Prepared by:

Keith Figgins, CPIM

Senior Consultant

Mitchell and Associates

Session ID#: JDE-104910

#JDEINFOCUS or add your own Twitter handle

Process ManufacturingEnterpriseOne v9.2

Configuration, Costing, Shop Floor Control and Manufacturing Accounting

Agenda

1. Define Process Manufacturing

2. Configuration and Setup

3. Costing

4. Creating and Executing Process WO’s

5. Manufacturing Accounting

1. Definition of Process ManufacturingProcess manufacturing is the branch of manufacturing that is associated with formulas and

manufacturing recipes, and can be contrasted with discrete manufacturing, which is

concerned with bills of material and routing.

The simplest and easiest way to grasp the definition of process manufacturing is to

recognize that, once an output is produced by this process, it cannot be distilled or

reworked back to its basic components. In other words, "once you put it together, you

cannot take it apart". A can of soda cannot be returned to its basic components such as

carbonated water, citric acid, potassium benzoate, aspartame, and other ingredients.

Juice cannot be put back into an orange. A plastic card manufactured cannot be

returned to its basic components like PVR sheets, transparent sheets.

A car or computer, on the other hand, can be disassembled and its components, to a large

extent, returned to stock.Process manufacturing is common in the food, beverage,

chemical, pharmaceutical, consumer packaged goods, and biotechnology industries. In

process manufacturing, the relevant factors are ingredients, not parts; formulas, not bill of

materials; and bulk, not individual units.

This is more than a subtle difference in terminology; the terms characterize distinct

manufacturing approaches.

1. Process Manufacturing: Overview

Process manufacturing produces products such as liquids, fibers, powders, or

gases. Pharmaceuticals, foodstuffs, and beverages are typical examples of

process products and represent a significant share of the manufacturing

market.

Process manufacturing enables multiple products to be made as

coproducts,stocked and sold as separate items; whereas standard discrete

bills of material (P3002) only allow one parent item to be produced per bill

structure. It isnot possible to run or complete a process in terms of decimals.

Master routings are not used in process manufacturing because the process

outputs, co and byproducts, are usually different for each process. All of the

variables in the process are controlled by the routing and it is not possible to

make different products with the same ingredients and process.

Master routings are used for discrete manufacturing only.

Standard Cost is used. Actual or Average Manufacturing costs are not used.

1. Raw Beet to Thick Juice

2. Creating MOL

3. Thick Juice to Crystalized Sugar

4. Molasses to Separator

5. Betaine

6. Wet Pulp to Dry Pulp

Other:

7. Sugar Packaging (Discrete WO’s)

1. Process Manufacturing-Sugar

1. Create weekly Process WO for each Process (6)

2. Record Inventory issues to each Process WO.

3. Record or backflush labor.

4. Backflush machine hours against each WO

5. Record Process Completions every 24 hours

6. Create WIP general Ledger entries daily

7. Materials and labor/machine costs to be recognized at the relevant

process.

8. Close weekly WO’s and record WIP and Variances for the Process

WO’s

1. Process Manufacturing-EnterpriseOne Solution

2. Process Manufacturing Configuration Steps

1. Create item and item branch plant records (G4111/P41026) for the process, co, byproducts, intermediates

2. Create or validate work centers (G3012/P3006)

3. Enter process routing and operation sequences (G3012/P3003)

4. Create bill of material, with substitutes (from within Enter/Change Process)

5. Enter Co/By products list

6. Enter intermediates

7. Run Integrity Analysis (R30601)

8. Setup Costing for Ingredients and Work Centers

9. Simulate and Freeze Costs

2. Inventory: Process, Ingredients, Co/By Products

2. Process Item Master

Stock Type =R Line Type = M

Process is the Parent Item. No inventory stock maintained.

2. Intermediate Item Master

Stock Type =M Line Type = NNo inventory stock maintained. Consumed in subsequent process.

