Baan Manufacturing
Baan Manufacturing covers all the activities required for various manufacturing typologies like make-to-stock, make-to-order, assemble-to-order and engineer-to-order.
Baan Manufacturing has following important modules
• Baan Item Control (ITM)
• Baan BOM Control(BOM)
• Baan Routing( ROU)
• Baan Master Production Schedule ( MPS)
• Baan Material Requirement Planning (MRP)
• Baan Capacity Requirement Planning ( CRP)
• Baan Shop Floor Control( SFC)
• Baan Production Planning ( PPC)
• Baan Product Classification
• Baan Product Configurator

1.     The Item Control module in perspective

This chapter describes the main functions and objectives of the Item Control module. Information is given about the module’s function within BAAN IV and how the module is related to other modules. Additionally, this chapter presents the module’s business objects, then closes with the global set-up requirements for the module.

1.1       The Item Control module within BAAN IV

The Item Control (ITM) module contains basic item-related data which is used in most of the BAAN IV modules. This module contains five types of data: default settings for item definition, item data, alternative items, alternative item codes and alternative units of measure with conversion factors.

In manufacturing companies, a number of different terms are used to describe items. For example, they are frequently called parts, part numbers, and item numbers. There are also different types of items, for example:

  • components/materials
  • subassemblies
  • semi-manufactured products
  • semi-finished products
  • manufactured products
  • assemblies
  • end products
  • non-physical (administrative) items
  • containerized items
  • purchased products

All of these are considered items in BAAN IV. Without these items, very few of the other BAAN IV modules would be of use. It is very important that items are correctly defined because all data associated with an item provides data necessary to other modules.

Relationships can be created between items to provide a list of alternative items for other business functions, such as sales order entry or project planning.

Conversions can be made between an item’s inventory unit of measure and any of the other five unit of measure types.

Figure 1-1 The ITM module in BAAN IV

1.2 The BOM Control module in BAAN IV

Bills of Material (BOM) are used to define the product structure of manufactured items. The BOM establishes the relationship (parent-child) between the end item and its components. This data is important for material planning and material requirements processes.

Figure 1-2 The BOM Control module in BAAN IV

The BOM Control module is one of the modules that provides support to other modules in BAAN IV. The data stored in this module is used in many other places in BAAN IV.

Figure 1-2.1 Modules related to the BOM Control module

Bills of material establish the relationships between items and their components, which all must be previously defined in the Item Control (ITM) module.

The product structure can be updated or generated from the Engineering Data Management (EDM) module. Another option is to copy the product structure to or from customized BOMs in the Project Control (PCS) module.

When a cost price is calculated for a manufactured item using Cost Accounting (CPR) module, the BOM is used to determine the material costs.

BOMs are also used during material requirements planning. The Master Production Schedule (MPS), Material Requirements Planning (MRP), and Inventory Control (INV) modules will plan material requirements based on the bill of material of the item that is to be manufactured.

In the Shop Floor Control (SFC) module, the estimated materials that are allocated for a production order are based on the bill of material of the item to be manufactured.

When BOM lines are linked to an operation from a routing in the Routing (ROU) module, the material requirement will be offset by the lead time of this and all preceding operations. As a result, the material requirement is more accurately placed in time.

The BOM Control module consists of only one business object.

1.3 The Routing module within BAAN IV

The production management decisions depend primarily on planning data. The most important planning data required in manufacturing is related to the method of manufacturing. The method of manufacturing must be defined before manufacturing a product. All operations required to manufacture an item are determined, and then the machines and work centers related to these operations are identified. The set-up and runtime of different operations is then calculated.

The planning data for the method of manufacturing is defined in the Routing module. The different tasks used in the production process, along with the work centers and machines are defined in this module. Multiple methods of manufacturing can be defined for an item. Methods used by many items are defined as standard routings in this module. A calendar is defined so that accurate lead time of production orders and accurate load on machines and work centers can be calculated. The rates defined for machines and work centers are used in the calculation of the standard operation cost of an item. This module is part of the foundation of the Manufacturing package.

The modules shown in the upper left-hand corner of Figure 1-1 are part of the manufacturing process. The Routing module is in this production data management group. The production facilities (work centers, machines, etc.) and the operations needed in the production process are defined in the Routing module.

