Sales order procedure for engineering

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my name is Luis Aleppo and during this webinar we will go through an engineering to order process and we'll see an idea of a best practice scenario of an hour to get from sales petition for a product which is tailor it directly on the customer needs up to the manufacturing during the presentation we will follow up an idea first the vas full system landscape so what would be actually an ideal scenario for bias and additional systems like PDM or CAD which is actually included in your customers landscape a typical combination of functions which will be managed or could be managed by the ERP and there's an example of the product structure which will be actually manufacturing during during the webinar and finally an example of the process so let's start from a typical system landscape a typical system landscape actually sees ICP business 1 and based manufacturing as the center of course of the of the entire system landscape of your potential customer with the PDM and CAD system which might actually produce product management embalm import files for your team quality management system and machine data collection all of these actually will be flown into the Bears intuition app which is ready to actually read and write into the system any information that we third-party systems typical combination of functions would include actually in the product management flow bomb management external operations management that integration interfaces we have just described and the calculation which is a key functionality in of course engineering to order process all of these could be actually backed up by version control which is fully integrated into payers of course in the material management business process flow left material disposition goods receipt and eventually quality control and release of batch controlled items or for any atom the manufacturing management which will go through manufacturing planning forecasts planning eventually material reservations product release the internal manufacturing which is backed up by quality control as well external manufacturing by external suppliers and finally quality control and release of batches and finally the service management which for this business process is actually let's see the idea of the product structure for these engineered to manufacturing item the product we got a seem late today is gonna be an example of a bike this is for a bike manufacturer the product is gonna be built initially from a template dummy which is basically an idea as I said of business process which might speed up also your your customers business process allowing the people in sales to basically define a product based on the customer needs and with the backup of engineering in order to define the idea of the of the product structure and provide a quotation to the customer the finished product that we will then obtain after the engineering will be of course the final bike which has been actually manufactured with two Sebastian please the front in the rear will and and we will have of course the frame handlebars and the seat and all of these subassemblies and final assembly will have of course an assembly operation which needs to be carried out in a manufacturing plant in order to get the final bike one interesting thing that we will note is that the semi finished product considering here that the entire structure is engineered to order these two semi finished product will be order related so this means that when the system will generate the the fracturing order for the finished product Lord O Matic we generate also the manufacturing orders for the Sebastian please and when we will plan in ApS the finished product the system will actually take into account also the Manufacturing and planning of of the two subassemblies and all the related items of course as I said this is a scenario imagined for individual products for one single customer so basically we could starting from any existing product or if actually even from from a non-existing master data like in this example we will have a calculation based on template on dummy item where as I said quick input sales process then we will simulate the import of BOM positions for the same finish front finished product which could be coming from third party system as a CAD system at PDM or anything and eventually these functionality can be extended also when the worker it is already existing so we could have actually the worker growing as soon as the engineering is completing the definition of the entire product structure then we will get to procurement for purchase item based VI Marquis and a psssh the next slide is showing an idea of the entire business process we will start as I said from sales offer we will make a calculation over the sales offer we will finally get to define a sales order and eventually we can do an additional calculation on the sales order just for you know being fully 100% compliant that the product structure is compliant to the customer needs we could still apply some changes up to the sales order level and once engineering has finished the entire product definition at level of the sales order we will have the definition of the work order as you can see here from the engineering gave traced down to doctor lines because actually in bears it is possible to retrieve back to resolve to engineering directly over the sales order and then create work order from the sales order or we could actually just create directly from from a structure which is being generated by by our colleagues okay as I said then we will go into production planning and scheduling with the planning of the finished product material requirements of you see I've drawn a red line here cuz for timing reason I have the feeling that we will get up to that point of the business process all that is actually below that line belongs to quality control and manufacturing management which is actually a process common to other kind of manufacturing it's not only specific to engineering to order but it's basically common to any other manufacturing process so what what is important for us is to get the work order for the finished product exactly as we haven't generated okay I will jump into the system now that's by ASAP Business one you can see it opening in the desktop we will start from the sales quotation so starting from the sales quotation basically we will that's a standard of course functionality of SAT business one