Mfg Estimation Maintenance

Mfg Estimation Maintenance

HelpID: 699222003

Navigation: Cards >> Manufacturing >> ME Maintenance

Item Number: this can be either an existing GP Item, if you are creating a variation of an existing Item, or a new item (an ME Item). The ME BOM is entirely separate from the GP Manufacturing BOM, although you can begin an estimate by copying an existing Manufacturing BOM. The ME BOM is analogous to the GP Manufacturing Archived BOM or Configured BOM in that it is a Named BOM.

If you are going to create the ME by copying an existing Mfg BOM or ME, do not fill in the Item Number yet, just click the COPY button. See the Section Copying a BOM.

The Item Number Lookup will show GP Items and ME Items:

Once you enter a new Item in the ME Maintenance window it is remembered so that you can use it again later. These become “Estimation Items”, which are available from the Item Number Lookup in the ME module

Description: for ME Items, provide a description. If the parent item is a GP Item, the description will fill in from the Item Master.

BOM ID: every ME is similar to a named Archived BOM in GP Manufacturing. The BOM ID is the same as the Archived BOM Name, and if the ME is Accepted, the ME BOM will become a named Archived BOM in Manufacturing.

Develop a naming convention for BOM IDs. For example, if creating MEs for specific customers or jobs, use Customer Name or Job Number as the BOM ID. If there are multiple sub-assemblies in the design, use the same BOM ID at each level of the ME. There are a couple of reasons to follow this procedure:

  1. The Delete ME process can delete all related records based on the BOM ID. So if all sub-assemblies have the same BOM ID as the parent, the parent ME, BOM, all sub-assembly BOMs, and all related routings can all be deleted in a single step.
  2. The BOM Lookup (below) can be restricted by BOM ID, so it will display all BOMs related to a specific ME.

To work with an existing ME you can select the BOM ID directly without having to first select the Item Number. To do this, click the BOM ID Lookup button, then select a BOM. Both the Item and BOM ID will be returned to the ME window.

BOMID Note: The Note button attaches a note to the BOM. If the Estimate is Accepted, this note is transferred to the Manufacturing Bill of Materials note, shown below.

BOMID Lookup The BOM Lookup window (below), shows all ME BOMs. Select a BOM by double-clicking on it, or by clicking once on the row then clicking the SELECT button.

The Find by BOM ID field performs a “contains” search on the BOM ID field. This can be especially useful when trying to locate all of the parent and child BOMs associated with a single estimate. In the example below, putting “200” into the Find field will restrict the display to show only the 200XLG BOM ID rows.

BOM Description: enter a more detailed description of the ME.

Source Item: if the Item Number entered above does not exist in GP Inventory, it is a ME Item and must be linked to a Source Item. The Source Item should, at a minimum, have the Quantity Decimals and Unit of Measure Schedule you will need for the ME Item.

Issue From Site: the inventory location that will contain the item, if it is a subassembly.

Post To Site: the inventory site into which manufacturing orders will produce the item.

Attachments: link an unlimited number of files to the ME. Any file type can be linked to an ME. See Managing Attachments below. Open the Attachments window by clicking the Attachments Expansion Button (blue arrow). If there are attachments, the will be a checkmark next to Attachments:

Linked To Sales: if the ME was initiated from a Sales Quote, the link can be viewed by clicking the Sales Link Expansion Button (blue arrow). If there is a link, there will be a checkmark next to Linked To Sales:

BOM Status: this field is informational only and has no effects on the ME. Available BOM Status codes are:

  • Design
  • Preliminary
  • Prototype
  • Pilot
  • Conditional
  • Production
  • Pending
  • Inactive
  • Unqualified
  • Disqualified
  • Obsolete
  • Other

BOM Type: The top-level of an ME is always a Mfg Est BOM. If made subassemblies are used as components, those may have a BOM Type from GP Manufacturing such as MFG BOM.

BOM Category: This is set automatically and is always Regular. This is the same BOM Category as appears in GP Manufacturing.

Backflush: backflush all components on the BOM.

Estimation Quantity: An estimate can be calculated for any number of user defined quantities. See the Estimation Quantities section for more information.

