QAD Routings Implementation
Sheri Forrest – RFBP
Nadia Truxell – Logan Consulting
Routings – Introduction
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Introduction
Ralcorp Frozen Bakery Products
Routings - Why Use them?
Routings – Implementation at Ralcorp
Review Process Changes – Scheduling, Backflushing
Review GL Transactions with Routings - Variances
Reporting Needs
Introduction – Sheri Forrest
• Ernst & Young-Auditor
– Manufacturing
– Banking
– Entrepreneurial Services
• Ralcorp Holdings, Inc. –Finance Manager Frozen Bakery Division
Responsible for financial and management reporting for 9 plants.
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9 QAD implementations
Upgrade from 7.2 to EB2
Major re-implementation completed in 2009
Routings
BOM Standardization
Introduction – Nadia Truxell
• Operations/Materials Manager – Scherdel Sales & Technology
Automotive Supplier of Springs and Stampings
Implemented QAD
• Project Manager – Logan Consulting
QAD Implementations and Business Process Consulting
Automotive
Food & Beverage
Consumer Goods
Industrial Products
Introduction – RFBP
Bread, Griddle, and Cookie products for
Industrial, Foodservice, and Retail markets
9 Manufacturing plants across the US and Canada
Advanced Repetitive processing
Why Implement Routings?
• Efficiency
• Utilization
• Productivity
Why Implement Routings?
Productivity
Efficiency
X
Utilization
Routings – Why Implement?
Routing = Sequence of Operations used to define the production process for a
finished good item or sub-assembly
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Capacity Planning – Work Center and Department Load
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Improved production reporting
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Improved variance reporting – Labor Costs reported at Standard
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Ability to compare actual to standard
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Lays framework for more sophisticated shop floor RF process
Routings – Effects
EFFECTS OF ROUTINGS
The system uses routing data to:
o Calculate the cost of producing an item
o Calculate the time it takes to manufacture an item
o Schedule operations for work orders and repetitive schedules
o Backflush components in the Repetitive and Advanced Repetitive modules
o Calculate work center and department load
o Print routings for work orders
o Obtain operation feedback using programs in Shop Floor Control, Repetitive, and Advanced
Repetitive
o Calculate component yield when Use Op Based Yield is Yes in MRP Control
Routings – RFBP Implementation
Routing “999” for all Items
No Labor Costs booked at time of backflush – Method Variance
No visibility for Capacity planning/Department/Work Center Load
Routings – RFBP Current State
Routing “999” for all Items
No Labor Costs booked at time of backflush – Method Variance
No visibility for Capacity planning/Department/Work Center Load
Routings – Future State
QAD Routing Implementation - Phase 1
Create Routings to measure standard Machine and Labor Time
Provide ability to obtain improved reporting at a production line level
Lay the framework for a more sophisticated reporting process and standard
methodology for creating costs for manufactured items.
Project Timeline
Routings - Setup
Departments
Work Center
Routing Maintenance
Alternate Routing Maintenance
Item Site Planning Maintenance
Departments
Departments
Use Department Maintenance to define departments and set up labor capacity and general
ledger (GL) accounts for each department.
Department – Code representing Department within Plant:
Current State: 53000 = Ogden, 53500=Fridley
Discussion Point
Define Accounts and Sub Accounts for:
Cost of Production
Labor
Burden
Labor Usage Variance
Labor Rate Variance
Burden Usage Variance
Burden Rate Variance
Accounts Default from Product Line Maintenance or Work Order Account Maint
Work Centers
Work Center Maintenance
Use Work Center Maintenance to define work centers, which are production areas with one or
more people or machines having identical capabilities.
Work center data controls processing in four areas:
o Scheduling: When a routing operation is specified at this work center, lead time fields
(Operation, Queue Time, Wait Time, and Machines per Op) default to those for the routing.
o CRP: Capacity for this work center is the number of machines in a work center
(machines/work center) multiplied by the number of available hours (from Calendar
Maintenance).
o Costing: Manufacturing costs are calculated in Routing Cost Roll-Up. Labor costs are
calculated by multiplying the setup and run times at each operation by the setup rate and
labor rate. Burden costs use machine burden rate, labor burden rate, and labor burden %.
Subcontract costs are taken from subcontract cost at the operation level.
o Accounting: Each work center belongs to a department, which determines the GL accounts
that track variances, labor and burden costs.
