User Manual

Routing

At Stock -> Items -> An item's details,  in section Routings and at Production planning -> Routings it is possible to add the routings to your products.

A routing lays the foundation for

  • capacity scheduling of production resources,
  • assigning jobs to workers,
  • estimation of costs and production lead time,
  • tracking actual costs and production time.

Jump to:

  1. What is routing? How is it used in production planning?
  2. How to enter a Routing in MRPeasy?
  3. How is the operation's duration calculated?
  4. How are manufacturing overhead, labor, and materials costs calculated?
  5. How are operations assigned to workers? How to set default workers or departments?
  6. Examples of Routings.
  7. How to define subcontracted operations in the Routing?
  8. How to update the Routings of already planned Manufacturing Orders?
  9. How to track changes to a Routing (revisions)?
  10. How to export a Routing?
  11. How to import a Routing?

What is routing?

Routing is a document attached to a product, it lists all production operations or stages, in the order which the finished product is made. The goal of the routing is primarily to provide grounds for scheduling of the capacity of production resources, e.g. machines.

What a Routing is not: the technical instructions for building the product. In general, it's often a good idea to strive towards simplification and generalization when defining the routing.

Each line of the routing represents one production stage at one stop - a machine or a work area - with an estimated time it takes at that stop.

Here's an example of a simple routing:

Workstation group Operation description Time for setup
(setup time)
Time per piece
(cycle time)
Woodworks stations Assembly of all the table components 30 min 12 min
Painting stations Painting of the table 2 min 5 min

The example above tells us that setting up the assembly area takes 30 minutes of work after which every table will be assembled with 12 minutes on average. The same logic applies to the painting process, which will take place after assembly.

Did you notice? Instead of defining the particular machine (workstation) in the routing, the routing points to the group of machines (workstation group) which can perform this operation.

How is the Routing used in production capacity planning?

  1. The order quantity is used to calculate the total time of every operation.
  2. For every operation, the software checks all the workstations in the workstation group to find the particular workstation with the best availability.
  3. The operations are put into the production calendar in the correct order while keeping in mind the available resources.
  4. If the workstation hourly rates and employee hourly wages are known, the manufacturing overhead and labor costs will be calculated.

Defining a routing in MRPeasy

At Stock -> Items -> An item's details, in section Routings or Production planning -> Routings it is possible to add the routings to your products.

Each operation in routing has the following parameters:

Parameter Description
Number The line number of the operation.
Workstation group The workstation group, from where a workstation will perform this operation. 
When scheduling the production, the individual workstation from that group with the best availability is chosen.
Setup time A fixed time, the estimated time that is needed to start or prepare this operation.
Cycle time A variable time, the estimated cycle time for processing a "Quantity" (default 1) of products.
Fixed cost The estimated manufacturing overhead cost of setting up and preparing for the operation, corresponding to the "Setup time".
The "Hourly rate" in the workstation details overrules this setting when a Manufacturing Order is planned! 
Variable cost The estimated manufacturing overhead cost per "Cycle time" producing "Quantity" of products. (Variable cost = Cycle time / 60 minutes * Hourly rate * Manufacturing Order quantity)
The "Hourly rate" in the workstation details overrules this setting when a Manufacturing Order is planned!
Quantity 

The number of products that can be processed simultaneously within the "Cycle time". 

The default value is 1.

A value greater than 1 corresponds to the maximum capacity (e.g. in an oven, mixer, furnace, etc.) that can be processed within the "Cycle time".

Time payment

If the worker is paid by the hour.

Enabled by default.

Each user's hourly labour rate is defined in Settings -> Users -> The user's details.

Setting visible if the Piece Payment functionality is enabled.

Piece-payment

The labour cost per product, if the Worker is paid per piece.

Available if the Piece Payment functionality is enabled.

Sequence 

The number(s) of the operation(s) which must be completed, before this operation can start. This allows defining parallel and converging/diverging chains of operations. 

Set 0 if it can start immediately. 

Available, if the Overlap and Special Sequences function is enabled.

Overlap 

The quantity of processed products in the previous operation, that can be directly passed to this operation, even before the previous operation is fully finished with the full batch.

If undefined, then the full batch must be processed in the previous operation, before this operation can start.

Available, if the Overlap and Special Sequences function is enabled.

Parallelize

If instead of being processed on one workstation, the operation should be divided into smaller parallel operations among all available workstations in the same group. (E.g. processing of 100 pieces is divided among 4 workstations that process 25 each, in parallel.)

