1C:ERP Manufacturing Subsystem

Explore the "Manufacturing" subsystem in 1C:ERP, a complete solution for manufacturing enterprises, supporting over 1,000 end-to-end processes.

Why Use the "Manufacturing" Subsystem?
Levels of Production Planning in 1C:ERP
Master Data for the “Manufacturing” Subsystem
Generating demand for production
Production Scheduling
Shop Floor Management

Why Use the "Manufacturing" Subsystem?

The key benefits of manufacturing management processes in 1C:ERP are:

Providing high-quality customer service

  • Ensuring feasible production timelines based on customer requests
  • Timely fulfillment of obligations to customers regarding deadlines and product range
  • Monitoring the progress of order fulfillment
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Flexible operational management system

  • Managing priorities for order fulfillment
  • Creating a production schedule aligned with available capacities and resources
  • Prompt response to deviations in schedule and changes in orders, including rescheduling
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Efficient use of production resources and cost reduction

  • Excluding activities not driven by external or internal demand
  • Controlling compliance with standards and the use of substitutes or alternative products
  • Staff motivation
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Levels of Production Planning in 1C:ERP

The system enables simple accounting of production processes as well as production planning and management at various levels. Production planning in 1C:ERP can be roughly divided into three levels: enterprise level, intershop level, and intrashop level.

Enterprise-level planning in 1C:ERP involves the creation of a coordinated set of plans: production plans, procurement plans, and sales plans. The primary objective of this planning level is to synchronize the activities of various business units.

In order to develop well-balanced plans in 1C:ERP, the "Budgeting and Planning" subsystem can be used. The "Manufacturing" subsystem is used to manage activities at the intershop and intrashop level.

The operations management system streamlines the planning and dispatching of production processes. It facilitates to determine the sequence of products launched into production, to create the necessary material and production reserves, and to ensure a continuous supply of materials and semi-finished products to workplaces. These tasks are addressed based on the type of production, as well as the organizational and technological specifics of production processes.

The "Manufacturing" subsystem provides for two levels of operations management:

Intershop Level facilitates the implementation of the production schedule , where individual business units act as silos. It guarantees the seamless coordination of transferring the stage results between business units.
Intrashop Level facilitates the fulfillment of production schedule within a specific business unit as a designated area of responsibility for a dispatcher of a business unit (shops, areas, sites).

Master Data for the “Manufacturing” Subsystem

Machines and Equipment

To outline the production capacities of departments, different work center types are provided, each representing a group of work centers that can perform a technological operation with the required quality.

The use of work center types allows for specifying various planning parameters: parallel loading of machines and equipment, the cost of operations at a specific work center, the relative speed of task execution, and so forth.

Managing the capacity of different work center types enables the information system to reflect organizational decisions that are intended to ensure the efficient use of labor resources and overcome peak loads that arise during production scheduling (e.g., changing shift patterns or making one-time schedule adjustments.

Production Business Units and Sites 

Production business units are responsible for the tasks related to the performance of production schedule stages at the intrashop level, as well as the collection and allocation of costs.

The following parameters for production business units are defined by the system:

Business unit’s work schedule, which is to be proposed by default for work centers. If a business unit operates in multiple shifts, a work schedule can be set for each shift
Planning interval is a time unit used to assess the capacity of work center types in the business unit when setting up the production schedule
Period for proactively entering data on the capacity of work center types for setting up the production schedule
Options of a business unit’s participation in production
Period for proactively entering data on work center capacity for setting up the work center schedule
Option to use operations for detailed control of performance at production stage (intrashop level)
Option to use production sites

Production sites are affiliated with business units and refine their organizational structure.

Shop Floor Stockrooms

Shop floor stockroom is a warehouse with its shop floor with simplified data interchange.

A large number of materials are used in manufacturing. They are transferred to certain business units using various procedures, which are separate from those ensuring the production schedule. This primarily applies to general-purpose consumable items and measured materials that are challenging to handle in small batches. Shop floor stockrooms are designed to manage the use of such materials and to keep accounting of them while work is in progress.

In terms of accounting activities and document flow, the use of shop floor stockrooms closely aligns with the records of goods transfer in warehouses. A business unit may be assigned to several distinct shop floor stockrooms, which can define the scope of material responsibility for production teams.

Bills of Materials

Bill of materials is a universal tool for defining parameters of the production process for manufacturing products and semi-finished goods, performing work, conducting repairs or development.

Bill of materials describes a stage-based production process that results in release of materials (or the completion of a specific work) and the resources required to carry it out.

A bill of materials (BOM) can relate to an item, an item kind, or an item list. Assigning a general bill of materials to an item kind ensures efficient management of BOMs for similar products.

1C:ERP system supports parametric assignment of BOMs and their picking. It facilitates handling of deviations and changes in BOMs for complex products.

Bills of materials define:

The list of finished products (finished goods and completed work) and recyclable waste
The demand for materials and associated work
The standard labor costs required for production (by activity kinds)
The structure of the production process

With BOMs you are able to set flexible conditions for the application of materials, side and intermediate products, and labor costs. Standard calculations can be performed using formulas. Formula-based calculations are available for determining the quantity of materials, side and intermediate products, labor costs, and running hours of work center types.

A list of production process stages serves as the foundation of the production process structure described in the BOM . These stages can be detailed with lists of technological operations and standard technological processes.

