Production of material consists of informing the system about the partial or total execution of a PO (production order). If it is partial, the PO is not terminated, it remains open.

Information about production updates the allocations of product components, the balances in stock, costs of product and production order involved.

This production annotation does not need any specific information from a do PPC.  It is the simplest routine to indicate the amount actually produced.

Cost information are related to the informed production order. This happens through the cost requests for the production order, through manual requests entered before production, or in production, if it is configures for automatic request.

Production of existing intermediate production orders also depends on parameterization made in the system.

Requests generated for allocated items listed in the PO receive the movement type 999 (RE1 - Automatic request).

The system checks the indirect components that compose the product and automatically posts the quantities from the warehouse, adding the value to the PO. The quantity produced updates the balance of the product.

Manual production is identified in the movements by the prefix PR followed by type 0 (manual).

Production gain concept - Parameter MV_GANHOPR

The concept of production gain applies when the actual amount produced is bigger than the one estimated in the PO (production order), using the same amount of raw material allocated/requested in the PO opening, without any production adjustments.

Example - consider the following information:

1. Production Order

2. Finished product structure

3. Stock allocation

To manufacture PO 00000100101, the following raw material is allocated in stock:

4. Production annotation

In this example, note that the quantity produced is 101,000 units of headache pills, differently from the quantity estimated in the production order, thus, obtaining a production gain of 1,000 units.

To treat this concept, check the filling of the parameter MV_GANHOPR that may be set to:

- T (T/True) – allows to use the product gain concept (default).

- F (F/False) – does not allows to use the product gain concept.

In this case, when you register a production annotation, if the quantity produced is greater than the quantity estimated, a message is displayed warning that the quantity informed is greater than the quantity entered in the production order, and it is not possible to confirm it.

Maximum percentage of the quantity provided in the production order - Parameter MV_PERCPRM

By using the parameter MV_PERCPRM you can calculate the proportion of components consumption when producing a quantity greater than the expected in the production order. Thus the quantity exceeded by the annotation is automatically requested and does not generate allocation adjustments for this situation.

When validating the inclusion of production annotations, the System checks whether the total produced (it also considers the previous annotation and disregards production gains) exceeds the percentage defined by the parameter MV_PERCPRM, according to the following conditions:

• Positive: There is a warning message on the limit reached and the inclusion of the appointment should not be allowed.
• Negative: when the amount produced is greater than the expected on the order, a screen appears for classification of that surplus.

The pro-rated calculation for the request of the components is represented by the formula:

([exceeding amount produced] / original order quantity) * original allocation quantity.

Example:

Production order of 200 units with the following reservations:

MP1 – 100 units

MP2 – 200 units

MP3 – 400 units

When making an annotation for the production of 230 units and 30 units are classified as surplus production, the requests are considered in the following amount:

MP1 – 115 units

MP2 – 230 units

MP3 – 460 units

The proportion calculation occurs in two moments:

• during the validation of balances of the components.
• during the generation of requests, not to result in negative balances.

After classifying the quantity produced above the forecast, production considered as production gain and surplus production are recorded in the fields Qty Gain and Qty. Higher, respectively.

Examples of surplus production and production gain

Situation 1

Configuration:

• MV_GANHOPR = .T.
• MV_PERCPRM: 100

When making an annotation of a quantity more than the manufacturing order planned, the screen is opened to classify if this surplus quantity produced is a production gain or surplus production.

The exceeding quantity entered as surplus production cannot surpass the percentage entered at parameter MV_PERCPRM.

If there is surplus production quantity in the production annotation added, the requisition of components will be calculated in proportion so it will consider the exceeding amount produced and, then it will require the difference automatically. The proportion calculation(exceeding quantity to require) of components will happen according to the percentage represented by the exceeding amount produced in face of the original order quantity multiplied by the original allocation quantity. The calculation can be written as follows: ( [exceeding amount produced] / C2_QUANT) * D4_QTDEORI.

