Work order

When you need to build or maintain an item by a specific completion date you initiate a work order. You can initiate a work order on this page, or it can be created as a direct order when tracking a receipt from production to a bill of material, from a stock reorder suggestion or an MRP suggestion, or when a sales order is confirmed.

The bill of material (BOM) defines the list of components needed for the finished item, the material requirements. The routing associated with the finished item defines the sequence of shop floor processes needed to build or maintain the item or bill of material as individual operations and which machines, tools and operators to involve in the production process.

You create a work order as one of three categories of order:

1. A full assembly line order
   These orders use a routing to assemble a BOM into a finished product.
2. A production line or rework order
   These orders only define a routing. They might be shop floor processes that might not involve parts or components, such as a series of steps in a food production plant for packaging food safely and securely.
3. An assembly order
   These orders only define a BOM. The production process might be simple or not relevant, or time spent by a shop floor operator does not need to be recorded. Overhead costs can be managed separately.

All work order categories are completely flexible. You can add unplanned production operations and unplanned components to all order categories. For assembly line and assembly orders you can enter special instructions. You can add the complete default schedule of production operations to an assembly order and the complete default list of components to a production line order.

You create a work order as a planned order or as a firm production work order. Essentially you use a planned order to plan for supply based on available information. You can schedule a planned order and a firm production work order.

You can allocate component stock to a planned and a firm work order to reserve the stock for production. If the finished item is serial numbered, you can generate serial numbers to use in the production process as soon as the work order is approved for full production as a firm work order.

You can track progress for a firm work order but not for a planned work order as it's just that, a planned production order.

The actual production cost is recorded and displayed with the planned production costs when operations are tracked and components are consumed and tracked for the work order. Percentage progress lines are updated simultaneously. You can use these lines to visually track component consumption, the estimated progress of the production process and the estimated progress of the finished items.

Create a work order

1. To create a new work order you can:

   1. Select Create from the main view or the split view.

   2. Select an existing work order, then select the Duplicate icon.

      You can edit some fields such as the quantity after you create the duplicate work order.

2. Select the Site where the item will be built or maintained.

3. Enter or select the name of the Released item to build or maintain.

   You can only enter or select an item that's defined as a bill of material (BOM). The BOM status needs to be Available to use.

4. The default Category of order is displayed. You can select a different category.

5. Select the work order Type. This also sets the initial status for the work order. If you are duplicating a work order, Sage suggests you leave the initial status of the duplicate work order the same as the current work order status.

   If you set the initial status of the work order as Firm, you can track production progress and component consumption for the work order.

   If you set the initial status of the work order as Planned, you cannot track progress for the work order.

   Change a Planned status to Firm when the work order is approved for full production.

6. Enter the Quantity to build or maintain.

   The Quantity should be the batch quantity defined for the item-site or the batch quantity to produce using the routing.

   The Quantity should preferably be the optimal size of the batch to produce with the associated routing.

7. The default Requested start date for production is today. To start production at a later date, enter or select the planned production start date.

8. You can leave the remaining fields as the default values or you can enter your own values.

   1. Name: Leave as the Released item name or enter the name that's commonly used for the finished item at your production site.

   2. Work order number: Leave blank to generate the next sequential work order number or enter your own work order reference.

      If you enter your own custom work order reference, it needs to be unique.

9. Create or Duplicate the work order.

Operations schedule and list of components

The routing and bill of material display automatically after you select Create (in Create a work order, step 9). The routing displays in the Operations grid if the work order Category is for an assembly line or production line order, and the BOM in the Components grid if the Category is for an assembly line or assembly order.

The default schedule of operations is from the routing defined for the Item at the specified production Site. The default list and order of components is from the bill of material defined for the Item at the specified Site.

If the Operations or the Components grid does not display it's not too late to change your mind. You can add the default operations or components, or an ad hoc or unplanned production operation or component.

• To add the default schedule of operations or list of components: Select the Uses routing or Uses bill of material checkbox and Continue at the Add operations or Add components message.
• To add an ad hoc or unplanned production operation or component: From the Operations or Components grid, select Add and complete the details in the panel that displays.

You can enter and edit instructions specific to an operation and component. You can also insert ad hoc or unplanned operations and components, and modify selected information.

• See Working with routings if you need help to change the default schedule of operations.
• See Edit a routing if you need help to edit the resource or resource group assigned to perform an operation.