first thing we're gonna do is actually select our customer and set validity date for our quotation and then start from a dummy item now in our quotation we could actually just change any any description here and accept it we will add our condition just with no price and basic line into it then we will get back into it and by right-clicking over the quotation line we will have this function which is actually a base functionality for inserting a new calculation now the calculation functionality of base is actually extremely flexible and built for such cases of engineering to order and it's based also on calculation schemes now you will see an example of my calculation schema which is basically we we'll start evaluating the entire product structure based on of course the direct material costs direct labor costs and then we will have some additional surcharges which will be applied by the calculation schema up to the point where we can get actually into consideration the profit margin we want apply and eventually discount we might be willing to concede to the customer in order to get a final sales price in the in the pre calculation module which is the one we're looking at as I said we have total flexibility so basically at this line we could start inserting the ideal positions that are gonna be basically the base for for our finished product and this job could actually be carried out directly by one single person or could be carried out by several departments of ok let's assume that we're gonna insert first a new assembly as you can see the insertion I'm doing now for each new item is based on something which is not existing so it's a master data which are you're just defining at the level of the pre calculation what we're going to have define as as a first so Bassem Li is gonna be for example our rear so we're just going to name so passively we will obtain a position out here which is going to be the rear wheel and now by clicking the new button blue when these line is I lighted the system will insert automatically a new purchase item in that sub-assembly product structure so the first item we're going to insert there's gonna be our will ring and at this stage it's not really important any other information either than a possible purchase price so we're going to start to purchase price of 15 years for again we got a place or cells with the cursor on first about some rely on certain new one system is gonna insert a second purchase position this one is going to be four spokes and a price for the spokes will be seven euros are we going to date again please note that while we are inserting these lines inside the pre calculation our calculation schema is already applying all the logic for calculating the finished product price and it's replying in real-time with the actual product price with the structure we are inserting so now we're going to search third purchase item which is gonna be our tire for the rear wheel and this tire is gonna have a price of 4.5 yours finally by selecting the top assembly again tops of assembly we're gonna imagine that we will have an assembly operation at this stage so we're gonna select one of our existing work faces and we're gonna just input a description for the operation and an estimated time of processing which is going to be in this case for example 90 minutes okay that's our first so passively at this stage we will move again on the top level product right click and it's our second assembly at this time this is gonna be the front wheel and now we're gonna work on the seconds possibly so by having this line selected we will click the new button and we will insert the products that we need for the front wheel so again it's not a wheel here which is gonna cost 15 euros we got its hurt sec she's gotta be spokes again and price for spokes is going to be seven euros again for the front wheel selecting the assembly we will insert another item it's gonna be a tire and the tire is gonna cost for about 5 euros again and okay because actually on this bike on the rear wheel we want to place a clutch and also of course give an optional to our customer so are we going to insert an eleven times cassette and prices this is gonna be nine euros so we got basically the rear wheel complete the front wheel just needs now the assembly operation and again we're gonna select the same work very same word for word center and we're gonna describe the operation and input a time into this okay so now we got the two subassemblies defined front wheel and rear wheel at the label of the top product we're gonna add some additional materials which will need to be assembled together with the front wheel and rear wheel in order to obtain our finished product and so we will imagine to have frame for this bike and the frame cost something like 60 euros and then we gotta have another couple of purchase price purchase pay parts which are gonna be handlebars wait a price of three euros each but for the handle by handlebars we need a couple of them so we have updated the quantity and finally we need a seat for our bike and the CT is gonna cost 21 euros finally on the finished product we need an operation for the final assembly again we select the operation it's our description and it starts timing for depression as well now the system is returning all the info that we need at this stage in order to get a quotation for our end customer in this case we got to a sales price which is actually it's going to be around 485 euros what actually we could do here is also for example we want to offer an alternative for the frame for our customer and we could insert also an option for example a framing carbon which is gonna cost a bit more than the aluminium one and once we do this we could say for this line that this is optional and please note that while we select the line is optional the price will not change while when I revert these line two normal Thetas the price will be updated ingly of course in this case we're not gonna give two different frames at the same time to our customers so we're gonna leave the frame as an option the carbon one has an option for our customer also a DS level any change of the structure is allowed so we could actually just drag and drop any of these lines in order to have our product structure to be expressed by the system in a proper way like we want our front wheel here and we want our rear wheel as well at the level of the top product and then we want all our purchase items and the final assembly so once we get to the defined