Available, if the Parallel Execution of Production Operations function is enabled.

Department/Worker

The by default worker(s) or department(s) assigned to this operation.

The "Default worker" in the workstation's details overrules this setting when a Manufacturing Order is planned!

When estimating the routing cost, the hourly rate of the department/worker is used to estimate the labor cost.

 

Operation duration, manufacturing overhead, labor, and materials cost calculations

Each product, which is produced via a Manufacturing Order, has three cost components:

  1. direct labor cost,
  2. applied manufacturing overhead cost,
  3. direct materials cost.

Calculation of operation duration:

In a Manufacturing Order:

  • Operation duration = (Setup time + Cycle time x Order quantity / Operation's cycle quantity*/ Productivity of the workstation.
    * Cycle time is rounded up to next full cycle duration if a planned quantity for the given cycle is less than the operation's cycle quantity.
  • If Parallelize is used, then the Operation duration is also divided by (i.e. among) the number of available workstations.

Calculation of manufacturing overhead cost

In a Manufacturing Order:

  • Initially, the Manufacturing overhead cost is estimated:
    Manufacturing overhead = Operation durations x Workstation hourly rates** + Other fixed cost + Other variable cost* x Order quantity.
    If a workstation does not have an hourly rate defined, then for this operation:
    Manufacturing overhead = Fixed cost + Variable cost* x Order quantity + Other variable cost* x Order quantity.
  • Once the MO is finalized, the manufacturing overhead cost is recalculated based on actually reported times:
    Manufacturing overhead = Reported operation durations x Workstation hourly rates** + Other fixed cost + Other variable cost* x Order quantity

* If variable costs are defined not per 1 unit, but per more units, then the variable cost is found by rounding up to the next full variable cost quantity.

**An hourly rate can be set for any workstation at Production planning -> Workstations at the specific workstation's details page.

Calculation of labor cost

In a Manufacturing Order:

  • Initially, the labor cost is estimated:
    Labor cost = Operation durations x Worker hourly rates* + Piece-payment rates x Manufacturing Order quantity
  • Once operations are reported finished, the labor costs of them are recalculated:
    Labor cost = Reported operation durations x Worker hourly rates* + Piece-payment rates x Reported quantities

*The hourly wage for any worker can be defined at Settings -> Human resources at the user's details page.

Calculation of material cost

In a Manufacturing Order:

  • Initially, the cost of materials is estimated:
    The cost of materials = Cost of booked materials +  Estimated cost of not booked (unavailable) materials.
  • Once the MO is finalized:
    The cost of materials = Cost of booked and consumed materials

Keep in mind that the estimated BOM cost of a product may be different than the final materials cost of a product.

Default workers and departments, assigning operations to workers when scheduling

Examples

Example 1. A metal fabrication company

Let us imagine a CNC job shop.

  1. The CNC machine is set up, which takes 3 hours.
  2. The parts are machined, each taking 6 minutes.
  3. The hourly rate for the CNC machine is $70.
  4. The workers are assigned before starting the job, and their hourly wage will be used to calculate the labor cost.

The routing could be defined as follows:

Operation Workstation group Setup time Cycle time Fixed cost Variable cost Quantity
Machining CNC 180 minutes 6 minutes 210.00 7.00 1

Example 2. Electronics and high tech assembly

Let us imagine an electronics manufacturer:

  1. The pick and place machine places the components on the PCB board. The hourly rate is $140.
  2. The oven solders the parts. The hourly rate for the oven is $70.
  3. The software is installed and tested. The hourly rate is $12.
  4. The workers are assigned before starting the job, and their hourly wage will be used to calculate the labor cost. (Time payment for workers can be disabled for automated operations without a supervisor)

The routing could be defined as follows:

Operation Workstation group Setup time Cycle time Fixed cost Variable cost Quantity
Placing the components Pick-and-place   3 minutes   7.00 1
Soldering Oven   3 minutes   3.50 1
Software installation and testing Computer terminal   3 minutes   0.60 1

Example 3. An engineering or a construction company

Let us imagine a manufacturer who builds e.g. cottages, pre-fab bathrooms, or similar.