Attributes and dimensions

Attributes and dimensions are used for managing business rules and for analyzing and tracking production costs using analytical accounting data.

See Working with work orders if you need to override the default, or add, or delete attributes or dimensions.

Allocate or reserve stock for production

You can optionally reserve some or all component stock in advance of production. Reserving stock can help prevent production delays and a possible increase in production costs as the components are available when needed.

1. You can reserve stock for all or just individual work order components.

   • To reserve stock for all work order components at once, from the More actions icon for the work order select Allocate stock, then OK at the information message.

     Stock is allocated from the first available batches or lots in order. Stock that is serial-numbered is also allocated using available serial numbers and allocating them in order.
     To reallocate component stock to reserve it from different lots or batches, or to allocate different serial numbers, from the More actions icon for the component line select Allocate stock. Go to step 3.

   • To reserve stock for an individual component, from the More actions icon for the component number select Allocate stock. Go to the next step.

2. The Detailed stock allocation window provides information about the component stock that's available to reserve.

   You can allocate the component stock from a single batch or lot if stock is available, or split the stock allocation.

   To allocate the component stock from a single batch or lot, select the checkbox in the grid that matches both the inspection and quality assurance status and the lot or storage location to allocate the component from. Go to step 4.

   If you are allocating the stock from different lots or storage locations, go to the next step.

3. To allocate the component stock from different lots or batches, from different bins in the warehouse or workshop, or because some of the available stock has different inspection and quality assurance ratings:

   1. Select the checkbox in the grid that matches the specific lot or storage location to allocate the first quantity of the component from.

   2. Edit the Quantity to allocate figure in the grid.

      The initial default quantity is the Required quantity of the component if stock is available in the selected lot or the available quantity in the lot.

   3. Repeat a and b until you have specified each quantity to allocate with the appropriate storage and inspection status details.

      Each time you select a checkbox, the Quantity to allocate defaults to the remaining balance or to the available stock. This ensures the sum of the Selected quantity and Remaining quantity always equals the Required quantity figure.

4. Each line in the Stock allocation grid displays serial number entry instructions if the component is serial numbered. This is to prompt you that you can reserve some or all of the component serial numbers as well.

   You can reserve ad hoc serial numbers or a range of sequential serial numbers.

   1. From the Serial numbers grid, select Add line.
   2. Select the From serial number.

   3. To reserve ad hoc serial numbers, leave the Quantity as 1.

      To reserve sequential serial numbers, edit the Quantity of sequential serial numbers to include.

      The To serial number is updated automatically. You do not need to select it.

   4. Repeat a, b and c until you have reserved the required quantity of component serial numbers.
5. To reserve the selected component stock, select Save.
6. If you change your mind, from the More actions icon for the work order select Deallocate stock then OK at the information message. All reserved stock and serial numbers are removed and you can start your stock allocations again.

Serial numbers for the finished items

Having serial numbers available before production starts can be advantageous if an operation in the routing applies a serial number for the finished item as part of the production process.

You can generate serial numbers for the planned production quantity as soon as an assembly line or production line order is approved for full production as a firm work order, if serial numbers are managed for the finished item and the Pregenerate serial number for work order checkbox on the routing is selected. The serial numbers used in production are tracked with the released item when it's received into stock.

To generate serial numbers for the planned quantity of the finished item in preparation for the start of production, select Pregenerate serial numbers then Confirm pregeneration.

To view the generated serial numbers, select View serial numbers. The In stock checkbox is selected when the serial number used in the production process is tracked from the production receipt.

When a released item with a serial number has been received into stock for the work order you can generate additional serial numbers if needed. Select Pregenerate additional serial numbers. Enter the quantity of additional serial numbers to generate, then select Generate.

Schedule a work order

You can schedule a work order when the sequence of shop floor processes needed to build or maintain the item or bill of material is complete and you have saved the work order. Scheduling calculates the production start date and target production delivery date based on times for successive production operations and the shift patterns for the individual operation resources.

1. Check the Requested start date. You can select a different date if required.

2. Select the Schedule action.

   When the Scheduling status is Scheduled, the required production Start date and target End date are set, and the production operation and operation resources start and end dates and times are set.

You can reschedule the work order if you edit the Requested start date after the work order is scheduled. Save the work order then select Schedule.

The target completion end date, and the production operation and operation resources start and end dates and times are updated after the work order is scheduled.

If the work order does not need to be scheduled: Select the Not scheduled status, then Confirm that you will skip scheduling.

