This article is relevant if you are concerned with NetSuite work orders that are at risk of not being produced or delivered.
Background
In manufacturing, the essential principle is to ensure all necessary materials are ready when it’s planned to supply labor and other production processes. The NetSuite work order serves as the blueprint for production planning. The assembly cannot be built or produced if any component within a work order is unavailable.
Inventory shortages for work orders are persistent issues for operators and manufacturers. NetSuite offers robust inventory management features, including backorders and inventory commitments, to streamline operations to help planners.
However, identifying which work orders (jobs) are in jeopardy of not meeting delivery commitments remains a challenge. In the case of our client’s manufacturing setup, sales orders trigger corresponding work orders (linked at the line level) to create custom-configured industrial hose components. Their primary focus is to verify that all required components are available at the time planned to meet production deadlines and fulfill delivery by the customer’s expected shipping date.
Outlining Delivery Risk Situations
In creating a NetSuite finished assembly item, work orders generate components, often involving a hierarchy of subcomponents that must be produced first. These sub-components are inputs for subsequent work orders, culminating in the final product. Due to multi-level production situations, concerns may exist at any level in the hierarchy.
Effective planning for a work order’s production requires adequate quantities of all components to complete the job. Here are several scenarios representing risks that could jeopardize the completion of a Work Order production job:
- No Stock on Order: This scenario arises when there is insufficient stock of a component and no pending orders (e.g., purchase orders) to replenish. The production for that workorder is at a standstill until the required goods are on hand.
- Late Risk: although inventory is currently insufficient, receipts from purchase orders are expected. However, there’s a risk that the inventory might not arrive in time for the planned production date due to the narrow window between the expected receipt of inventory and the production commitment.
- Late: similar to the Late Risk scenario above, this situation involves expected receipts from purchase orders. However, it is clearly evident that these items will not arrive in time to meet the planned production date.
These scenarios outline basic risk situations that can be further detailed based on additional factors such as allocations or the extent of delays.
The crucial takeaway is that planners must accurately assess, decide to tell the truth, and communicate these risks which generally means to adjust commitments based on the actual situation. A mature business operation relies on dependable suppliers and robust inventory and record-keeping systems, allowing planners to make reliable commitments. As the volume of orders and transactions grows, managing the production schedule becomes increasingly complex.
Introducing A NetSuite Work Orders at Risk Inspection Tool
Our client, boasting over 50 years in the business, transitioned to NetSuite in the last five years to gain all the benefits of the centralized operating platform. In our assessment, the work to optimize business operations through continual refinements leads to competitive capacities. Our client has a deep understanding of their production operations. This year, they decided to address a wanting practice: identifying the at-risk work orders that have consistently been challenging their production team.
In search of a solution, the client explored NetSuite’s Predicted Risks Portlet and the Supply Chain Tower feature, but these tools did not present the information in a manner that met their needs.
To address this, the client collaborated with Hector Cardenas, our Operations Practice Leader at Prolecto Resources, to conceive and develop a NetSuite Inspection tool designed for quick and clear presentation of critical information. Leveraging our leadership to design NetSuite high-performance applications (see my 2022 article, “Take Control: Watch How NetSuite can be Amazingly High-Performance!”), the client was optimistic about overcoming this challenge.
Hector and Elie C., a Senior Technical Analyst in our Technology Services Practice, spearheaded the creation of the Work Orders at Risk Inspection tool. This tool’s essence lies in its ability to contextualize the entire narrative of a work order for a finished good assembly, pinpointing problematic components in a way that is intuitive for planners.
Click the images to get an insight into the tool.
Exploring the Work Orders at Risk Inspection Tool: A Video Overview (5:16)
In an insightful interview with Elie, we delve into the intricacies of his work and the significant advancements achieved through this tool. In the concise video (5:16), we engage in a discussion about the tool’s functionalities and the substantial benefits it has brought to our client.
For a visual and detailed exploration, watch the video here:
Craft a Work Order Inspector Tool to Drive Your Production Operation
This client’s operations were centered around a job shop model, with interconnected work orders and sales orders. However, the core principles of production planning are universally applicable, whether the goal is to fulfill specific job orders or to produce stock assemblies. The critical element is the ability to assess whether our planned activities align with the current stock situation, enabling one to proceed as intended.
Consistent with our approach when working with clients, we provide access to these applications and algorithms without licensing fees. We believe that our true value lies in our ability to attentively understand client needs, devise innovative solutions, and implement them effectively. As advocates for our clients, we aim to leverage our collective expertise and past successes to address challenges without needing to sell software or demand additional license fees. This ethos underscores our client service commitment to delivering tailored solutions that address each client’s unique needs.
If you found this article relevant, feel free to sign up for notifications to new articles as I post them. If you are ready to tackle your NetSuite-driven production or manufacturing-driven planning challenges, let’s have a conversation.
Marty Zigman
Holding all three official certifications, Marty is regarded as the top NetSuite expert and leads a team of senior professionals at Prolecto Resources, Inc. He is a former Deloitte & Touche CPA and has held CTO roles. For over 30 years, Marty has produced leadership in ERP, CRM and eCommerce business systems. Contact Marty to set up a conversation.
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