# set parameter for contenious production

#### A production order is the basic unit for production. Such a order should have production quantity to be specified clearly. Thus, it is good for make-to-order. For another type of production, contenious production, I donot want to specify a clear quantity, rather, I just want the production order open all the time and produce the item on a daily basis across the whole year, what parameter should I set for this case? When should I have the system to calculate production cost in such a case? How to set the parameters?

Best Regards,

There are no parameters

The ending would be at the year end because you want it open for the year, if the business wants more accurate periodic costing you would have an order open every month.

But Adam While Creating production Order, You have to Assign Qty, So How will he Do that ?

He has to assign Qty while he is making Production Order.

Adam, While Creating Production Order, He has to Put Qty, How will he do that if he wants continuous Production on Item.

Regards,

Qty. can be changed on status start, so i just have to reset the status from RAF when i wanted to increase Qty.

is it good to do that ? , then what will be the Financial Implication of the process…?

Sorry about that,

I m not that much into it,

I was testing this scenario and this is what i have found out and for more clearification I posted it here,

let me wait for adam’s rply

Hi,

jUST SET (QTY=MAXIMUM AMOUT) AND MAKE DAILY UPDATION AND WHILE YOU ARE CLOSING SET PRODUCDED QUANTITY TO ACTUAL PRODUCTION FOR THAT YEAR,AFTER THAT CLOSE THE ORDER.

and how about the Approval Matrix while Updating Prodution Quantity Frequently.

do you Mean to Say , If Our Capacity is to Produce 10Qty per Month then I have to Put 150Qty Approx. and at the Year End What ever Qty we Made, need to adjusted and Close the Production Order. is it ?

Still I Feel it is not Concrete Solution. don’t You think ?

I had thought Process on the answer You raised, but it seems how it is possible to do Production without order or without forecasting or Planning,

if You do Plannning, and Forecasting then You can easily identify how many Qty You will be needed this Year and Based on the Assumption You can Open the Prodcution order.

You cant make Production without any Base.

Good Luck

Hi all,

You can define a big quantity of order and large enough tolerance. So that at the end of year you can close the production order with the qty produced.

@Nirav :

what do you think each and every company run thru master planning or forcast planning,

user will never produce that much of production order , and its is typical scenario of repetative manufacturing or u can say continues manufacturing.

In actual business process there is only a production order on their book for each item untill they close it, think as 5 level of BOM and total 100 Items in a BOM, you will never use master planning for lower level production item, u can use master plan. only for big items and purchase item

or you have to recruit more personel for run master planning each and every day

have you worked in manufacturing company yet…?

@Hardik

Nice answer…

Real business is really different from what we see on the books or manuals.

I am not talking about MRP, But to Produce something, You have base otherwise it result in increasing inventory.

Even the Companies Like , ESSAR - 365 day Steel Production, Reliance Refinery 365 Days are have base Planning Like how much to Produce and when to Produce.

I am takling of genreal Scenario,

at BOM, Level 5, Still it consits of Items which needs to Plan out whether manually or computerise that how much to produce and when to produce.

you need some base to Produce anything, wether it is Contineous, Mass, Batch , Job Production or Project.

You never Produce anything to Increase your inventory, Right ?

just find out Your capacity to Produce item per month or week and calculate Yearly Production and Make Production Order Accordingly, this is the Simple Way. because You can not produce anything more then Your capacity Except Give it for Contract Basis,

I hope it Clears the Idea.

have you worked in manufacturing company yet…?

Yes, I have…I have Always Worked with Engineering Compnay, and also I am an engineer in Mechanical Stream, !!

See, When there was no Computer, the Company used to do Business ! Right ? but Still they Had Base Planning for Production with Manual Calculation.

You must Go through forecasting Concept, the way You convey Message is that there is no need of Forecasting.

@Nirav :

I my self worked as a PPC engg. in Fabrication company. and we use to produce twice than our actual capacity, by inviting contract labor and by manufactured by vendor,

in that scenario you cant even update your vendor bcoz there are so so many in fabrication vendor across the street, if you have work than you have to produce thats it,

about planning… yes we do plan out but period wise we see at level 4 1 item needed as qty XX for period of YY and really you cannt firm this much planned orders in that period and if you do planning period wise, you still cant manage it to period time,

the thing u must go thru manual and above suggestion given by persons are right that only 1 production order can do it,

see as u r using a register for 1 item, at the month end u need to overveiw how many item i have made and want to close it, by making 1 prod. order it is easily carried out in Ax thats it.

Not in my experience, the benefits are massive if done correctly in the complex BOM multu-level requirements.

As for the origial question, it depends again on the actual requirements. With a continually manufactered item the resource requirements are not really relelvant - it is constantly using the resource, so you do not worry, the inventory impact is a consideration but you would probably de-link it as a pure requirement because of the process. As for the quantities, you can start with whatever figure you want - my preference if to monthly estimate and then you can purchase in monthly buckets and plan resource. I would not put a years estimate on the starting point, but each business is different and ultimately want they want changes, you need to adjust what to system can do to provide a best fit. I prefer monthly because you can end the order and get true costs in the same financial period, but every requirement is different.

please give me the name of Idustries where the Production Happening With out any Base !