final product structure we are ready actually to supply a quotation to our customer there is one last thing which is extremely important these case that we are actually working with the calculation schema which has being called up during the the first recalculation entry of the functionality but he had anytime we could change the calculation schema and I have the system recalculate these entire products structure based on a different calculation schema that we have previously stored into a system once we are finished and we have defined the finished product structure we can set to return back to the document and the system will ask if we want to pass this price as a sales price in our sales document by replying yes of course we will have now the sales document in s AP Business one updated with the price of the product that we amplify of course at this stage now it will be a matter of just presenting the port to the customer discussing it and having it approved by the customer as well the next step ing to the business process that we have described is going to be actually to create the sales order after our calculation so by using a standard recipe functionality we will copy our sales quotation to sales order and the first thing we're going to do is actually select a possible delivery date which is the delivery dates at our customer is requesting now in the business process we are imagining and I'm reverting back to the business process slides we have at engineering which has been involved throughout time since the sales offer up to the sales order definition for creating the correct product structure we have assumed that these items that we have used for the initial position is going to be a dummy item so at the level of the sales order we will just change the description that's dummy item not to use we will zero out the unit price and we will now leverage what engineering has been doing for us in this case we're going to assume that we are have received the full product structure from our engineering department but as I will demonstrate now I am saving the yarder at this stage actually when we create a new calculation we could have the possibility of importing directly from a text file which has been built by our colleagues in engineering and you can see these text files have been created as simple text files we tap the limiting separate whipped up delimiter separator and they're just reporting the basically the product structure the materials and anything we need so let's assume for example we want delete it so by simply and we want to import it the system will just create the structure of the sub-assembly at these level and we can just you know recreate it in a proper way actually sorry this is not what we want to do we could actually have our so massively for the front wheel created and when we have this line highlighted for this passively when we will import the sub-assembly structure the system will automatically insert it at that so by simply level and what will be left for us is actually either completing it with the operation sequences that we need to create or we could receive directly into the text file we could receive the entire process structure which is built by purchase items and also by the entire routing and operations that we need to perform for manufacturing the item I will not save the calculation now because we have already the master data I created so I will just cancel and get back into the our calculation again what we gonna do though this time is that we're gonna substitute as a final touch for the sales order because the customer in the meanwhile has decided that he wants to go for the option so we will substitute the frame from standard aluminum we will delete it and we will decide that we want to insert an item you can see with this option here insert item what the system will do is slightly different from what we have demonstrated up to now because the system will now present the list of the items which are existing into the system so these means that in the meanwhile engineering has been working on the definition of our products and our structure and we are now bringing into the product into the product structure our option removing it at the right level what is important also is that the system is captured now the price that originally was inserted by the system for that product structure defined with the aluminum frame and we what we are seeing now is that we're gonna get the price which is gonna be five hundred and eighty euros which is slightly different from the previous one so we're gonna actually change the value here to five hundred and twenty euros for example we also know that we can reserve up to a discount up to a three percent so once we change these at this level to five hundred and twenty euros when we update and we click over ok the system is actually noticing that the price is different from what it was originally coming from sales document line and if we click on it yes we're gonna get the new price at this level actually now we could even be applying our three percent discount in order to stay in line with the calculation we have performed okay so this is basically the entire part of the say engineering to order processing what is interesting now once the sales order is defined and the product structure is being completed what it's interesting of course now is that we want to create he wants to create now the manufacturing order for for our product so for creating a manufacturing order in base which is strictly related to the sales order we have an option directly available on the sales order screen by right clicking you will see that the system will propose the work order creation function which is a new work order for finished product zero zero one at line two quantity of one piece or the exact same functionality we could have it from the production many sales order to production order this will bring up to screen all the sales order lines which still which I have a product which is order related and still have to be sent down to manufacturing into a manufacturing order what we will do now is create the manufacturing order by using the functionality directly on the sales order line now that the work order is created we get a green bar message here say P business once at this message bar and by right-clicking again either on the order adder or on the order line we will see that we have a work order created now you will see it with the green icon and we could eventually directly edit our work