Products are manufactured based on the time-phased demand. The coordination between demand and production is through the planning modules shown in the coordination circle. The orders are planned in these modules to ensure that required capacity and materials are available when the orders are transferred to the shop floor. The production circle shows the modules that are more related to the activities on the shop floor.

The Routing module gives input to almost every planning function of production management. The lead time of production orders is calculated based on this information. The load on different machines and work centers is calculated to obtain a realistic production plan. The cost estimate of an operation and standard operation cost of an item is also calculated based on this planning data.

Figure 1-3 The Routing module in BAAN IV

Data from the modules shown in the right hand side is used in the Routing module. The information from the Routing module is used in all modules shown in Figure 1-2.

The operation rates defined in the Cost Accounting (CPR) module are used when the work centers and tasks are defined in the Work Centers and Tasks business object. Data from the Routing module is used in the CPR module to calculate and simulate the standard cost of an item. Employee data from the Hours Accounting (HRA) module is used in the Routing module when the backflush employee is linked to the work centers. A routing is defined for the standard items defined as manufactured (i.e., the Item Type is manufactured) in the Item Control (ITM) module. The lead time of an item is calculated in the Routing module and can be updated in the ITM module.

The modules shown on the left hand side of Figure 1-2 take input from the Routing module when the data is set up. The operations are used to maintain a formula by operation. The machines, work centers and tasks defined in the Routing Module are used in the Project Control System (PCS) module to define a customized routing. This information is also used for project budget purposes to maintain the routing sheet. A generic routing is defined in the Product Configurator (PCF) module based on data in the Routing module.

1.4 The Master Production Scheduling module within BAAN IV

Master Production Scheduling is an important part of the MRP-II planning and control concept for the logistic planning and control of the flow of goods in manufacturing companies. The Master Production Schedule appears at the top of the MRP-II planning hierarchy and is also referred to as the driver of the flow of goods. The Master Production Schedule contains the company’s short- and long-term logistic objectives for sales, production, and inventory.

The Master Production Scheduling (MPS) module is the heart of BAAN IV. Central planning and forecasting for the production and purchase process are done in this module. MPS enables the user to control the logistic process in the company on a high level. Control of this process is possible for standard production (make to stock) and for assemble to order production.

The ability to simulate different production and purchase scenarios is another very important part of production planning. BAAN IV enables the user to copy actual production and purchase data to a simulation environment for executing ‘what-if’ scenarios. BAAN IV uses generated net requirements to create recommended production and purchase orders that can be transferred automatically to the purchase and production environment.

Different overviews (graphical or in table form) provide information about critical capacity flow and critical material flow over a specific time period. This information provides the ability to evaluate the consequences of changing the demand, capacity, and material availability.

As shown in Figure 1-1, MPS belongs to the planning modules. Using sales orders, sales contracts, and sales budgets, and already available stock, MPS calculates net requirements for purchased and production goods. When there are no sales orders, net requirements can be calculated based on forecasts.

Using the generated requirements in MPS, the Material Requirements Planning (MRP) module explodes the required quantities through the bill of material. In this way, all components of the end assembly are produced or purchased at the right time for the right quantities.

Figure 1-4 The MPS module in BAAN IV

The generated recommended production and purchase orders are automatically transferred after a confirmation step to the shop floor planner or to the buyer.

The Item Control (ITM), BOM Control (BOM), Routing (ROU), and Cost Accounting (CPR) modules provide basic data for the planning module.

1.5 The Material Requirements Planning module within BAAN IV

The Material Requirements Planning (MRP) module helps you to plan the flow of manufactured and purchased goods. Based on information from other planning modules, BAAN IV can determine which assemblies must be produced and which parts must be purchased at a certain point in time.

The MRP module is the tool you use to convert requirements coming from higher level assemblies into planned production orders for lower level assemblies and planned purchase orders for components.

The MRP module will generate rescheduling messages for existing orders that do not meet current requirements. It also generates exception messages for existing orders, such as order quantity inconsistencies, cancellation suggestions, and order release messages.

Figure 1-5 The MRP module in BAAN IV

The MRP module is used to generate planned production orders and planned purchase orders based on the balance of supply and demand. It uses the economic stock for each item to determine a projected inventory balance based on future inventory movement.

The MRP module receives demand information in the form of:

  1.      sales orders, contracts, and quotations
  2.      planned MPS orders
  3.      actual production orders.

It also uses item‑related information to determine how to handle the item.