Effective Date: This field is informational only.

Revision: This field is informational only.

Cost Rollup: the Cost Rollup button executes a “roll up and revalue” process on the selected ME BOM. It starts at the lowest level of the BOM and recalculates the costs at each level, rolling-up the costs to the top-level parent item. Component and Parent shrink are factored into the Extended Cost for each item.

An example of the effect of Shrink % is shown above. Without Shrink the Extended Cost would be $100 (100 pieces times $1.00 per piece). The Shrink calculation adjusts the quantity needed based on the assumption that 50% will be lost during manufacturing. So that if 100 pieces are NEEDED to produce the desired quantity of the made item you must START will 200 pieces.

The Rollup also includes labor and machine costs from the Routings at each level, and Other Costs. The ME rollup and costing routine also includes all of the fixed and variable overhead values used in GP Manufacturing. Those values will be pulled into the ME when GP Items are used on a ME BOM, and also from the Routing. The ME Routing uses GP Manufacturing Work Centers, Labor and Machine Codes.

The Cost Rollup calculates the cost only for items with an “Mfg Est” BOM. If an Estimate includes made items from the Manufacturing Module (i.e. MFG BOM, ENG BOM, etc), those items will be treated like Buy items in that the cost for that item will be pulled from Item Maintenance.

Tree View

The Tree View provides a way to view the complete, exploded BOM for the Estimate. New Items (items that do not exist in the GP Item Master), and new BOMs (such as HA100G copied in from the MFG BOM) are indicated with a green triangle.

To add/edit components in the BOM click the Add/Edit Components expansion button (blue arrow). See Section Add/Edit Components.

The Per Piece quantity and Fixed quantity are displayed for each line. As shown above, CORDG has 3-Each per-piece quantity plus 1-Each Fixed quantity.

You can zoom to the BOM for a subassembly by expanding the assembly, then double-clicking on one of the components. In the example above you could zoom to the ME BOM for HA100G by double-clicking on BOT100G.

When you zoom into a subassembly BOM the BACK button will become enabled. Clicking BACK will take you back up one level in the BOM. You can drill downwards into a BOM structure for an many levels as exist, the move back towards the top by repeatedly clicking the BACK button.

List View

List View provides a detailed view of the top-level components in a BOM. Click the DETAIL button to expand the line to show more information.

To edit or delete an existing line, select it then click the Add/Edit Component Expansion Button (blue arrow). The selected line will open in the Add/Edit Component window.

To add a new item, click the Add/Edit Component Expansion Button (blue arrow).

See Section Add/Edit Components for more information.

Other Costs

Use the Other Costs window to record miscellaneous costs related to the design, testing, and production of the new item. Any cost related to the product which does not fit cleanly into the item as a component or a sequence in the routing should be recorded as a miscellaneous cost.

On the Costing tab the Other Costs will be prorated by the Standard Quantity.

Routing

The routing is a series of steps needed to produce the item. To have the ME include labor and machine costs in the estimate you will need to create Labor and Machine codes. You may want to create special Labor and Machine codes that have the labor and machine costs you want to use for estimating (i.e. on the high-side to ensure you do not under-estimate).

See the GP Manufacturing documentation for setting up Labor and Machine codes.

The method of calculating direct labor, machine, and overhead costs is the same in the ETO module as in GP Manufacturing. Costing will be explained in more detail in the Costing section.

The Routing Sequence number will increment automatically based on the Manufacturing Routing Preference Defaults “Sequence Spacing” setting. See Tools >> Setup >> Manufacturing >> System Defaults >> Routings.

The Routing Sequence Note will be transferred into the GP Manufacturing Routing sequence Note:

See the BOM-Routing Link section for more information related to Routings.

Costing

The Costing tab calculates the estimated cost to manufacture the item given the BOM, at each of the Estimation Quantities.

The Cost Rollup Button at the top of the ME window will recalculate the cost of the entire ME BOM. This function is equivalent to a Standard Cost Rollup in GP Manufacturing. It starts at the lowest level of the ME BOM, calculates the cost to produce the lowest level assembly given the BOM, routing and miscellaneous costs, then rolls-up that cost to the next level of the BOM. This process continues up the multi-level BOM until all levels have been re-costed and the costs rolled-up to the top.