Example 1:

Manufacturing order of 200 units with the following reservations:

MP1 – 100 units

MP2 – 200 units

MP3 – 400 units

If one makes a production annotation of 230 units and the exceeding 30 units are classified as surplus production, the requisitions will be done in the following amounts:

MP1 – 115 units

MP2 – 230 units

MP3 – 460 units

Example 2:

Manufacturing order of 200 units with the following reservations:

MP1 – 100 units

MP2 – 200 units

MP3 – 400 units

If one makes a production annotation of 230 units and the exceeding 30 units are classified as production gain, the requisitions will be done in the following amounts:

MP1 – 100 units

MP2 – 200 units

MP3 – 400 units

Example 3:

Manufacturing order of 200 units with the following reservations:

MP1 – 100 units

MP2 – 200 units

MP3 – 400 units

If one makes a production annotation of 230 units and the exceeding 30 units are classified 10 as production gain and 20 as surplus production, the requisitions will be done in the following amounts:

MP1 – 110 units

MP2 – 220 units

MP3 – 440 units

Example 4 (using lot control):

Manufacturing order of 200 units with the following reservations:

MP1 – 100 units

MP2 – 200 units

Components MP1 and MP2 have lot control and one did not select the lots when allocating the components.

Stock balance

MP1 – 1000 – Lot 001

MP2 – 100 – Lot 001

MP2 – 100 – Lot 002

MP2 – 100 – Lot 003

MP2 – 100 – Lot 004

If one makes a production annotation of 230 units and the exceeding 30 units are classified as surplus production, the requisitions will be done in the following amounts:

MP1 – 115 units (115 units of lot 001)

MP2 – 230 units (100 units of lot 001, 100 units of lot 002 and 30 units of lot 003).

In this situation, where one did not allocate the lot number, the program selects the lots available at stock and executes the proper requisitions.

Example 5 (using lot control):

Manufacturing order of 200 units with the following reservations:

MP1 – 100 units

MP2 – 200 units

Components MP1 and MP2 have lot control and one has selected the lots mentioned afterwards when allocating the components:

MP1 – 100 – Lot 001

MP2 – 100 – Lot 001

MP2 – 100 – Lot 002

Stock balance:

MP1 – 1000 – Lot 001

MP2 – 200 – Lot 001

MP2 – 200 – Lot 002

MP2 – 200 – Lot 003

If one makes a production annotation of 230 units and the exceeding 30 units are classified as surplus production, the requisitions will be done in the following amounts:

MP1 – 115 units (115 units of lot 001)

MP2 – 230 units (115 units of lot 001, 115 units of lot 002).

In this situation when one allocated the lot number, the program uses the allocated lot and the exceeding amount is divided in proportion among the lots allocated.

Example 6 (using lot control):

Manufacturing order of 200 units with the following reservations:

MP1 – 100 units

MP2 – 200 units

Components MP1 and MP2 have lot control and one selected the lots that follow when allocating the components:

MP1 – 100 – Lot 001

MP2 – 100 – Lot 001

MP2 – 100 – Lot 002

Stock balance:

MP1 – 1000 – Lot 001

MP2 – 100 – Lot 001

MP2 – 100 – Lot 002

MP2 – 100 – Lot 003

If one makes a production annotation of 230 units and the exceeding 30 units are classified as surplus production, the requisitions will be done in the following amounts:

MP1 – 115 units (115 units of lot 001)

MP2 – 230 units (115 units of lot 001, 115 units of lot 002).

In this situation when one allocates the lot number, the program uses the allocated lot and the exceeding amount is divided in proportion among the lots allocated.

But, as component MP2 does not have balance of 115 units for lots 001 and 002, the system will display a message warning about component does not have enough balance at stock. This will occur even if the component has balance at other lots. This message will only be displayed if the system is configured to not allow negative stock.

Situation 2

Configuration:

• MV_GANHOPR = .T.
• MV_PERCPRM: 0

If the parameter that indicates the percentage of exceeding amount to be annotated has zero value and the production gain parameter is selected, it will allow you to annotate an amount more than the one planned at manufacturing order. However, the screen will not be opened to classify the exceeding amount. Hence, the proportion calculation of components will not occur (exceeding amount to require).

Example:

Manufacturing order of 200 units with the following reservations:

MP1 – 100 units

MP2 – 200 units

MP3 – 400 units

If one makes a production annotation of 230 units, the requisitions will be done in the following amounts:

MP1 – 100 units

MP2 – 200 units

MP3 – 400 units

Situation 3

Configuration:

• MV_GANHOPR = .F.
• MV_PERCPRM: 0

If the production gain parameter is not selected, it will not allow you to annotate an amount more than the one planned at manufacturing order.

Integration with Shop Floor Control

With integration, it does not allow the addition and reversal of MO annotations and closings (PCP) that are integrated to SFC. In this case, the manufacturing orders changes should be done at the SFC module.

See Also

• Integration Production Planning and Control and Shop Floor Control
• PCP Production Model 1
• PCP Production Model 2