In this task you will import or enter your BOM Routings, which are the labor and subcontract service processes that are performed to make each of your manufactured items. The creation of the BOM parent record is often done at the same time that you assign your BOM Routing structure for each respective BOM.
Tip for Success
You first create your Routing structure and then you will enter or import your BOM components and assign them to the Work Center/Subcontractor routing sequence where the materials are to be issued to the job. Do not create or import your components before you create the BOM header record and routing structure.
This is a super task!
Do not skip or partially complete
BOM routings setup -- along with locations setup and assignments and item MRP settings -- is a "super task" that may require several days or weeks to complete. BOM routings are required for the process workflow and cannot be skipped or partially completed.
Plan for a strategy to assign BOM components to their appropriate routing sequence
You will first create the routing sequences for the appropriate work center processes. You will then assign your BOM components to the work center routing sequence where those components will be issued to the job. This will help provide for real time issues of materials where they are needed using the Work Center Schedule screen.
We recommend manual entry of BOM routings
Our recommendation is to manually create your BOM routing sequences from scatch or use the routing generator for commonly used processes. Then you can use the Data Import - BOM Components to add your components and assign them to their designated routing sequence. The Data import for Routings is often a poor match for customers coming from an outside system and should be used only when your data source matches up perfectly with DBA.
Standard hours are recommended for improved throughput and efficient costing
When the Standard hours type is used against job sequences, labor can be quickly updated in just a few clicks because standard setup and labor hours are applied instead of actual hours. Using standard hours eliminates all the mechanical processes that are required to collect and report actual labor hours. Our recommendation is to use Standard hour sequences and commit to reporting completions when sequences are finished
Use Standard hours for partially attended processes
Some work center machines can be started and run without the need for a worker to be present the entire time. To handle this scenario, the cycle time should be for the complete run time for the process. You can adjust the labor costing using the Labor Cost Factor in the BOM > Work Center > Details tab. For example, if the work center process is attended 20% of the time you can set the Work Center Labor Cost Factor to .20 and the Mfg OH Factor to 1. The costing will adjust the absorbed labor rate and leave the mfg overhead rate fully intact.
Use Standard hours for work center processes that require a team of workers
Some work centers require a fixed team size to perform a process. To handle this scenario, the cycle time should be for the complete run time for the process. You can adjust the Labor Cost Factor in the BOM > Work Center > Details tab to adjust the labor cost rate to reflect the team. For example, if the process requires a team of 2 workers, you can set the Labor Cost Factor to 2.
Links:
Bill of Manufacturing Guide - Routings
Screen Help - Bill of Manufacturing
NOTE: Routing sequences are entered on the Routing tab.
Data Import Guide - BOM Routings
Make a manual backup prior to data import
Prior to any data import process, always use the Backup Manager utility to make a manual backup. Should you encounter any anomalies in the data after they are imported, you can immediately restore from backup, make changes to your spreadsheet, and then run the import once again.
Make the backup to your restore points folder
In task 3-7 you created a restore points folder for the purpose of storing manual backups made at the end of each implementation phase and prior to each data import. Make this backup to your restore points folder to preserve your progress prior to this data import process.
If you do not have a restore points folder, refer back to task 3-7 in the Installation phase of implementation for guidance.
Making a manual backup
Use the Backup Manager to make a manual backup, which is accessed from the server by clicking Windows Start - DBA Manufacturing - Utilities - Backup Manager.
Select the Manual Backup option. Select your company database in the From registered databases option. Select the Use Custom Backup path. Click Find and navigate to your restore points folder.
When you are prompted to save the file, give it a file name such as Backup_Pre-BOM_Routings_Import to clearly identify the contents of this backup.
Click Create Backup to initiate the backup process.
Link:
Installation / Update Guide – Manual Backup
BOM Routings Guideline
Give every BOM a routing
Every manufactured item has at least one process, so every BOM must be given a routing. This is essential for product costing, job days calculations, and shop control.
NOTE: This guideline does not apply to ‘Secondary’ and ‘Phantom’ BOM types, which do not have routings.
Common Question
Can I simplify my jobs by not using routings?
Ignoring routings in the BOM is not a viable or desirable option because it severely limits your overall efficiency potential and increases your workload. Without routings, you must run the shop manually, which is much more difficult than using the formal shop control that is afforded by routings.
Light manufacturing systems do not include work centers and routings and focus solely on BOM components. Without work centers and routings, light systems cannot handle product costing, MRP, or shop control. Routings distinguish DBA from light manufacturing systems and are used for the following purposes:
•Work center hourly rates are applied to process setup hours and cycle times to calculate estimated and actual labor and manufacturing overhead costs.
•Subcontract supplier prices are translated into unit costs to calculate estimated and actual subcontract service costs.
•Routings provide detailed process instructions that print on the shop traveler for production guidance out on the shop floor.
•Routings provide detailed instructions to subcontract service suppliers that print on subcontract POs.
•Routings provide the estimated hours calculations that are used to establish item Job Days settings that drive MRP job generation and the master schedule.
•BOM routing specifications are copied to jobs as jobs get generated by MRP.
•Job routings group job sequences by work center within the Work Center Schedule screen to prioritize worker assignments.
•Job routing specifications are used to calculate estimated remaining job hours for job prioritization and job status metrics.
Are Actual labor hours more accurate than Standard hours?
Our experience has shown that it is very difficult to perform Actual hours in most manufacturing environments. The reality of most shops are that once an item is finished it is shipped out as soon as possible regardless of whether all of the costing information has been submitted. It is very easy to make errors or omissions in labor entry that can have a very consequential effect on your cost of sales accounts and make your income statement a challenge to interpret. Since the product is likely already out the door, there is not an opportunity to fix the costs after the fact. We strongly recommend Standard hours completions for most companies
Standard hours can actually lead to more accurate absorbed costing in the long run. By eliminating the potential timing and entry mistakes mentioned above you will have a more consistent inventory values and cost of goods sold. We also have the benefit of our self-adjusting Shop Rates. On a quarterly basis, you will run the BOM > Shop Rate routine and your labor and overhead rates adjust automatically and you will get reasonably accurate absorbed costs for your labor and manufacturing overhead even if your standard completion hours are not perfect.
