A Step by Step Guide to Libero Manufacturing

Overview

This page is based on the attempt to make sense of ADempiere Libero Manufacturing module of the author. It will be illustrated as a step by step guide for the reader to have the FEEL of what Libero Manufacturing can do and how to do it. All the cases here, I am referring to the Libero Manufacturing Work Shop conducted by Victor Perez some time back in 2009.

As such, this is by no mean the as the reference manual of Manufacturing Management in ADempiere and you can always find more reference from the original source in LIBERO

Note: All cases are based on initial data in Adempiere360LTS database.

Briefing about Manufacturing Process

Libero Manufacturing Process is the mean of producing new Product based on specified Bill of Material (BOM & Formula), Manufacturing Resources, Workflows (how to produce) and Distribution (where to deliver).

1) First, we have to tell the system on how to produce products.
  • On how the product will be produced, Bill of Material tell us what material to use, Workflow Process tell us how to do with what Resources.
  • Product Planning Data is where the relationship between Product and all (BOM, Process, Resources) is defined together with Setup Data, i.e., Order Policy, Order Period, Minimum Order Quantity, etc.
2) After the relationship of How to produce a product is defined we can start producing things.
  • Without planning (pre-order), we can directly use Manufacturing Order to produce things (of course with the above information). We then use the Component Check Process to verify and use Print and Release Order process to print out checklist for user on the field. Once completed, store can use Order Receipt & Issue to accept the newly created products into warehouse (and of course, reduce the inventory of raw material).
  • With demand forecast or pre-order, we can then use MRP to help us determine what when where and how (much) to produce.

Business Case: Chemical Industry (Process Production)

The Management of Garden World evaluated the possibility of getting a profitable increase by manufacturing the fertilizer and took a decision to open a new manufacturing plant to produce the fertilizer which previously Garden World only purchased and sold.

So the engineering department designs two bills of materials to produce the Fertilizer in 50 and 70 kg packages and also a formula used for gross production of the fertilizer. The Lawn Fertilizer uses following raw materials:

  • Phosphorus 17%
  • Nitrogen 17%
  • Potassium 17%
  • Water 49%
OK, Let’s start with Libero Manufacturing!

Step 1: Define BOM

Bill of Materials & Formula

  • Prepare BOM for Fertilizer_Lawn Fertilizer, which has the formula in % as above
  • Prepare BOM for Fertilizer#50 and Fertilizer#70, of which components are Fertilizer and Bag
  • See the summary of prepared BOM in BOM & Formula Info

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Step 2: Define Manufacturing Workflow and Resources used in Production Process

Manufacturing Resource

  • Define Plant (with Manufacturing Resource Type = Plant) that govern the entire production process.
    • Fertilizer Plant with Planning Horizon = 120
  • Defines Resources’ (with Manufacturing Resource Type = Work Center) that will be used in Production Process (Manufacturing Workflow).
    • Mixed Area
    • Inspection Area
    • Packing Production Line

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Manufacturing Workflow

  • Define Manufacturing Workflow process to produce the fertilizer products
    1. Lawn Fertilizer
    2. Lawn Fertilizer Packing

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  • Define Workflow Activities and Resources

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Step 3: Generate Demand for Manufacturing

Theoretically there are 2 kinds of demand, Independent and Dependent Demand.

The MRP system takes in a number of parameters as inputs and performs some level of analysis and generates recommendations that can either be accepted or rejected by the planner. One of the inputs of MRP is the BOM, which is a list of all components (and in what quantity) needed to produce finished good(s). For example, the bill of material needed to produce a dinning set is 6 chairs and 1 table (supposedly). The demand for the dinning set here is independent while that for the chairs and table are dependent.

An independent demand is a demand that is not based on the demand for another item while a dependent demand is based on the demand for another item. Hence, it can be concluded that the demand for the 6 chairs and the table is based on the demand for dinning set. Thus, you can forecast an independent demand while dependent demands are calculated based on the independent demand item. The role of the MRP therefore is to perform this calculation.

And so, now, we will be creating 2 Independent Demands.

