Shop Order Processing
This section describes how Shop Orders are processed.
This section assumes that a Bill of Material has been created for the item being built.
Shop Orders are documents describing the component parts and processes required to assemble a specified quantity of a top level item (a computer for example).
Each shop order describes one level of assembly, for example the assembly of a personal computer out of numerous components; including case, power supply, processor board, disk drives, etc. The actual creation of the power supply (if you build them) is a separate process requiring a separate shop order.
A shop order consists of a header and line items. The header contains information describing the item to be built, the quantity, optionally a customer and/or order number that the assembly is for, date and status information to control the flow of the shop order through your shop. The shop order line items contain information about what inventory and labor items will be used in this shop order. Both positive and negative quantities may be entered to reflect the net effect on inventory when the shop order is completed. For example; the shop order may call for the merging of two finished goods with the result being one new finished product and some extra parts or byproducts. The byproduct parts go back into stock along with the item being built.
Creating a shop order is a simple process of selecting the item and quantity to be built. This is done by selecting the appropriate Bill of Materials. The Bill of Materials or BOM defines the component items and the quantities to be used to build the top level item. Once the appropriate Bill of Materials is selected, and the quantity of the item to be built has been specified, the system will automatically create lines for the shop order based on the BOM. The user may then add, delete or modify the items/quantities on the shop order to reflect the requirements of the moment. The user is not modifying the stored BOM, only the lines in the shop order are modified.
Once a shop order is created it can be tracked and scheduled through all phases of your shop floor process, including picking, release to the floor, testing and final completion. Labor, the incidental consumption of floor materials, scrap and over/under consumption of specified materials, can all be charged against the shop order. The basic processing flow for a shop order is described in the following sections.
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Determining Demand