When an item needs to be produced or assembled in house, a shop order is created for the item. A Shop Order can be created manually, based on actual and or forecasted demand, or it can be created automatically, by another process (such as sales order entry).
The following steps are used to create a shop order.
• Verify the Bill of Material for the item being built or create a Bill of Material as required.
• Use the Shop Order program to select the Bill of Material to be used to build the item.
• Specify the schedule date to be used for the shop order. The schedule date in the shop order header determines when the system will try to allocate inventory to the order lines.
• Enter the quantity to be built and any notes specific to the shop order.
• Verify the component items and quantities and save the Shop Order
• Optionally print a copy of the shop order.
As the shop order is saved, the system checks the schedule date in the shop order. If the shop order is scheduled in the current scheduling window, the system will automatically try to allocate the component item quantities required to build the shop order. The system will then update the allocated quantity in both the Shop Order Header and Line Item records. The Shop Order Line Allocation amounts are set to the amount that is allocated to each shop order line The Shop Order Header allocation number is set to the total quantity of the top level item that can be built based on the component allocated quantities. This amount indicates the number of top level items that could be pulled and completed based on current inventory levels.
Once the shop order has been saved, the system will continue to try to allocate any needed component quantities to the order. As quantities are allocated, the line item and header allocated amounts are updated as described above.
The system will not try to allocate to a shop order that is identified as printed (meaning a pull ticket is being processed for the order). The system does not allocate to a printed shop order until any printed pull tickets for the order have been processed or reset. This prevents differences between the printed document being processed by the operator and the amounts shown in the system for the shop order when it is processed.