If scheduling was skipped but you need to schedule the work order: Select the Not managed scheduling status and Revert the skip scheduling, then select the Schedule action.

Shop floor documents

You can print 2 document types in PDF format for your workshop teams to use on the shop floor, the job traveller and a pick list.

• From the main list, you can select and print both documents for 1 or multiple work orders. To let you know that the print task is finished, a notification displays in the Notification centre. You can download the file from the notification.
• From the More actions icon for a work order, you can print the job traveler for the work order and a pick list for 1 or a range of work orders. Select Print to print the job traveler or to print pick lists, select Pick list.

See Work order: Shop floor documents for a summary of what the printed document types offer and how to change their layouts to suit your organisation.

Edit a work order

You can filter the main list by status.

In the General block, you can edit the Type of work order and Released quantity fields. Change the Type field from Planned to Firm when the work order is approved for full production. It is already a firm work order if it was created when tracking a receipt from production on the Bill of material page.

You can edit the planned and required production start dates and the required completion date, and reschedule the work order if you edit the Requested start date after the work order is scheduled.

You can edit the default dimensions and add new attributes and dimensions.

If the Operations grid or the Components grid is not displayed, you can add the default schedule of operations and the default list of components for the item to the work order. See Operations schedule and list of components for further information.

In the Operations and Components blocks, you can build and maintain a released item in different ways:

• You can exclude an operation or a resource from the sequence of shop floor processes, and exclude a component: Select the More actions icon for the operation number, resource or component then select Exclude. To reinstate the excluded line, select the More actions icon for the line then select Include.

  The operation needs to be at Pending status to exclude it. If the Exclude action is not available for a component, check the component's Allocation status. If stock is allocated or partially allocated to the component line, you need to clear the allocations first.
• You can add unplanned production operations and unplanned components, and modify selected operation and component information. From the Operations or Components grid, select Add and complete the details in the panel that displays.

You can enter and edit instructions for individual production operations and components and you can add comment lines to help with the production process. If any instructions have been added or changed in the routing or bill of material that are relevant to the work order, you will need to edit the instructions for the changes.

You can edit allocated stock and any reserved serial numbers, and deallocate all the reserved stock and serial numbers then reallocate them. You can reallocate component stock to reserve it from different lots or batches, from different bins in the warehouse or workshop, or because stock has passed inspection and quality control and has become available since the stock was originally allocated. If you need to remove all the allocated stock, from the More actions icon for the work order select Deallocate stock then OK at the information message. All your stock and serial number allocations for all components will be removed and you can select them again.

Progress a work order

You can view planned and firm work orders on your calendar from the main list. Select the List or Calendar icon to switch between the main list and your calendar. The calendar time frame determines how much of the work order detail is displayed. If you filter the list view for a work order status, the same filter applies to your calendar. Select a work order to view the work order details and progress the work order.

Change the initial status of a work order

If the work order is a planned production order the Type is Planned. Select Firm when the work order is approved for full production.

Track progress of a work order

You use Time tracking, Material tracking and Production tracking to track progress for the work order operations, component consumption and for released item receipts.

The first tracking record entered against the work order operations, the components or against the released item automatically changes the following:

• The Status of the tracked operation, operation resource or component.

  If tracked in full, the status is set to Completed.

• The Status of the work order.

  If tracked in full, the status is set to Completed.

The production costs in the Planned versus actual block are updated immediately a tracking record is saved in Production tracking, Material tracking and in Time tracking.

If an unplanned component was added to the work order when tracking the consumed materials, the component is effectively tracked in full. The component is set to Included status, not Completed status, and the Added checkbox is selected.

You can receive more or fewer than the planned production quantity. If production needs to be increased you can over-receive the released item and if it needs to be reduced, you can receive fewer or partially receive the released item. Stock might be needed for an urgent or late sales order or a customer return has increased stock of the item, for example. The Completed quantity displays the actual quantity received. If you over-receive the released item, the percentage progress lines in the Planned versus actual block are set to 100%.

You can continue to enter production, material and time trackings, and track unplanned production operations and components until the work order is closed.

Close a work order

You can close a work order after tracking has been entered against the operations, components or against the released item. Operations do not have to be tracked in full and components do not have to be consumed in full to close a work order.

The work order Status needs to be In progress or Completed. If a work order Status is Pending, you need to delete the work order instead.

From the main list, you can select and close multiple work orders at once.

