NetSuite manufacturing capabilities enable organizations to run their manufacturing operations efficiently. From sales order to work order processing, routing and scheduling, to order fulfillment and product costing, NetSuite manufacturing software provides real-time visibility into every step of the production process to help you make better-informed decisions.
We have the following steps to successfully configure Manufacturing on the system:
- Assembly item Records: An assembly item is an inventory item made of several components, but identified as a single item. You create an assembly item record to define the members of an assembly.
- Assembly built and unbuilt: Once an assembly item is built, it is processed like an individual inventory item for tracking Cost of Goods Sold (COGS).You can also unbuild assemblies to increase your inventory of raw materials.
- To create a new assembly item record, click Assembly on the item list page at Lists > Accounting > Items > New
- When you physically manufacture assemblies in a production run, enter an assembly build for each production run to record inventory level changes at Transactions > Manufacturing > Build Assemblies.
- Work orders together with Assemblies: You can choose to use the Work Orders feature together with Assemblies. Assembly work orders track the production of assembly items needed for stock or to fill orders.
- Tagging Items: Once the work orders feature is enabled, Items can be tagged to create work orders in two ways: by marking the item when you create the sales order or by tagging the item record.
- Work orders with Demand planning: When you use both the Work Orders feature and the Demand Planning feature, work orders can be created to replenish stock based on demand for assembly items. These work orders use information from item records to calculate lead times for orders.
- NetSuite calculates the lead time for a work order using the following:
- Lead time for a work order= Work Order Lead Time on Item Record * Quantity in base unit of measure
- Manufacturing Work in Process (WIP) feature: For manufacturers who use work orders for assembling raw materials to produce items, the Manufacturing Work In Process (WIP) feature tracks the work order through the entire production process in steps, from gathering materials through assembly on the shop floor and finally stocking finished goods.
- To use WIP on a work order:
- Go to Transactions > Manufacturing > Enter Work Orders.
- Under Primary Information, check the WIP box. This designates the work order to use WIP instead of a standard assembly build.
- Under Classification, select a location. This field is required for WIP work orders.
- Click Save.
- Manufacturing Routing: The Manufacturing Routing and Work Center feature enables you to schedule and record manufacturing operational activities against a complex work order that requires multiple teams of employees, or work centers.