Understanding Manufacturing Routes

What is a work order route?

A work order route is a predetermined sequence of manufacturing operations and work centers that defines the path a finished good or component must follow during the production process. This structured framework specifies not only the order of operations but also identifies the specific work center, labor grade, yield factor, batch factor, setup time, and cycle time requirements for each step.

How is this route information used?

Prior to the start of production, the information on the route can be used to project the cost and time to completion of a work order. The cost projection is significantly more accurate than the BOM’s material list alone, as both labor rates and certain overheads can be incorporated into the cost projection rather than using a simple multiplication factor as was common years ago. The work order route also feeds the finite scheduler multiple pieces of the resource requirements needed for the order sequencing production.

During production, the route is used to control the order of operations when followed sequentially, or the punch list if non-sequential or parallel, to produce a finished good. While in production, the work order aggregates data about the route steps and enables production personnel to view the real-time status and cost of the work order against the projected costs of the order. This type of monitoring also enables them to intervene in a timely manner to address bottlenecks and overruns.

Post production, the work order’s aggregated route data can be compared to both the Master Route and the Work Order route to review variances and update the Master Route with averaged setup and cycle times or frequently required additional route steps.

Why should you separate the route from the BOM?

The short answer is that you don’t stock labor. Labor should be accumulated, rather than issued to the work order. By accumulating labor, there is significantly less work after production to accurately cost a finished good vs “issuing” it to a job. It also allows for substantially more insightful reporting and enables real-time monitoring of the work order cost.

Okay, but how do I attach materials to a specific route step without the BOM?

In ALERE, you relate the two together using the Assign Materials screen. This screen allows users to associate a master route with a BOM, then assign each of the materials to a specific step in the route. The advantage of relating the two in this manner is twofold.

First, it spells out the materials required for each route step on the work order traveler. This gives users a high degree of visibility into the materials required for each route step and greatly simplifies the entry of data into ALERE as the materials are consumed into WIP.

Second, the relationships are used by both MRP and the Finite scheduler to time phase material ordering and receipts. This function is particularly advantageous for organizations working on projects with long lead times or organizations that want to better manage their cash flow.

What happens if a work order needs to deviate from the Master Route?

In ALERE that’s not a problem. Unlike other ERP systems, which still insist on inflexible routes after work order creation, ALERE contains a set of permissions that allow users or supervisors to modify the routings at any point in the process. This function enables users to add additional route steps, rework material directly on the work order, or even make up a route on the fly for prototyping. The ability to modify routes enables organizations to integrate quality control as part of the workflow, better cost finished goods, identify and catalog process issues, and avoid situations where WIP needs to be transferred from one work order to another. It also eliminates situations where significant data side work is required to modify work orders should something unexpected happen in manufacturing.

Want to know more?

Contact TIW to discuss your organization’s requirements and finally tame your shop floor.