Proposal Summary
This proposal outlines the implementation of manufacturing module in NetSuite. This proposal covers the topics like assembly items, work orders, bill of materials and Outsourced manufacturing.
The estimated time to complete the work detailed in this proposal is 61 hours.
This proposal is based on our discussions, anticipations, and understanding derived from our communications. Any additional requirements or updates that arise during the development process will be handled as change requests.
Deliverables
To transition the current inventory and procurement setup to a streamlined and automated manufacturing process within NetSuite, enabling efficient production management, better inventory tracking, and enhanced vendor collaboration.
1. Enable Module
- Activate the Manufacturing Module in NetSuite.
2. Assign Permissions to Roles
- Set appropriate role permissions for module access and functionalities.
3. Create Assembly Item Records
- Develop a standardized template for generating Assembly Item codes.
4. Create Outsource Locations and Bin Numbers
- Define Outsource Locations and Internal Labor Locations.
- Assign Bin Numbers for inventory tracking.
5. Assign Outsource Locations to Suppliers
- Link Outsource Locations to relevant Outsource Suppliers for better tracking and management.
6. Set Up Service/other charge items
- Create Service/other charge items to account for:
- Labor: Cleaning, Cutting.
- Service: Outwork Bore, Outwork Weld.
- Freight: Freight In, Freight Out.
7. Create and Customize BOM
- Create BOMs using the Advanced BOM feature.
- Customize BOM forms for ease of use and alignment with company standards.
8. Assign BOM to Assembly Items
- Link each BOM to its respective Assembly Item.
9. Work Order Setup
- Configure Work Order Prefix (e.g., WOxxxx).
- Customize the Work Order Form for better usability and data capture.
10. Purchase Order and Work Order Linking
- Establish a connection between Purchase Orders and Work Orders to track materials effectively.
11. Reporting Setup
- Create reports to show:
- Inventory at Outsource Suppliers.
- Inventory at Internal Labor Locations.
12. Training
Provide training to key users on:
- Managing Assembly Items and BOMs.
- Creating outsourced purchase order.
- Creating and customizing Work Orders.
- Generating and interpreting reports.
- Using phantom and sub-assemblies.
- Using Outsourced Manufacturing Consolidator.
Proposal: Estimated Time for Assembly Item Setup and Configuration in Sandbox Environment
Task
Details
Estimated Time
Analysis
- Analysis of 4 scenarios mentioned to convert to workorders and outsourced purchase order.
5 hours
Enable Manufacturing Module,
Assign Permissions to Roles,
Work Order Setup
- Activate the Manufacturing Module and verify compatibility with existing modules.
- Define roles and assign permissions for access to manufacturing features. Test functionality.
- Configure Work Order Prefix (e.g., WOxxxx) and customize Work Order Form.
2 hours
Create Assembly Item Records
- Develop a standardized template for Assembly Item codes and create records in NetSuite.
4 hours
Create Outsource Locations and Bin Numbers,
Assign Outsource Locations to Suppliers
- Define outsource and internal labour locations. Assign bin numbers for inventory tracking.
- Link outsource locations to respective suppliers for streamlined tracking.
3 hours
Set Up Service/Other Charge Items
- Configure items for labour tasks, service tasks, and freight costs (in/out).
2 hours
Create and Customize BOM
- Use Advanced BOM features to create BOMs and customize BOM forms for usability.
6 hours
Assign BOM to Assembly Items
- Link each BOM to its respective Assembly Item.
3 hours
Quality Assurance (QA)
Conduct end-to-end testing to ensure:
- Accurate configuration of assembly items and BOMs.
- Proper assignment of roles, permissions, and locations.
- Seamless integration between purchase orders and work orders.
- Validation of customizations in BOM and Work Order forms.