The ETO module uses the same costing logic as GP Manufacturing. A Labor code has a Shop Rate which is defined per Hour or per Piece. The Labor Fixed and Variable Overhead Amounts are calculated as a fixed Amount, or a Percent, of either the per hour labor rate, or the per piece labor rate. The multiple possible settings results in a large number of calculation options.

A similar level of complexity exists with the machines. Refer to the GP Manufacturing documentation for more information about its Costing functionality.

All of the Labor Cost calculations are affected by the “Shop Rate” drop down box (Hour/Piece) setting. This is shown below as “Per Hour” or “Per Piece”.

Labor Amount

  • Per Hour: Labor Time * Shop Rate
  • Per Piece: Shop Rate

Labor Fixed Overhead by Amount

  • Per Hour: Fixed Overhead Amt * Labor Time
  • Per Piece: Fixed Overhead Amt

Labor Fixed Overhead by Percent

  • Per Hour: Labor Time * Shop Rate * (Fixed OH% / 100)
  • Per Piece: Shop Rate * (Fixed OH% / 100)

Labor Variable Overhead by Amount

  • Per Hour: Variable Overhead Amt * Labor Time
  • Per Piece: Variable Overhead Amt

Labor Variable Overhead by Percent

  • Per Hour: Labor Time * Shop Rate * (Variable OH% / 100)
  • Per Piece: Shop Rate * (Variable OH% / 100)

All of the Machine Cost calculations are affected by the (Hour/Piece) setting. This is shown below as “Per Hour” or “Per Piece”.

Machine Cost

  • (Machine Time * Operating Cost) + Piece Cost

Machine Fixed Overhead by Amount

  • Per Hour: Fixed OH Amt * Machine Time
  • Per Piece: Fixed OH Amt

Machine Fixed Overhead by Percent

  • Per Hour: Machine Time * Operating Cost * (Fixed OH% / 100)
  • Per Piece: Piece Cost * (Fixed OH% / 100)

Machine: Variable Overhead by Amount

  • Per Hour: Variable OH Amt * Machine Time
  • Per Piece: Variable OH Amt

Machine: Variable Overhead by Percent

  • Per Hour: Machine Time * Operating Cost * (Variable OH% / 100)
  • Per Piece: Piece Cost * (Variable OH% / 100)

Setup Costs are calcuated the same as Labor Costs, but using the Labor Code assigned to the Setup Time, and the Setup Time occurs once regardless of the number of pieces produced. The Estimation Quantity is used to calculate the cost per piece by dividing the Setup Costs by the Estimation Quantity.

Material Costs are calculated by using the cost assigned to the item. If the ME BOM uses GP Inventory items which have a Standard Cost Valuation Method, there may be Overhead values assigned from the Manufacturing Module. If so, those Overhead values will be pulled into the calculation. Shrink % is also factored in at the component and subassembly level.

Fixed Material Costs are broken out separately so that it is easy to see how much material cost is incurred per-made item, and how much is incurred per-run.

GP Manufacturing Costing vs ETO

GP Manufacturing incorrectly rounds values in the Overhead calculations. For example Labor Variable Overhead is calculated as shown below:

MO Quantity * Routing Sequence Hours * Shop Rate * (Variable OH%/100)

50 * 1 * $15 * 0.05%

Manufacturing begins by calculating $15 * 0.05%, which it then rounds. In this case:

$15 * 0.05% = $0.0075.

Manufacturing rounds this to the Item’s Currency Decimals, which results in $0.01. That Overhead value is then used to calculate the total Overhead:

50 * 1 * $0.01 = $0.50

Because Manufacturing rounds the Labor Rate * Overhead Percent calculation, any rounding error at that point is magnified by the subsequent multiplication steps.

The correct way to perform the calculation is to round as the final step:

50 * 1 * $15 * 0.05% = $0.375

Which when rounded is $0.38, for a difference of $0.12

The ETO costing window can display either method. By default it matches how Manufacturing performs calculations. You can enable the “ETO Costing Method” by adding the following DEX.INI setting:

ETOCOSTING=TRUE