order and see how the system has created the product structure one thing I want to point out is that of course the system is being using the calculation structure which is associated to the sales order line and as receipted of course the frame carbon has a material that we want to offer to our to our customer in the manufacturing of this bike now in this case the bike is also a serial number managed item so the system has reserved the serial number which is which will be received at the end of the manufacturing process also for the front wheel and the rear wheel as I said as because as because these are or they're related subassemblies the system has created directly into the finished product work or a structure the substructure is for manufacturing the two assemblies now this is gonna this is going to be important for the APS scheduling functionalities that we're going to see now let's notice that for the finished product we have obtained by the system at the library date which is for the 27th of June that's because by our system parameters manufacturing is gonna be completed the couple of days before the delivery date which has been requested by the sales order now in order to get into the APS we will go through capacity planning that's menu in the sub menu in the production main menu we will open up a PS and EDPs scheduling what we have defined here are two main scenarios for basically scheduling the our manufacturing orders now in Bair's ApS is basically fully customizable up to let's say an extreme extent where you can define anything like the way the APS represent your manufacturing orders if that's to hide or not hide specific orders if you want a sorting which is based on anything like a name or SQL statement at the resources level you could automatically include or exclude resources at views level you will have the possibility to define specific views for that ApS scenario and by clicking edit you will see that you can actually define any view or subi and field descriptions by a SQL statement or any other means that are prepaid and calculation types also associated to that scenario calculation types are separately defined by this specific menu item in capacity planning EPS calculation types and the calculation types are real let's say the real heart of EPS just because in each of these single lines that you are seeing here there is basically the APS planning logic anything that you see in the options that I'm showing here is basically determining how the system will calculate reset dates and basically use the capacity of the machines which is going to be interested by a specific manufacturing order in our scenario specifically we have assigned these six ApS calculation types and we will see basically look forward scheduling as as an information for you when a work order is created there's a standard a to pay as the system backwards schedules the worker from the delivery date up to of course back and will calculate the duration of the operations and the materials requirement time based on the backward scheduling of the single operations now let's get into ApS so we again open the capacity planning APs we'll get the standard scenario and we will click view in order to get an overview of all the manufacturing orders which still need to get worked out by ApS and schedule ingly now what we will do is we'll filter by a resource or so this is a work which is required by a specific department of your customers company a planner is required here in our example we're gonna select our machine or department actually which is the assembly department and we see our finished product work order we just created which is standing here and waiting to be scheduled of course we could access directly the work order by clicking on the yellow arrow and we will be brought into the product structure which we have seen a few minutes before and by selecting several options and these screen we can have different behaviors of course now you see the calculation types which have been assigned to this scenario are all selectable in the stop right in stop sorry drop-down box and for example we want to start with a forward scheduling and these former scheduling will also take into account material times a material availability in order to run a correct for rescheduling what we will do for the specific manufacturing order is to set the start date we would like to define for our for our finish product and we could say for example as as first attempt we would like to start 21st of May as soon as I set my star structure the system will of course delete the start time and end time and will wait for me to calculate when I click the calculate button all the orders which have been selected by this tick box will be automatically calculated by the system now for our order in a specific we're seeing that we're having a problem in delivering on the 27th of June just because by starting even if we start today we will have a problem we will have several problems first of all we can see in the star structure that we could start on the 7th of June what does these fields mean and what does start structure means start structure means that the lower levels of our manufacturing order could actually be started on the 7th of June but we have a problem specifically for one material which cannot be received earlier on than the 28th of June so now we can check what is happening at this point and by right clicking over the line we can have our shortage info which is system the shortage info will show us for each level of our manufacturing product structure so any lower level of the finished product that we need to get into stock all these materials and specifically we will have a problem for this one which has a lead time of 30 days serve famous carbon frame as a delivery time of lead time 30 days and so the first data receipt can be actually 28th of June and also these are the two materials will have to be completely written on earlier than 212 or the 14th so basically assuming that we have got this reply we will change again our start structure and we'll say the system that we can actually start manufacturing on the 28th of June and we will recalculate ingly now we probably have solved a problem of material shortage but in any case we got a problem in the delivery date which cannot be of course fulfilled anymore so at this stage we will left get into our sales order or inform our sales department by either mean of a query or an alert function that delivery date will have to be basically