6 hours
Documentation
2hour
Project Management
3 hours
| Total Estimated Time | | 36 hours |
Proposal: Estimated Time for Assembly Item Setup and Configuration in Production Environment
Task
Details
Estimated Time
Enable Manufacturing Module,
Assign Permissions to Roles,
Work Order Setup
- Activate the Manufacturing Module and verify compatibility with existing modules.
- Define roles and assign permissions for access to manufacturing features. Test functionality.
- Configure Work Order Prefix (e.g., WOxxxx) and customize Work Order Form.
2 hours
Create Assembly Item Records
- Develop a standardized template for Assembly Item codes and create records in NetSuite.
4 hours
Create Outsource Locations and Bin Numbers,
Assign Outsource Locations to Suppliers
- Define outsource and internal labor locations. Assign bin numbers for inventory tracking.
- Links outsource locations to respective suppliers for streamlined tracking.
3 hours
Set Up Service/Other Charge Items
- Configure items for labor tasks, service tasks, and freight costs (in/out).
2 hours
Create and Customize BOM
- Use Advanced BOM features to create BOMs and customize BOM forms for usability.
6 hours
Assign BOM to Assembly Items
- Link each BOM to its respective Assembly Item.
3 hours
Quality Assurance (QA)
Conduct end-to-end testing to ensure:
- Accurate configuration of assembly items and BOMs.
- Proper assignment of roles, permissions, and locations.
- Seamless integration between purchase orders and work orders.
- Validation of customizations in BOM and Work Order forms.
4 hours
Documentation
1 hour
| Total Estimated Time | | 25 hours |
Assumption
Assumptions in the Proposal for Setting Up Assembly Items and Manufacturing Module in NetSuite
- Module Activation
- The required Manufacturing Module and other relevant NetSuite modules are enabled in the client’s NetSuite sandbox environment before the project begins.
- System Readiness
- NetSuite is fully configured, operational, and stable with no pre-existing technical issues that could impede the implementation process.
- Data Availability
- Accurate and complete data (e.g., supplier information, BOM details, and assembly item specifications) will be provided by the client in a timely manner.
- Permissions and Access
- Necessary administrative access to configure roles, permissions, and system settings in NetSuite will be available.
- Limited Customization
- The level of customization required for BOMs, Work Orders, and forms will align with the standard Advanced BOM and Work Order capabilities in NetSuite.
- Training Scope
- Training will be provided only to designated key users. These users will further disseminate knowledge within their teams, if necessary.
- Client Responsibilities
- The client will handle internal coordination, such as gathering requirements, defining workflows, and providing feedback during testing and review phases.
- Project Boundaries
- The project scope is limited to the activities outlined in the proposal, with any additional requirements handled as change requests.
- Timely Approvals
- Client representatives will provide timely approvals and feedback at each milestone to prevent delays in the project timeline.
- Outsource and Internal Locations
- Details for setting up outsource and internal labor locations, along with bin configurations, are provided in advance.
- Standard NetSuite Features
- The project will utilize standard NetSuite functionality and features unless explicitly mentioned otherwise in the scope.
- No Integration Issues
- No significant integration challenges with external systems (e.g., supplier portals or ERP extensions) are anticipated during implementation.
- Make-to-Stock Work Orders
- The client creates Work Orders for Make-to-Stock (MTS) purposes to maintain inventory levels for frequently used or high-demand products.
- Testing and Validation
- Client will actively participate in testing, validation, and sign-off for key deliverables.
- Change Management
- Any major changes to requirements, workflows, or configurations post-implementation will be considered as separate change requests.
- System Usage
- The client’s team has or will acquire basic knowledge of NetSuite functionality to effectively use the implemented system.
These assumptions are critical to ensuring the successful and timely completion of the project. Any deviations from these assumptions could impact the timeline, cost, or scope of the project.
Scope Limitation
Scope Limitations of the Proposal for Setting Up Assembly Items and Manufacturing Module in NetSuite
- Third-Party Integrations
- Integration with external tools or systems outside NetSuite (e.g., specialized manufacturing or warehouse management software) is not included.
