Introduction
NetSuite Work Order Management is a robust solution designed to enhance control, visibility, and efficiency in manufacturing processes. By seamlessly integrating production workflows with financials, inventory, and order management, it empowers businesses to optimize assembly item production, manage complex bill of materials (BOM), and streamline operations across discrete and batch manufacturing environments. This article explores the key features, benefits, and challenges addressed by NetSuite Work Order Management, making it an essential tool for modern manufacturers.
Key Features of NetSuite Work Order Management
1. Discrete Manufacturing
NetSuite supports a variety of manufacturing needs, catering to businesses of all sizes and complexities. Key capabilities include:
- Flexible work order management, allowing operations without work orders or with full tracking of materials and labor as work-in-process costs.
- Configurable work order completion logic and enhanced data collection tailored by location.
- Support for routing ticket systems to track labor and materials efficiently.
2. Batch Processing
For manufacturers requiring detailed batch tracking, NetSuite provides:
- Individual batch processing with native lot tracking for end-to-end traceability.
- Scheduling and assignment of machines, employees, work centers, and assets to each batch.
- Real-time data updates through manufacturing execution systems, barcode scanning, and tablet interfaces.
- Support for alternate assets, co-products, and detailed work instructions for recipe/formulation management.
- FIFO (First In, First Out) material issuance for lot-controlled items, ensuring precise material control.
3. Shop Floor Controls
NetSuite enhances shop floor operations by enabling:
- Prioritization, tracking, and reporting of production orders and schedules.
- Real-time resource status evaluation, including labor and machine usage.
- Instant feedback and visual warnings to workstations via tablet interfaces.
- Work order travelers, system-generated documents that provide manufacturing specifications and travel with jobs through the production process.
4. Transfer Order Management
For businesses with multiple inventory locations, NetSuite’s transfer order management:
- Facilitates seamless movement of inventory to the correct sites for assembly.
- Integrates with external warehouse management systems to manage inventory movement data.
- Initializes item fulfillment and receipt transactions for efficient logistics.
5. Manufacturing Mobile
The NetSuite Manufacturing Mobile SuiteApp allows:
- Production operators and managers to perform warehouse and shop floor transactions using mobile scanners.
- Increased efficiency and reduced human error through real-time data capture and visibility.
6. Cost Controls
The NetSuite Cost Variance Analysis SuiteApp enables:
- Detailed analysis of work order costs by component, cost category, and conversion costs, ensuring accurate financial tracking.
7. Inventory Usage
NetSuite’s Supply 360 and Available to Build SuiteApps provide:
- Visibility into component inventory levels by location and date to prevent production shortages.
- Insights into which assemblies can be built with current inventory, improving production planning.
Benefits of NetSuite Work Order Management
- Real-Time Two-Way Communication: Standardizes production plans, work instructions, and costing, ensuring seamless communication with the production floor.
- Defined Manufacturing Process: Accurately calculates resources, time, and costs needed for production, enhancing planning accuracy.
- Increased Operational Efficiencies: Optimizes production schedules based on raw material and assembly item availability, reducing bottlenecks and boosting output.
- Integration with Financials: Connects manufacturing processes to financial reports, inventory, and outstanding orders, providing real-time organizational insights.
Challenges Addressed
NetSuite Work Order Management tackles common manufacturing challenges, including:
- Uncertain Work Order Status: Provides real-time tracking of work orders from start to finish.
- Uncertainty Around Components: Ensures accurate inventory commitment at work order initiation.
- Difficult-to-Calculate COGS: Tracks labor and scrap usage in real-time for precise cost of goods sold (COGS) calculations.
- Production Delays: Ensures required goods and assemblies are available at the right time and place.
- Manual Processes: Automates complex tasks, eliminating reliance on spreadsheets and Gantt charts.