User Manual

Routing

At Stock -> Items -> An item's details, in section Routings or 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 a routing? How is it used in production planning?
  2. How to enter a Routing in MRPeasy?
  3. How is the operation duration calculated?
  4. How are manufacturing overhead and labor costs calculated?
  5. Examples of Routings.
  6. How to define subcontracted operations in the Routing?
  7. How to update the Routings of already planned Manufacturing Orders?
  8. How to track changes to a Routing (revisions)?
  9. How to export a Routing?
  10. How to import a Routing?

What is a routing?

A 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 for 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.

  1. Click Create Create to create a new Routing.
  2. Mark the BOMs (of the same item), that this routing is connected with.
  3. Define the operations. See below for detailed information.
  4. Save.

Each operation in a routing has following variables:

  1. The sequence number - the line number of the operation;
  2. Workstation group - the group of similar workstation which performs this operation.
    When scheduling the production the individual workstation from that group with best availability is chosen.
  3. Setup time - the estimated time that is needed to start or prepare this operation.
    The setup time does not depend on the quantity of finished products.
  4. Cycle time - the estimated operation duration for "Quantity" of products made.
    By default, this is the operation duration corresponding to one product.
  5. Fixed cost - the estimated cost of setting up and preparing for the operation, corresponding to the "Setup time". (Fixed cost = Setup time / 60 minutes * Hourly rate)
    The "Hourly rate" in the workstation details overrules this setting. 
  6. Variable cost - the estimated 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.
  7. Quantity - the number of products that are processed simultaneously within the "Cycle time".
    The default value is "1". Greater values, corresponding to batch quantity, should be used when many units are processed at one time (e.g. in an oven, mixer, furnace, etc.).
  8. Time payment - by default checked "Yes", the worker is paid by the hour (each user's hourly rate is defined in Settings -> Users -> The user's details).
    Available if the Piece Payment functionality is enabled.
  9. Piece-payment - the price the Worker is paid per each piece of product.
    Available if the Piece Payment functionality is enabled.
  10. Sequence - allows defining parallel and converging/diverging chains of operations.
    Mark the sequence numbers of operations that must be finished before this operation can start (set 0 if it can start immediately). Available, if the Overlap and Special Sequences function is enabled;
  11. Overlap - the minimal finished number of products of the previous [unfinished] operation before this operation can start (i.e. the operations overlap, this operation can start before the finish of the previous operation.).
    Available, if the Overlap and Special Sequences function is enabled;
  12. Parallelize - enable "Yes" if the operation should be divided into smaller parallel operations among all available workstations of the same group.
    Available, if the Parallel Execution of Production Operations function is enabled;
  13. Worker - the username(s) of the worker(s) or the departments assigned to this operation by default.
    The "Default worker" in the workstation's details overrules this setting. If no default workers are set in the routing nor the workstation details, the user who creates the Manufacturing Order is assigned as the worker.

Calculating the operation duration:

  • Operation duration = (Setup time + Cycle time x Quantity/ Productivity of the workstation
  • If Parallelize is used, then the Operation duration is also divided by (i.e. among) the number of available workstations.

Calculating the manufacturing overhead cost:

  • Manufacturing overhead = Operation duration x Workstation hourly rate

Calculating the labor cost:

  • Labor cost = (Operation duration* x Worker hourly rate) + (Piece-payment x Quantity)
  • *The reported times are the basis for the final labor cost calculation.

Calculating the material cost of a product:

  • The cost of materials = Cost of consumed materials in the MO / Number of products on the order

Additional tips:

  • If consecutive operations are performed in the same workstation, then in many cases it's a better idea to combine these as one operation. This wouldn't affect capacity planning, but would make reporting and viewing of the production schedule much simpler due to less clutter.
  • The Routing lays out only the estimates. The estimated times will be overwritten by the reported actual times, the costs and workers in the routing are overruled by the settings in the particular workstation's details.
  • Both Time- and Piece-payment are used for calculating production costs. Because of that, if these are used, these must include the total expenses on the workforce.
  • Each routing must be connected at least with one BOM of the product.

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 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 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 a 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's two chains of operations which converge into a final step, then the Sequence is configured as follows:

Operation # Operation Sequence
1 1st operation of first sequence 0
2 1st operation of second sequence 0
3 2nd operation of first sequence 1
4 2nd operation of 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 updating 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 an 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.