1. To close the current or the selected work orders, select Close order.

   You can only close an In progress work order if component stock is not reserved for production. If the Close order action is not available, check each component Allocation status. If stock is allocated or partially allocated to a component line, you need to clear the allocations first. To clear the stock allocations, from the More actions icon for the work order select Deallocate stock, then OK at the information message.
2. Leave or edit the Closing date then select Generate.

• Each operation, operation resource and component is Completed.
• The Allocation status in the General block is deleted and the allocation status of each component number is set to Not allocated.
• The work order is Closed.

• If the actual production cost of the work order is different from the planned production cost and the WIP posting switch for the company is on, a work order cost variance journal entry is created to adjust the balance that remains in the WIP account.

  If the released item is costed at an average unit cost or a FIFO (first in, first out) cost, a cost adjustment posts the increase or decrease in the actual unit cost of the produced stock from the planned cost when you close the work order. Not absorbed costs can occur when the current stock on hand is less than the produced quantity or is no longer in stock when you close the work order. The work order cost variance journal entry posts any non-absorbed amounts as a Production variance.

  You can view the production costs in the Planned versus actual block.

• Unused pregenerated serial numbers are discarded.

Delete a work order

You can only delete a work order at Pending status.

1. Check the component Allocation status. If stock is allocated or partially allocated to a component line, you need to clear the allocations.

   To clear the stock allocations, from the More actions icon for the work order select Deallocate stock, then OK at the information message.

2. To delete a work order, select the More actions icon then select Delete.

   If the order is assigned to a demand order, the link to the MTO from the original demand order is deleted. The demand order and the line on the demand order are retained.

Working with work orders

Refer to the list of questions in this section for guidance on how to use your Sage Distribution and Manufacturing Operations solution to carry out day-to-day production tasks.

• I've entered a work order for the wrong item. Can I change the item?
• Can I change a machine or an operator?
• If I reserve stock in advance of production, can I change my mind and choose stock from different batches or lots?
• The component listed on the work order was not available so a different component was used in production. Can I add the unplanned component so the costs are tracked for the work order?
• How are default attributes and dimensions applied?
• I need to provide specific instructions for the production team. Can I do this?
• I need to change the released quantity. Do I need to change the required quantity for each component?
• When should I track production receipts?
• Some of the finished items have failed quality control. What should I do?
• Can I receive finished items if the work order is set to Completed status?
• What should I do with a work order if the finished items have been disassembled and the components returned to stores?

I've entered a work order for the wrong item. Can I change the item?

No. Delete the work order and enter a new work order for the correct item.

Can I change a machine or an operator?

Yes. You can add individual operators and a group of operators to perform an operation. Only one resource can be active per operation. The active resource can be an individual resource or the resource group.

1. Exclude the operation the resource is assigned to or exclude an assigned resource.

   Select the More actions icon for the operation number then select Exclude.

2. Add a new operation, then add a resource to the operation.

   1. To add a new operation: From the Operations grid, select Add.
   2. To add a resource: Select the More actions icon for the operation number then select Add.

If I reserve stock in advance of production, can I change my mind and choose stock from different batches or lots?

Yes. Stock allocations in advance of production are optional. You can reallocate component stock to reserve it from different lots or batches, from different bins in the warehouse or workshop, or because stock has passed inspection and quality control and has become available since the original stock allocations to the work order. You can also edit any allocated serial numbers.

To reallocate stock for an individual component, select the More actions icon for the component number then select Allocate stock. In the Detailed stock allocation window, edit the stock allocations. See Allocate or reserve stock for production for more information.

To reallocate stock for all components you need to clear the stock allocations first. From the More actions icon for the work order, select Deallocate stock then OK at the information message.

Deallocating reserved stock from a work order processes the lots using a FEFO (First Expired, First Out) or FIFO (First In, First Out) method which is determined by the Lot management and Expiry date management rules for each component. This is critical if the potency or safety of some of the components is only guaranteed for a set period of time or the goods have a specific shelf life.

If a component has an expiry date, the lots that are due to expire first will be deallocated first and made available for allocation to other work and sales orders.

If a component is lot or serial number managed without an expiry date, the most recent lots or highest serial numbers will be deallocated first and made available for allocation to other work and sales orders.

When the component stock has been deallocated you can reserve stock for all work order components at once, or you can reserve stock for individual components.

• To reserve stock for all work order components at once, from the More actions icon for the work order select Allocate stock, then OK at the information message.