postponed of a few days let's say for example we want to deliver one week later on third sorry not August but July on the 6th of July ok once this operation has been of course completed we are now ready to run through a marque so what we will do we will call up the functionality of the MRP wizard MRP wizard is based as well like ApS is based on basically scenarios which are defined at the system level in this screen we just have a quick look at the scenario we have defined here and our scenario is basically taking into account several pegging a replenishment originators and specifically I want to point out that in sales we could have this checkbox dict which is considered calculation now in our example we've been going through a process where engineering has been taking care of creating the master data and actually providing to sales a full product structure which is being fulfilled into into the system so we have of course all the master data created and in the items which have been only defined into the product structure but if we did not create a master data and just left the customized product structure at the level of the sales order calculation providing that those items are existing as master data into ASAP Business one and Bayers the system could have plan directly the calculation structure which is linked to our sales order now I will quickly run an MRP calculation and we will get now our order recommendations now the system will present of course a full list of items but in order to make our job slightly easier we could filter by work order now this is the work order that we have created just earlier on so by selecting our work order and clicking on OK we will see all the materials and the finished products related to our work order in particular we will see that all the materials the wheel rim the spokes the tires and everything will have to be purchased and you can also see that the system is placed the date of purchase are actually the week of purchase ing to each single materially time so that we can optimize actually our purchasing flow and purchasing flow of our customers so that materials are not actually received into stock Aylor earlier today the only exception is our frame Carmen which is actually creating if we order it today we're gonna receive it on 28th we could actually order specifically by double-clicking on the below part of the screen we could actually create several purchase orders for its single line but in order to stick with the time or a presentation I will just change the screen to the mold so that the lupillo part is not shown any more and i can click also the pre assign button that's fine but I will click the pre assign button and the system is actually pre selecting that we want to proceed with the procurement of purchase parts and if I would actually now just click the pre assign the system would only create a purchase order for our frame carbon which is the only line which actually will need work this week so what we can do is we can let's say increase our security buffer by a number of workdays and click the pre assign button and by doing so all the lines which are now this plain on screen and are purchasing line will be selected by the system because we are basically anticipating the purchasing day time once this is done we will click the purchase request button that as a supplier and price it will actually create a purchase request interface now this purchase request is ready to be analyzed by our procurement guys and is ready to be actually sent a purchase order so we will create now the purchase order and with these basically with these step we are now ready to manufacture our product now the flow of manufacturing into Bayers can be done ing to several scenarios now getting back to our slides we should actually be receiving our purchasing and which we could start the production assembly so I will quickly receive our purchase order which is just been created that's this can be done either via the standard s AP functionality of creating the copy of these purchase order to goods receipt peel or we could use the base function which can also be made available over terminal and can be used with barcode scanning from finalities for people in our house so we'll select the first line of our purchase order and we'll add it second line confirm to quantity and edit third line again confirm the quantity and fourth line confirm quantity an ad and be flying the firm the carbon frame this is a batch magnitude item so we will also sign a batch number and finally six and our last line seat once we have completed the checkout of our document we are receiving the goods if we click the goods receipt the system will create a goods receipt into si P business one and our purchase order will be closed and of course linked with the standard ASAP functionality to the goods receipt as I said we're now ready actually to manufacture and we have several options in Bair's - to continue with with the manufacturing flow basically we could decide that we provide terminals as the slides are actually we would first produce the assembly than the finished product and these can be done I am for example terminal sir can be done by Web Apps or could be done by simply a back flushing functionality which is the one I'm gonna show it now so for the work or a back flushing window what we will do now we will select basically first one of our service emily's for example for its semi finished product and confirm completion and this is going to basically provide into one single operation materials will be used on that work order position and the finished product will be received so if I just actually this this possibly will be received so if I open now my work order this position will be closed all materials are being consumed the product has been received and the operation has been completed okay I will now stop the webinar actors that's basically the flow for which I had in mind to present for engineering and I will unmute you so that we can open our question and answer session in one second I will meet you all and please you can start with your questions or you can raise your hand and start with questions any questions now for this time yep no questions at all no question I have a question in production line how we can see the drawings you think paperless using paperless you can see with paper story yeah I just revert back to to our system now when you get to for example a work order you have the possibility of printing the work orders based