Technological Operations

A technological operation is performed continuously in a production business unit by one or more employees at a single work center, on one or several simultaneously processed or assembled items. Multiple technological operations are combined into a single production stage. Technological operations define the production process.

The standard duration of a technological operation is defined by the following parameters:

Number of repetitions required for complete execution
Standard time for performing the operation per product unit (standard quantity)
Setup time
 Work center load during the operation

Technological Processes

A technological process is designed to define sequences of technological operations used repeatedly (in multiple BOMs) and the resources required by these operation sequences.

A technological process includes operations, auxiliary materials (used in addition to main materials), and labor costs.

Substitutes

Substitutes are product items (with variants) that are permitted for use in production process as replacements for materials specified in bills of materials.
Substitutes can be used in production when it is impossible to supply the required materials on time according to the bill of materials.

Parametric assignment of substitutes and the substitute picking wizard implemented in the system simplify the replacement of materials with substitutes in production and other documents.
Automatic replacement of materials and semi-finished products with substitutes is supported while generating production stages.

Assignees of Production Processes

Assignees of work within the production process can be either persons or work teams as organized groups of individuals. You can set the options for selecting assignees when defining the parameters of the production business unit.

To perform any type of work collectively, it is possible to form work teams. Persons can be included in a team without restrictions on company or business unit where the work team member is employed, and without regard to the employee’s payroll system. One employee can be part of multiple teams simultaneously. The team composition and the contribution of each member to the product release are specified during the production process and recorded when registering output. To calculate the individual contribution of each team member, a labor participation rate (LPR) can be assigned. The completed work can be distributed among team members based on the hours they worked and tariff rates.

Generating demand for production

Demand for production can be generated in several ways.

The Production plan documents are used to support a "pushing" material flow management system. The material flow, in the form of products and semi-finished products, is "pushed" to the recipient (e.g., a warehouse) at the commands from the management system. The production plan is created for an arbitrary time interval, broken down by periods. Based on production plans, it is possible to assess demand for human resources, align production plans with purchase plans, and monitor plan execution.
The Sale order, Inventory consumption order, and R&M order documents generate a demand for products that can be fulfilled through production. This implements a "pulling" material flow management system that meets the arising demand.
Regardless of the source of the demand, the Production order documents are designed to fulfill it. Production orders generate lots for launching production of goods, semi-finished products, or performing work.
Controlling the order supply forecast is possible within the order supply forecast workplace. Analysis of the supply forecast provides the necessary information for making decisions on supplying material orders.

Production Scheduling


Production scheduling and control is based on stage fulfillment of production processes. Stages can be formed based on the selected bill of materials or configured manually.
Each stage contains all the necessary information for production: finished products, materials and semi-finished products, labor costs, and the use of work center types. Each stage is represented by a separate document.
The production schedule coordinates the execution of production processes at the intershop stages.
The production schedule is a set of production stages arranged according to their planned execution time. The schedule is calculated based on planning intervals, reducing the capacity of loaded work center types.
The schedule calculation is initiated in the Production order queue management workplace.

Using the production schedule allows for:

Optimizing demand for human resources
Generating production programs for individual business units
Ensuring control over the production process
Assessing the feasibility of fulfilling production orders by the required date
Promptly managing changes and deviations in production plans

To analyze the placing of orders, the Stage resource chart is used., It displays the limitations that affected the placement of stages in a separate window.

During rescheduling, the existing production schedule is restructured for specific orders, taking into account order priorities in the order queue, the current situation, and changes in original data.

Shop Floor Management

Shop floor production management provides the following capabilities:

Tracking the progress of production processes within a business unit or production site
Creating schedules for tasks and work center load
Selecting production lots for processing (generating routing operations)
Monitoring the supplies for ongoing production stages
Rescheduling the production operations
Providing notifications about critical deviations from the production schedule

The functionality of managing the execution of production processes at the shop floor level is designed for dispatching technological operations and allows:

Generating a list of operations required to complete a stage
Assigning operations to work centers
Specifying an assignee and initiating the execution of the operation
Recording completed operations, including details of consumed materials and labor costs

Manufacturing Execution System

Manufacturing Execution System (MES) is designed to create an optimal operation timetable for work centers based on selected criteria.
MES implements operational planning and production dispatching.

MES tools significantly enhance manufacturing execution, support multi-criteria optimization in scheduling, enable scenario modeling for shop floor planning, and streamline dispatching and analysis of production schedules.
Management of production processes in business units using MES is performed within the Perform operations (MES) and Manufacturing execution system workplaces.

Shift Tasks

Production operations assigned to a specific time interval can be grouped into shift tasks.


Use of Batches in Production

Production supports batch accounting for materials, semi-finished products, and products. The use of batches is set per item kinds, business units, and bills of materials.

Transfer of items with serial numbers is recorded in the following reports:

Batch structure. It shows which material batches were used in the production of a specific item batch.
Analysis of released product cost. It monitors the cost of individual product lot release (by batches).
Application of item batch. It displays a tree structure of products in which a specific batch of material or semi-finished products was used.
Item batch movement. It tracks the movement of material batch, semi-finished products, or products, providing answers to the following issues:
• Which vendor provided the material batch;
• Which warehouses the material batch was transferred to;
• Which production business units received the batch of materials or semi-finished products;
• Which products were manufactured using the batch of materials or semi-finished products;
• Which customers received the item batch.

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