and Final Assembly

    shipping make-to-order or assemble-to-order items using Shop Orders Scheduling (FAS)

    for specific Customer Orders.

    Distinguishes categories of stocked material such as purchased, Item Type

    assembled, or manufactured.

    An item with a single-level planning bill of material structure and Kits

    entirely standard (or fixed) components.

    Product allowing production control, engineering, and cost accounting Manufacturing Data

    to retrieve and use product structure, routing, and work center Management (MDM)

    information for a variety of planning and costing needs.

    An assembled or purchased item created with a bill of material Planning Bill

    structure. The components are assigned to a parent item with forecast

    percentages used by planning. Pre-defined components are either

    optional, standard, or selectable features.

    ? Note

     The terms Features and Options items and Final Assembly Scheduling (FAS) items

    are used interchangeably.

    9-2 Supply Chain Management Workshop?Student Guide

Configurable Products Foundation

    Inventory is central to the concept of offering flexible end items to customers. In Inventory

    Management, various item types may be used based on the requirements and configurability

    of each item. This flexibility increases a supplier’s strength in customer service

    management. The following figure represents key products supporting configurable items.

    Inventory

    Management

    Manufacturing

    Data

    Management

    Figure 9-1 The Key Products Supporting Configurable Products

    Enables rules-based configuration of a product during Order Configuration

    Entry. Management

    Enables entry management of customer orders using Configurable Order

    configurable processing options through sales order events. Management

    Manages bill of material and planning bill of material Manufacturing Data

    creation and maintenance as well as routings, work centers, Management

    and departments used for manufactured items.

    Is used with assembled or manufactured items to manage Shop Floor Control

    shop orders, work centers, and the shop calendar.

     Configurable Products 9-3

Planning Bills

    Planning Bills are used to represent groups (families) of products which are similar in design

    or process, so they can be planned and tracked in aggregate. These are set up using Planning

    Bill Processing (BOM600), and are used in production planning, forecasting, and customer

    order processing.

    In a planning bill, a parent is set up with an item number identifying the family.

    Components are made up of end items within the product family and additional items which

    can be sold with the end items.

    The figure below illustrates an example of a production planning/forecasting bill of material.

    The percentage of the items refer to the forecast percentage within the family of expected

    product demand. Notice the sum of the component percentage is 100 percent.

    Pen

    Family

    Blue PensBlack PensRed Pens

    30%50%20%

    Figure 9-2 Production Planning/Forecasting Bill of Material

    BPCS handles three types of planning bills for specialty processing.

    ? Features and options

    ? Kits

    ? Assortments

    9-4 Supply Chain Management Workshop?Student Guide

Use of Features and Options Items

    This figure is an example of a planning bill using PEN’s features and options. Planning bill

    components are forecast percentages for each component to be used in planning.

    Pen

    Price = 1.50

    PentopSpringBottomPackaging

    100%100%100%100%Include in Price Include in PriceInclude in PriceInclude in Price

    PlasticLeather Ink CartridgeBlue=50%Felt Tip=40%+ .05 Case Case Black =40%Ballpoint=50%+ .0740%60%Red=10%Rollerball =10%+ .10Include in Price+.75Total = 100%Total=100%

    Option % can be Feature GroupStandard less than 100%Total = 100%Component 100%

    Figure 9-3 Use of Planning Bill

    Based on the setup, the component price may be added to the parent for the total price of the

    end item.

    Net Selling Price No Case Plastic Case Leather Case

    Felt tip, any color 1.55 1.55 2.30

    Ball-point, any color 1.57 1.57 2.32

    Roller ball, any color 1.60 1.60 2.35

    Table 9-1. Use of Planning Bill

     Configurable Products 9-5

Features and Options items can contain planning bill items as components. At Order Entry

    time, this creates a cascading effect. For example, the customer has these choices:

    1. What color ink do you want? blue, black, or red 2. What kind of cartridge do you want? felt tip, ball-point, or roller ball

    3. Do you want a leather or plastic case? leather or plastic

    If the leather case option is chosen,

    the customer decides:

    4. What color leather case do you want? black or red Incremental pricing for nested planning bills of material works in the same way as the parent

    level.

    9-6 Supply Chain Management Workshop?Student Guide

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