Sales Order

  • Create and complete 2 Sales Orders
    • Sales Order #1> Org: Fertilizer | DocType: Standard Order | Date Promised: <same date next month> | BPartner: Seed Farm | Delivery Rule: Available
      • Sales Order Line> Product: Fertilizer#70 | Quantity: 70 | Price: 33 | Tax: Standard
    • Sales Order #2> Org: Fertilizer | DocType: Standard Order | Date Promised: <same date next month> | BPartner: Seed Farm | Delivery Rule: Available
      • Sales Order Line> Product: Fertilizer#50 | Quantity: 60 | Price: 20 | Tax: Standard

Forecast

ADempiere do not provide sophisticated Forecasting module but rather providing Forecasting Data Input window. The calculation need to be done elsewhere using 3rd party software. I.e., Lokad business forecasting

  • Define Forecast Data for manufacturing of fertilizer
Sales Representative Warehouse Product Quantity Date Promised
SuperUser Fertilizer Fertilizer#70 10 12/03/10
GardenAdmin Fertilizer Fertilizer#50 22 12/03/10
SuperUser Fertilizer Fertilizer#70 11 12/10/10
GardenAdmin Fertilizer Fertilizer#50 21 12/10/10
SuperUser Fertilizer Fertilizer#70 11 12/17/09
GardenAdmin Fertilizer Fertilizer#50 21 12/17/10
SuperUser Fertilizer Fertilizer#70 11 12/24/10
GardenAdmin Fertilizer Fertilizer#50 20 12/24/10
SuperUser Fertilizer Fertilizer#70 10 12/31/10
GardenAdmin Fertilizer Fertilizer#50 20 12/31/10
  • View the total amount of Forecast by Forecast Report

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MRP Info

  • View Material Resource Planning by MRP Info
  • Note that we are focusing on Fertilizer only. The view will display both demand from Sales Orders (1) and from Forecast (2).
  • In this view you can look at both demands as gross requirement and an On-Hand project quantity that indicates the availability of material in the future. If this is negative then the system shall generate a production plan for us to know what materials to produce in our plant.

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Product Data Planning

  • And before we run the Calculate Material Plan, we will check out the Product Planning Data.
  • Product Planning Data is the master data that manages the relationships between Products and BOMs with their Manufacturing Resources, Manufacturing Processes (Workflow) and Distribution. It also stores the initial data about manufacturing process of each product, such as, Order Policy, Order Period, Batch Quantity, etc.

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Now that we have the independent Demand and Planning data, we shall calculate the Material Plan to issue the manufacturing orders.

Image:Note.gif Note:Use Create Product Planning process to create this data. Running this process helps to create or update data in batch or bulk.Following are the meaning of other parameters,

  • Is MPS: ???
  • Create Plan: If checked, indicates that MRP must create Planned orders for this Product-organization-warehouse. If not checked, then you need to use the Replenishment tab in the product window and control the inventory level using the Replenish Report.
  • Required Calculate MRP: This means it has been a change in some element which affect the MRP Calculation for this product, i.e BOM, Orders, Inventory, MPS, etc. and therefore you need to recalculate the MRP to adjust the Planned Orders to the new conditions and to get the updated action messages.
  • Time Fence: The number of days since you execute the MRP process inside of which the system must not change the planned orders.
  • Order Policy: ???
  • Order Period: ???
  • Batch Quantity: ???
  • Yield %: ???

Step 4: Calculate MRP

Calculate Material Plan

  • Supply parameters and run the process

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Image:Note.gif Note:

  • What Calculate Material Plan process is doing can be found here at Calculate MRP logics
  • Following are the meaning of other parameters
    • Required calculated DRP ???

When this process ends it shows that Manufacturing Orders or Material Requisitions and Notice Messages that were generated. Repeating MRP Info we can see how MRP create the Planned Orders and material requisitions.