on them on a crystal report template that you have created now this is the standard crystal report template that you get from payers but these one could be weeks or any other occasion you like which is coming from master data or from the manufacturing order or if you're working with I will show you tea or the terminal if you're working on a pool report for example these are all the operations that you need to carry out now in a factory by double-clicking any of this line see that this part of the window is actually ready to show you see this little camera icon here this will show any image which has been linked to that specific operation or that okay okay so this can be actually made available directly on the term another question the bill of material is upgraded by game SolidWorks PBM is automated okay I will show you now when he used the data integration up I will show you in in the product structure say for example these handlebars in the extended functionality in the extended the tab of the pillow material for that product you can see that you have an option here for synchronizing and when it is set to yes what this means is that via the data hub integration anything that will be received from the can or PDM will be synchronised with this specific position so if you have any change in quantity or anything else that's relevant to a shrink okay update you can update and you can also delete the lines are you sure because I tried this with dot integration up and it over wrote the whole materials I am quite a few okay I'm quite confidently cooed but yeah I will I will double check for you whose was asking the question you sent Li me and he told separate email I didn't realize was asking the questions yeah yeah yeah okay Paco that's my email I will type it on the screen send me an email yeah yeah any other questions it's quite audience no no I I think that this great software i will review if we need how many license minutes but i understand that for production line we need particular license right terminals like the one I'm showing you here for this terminal you could buy separate licenses and of course these licenses are at a lower cost than the full license of the bates client and depending on the functionality you want to activate you can actually choose if you want just the terminal from an fracturing or you want it for quality control or you want it for goods receipts so you can have basically different functionalities for each license you buy okay okay thank you very much no problem I don't have questions okay so if there are no additional questions yeah we did here how do you hear me hello that that's funny you know oh good mom Alicia what are you doing I'm doing fine I'm doing fine okay just a question I posted it on the chat line the chat la but I guess you won't be able to read it so the question is did you use the harbor shed for the four bay us over the sequel and in one case or the other is there any difference in the cost calculation model i I beg your pardon fooled you I didn't get the first part of the question did I use the the Hana version of dais or the ms SQL one now I'm running on SQL this is running on my laptop yeah but yeah I abused the cost calculation functionality on Hannah as well and anything that I was demonstrating today it's actually available of course in okay okay thank you thank you animation no worries Luigi sorry yeah hello Johnny yeah just last question a beginning you have created just a cost calculation with the item dummy item yep and later in this episode have you just created or a subsidy the cost calculation with the new one with the real item yes deleted and deleted the previous one but what was the meaning just to show the possibility to use the cost calculation with the real item yes well then if you if you have to use it the previous one during the work order creation you you you should use the real material during the creation yeah yep you're right I mean the idea I was I was showing now is basically this business process where after the calculation or during the calculation both during the sales part and during the sale as the sales of her part and sales order part we have engineering in parallel which is working on or creating the master data is giving aspect to master data either at the sales order level or but you are right I could have left basically the calculation for the dummy item with dummy items under the product structure and if I was trying to create a work order the system would have warned me that of course some materials are not existing and I should replace them with existing master data otherwise of course the system will do anything at the same time as I mentioned if you if you're not creating the master data structure with the engineering support but you are just inserting real existing items in the cost calculation structure related to the sales order what you can actually obtain is that you plan with MRP directly based on the sales order calculation structure associated to your sales order so that's that's another option but it depends of course on the on the business process of your potential customer absolutely yes also because the cost calculations is really powerful yeah there's also another departmental like insuring the power bank could could could work directly in the calculation yeah exactly you got the point that's that's the idea basically you have some people in sales which quickly create the sales partition with non existing items but they have an idea of course of the product or they can be helped by by engineering at the same time and engineering is not even creating master data is just creating product structure for giving back the price to the sales people then the salespeople close the deal and those items which are just an imaginary or fantasy structure at that moment they need to become real items yeah so that's that's yeah that's the idea to give a flexible tool for the pre-renovation and you know just get to the point is the customer wanting to buy this item for this price yes or no and then okay we un sure and create everything okay thank you no worries okay okay if there are no other questions I will close but the webinar that we have just gone through will be uploaded on our website if anybody just wants to have a look and you have seen my email I'll just point it out on the screen again and if there is any question just feel free to write me an email and I will do my best thank you very much really thank you guys ever a nice rest are you okay bye