  Stock is allocated from the first available batches or lots in order. Stock that is serial-numbered is also allocated using available serial numbers and allocating them in order.

• To edit the stock allocations for an individual component, select the More actions icon for the component number then select Allocate stock. In the Detailed stock allocation window, edit the stock allocations.

The component listed on the work order was not available so a different component was used in production. Can I add the unplanned component so the costs are tracked for the work order?

Yes. The list of components needed to produce the released Item is loaded automatically from the bill of material and displayed in the Components grid. You can add unplanned components to the list of components and modify selected component information. You can also add comment lines to help with the production process. See bill of material and Material tracking for more information.

How are default attributes and dimensions applied?

Rules can be set on the company record, on the Dimensions tab, to add default attributes and dimensions to the released item when a work order is created on this page, and when created as a make-to-order (MTO) to meet a demand order such as a confirmed sales order. If the company default dimension rules are set for:

• Manufacturing direct: When a work order is created on this page, for each attribute or dimension set to Site, the attributes and dimensions for the released item default to those defined on the production site record.

• Manufacturing order-to-order: Each attribute or dimension can be set to:

  • Site: When a work order is created as an MTO, the attributes and dimensions for the released item default to those defined on the production site record.
  • Source document: When a work order is created as an MTO, the released item inherits attributes and dimensions from the demand order.

Default attributes and dimensions on the released item then default to the operation resources and to the components if the attribute or dimension on an operation resource or component is blank.

You can override the defaults, and add and delete attributes and dimensions until the work order is closed.

The attribute or dimension needs to be blank to omit data such as a receipt from production or a resource or component cost when a financial analysis of the production costs is run.

You can edit the default, and add or delete attributes and dimensions as follows:

1. Select the Dimensions action to update:

   1. All components of the work order: The released item, all operation resources and all component numbers.
   2. The released item only.
2. Select Set default dimensions for the Operations grid or for the Components grid to set default values for all new operation resources or for all new component numbers.
3. Select Dimensions from the panel when you add a new operation resource or component.
4. Select the More actions icon for an operation resource or a component number, then select Dimensions.

I need to provide specific instructions for the production team. Can I do this?

Yes. You can enter comments as Text lines to the Components grid and enter instructions for individual production operation and component numbers. Each Text line is free-format. The operation and components instructions are also free-format and can include links to supporting documentation to build the finished item.

• To add a Text line, select Add.

  • Enter the Component number.

    Use a number that will position the comment where it's relevant. You can insert a comment as the first or last line in the list of components, between components, and attach the comment to a specific operation in the routing. For example, if the component numbers have increments of 10 you could use the number 5 to position the comment as the first line.
  • Enter the comment into the Name field. You have unlimited characters with which to add information to support your production process.
• Instructions for individual production operation and component numbers are updated to the work order when it's created. You can edit the instructions and enter new instructions, and include links to supporting documentation. Note that if any instructions have been added or changed in the routing or bill of material that are relevant to the work order, you will need to edit the instructions for the changes.

Individual component and production operation instructions are printed on the job traveller.

I need to change the released quantity. Do I need to change the required quantity for each component?

No. When you change the Released quantity for the work order:

• The Required quantity for each component is calculated from the new Release quantity and the component quantity defined in the BOM, and updated automatically.

  The Progress and Allocation status of each component is also updated to reflect progress for the new required quantity.

• Unplanned components added to the work order when tracking material issues are not changed because the component line is considered to be complete.

When should I track production receipts?

You can track the receipt of finished items at any point in the production process. You might do this as the finished items are received into stock, at the end of each working day or when the work order is closed. As a production tracking updates the provisional costs of production for the work order immediately it's saved, it might be advisable to enter tracking details as soon as the finished items are released into stock. However, you should only start tracking receipt of finished items when the routing is complete and the coherence of the routing operations has been confirmed and the list of components that make up the item is complete.

Some of the finished items have failed quality control. What should I do?

You can track the scrap quantities when you enter the stock details for the received items in Production tracking.

Can I receive finished items if the work order is set to Completed status?

Yes. Work orders are set to Completed status automatically when the components, operations and released items have been tracked in full. At Completed status you can continue to track receipt of released items. Changes to the work order are only blocked when the work order is set to Closed status.

What should I do with a work order if the finished items have been disassembled and the components returned to stores?

Close the work order then adjust your stock. You can do this by entering a stock adjustment to decrease stock of the finished item and increase stock of the component items.