2. Co Product (Finished Good) Item Master

Stock Type =M Line Type = S

2. By Product (also a Finished Good)

Stock Type =M Line Type = S

2. Relevant Units of MeasureSystem uses four fields in the Item Master table (F4101) throughout shop floor as default values in entry forms:Component, Production, and Primary/Secondary Unit of Measure. Primary Unit of Measure value must be the smallest of the three units of measure.

Intermediates can be any valid unit of measure as long as the conversion is set up, however process manufacturing was not intended to be setup with Units of Measure conversions for the Process itself. Since the process is just that, a process, it is a multiplier for how many of the processes to achieve.

Typically, more than one coproduct is produced by the process and uses only one bill of material without using a unit of measure conversion for the process. The coproducts and ingredients should be set up with the unit of measure as they are processed.

2. Work Centers

2. WC Rates (with Frozen Costs)

2. Setup the Process

The 'Cons/Prod' column indicates that ingredients are consumed, co/byproducts will be produced and outputted at this step, or both happen. Intermediates on the operation will highlight this field in Pink.

2. Setup the Process

Enter the Resource Percent % (RSCP). This field controls how much of

the ingredients are issued for each of the co/by products at a certain step.

Ingredients may be issued separately at time of completion or as a total

issue of all ingredients.

The Resource % is used when Inventory Issues (P31113) are called from

Work Order Completions (P31114),and the P31114 Processing Option #

2, Issues Ingredients to Co/By Products, on tab 6, Process Mfg, is set

to'1'.

For Completions with Backflush, validate that the ingredient issue type

code is set to 'B' and that the processing option of P31113 (the version

called by P31114) has option # 3, Issue Material For, on the ‘Display’ tab

set to 1. Enter the Op Seq # (Operation Sequence number OPSQ). This

is the routing operation where the co or byproduct is produced from.

Enter the Co/By Line # (Component Line Number CPNB).

2. Intermediates are Tied to a SequenceIntermediate products are items defined as a result of a step but are automatically consumed in the next step. They are nonstock items and are only defined steps with a paypoint for reporting purposes. Intermediates enable the tracking of the quantity of output of any operation in a work center at a specific time. They can be defined in any unit of measure. Intermediates cannot be defined as an ingredient in the process in which it is produced. Set up one intermediate per operation, but do not define an intermediate for the last operation in a routing instruction

2. By/Co Products are Tied to a Routing Sequence

2. BOM/Ingredients Tied to an Op Seqence

Substitutes highlighted in Green

2. Ingredients

2. Co and By Product Inquiry

3. Cost Rollups:Simulate Costs R30812 and Freeze Costs R30834

3. Product Costing Process and Co/By Products (P30026)

3. Product Costing Process and Co/ByProducts (P30026)

3. Co-Product Costing (P30026)

3. By-Product Costing

3. Costed BOM P30206 (only at Process Level)

3. Costed Routing P30208 (only at Process Level)

4. Shop Floor Control: Create WO and Process WO (R31410)

4. BOM integrated in Routing

4. Co and By Products as WO/Routing Exit

4. Ingredient Parts List

4. Enter/Process WO Time (or Backflush Labor)

4. WO Completions P31114 Processing Option

JD Edwards EnterpriseOne supports both partial and full work order Completions (P31114), with or without Backflush, and Super Backflush (P31123) for completing a process work order.

4. WO Completions P31114

4. P31114 calls Co/By Product Completion

4. WO Completions P31114 in Decimal Instance

4. P31114 calls Co/By Product Completion in Decimal Instance

4. WO Inventory Issues P31113:Parts displayed by WO Sequence

5. Costing Options relevant Process Manufacturing

5. WIP DMAAI’s: Consume materials in related Process

5. Manufacturing GL Entries by WC (Material Issues)

5. Manufacturing GL Entries by WC (Labor/Machine)

5. Production Inquiry (P31022) Expected Costs and Variance costs by WC

Questions & Answers

Please complete the session evaluationWe appreciate your feedback and insight

Session ID# JDE-104910