NetSuite Work Orders and Assemblies

NetSuite Work Orders and Assemblies - NetSuite can be easily configured to support the needs of manufacturers of all types and sizes, and for many the first step is to implement the Work Orders and Assemblies module. Enabling this feature allows users to define assembly items, build complex multi-level bill of materials, create work orders, record assembly builds, and backflush components with minimal effort.

Key Benefits

• Easy set-up – up and running in days
• Automatic back flushing of components
• Real-time costing
• Ability to manufacture without work orders
• Support lean initiatives
• Review and analyze production plans based on
  actual production times

Process Flow

Assembly Item

In NetSuite, an item that is manufactured and consumes other components as part of that process is called an Assembly Item and is easily defined through the New Items menu. Assembly Items can optionally be defined as lot numbered or serialized. If a product requires full traceability from the components being used—where they came from and where the end product went—then selecting one of these options will ensure that traceability is strictly maintained.

Work Order

In NetSuite, creating a Work Order is actually an optional step in the manufacturing process; however, if you require the ability to communicate to production what you want made, when you want it, and the components they need to use, or if you sell a configurable product where there are features and options, then creating a work order is a critical part of the process. In this case, the work order is the starting point of implementing a production control system.

Actual Production Dates are automatically calculated by default for related work order transactions. This enables you to track actual production dates to better assess your production plans, identify problems, optimize production runs and make data–driven decisions.

Work Order Traveler

The traveler is a document that is printed and handed over to production to communicate the production plan. This document can also be used for them to communicate back how much raw material they actually consumed compared to what you were expecting.

Work Instructions

Instructional files can be added to the assembly item and flagged to print at the same time as the traveler. This offers a quick and easy method to issue additional information to the production team.

Inventory Commitment

By creating a Work Order, NetSuite automatically commits inventory to production when the work order is created and gives a more accurate view of the current inventory status.

Assembly Build

The Assembly Build transaction is the point at which the components are consumed and the finished good is created—sometimes referred to as “backflushing”. It is important to note that the Assembly Build can be completed either against a work order or directly from the menu if working in a lean or work order-less environment.