Manufacturing processes help organizations create finished goods from raw or semi-finished materials using some combination of labor and machinery. Finished goods are then sold, at a profit, to other manufacturers, wholesalers, or retailers who then sell them to consumers. NetSuite integrates your manufacturing workflow from the sales order and process planning to building goods, tracking work orders, and releasing finished goods for shipping.
The basic features that the NetSuite Manufacturing module covers are:
- Assembly Items
- Bill of Materials
- BOM Revision
- Manufacture Routing and Scheduling
- Work Orders
- Issue Components and Enter Completion
- Enter Completion with Backflush
Assembly Items
In NetSuite Manufacturing Module, an item that is manufactured and consumes other components as part of that process is called an Assembly Item and is easily defined through the New Items menu. You can create an assembly item record to track each assembly and its component items. The assembly record details member items and the quantity of each member required for each assembly.
Bill of Materials
A Bill of Materials (BOM) lists the quantities of raw materials, assemblies, sub-components, and parts needed to manufacture a product. The quantities in which you expect to consume them and the expected yield during the manufacturing process. Once the Assembly item is created, we can allocate multiple Bill of Materials’s (BOM) to it. We can also set a Master default or default the BOM as per the location.
A BOM can be used to communicate between manufacturing partners, multiple facilities within the organization, or with a single manufacturing plant. Which determines the
BOM Revision
A single BOM can have multiple revisions as per the components utilized. In the BOM revision page, we assign the components and the quantity of the components which will be consumed by that BOM to build an assembly. BOM Revision has the effective start date and an effective end date field which determines the period between which the particular BOM revision will be used. A single BOM can have multiple Revisions.
BOM revisions can be defined either by using effectively dates or revisions and the view of the BOM components on the item has the ability to list the complete revision history or be filtered to the most recent one.
Manufacturing Routing and Scheduling
NetSuite Manufacturing module enables manufacturers to optimize the production of complex work orders with the routing and scheduling feature in the Manufacturing WIPand Routings module. This functionality allows production engineers to create manufacturing routings to detail the steps that an item must go through during the manufacturing process. On a routing, users can define scheduling parameters such as work center assignment, number of resources, setup time, and run rates. NetSuite manufacturing module also supports multiple routings per item/BOM. Once a default routing has been defined, the system will automatically create and schedule the operations necessary to complete a work order. The system also considers the default Work Calendar when scheduling work orders.
Work Orders
The work order is an important part of the manufacturing module. The manufacturing module provides the capability to track the labor cost and overhead cost while generating an Assembly item. If we don’t want to track those, just we need to create a work order and build the assembly. With the click of Create Build, we get to create an Assembly Build transaction that will utilize the quantity of components without calculating the labor cost and the machine cost.
Work Orders can be created standalone just to increase the stock of the items, but we can also create a Work order from the Sales Order in case we don’t stock the items in advance of receiving an order.
Enter Completion with BackFlush
We can also perform both, issuing components and entering completion, at the same time by using the option of “Enter Completion with Backflush”. Enter Completion with Backflush will allow you to subtract the quantity from the stock and also track the operations completed in one single transaction.