  1. Preparation for building the frame and walls is done at the Woodworks, where individual pieces are fabricated and smaller parts are assembled.
  2. At the same time, the preparation for internal installable parts starts also at the Woodworks.
  3. When the frame and wall parts are ready, the assembly starts on an Assembly line
  4. The internal parts, as they become ready, are installed.
  5. In parallel, the roof is installed.
  6. When all parts are installed, the cottage is detailed and painted.
  7. Lastly, the cottage is moved to a packaging station, where it is prepared and picked up for transport.
  8. The hourly rate for all stations is $10.
  9. The workers who are available in corresponding Departments pick the jobs, and their hourly wage will be used to calculate the labor cost.

The routing could be defined as follows:

# Operation Workstation group Setup time Cycle time Fixed cost Variable cost Quantity Sequence Department
1 Preparation of frame and wall parts Woodworks   240 minutes   40 1 0 Carpenters x2

2

Preparation of internal parts

Woodworks   480 minutes   80 1 0 Carpenters

3

Frame assembly,
installation of internal parts,
installation of the roof,
Detailing and painting

Assembly lines   1440 minutes   240 1 1

Carpenters x2

4 Preparation for transport Packaging   30 minutes   5 1 1,2,3 Packaging x2

Example 4. A food processor

Let us imagine a small bakery.

  1. A mixer combines the ingredients. The dough for one batch, maximally 80 buns, is mixed at once which takes 30 minutes. The hourly rate for the mixer is $12.
  2. There's an oven that can bake two buns simultaneously. Initial heating of the oven takes 5 minutes, thereafter baking a bun takes 10 minutes. The hourly rate for the oven is $12.
  3. Lastly, there is a machine that packs buns into bags (4 buns per each bag) which takes 0.5 minutes. The hourly rate for the packaging line is $12.
  4. The workers are assigned before starting the job, and their hourly wage will be used to calculate the labor cost.

The routing could be defined as follows:

Operation Workstation group Setup time Cycle time Fixed cost Variable cost Quantity Overlap
Mixing Mixer 5 minutes 30 minutes 1.00 6.00 80 No
Baking Oven 5 minutes 10 minutes 1.00 2.00 2 Yes, 80
Packing Packing machine   0.5 minutes   0.10 4 Yes, 4

Example 5. Special sequences of operations, parallel converging processes

The Sequence setting in the Routing details allows defining parallel and converging/diverging chains of operations. While by default the sequence of operations in routing is linear, this allows configuring a custom order of production operations. E.g. when two independent operations start in parallel and the third operation can only start before these two have finished.

For configuring a special sequence of operations:

  1. The first operation's Sequence value must be chosen as 0.
  2. Set the Sequence values for the operations which can start immediately as 0.
  3. For every other operation, in the operations' Sequence choice, choose the numbers of operations which need to be finished before this operation can start. (Press the Ctrl or Shift key, or click-hold left mouse button to select multiple values.)

If there are two chains of operations which converge into a final step, then the Sequence is configured as follows:

Operation # Operation Sequence
1 1st operation of the first sequence 0
2 1st operation of the second sequence 0
3 2nd operation of the first sequence 1
4 2nd operation of the second sequence 2
5 Final operation after both sequences have finished 3,4

The number in the Sequence field indicates after which operations this operation can start. The id number of an operation is displayed at the beginning of the operation's line.

Updating the Routings of already scheduled Manufacturing Orders

If the Routing is updated and there are manufacturing orders (MO) that are based on this Routing, then the software shows a list of MOs that have not been started yet and gives an option to pick and choose which ones to update:

  1. Change the Routing.
  2. Save.
  3. Proceed to update Routings.
  4. Choose which MOs you wish to recalculate.
  5. Confirm the new schedule for the MOs.

It is also possible to manually update MOs, in every status: How to edit operation in the Manufacturing Order?

Subcontracting

If an operation is performed by a subcontractor, then

  • the Vendor should be selected as the Workstation group for the operation.
  • The dates for the Purchase Order are calculated using setup time, cycle time

  • the prices for the Purchase Order are calculated using the fixed cost and variable cost.

  •  

    The fields "Time payment", "Piece-payment", "Overlap", "Parallelize" and "Worker" are disabled for sub-contracted operations.

Once production has been planned, the Manufacturing Order will include a section Subcontracts. Read: How to keep track of subcontracted operations in a Manufacturing Order.

To use this functionality, the subcontracting functionality must be turned on at Settings -> System settings -> Professional functions -> Subcontracting: Yes.

Export a Routing to Excel

For exporting a routing into Excel:

  1. Open a routing
  2. Click the button Excel in the upper right corner of the page.