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  • MRP will summarize the demand from both Sales Order and Forecast and use the behavior of the Product (i.e., Is Sales or Is Purchase, etc.), Product Data Plan (i.e., Min Order Qty, Promised Delivery Time, Order Pack Qty, etc.), Bill of Material and Workflow Process, to determine the next action.
    • To produce packaged Fertilizer#70 & Fertilizer#50 the Fertilizer itself must be enough first, MRP generate Manufacturing Orders (1) for Fertilizer first.
      • And as the Minimum Order Qty of Fertilizer is 1000 and the Order Pack Qty is 200, MRP generate 2 Manufacturing Orders, 7,200 and 7,000 respectively.
    • For Fertilizer#70 (sales only)
      • Since this product must be manufactured, MRP generate Manufacturing Orders (1) for it.
      • And because the Minimum Order Qty is 100, MRP make it 100 for each order.
    • For Fertilizer#50 (purchase and sales)
      • Since this product is trading item, it won’t be produced in-house but rather purchase from vendor, MRP generate Material Requisition (2) for them.
    • Please make note also on the Date Start Scheduled of Orders, MRP will be based on Just-in-Time concept, making sure that required material / product is available just before it is needed.
  • Review our Master Production Schedule from Manufacturing Order Review
  • Review message generated by MRP from MRP Notice (all)

Step 5: Review and Confirm for Production

A planned manufacturing order is a manufacturing order suggested by the MRP process and contains its quantity and its release and promise dates. When you approve a planned manufacturing order, you convert it in a manufacturing order with the status of In Process.

When you approve a planned order you are telling the system that the manufacturing order is ready to start its process with the approval you change the order status from Draft to In Process.

We can run Calculate MRP as many times as we want until satisfied with the plan.

Image:Note.gif Note:
Document Status to Manufacturing Order (MO)
  • Draft: The MO with this status are Planning Order and are delete and generate again to Calculate material Plan. so this MO only are “Recommended Production Schedule”
  • In Process: The MO with this status are Firm Planned, so when I Calculate material plan, it MO do not delete because this order was approved, this case MRP only generate Notice Action.
  • Complete The MO with this status are ready to entry in shop.
    • Use Component Check here I can validate if MO have all components to release.
    • Use Printing and Release Order to Print the MO, if MO have all component then your status is change from in process to complete.
  • MO have complete doc status we can report receipt the finish good and issue component use Order Receipt and Issue
  • Close: The MO with this status do not allow receipt and issue component, but are ready to generate the variance cost to accounting

Component Check

  • Component Check is the report that tell us whether Manufacturing order can be completed (release to production shop). This report shows the material requirement vs availability in inventory. It is up to us to decide.

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Print & Release Order

  • With this option, we can get the Pick List , Pack & Tools List and workflow manufacturing as a preliminary, and if the information is right we can mark the complete check box to try to release order (Complete MO)

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Manufacturing Order

  • The Manufacturing Order is a document or schedule identity conveying authority for the manufacture of specified products in specified quantities.
  • User change the status of document to Complete to state that the Production Process (Workflow) can be stared on shop floor.
  • Note that, although the required material for production are not yet available, we can also still release the order. The real Finished Goods will be produced to stock on the next step.

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Order Receipt & Issue

  • Use this window to receive the finished goods to stock and/or components delivery to next production shop.
  • This is where, in ADempiere, the newly finished goods shall increase, and the raw materials used in production shall decreased the inventories. And as such, it will not process if the raw components are insufficient for production.
  • The Manufacturing Order will be set to Closed.

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Image:Note.gif Note:Here we can use multiple options to report the production:

  • Delivery Rule:
    • Back Flush: Allow receipt and component delivery based on the quantity to deliver
    • Only Issue: Allow delivery of components only to the production shop
    • Only receipt: Allow only receipt of finished goods.

In this case we will use Back flush for Manufacturing Order that has been released with following information:

  • Qty to Deliver: Which quantity you need to report
  • Qty Scrap: Which quantity you need to report
  • Movement Date: Which Date to Report
  • Locator: The Locator where we receive the materials.

Activity control

  • We can report the actual events that happen in the production shop.
  • Choose Manufacturing Order that you want to report choose the Manufacturing Order Activity that you need to report typed in the actual setup ,duration time and movement quantity.
  • The Activity Control report allows to register actual events that happened in the production shop and get the actual cost.

Misc (Temp)

  • The Resource Type is used to calculate the available time in a Manufacturing Resource. It allows input of starting time and end time for the slot according to the working days.
  • The Planning Horizon in Manufacturing resources is used for ???
  • If the workflow name is the same as the product name this Workflow will be the default Workflow for the product.
  • The time constraint (i.e., Queuing Time, Waiting Time) in Manufacturing WF and Manufacturing Resource is different in that = ????
  • Calculate Low Level = ???