I am new in NAV manufacturing and seek advices in manufacturing Production BOM and Routing design.
My client is manufacturing high volume products which selling around RM0.85 per PC. The SO received from client is usually without 100k PCS. This client is new to ERP and all this well manufacturing is handled manually and out of system. Now, we need to design the appropriate Production BOM and Routing that suit their requirement.
Before going to the details, the Unit Amount Precision defined is 2:2 and Unit Amount Decimal Places is defined as 0.00001. Meantime, Costing Method is FIFO.
The Production BOM is designed with a UOM namely “1KPCS” code which a conversion of 1000 PCS being defined. Thus, all the components being defined is based on 1000 PCS production volume.
Work Centers being entered with Direct Cost and Overhead Rate which resulting a total of only a few MYR with the UOM of “Minute”.
Lastly, we have defined the Routing as well. I realized that the Routing does not carry the UOM. Initially I thought I can define the Setup Time + Run Time based on per 1000 PCS (1KPCS UOM) as well but I have being advised to define it per PC basis otherwise NAV will compute the FG Unit Cost by adding the Setup Cost into every piece (PCS) produced. Therefore, I have defined the Run Time per PCS Routing instead. However, Setup Time is being defined per 1000 PCS but the Lot Size is 1000 in order NAV to apportion the Setup Time to per PCS.
Later, when I checked Detailed Calculation Report after tagging the Production BOM and Routing, 80% of the components are showing 0.00. The Capacity Cost also show 90% 0.00. As a result, I cannot obtain the correct computation.
May I know, for client like this, high volume but small unit cost production, what is the best proposal of designing the Production BOM and Routing ?