Organization and Management of Advanced Custom Manufacturing in NETSUITE

Organization and Management of Advanced Custom Manufacturing in NETSUITE

Advanced manufacturing:

It is the use of innovative technology to enhance commodity or tasks.

Advanced Manufacturing Process Technologies:

Some of the manufacturing process technologies of advanced manufacturing are:

  • Computer technologies

  • Rapid prototyping

  • High Precision Technologies

  • Information technologies

Overview of Manufacturing Process in NetSuite:


1.Assembly item Records:

With NetSuite, you can track your inventory throughout the manufacturing process.Item records used in the manufacturing process include Groups, Kit/Packages, and Assemblies.

2.Work orders together with Assemblies:

Work orders are entered to track the production of assembly items needed either for stock or to fill open orders.Work orders you enter list the members, or components, of the assembly item to be built. One can track the production of assembly items needed for stock or to fill orders with the help of Assembly work orders. Work orders also keep account of the quantities of assemblies that required to be built.

3.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). To increase your inventory of raw materials you can also unbuild assemblies.

4.Close Work Order:

To close a work order, you must complete a build that assembles the needed items.

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 collecting materials through assembly on the shop floor and finally stocking finished goods.When goods require assembly, the process is often a series of actions completed over time. Rather than using a single Build Assembly transaction, Items that use WIP divide an assembly into three distinct processes to be logged against a work order:

  1. Moving the raw materials to an assembly area (Work Order Issue)

  2. Assembling raw materials and stocking finished goods (Work Order Completion)

  3. Reconciling any variances (Work Order Close)

Cost Categories:

Cost category records are used to classify different types of costs associated with your items. Using cost categories helps you to track costs and variances in the manufacturing workflow. You can create cost categories that define several kinds of costs that may be incurred during manufacturing. After the cost category records are created, you can then assign a cost category to each item and material you use.

Cost Templates:

When setting up cost templates, you can add multiple cost categories and set up each with its own allocation method and cost factor. They are used as the basis for the calculation of the estimated cost when the templates are applied to transaction line items.

Creating Manufacturing Work Centers or Groups:

A work center is a group of people that perform a specific step in the manufacturing process. After you have defined a work center group, that work center can be assigned to cover specific steps in the manufacturing process.

Manufacturing Routing:

A manufacturing routing is a template that contains a list of steps required to build an assembly item. Each step is in a sequential order necessary to complete the operational sequence for completing the assembly. After you have created a routing record, that routing can be selected on a work order to direct the completion of the assembly. The routing determines the work center, cost template, labor resources and machine resources that will be utilized during the assembly.Routings are unique for each assembly item, but routings may be shared across multiple locations.

Manufacturing Routing and Work Orders:

A routing you select on a work order is a template describing a list of sequential steps required to build the assembly item. The routing directs the completion of the assembly by determining the work center, cost template, labor resources and machine resources to be utilized during the assembly. To use routings with work orders, be sure you have completed the routing setup process.

Who can benefit from Manufacturing Routing feature?

i) Operational Planner or Production Manager:

Operational Planner or Production Manager can benefit from improved efficiency for planning.

ii) Production Manager:

Production Manager can refine the tracking of the shop floor.

iii) Cost Accountant:

Cost Accountant can identify opportunity areas.

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