Work Center Maintenance
Work Center: Enter Code representing the Work Center within a Department
Machine: Enter standard headcount (staffing) required to run this work center. This functions as
a sub record of the work center.
Department: Select the Department Code for the Work Center
Mach/Op: Leave as default (1)
Setup Crew: Optional – Reference Only
Run Crew: Optional – Reference Only
Labor Rate: Enter the Average Labor Rate per hour required to run this Work Center.
Routing Maintenance
Routing Maintenance
Routing Code: Code Representing Product/Family manufactured through a Work Center
Existing Convention: 53001-01 (Routing 1 on Ogden Line 1)
Operation: Enter “0” for Machine Hours, “5” for Labor Hours, “99” for Backflush
Start Date: Enter beginning effective date of the Routing
Work Center: Enter the Work Center associated with this Routing
Description: Enter the Description associated with this Routing
Run Crew: Defaults from Work Center Maint – Reference Only
Run Time: Enter the amount of time it takes for one unit of this item/family to be processed.
Use Routing Maintenance Rate Based to enter units/hr
Auto Labor Report: Check Box to report labor at standard
Alternate Routing Maintenance
Alternate Routing Maintenance
Use Alternate Routing Maintenance to assign approved alternate routings to items and sites.
When an item can be made different ways, using different operations, work centers,
machines, and perhaps different components. Each of these is called an alternate.
Item Number: Enter the Item Number the Alt Routing is associated with.
Site: Enter the site where the Item is manufactured.
Item-Site Planning
Scheduling Concept
Backflush Transaction
GL Impact – Backflush with Labor
GL Impact - Examples
GL Impact - Variances
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Labor Usage Variance
Labor Rate Variance
Burden Usage Variance
Burden Rate Variance
Method Variance
Rep Operations Acct Report
RFBP Custom Report
Labor Variance Report: 99.29
RFBP Custom Report
Labor Variance Report
Selection criteria
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ID: Leave blank or specify a range
Work Order: Leave blank-repetitive/Specify range –discrete work order
Site: Enter site range
Line: Leave blank or specify a range
Work Center: Leave blank or specify a range
Machine: Leave blank or specify a range
Routing: Leave blank or specify a range
Operation: Leave as default or run for 0, 5, 99
Department: Leave blank or specify a range
Effective date: Specify a range
Report Total: Check for a single operation, No check for the default.
RFBP Custom Report
Work
Center
Part
WO ID
50514 0686151803107905332
50514 0686151803107905332
50514 0686151803107905332
50514 0686151803107905332
50512 fb010032
7908487
50512 fb010032
7908487
50512 fb010032
7908487
50512 fb010032
7908487
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010028
7908488
50512 fb010042
7908489
50512 fb010042
7908489
50512 fb010042
7908489
50512 fb010042
7908489
50512 fb010042
7908489
50512 fb010042
7908489
Date
WO Status
1/18/2010 R
1/18/2010 R
1/19/2010 R
1/19/2010 R
1/18/2010 R
1/18/2010 R
1/25/2010 R
1/25/2010 R
1/18/2010 R
1/18/2010 R
1/19/2010 R
1/19/2010 R
1/20/2010 R
1/20/2010 R
1/21/2010 R
1/21/2010 R
1/22/2010 R
1/22/2010 R