The MRP module receives supply information in the form of purchase orders, production orders, production schedules, and inventory levels. The planned orders generated from the supply and demand information are subsequently transferred to the Purchase and Production modules.

1.6 The Capacity Requirements Planning module within BAAN IV

The Capacity Requirements Planning (CRP) module helps plan the flow of manufactured goods. Based on information from the Master Production Schedule (MPS), Material Requirements Planning (MRP), and Project Control (PCS) modules, BAAN IV can determine the utilization of work centers and machines for the entire company or individual work centers and machines.

The CRP module provides a variety of displays, reports, graphs, and charts which assist in identifying bottleneck situations. This information can be viewed by day or by week. This module provides a view of the financial consequences of a production plan.

Figure 1-6 The CRP module in BAAN IV

The CRP module is designed to be used after generating planned MPS/MRP/PCS orders, but before confirming and transferring the orders to the Shop Floor Control module. It is important that to review the comparison between planned capacity requirements and available capacity to identify any potential bottle‑neck situations in production as soon as possible.

1.7 The Shop Floor Control module within BAAN IV

The manufacturing process of a company is followed by a procedure in the Production Control systems so that the action at the shop floor and the transaction in the system can match. The procedure for the execution of production orders varies from one manufacturing environment to another. The Shop Floor Control (SFC) module facilitates the execution of production orders. All the aspects related with the manufacturing of any item are handled here. This includes creation of production orders, proper planning of production orders and the procedure related with the execution of these orders. The procedure, at macro level, consists of providing the necessary information through the help of various documents to people on the shop floor, recording all the transactions of issuing of the material, and receiving the finished product (manufactured item) into the warehouse. The time spent by a worker on a production order is also recorded so that the actual cost of a production order and the production efficiency can be obtained. This can be established by using the Hours Accounting (HRA) module.

Figure 1-7 The SFC module within BAAN IV

The module is also flexible enough to incorporate the steps of a holistic model of manufacturing in a Just in Time (JIT) type of environment. The system represents a more real model of actual production environment by registering rejects and creating rework orders.

The modules shown on the left hand corner of the picture are a part of the foundation of the manufacturing process. The items to be manufactured, the required parts, the production facilities (work centers, machines, etc.), and the operations needed in the production process are defined in these modules.

1.8 The Product Configuration module in BAAN IV

The competitive power of a company is determined more and more by the speed with which it can meet customer requirements. Today’s business should be capable of delivering a customer specific product within the delivery time of a standard product.

In a traditional production control system, the product structure generally consists of:

  1.      item data, such as delivery time and cost price
  2.      data relating to the structure of items, such as bills of material
  3.      data about operations, such as routings

This system may be adequate for companies producing only one or just a few products. However, if a large number of variants of the finished product are produced, they are usually only assembled or manufactured when the customer’s order has been received. In such cases, the traditional information system may run into problems with respect to the quantity, complexity, and manageability of the product data and the need for timely availability of the information.

Almost any company that is assembling to order deals with product variants. In that case, it is impossible to define the product structure for all the versions of all finished products in advance. The answer to this problem is configuration management. This can be translated into a well thought out, modular, product design with proper validation and decision support functions provided by the information system to enhance the level of logistic control.

In the Product Configuration (PCF) module, a product model is created, in which all the features of the product model are defined. By selecting the options of the features, the customer defines the desired product variant. The translation of the customer requirements into the product structure of the variant is controlled by a set of decision rules (constraints). These constraints indicate which components and operations will or will not be used in a specific version.

Item data, such as the code and a description of an item, can be generated by the PCF module. A generic price list can be created in which matrices can be used for product features which are dependent on each other for what affects the price. Constraints are used to determine the item data and the sales and purchase price of the generic items.

The product model is used in sales orders and quotations to translate the customer requirements into a product variant. A budget is generated for the quotation to create the product structure (bills of material and routing) of the variant. For this purpose, a project is generated for an order. The sales price from a sales quotation is compared to the budget to ensure that it meets sales margin requirements.

A project is used to plan, produce, and control the manufacturing of the product variant. With the statistics in the PCF module, insight can be obtained about the selected options of the product model. This information can be used, after analysis, as input for a new master production schedule for the next period.

Figure 1-8 The PCF module in BAAN IV

In BAAN IV, the PCF module is used to create a product model that can be used in a sales quotation or sales order to define a product variant, based on the options selected by the customer. This information will be used to generate a sales price.
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