- Custom Development
- Extensive custom scripting or advanced automation beyond the specified workflows (e.g., intricate custom reports, dynamic workflows, or integrations) is outside the scope.
- Advanced Sub-Assembly Processes
- Handling highly complex sub-assembly or phantom assembly scenarios with multi-level BOMs and dependencies is beyond the defined scope.
- Data Migration
- Bulk migration of legacy data, including historical assembly items, BOMs, or location records, is not covered in this proposal.
- Real-Time Inventory Sync
- Real-time synchronization of inventory data with external locations, vendors, or third-party systems is not included.
- Supply Chain Optimization
- Implementation of advanced strategies, such as demand forecasting, production planning algorithms, or inventory optimization, is excluded.
- Regulatory Compliance Features
- Industry-specific compliance requirements, certifications, or audit-ready reporting features are not explicitly addressed.
- Vendor-Specific Workflows
- Configurations or customizations tailored to unique outsource supplier workflows are outside the scope.
- Customization of PDF Templates
- Any advanced customization of PDF templates for work orders, BOMs, or other documents is not included in this proposal.
- Post-Implementation Enhancements
- Enhancements or modifications identified after implementation will be treated as change requests and handled separately.
- Error Handling in External Systems
- Addressing errors or issues originating from external supplier systems or integrations beyond NetSuite is not included.
- Comprehensive Reporting
- Advanced reporting needs beyond the standard inventory and location-based reports are excluded.
- Training Scope
- Training is limited to key users on included features. Broad organizational training or training on unrelated modules is not part of the scope.
Clarifications
- This proposal focuses on setting up essential manufacturing functionalities and enabling key workflows in NetSuite.
- Additional requests or requirements will be considered as separate change requests with associated time and cost adjustments.
- Customization of unrelated features or modules, such as those for unrelated transactions or operations, is outside the proposal’s purview.
Risks
Risks Related to the Proposal for Setting Up Assembly Items and Manufacturing Module in NetSuite.
- Additional requirements or changes during implementation may increase time and effort beyond initial estimates.
- Errors in creating assembly items, BOMs, or assigning locations could disrupt operations and lead to inefficiencies.
- Incorrect permissions might either restrict user access to essential features or allow unauthorized access.
- Conflicts may arise between the manufacturing module and existing NetSuite customizations or integrations.
- Inadequate user training might result in errors and inefficiencies in using the new system.
- Unforeseen complexities or delays could extend the project timeline.
- Users may resist adopting new workflows or systems, impacting the overall effectiveness of the implementation.
- Incorrect setup of cost categories could result in financial inaccuracies or reporting errors.
- Errors in customizing BOM or work order forms may lead to incomplete or inconsistent data capture.
- Misconfigurations in assigning outsource locations to suppliers could lead to errors in inventory tracking.
- Improper handling of sub-assemblies or phantom assemblies could result in discrepancies in work order execution.
Questions
- Module Setup and Configuration
- Do you require any additional modules to be integrated with the Manufacturing module, such as WIP?
- Assembly Item Codes and BOM
- Do you have a preferred naming convention for the Assembly Item codes, or should we use a standardized template?
- Are there any specific fields or attributes you would like customized within the BOM form?
- Outsource Locations and Internal Labor Locations
- Are there any specific details or special requirements for setting up the Outsource and Internal Labor location
- Training Requirements
- How many key users will require training, and do you have any specific training formats (e.g., in-person, video tutorials) you would prefer?
- Would you like any customized training materials or documentation based on your processes?
- Timeline and Milestones
- Are there any critical milestones or deadlines we should be aware of for the implementation of the Manufacturing module?
- Would you prefer to implement the system in stages (e.g., starting with Work Orders and then adding BOM, Assembly Items) or as a full go-live?
- Post-Implementation Support
- Would you like to include post-implementation support and monitoring to address any issues or questions after the system goes live?
- How do you prefer to manage change requests or future enhancements after the initial setup?