1/25/2010 R
1/25/2010 R
1/26/2010 R
1/26/2010 R
1/27/2010 R
1/27/2010 R
1/28/2010 R
1/28/2010 R
1/18/2010 R
1/18/2010 R
1/19/2010 R
1/19/2010 R
1/20/2010 R
1/20/2010 R
Type
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Machine
Labor
Quantity
Rate
Complete
16.04
2112
0
2112
16.04
156
0
156
16.04
6
0
6
16.04
6
0
6
16.04
30
0
30
16.04
39
0
39
16.04
39
0
39
16.04
37
0
37
16.04
49
0
49
16.04
30
0
30
16.04
39
0
39
16.04
39
0
39
16.04
39
0
39
16.04
19
0
19
16.04
65
0
65
16.04
37
0
37
Setup
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Expected
Hours
23.18
2.78
1.71
0.21
1.18
0.47
1.18
0.47
5.17
2.07
6.72
2.69
6.72
2.69
6.38
2.55
8.45
3.38
5.17
2.07
6.72
2.69
6.72
2.69
6.72
2.69
3.78
1.5
12.95
5.12
7.37
2.92
Actual
Hours
178.5
24
16.69
2
23.05
6
16.77
5.65
59.56
18.46
73.65
24
59.44
24
161.76
44.92
14
0
46.92
18.47
73.96
24
0
0
0
0
29.96
10.13
92.78
34.67
47.52
19.73
Standard
Labor
$3,315.21
$0.00
$244.87
$0.00
$202.04
$0.00
$202.04
$0.00
$865.19
$0.00
$1,124.74
$0.00
$1,124.74
$0.00
$1,067.07
$0.00
$1,413.14
$0.00
$865.19
$0.00
$1,124.74
$0.00
$1,124.74
$0.00
$1,124.74
$0.00
$620.90
$0.00
$2,124.14
$0.00
$1,209.12
$0.00
Actual Macine/H Act Head Efficiency
Labor ead Count Count
Var
Act Cs/Hr Rtg CS/HR Std Variance
$2,863.14
8.33
7.44
0.1 11.83152
91.12
$452.07
$0.00
0
0 88.02817 758.99998
$0.00
$267.71
8.33
8.35
0.1 9.34667
91.12
($22.83)
$0.00
0
0 78.00312 758.99998
$0.00
$369.72
2.53
3.84
3.6
0.2603
5.09
($167.68)
$0.00
0
0.9
1
12.89
$0.00
$268.99
2.53
2.97
2.6 0.35778
5.09
($66.95)
$0.00
0
0.9 1.06194
12.89
$0.00
$955.34
2.5
3.23
1.8 0.50369
5.8
($90.15)
$0.00
0
0.5 1.62514
14.5
$0.00
$1,181.35
2.5
3.07
1.7 0.52953
5.8
($56.60)
$0.00
0
0.5 1.62501
14.5
$0.00
$953.42
2.5
2.48
1.4 0.65612
5.8
$171.33
$0.00
0
0.5 1.62501
14.5
$0.00
$2,594.63
2.5
3.6
4.2 0.22873
5.8 ($1,527.57)
$0.00
0
1.1 0.82369
14.5
$0.00
$224.56
2.5
3
0.1 3.50005
5.8 $1,188.58
$0.00
0
-0.1
?
14.5
$0.00
$752.60
2.5
2.54
1.4 0.63939
5.8
$112.59
$0.00
0
0.5 1.62425
14.5
$0.00
$1,186.32
2.5
3.08
1.7 0.52731
5.8
($61.57)
$0.00
0
0.5 1.62501
14.5
$0.00
$0.00
2.5
3
-0.2
?
5.8 $1,124.74
$0.00
0
-0.1
?
14.5
$0.00
$0.00
2.5
3
-0.2
?
5.8 $1,124.74
$0.00
0
-0.1
?
14.5
$0.00
$480.56
2.53
2.96
1.4 0.63418
5.02
$140.34
$0.00
0
0.5 1.87561
12.69
$0.00
$1,488.19
2.53
2.68
1.2 0.70058
5.02
$635.94
$0.00
0
0.5 1.87484
12.69
$0.00
$762.22
2.53
2.41
1.1 0.77862
5.02
$446.90
$0.00
0
0.5 1.87533
12.69
$0.00
WO
Variance
($2,491.36)
$0.00
($240.25)
$0.00
($350.81)
$0.00
($250.08)
$0.00
($872.38)
$0.00
($1,073.49)
$0.00
($845.56)
$0.00
($2,492.31)
$0.00
($89.05)
$0.00
($669.63)
$0.00
($1,078.46)
$0.00
$107.86
$0.00
$107.86
$0.00
($419.85)
$0.00
($1,280.50)
$0.00
($644.00)
$0.00
Routings – RFBP Implementation
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Routing Implementation Challenges
Data collection- not all need information currently
collected.
Data Input- scarce resources, training.
Data integrity- Shop floor data accuracy and completeness
questionable.
Current ‘Home-grown’ production reporting system
providing needed information—Why change?
QAD out-of-the-box reporting tools inadequate.
Additional steps to the new item setup process at the plant.
Interpreting routing data- What does it mean? How will we
use it?
Routings - RFBP
Questions?