Production order splits - overview

With the split-off functionality you can split a production order. By splitting an in-process production order you divided it into multiple production orders. You can select the split-off quantity that goes to the new child order, or split off rejected items.

A split can be required in situations such as the following:

  • The total order quantity cannot be completed in time due to capacity issues.
  • Insufficient material is available to complete the total order quantity in time.
  • A part of the total order quantity is nonconforming, expedited, or delayed.
Note

  • After a child order is created, it is independent of the parent order, and its inherited characteristics can be manually adjusted. A child and parent order will always reference each other. A parent order can reference several children, whereas a child order references only the parent.

  • To automatically split off the rejected quantity of a production order, you must select the Split Order when Reporting Rejected Quantity check box in the Production Order Parameters (tisfc0100s000) session.

Caution!

Splitting production orders may affect efficiency variances in several ways including:

  • A production order accounts for a certain fixed amount of scrap during production. If the order is split into two separate production orders, the scrap quantity can increase because the new order will generate additional scrap upon completion.
  • Setup times are doubled when an order is split: active operations also have a queue time. For example, if the original order has a setup time of one hour, after the split, both the parent and child order have this setup time, which increases the total setup time by one hour. This means capacity needed after the split is increased as well.

If Production Order Reference on Subassemblies check box in the Production Order Parameters (tisfc0100s000) is selected, the order split process is affected, see example.

  • Master data

    Before you can split production orders, you must select the Allow Production Order Splits check box in the Production Order Parameters (tisfc0100s000) session.

    With the production order split functionality activated, these settings become available in the Production Order Parameters (tisfc0100s000) session:

  • Splitting production orders

    You can split production orders in the Split Production Order (tisfc0208m000) session, which can be started from the Production Orders (tisfc0501m000) session or, if the split off concerns rejected items, from the Report Operations Completed (tisfc0130m000) and Report Orders Completed (tisfc0520m000) sessions.

    In turn, a child order can be split. Therefore, a production order can be both a parent and a child order at the same time. You can start the Order Split Tree View (tisfc0708m000) session to view all levels of a split in a graphical browser framework.

    Production orders with a serialized or unit effective end item can be split by serial number or effectivity unit. When you click Select behind the Split Quantity in the Split Production Order (tisfc0208m000) session, one of these sessions is started in which you can select the serial number or effectivity unit that must be split off to a child order:

    These conditions must be met to split an order:

    • A production order can be split only when the production order has the Released or Active status
    • A split is possible only when a greater or equal to the routing quantity (unit) remains with the parent order.
    • When an order is split, a new production order or child order is created with the order quantity equal to the (user-defined) split-off quantity from the original production order. The child order inherits order characteristics, such as delivery date, production planning, operation steps, and material requirements, from the parent production order.
    • The total order quantity on the production order from which the order split was initiated, is decreased based on the order split quantity.
    • The bill of material (BOM) or routing is checked to determine the estimated materials or the JSC production planning. The data is copied from the parent order.
    • If the parent order contains a project cost distribution, the child obtains the distribution lines which have the latest requirement dates.
    • Along with the order characteristics, the child order inherits the order status and the operation status from the parent order.
    • There are no restrictions on the number of splits that can be applied to a single production order as long as the order fulfils the split conditions.
    • Order quantities already completed and delivered to a warehouse cannot be split off. Completed quantities on order level or operation level always stay with the parent order at split.
  • Splitting off rejected items

    When reporting operations or orders are completed, they may contain rejected items. Instead of reporting these items as rejected in the Report Operations Completed (tisfc0130m000) or Report Orders Completed (tisfc0520m000) sessions, you can split off the rejected parts of the order. When the rejected items are split off, they can be reworked as a separate order.

    If you start the Split Production Order (tisfc0208m000) session from the Report Operations Completed (tisfc0130m000) or Report Orders Completed (tisfc0520m000) sessions, the Split Quantity is already defaulted from the Rejected field.

    The advantage of splitting off the rejected items is, that no quantity rejected will be reported on the original production order at closing.

  • Splitting production orders with a project peg distribution

    If a production order contains a project peg distribution, this must be taken into account on order split. The split-off quantity is derived from the distribution lines selected by these criteria:

    • The distribution lines with the latest need dates are split off first.
    • If all need dates on the distribution lines are equal, anonymous demand is split off first. Distribution lines for project cost-pegged demand are split off if no anonymous demand is on hand.
    • If only project cost pegged demand distribution lines exist and the need dates are equal, the lines are moved based on the last distribution line sequence.

    In contrast with a production order that does not contain a project-pegged distribution, the planned delivery date is based on the earliest need date of the linked project pegs.

    Note:

    • After a quantity is split off from a production order with a project-pegged distribution, LN updates the order pegging for both parent and child to acquire updated need dates.
    • The project pegs that are copied to the child order are generated by LN. You cannot manually adjust them.
  • Recalculation of estimated materials at order split

    An order split requires an update of the estimated materials on the parent order, even if the estimated materials lines are already frozen.

    Based on the initial production order materials of the manufactured item and order quantity that remain on the parent order after the split, operation input quantities are recalculated and estimated quantities are updated for each required material. This update is done against initial valuation price, as estimated costs only change based on the adjustment of the estimated quantity.

    If a project-pegged production order contains project cost pegged materials, the estimated materials line and the estimated material distribution are updated.

    For a newly created child order, the estimated material lines are created based on the estimated materials of the parent production order, the production order quantity, and the calculated input quantity of the operation.

  • Material issues and (production) warehouse orders

    At order split, all material lines on the parent order are updated. If required, this update, in turn, triggers an update of the related production warehouse orders for materials with the type Issue, based on these rules:

    • Parent Order
      All materials issued on a production warehouse order are registered as the actual quantity shipped to the parent production order.
    • If an order is split, but the full quantity of a required material was already shipped, you must manually redistribute the materials between the parent and child order by returning the excess from the parent, and then issuing it to the child order.
    • After the split, the total actual quantity issued to the operations is checked. If the actual quantity issued to an operation is less than the updated material quantity required by the operation, the warehouse issue orders are updated to reflect the quantity of the material still to be issued to the operation on the parent order.
    • If the total actual quantity of a material issued to an operation is greater than the updated quantity that is required by the operation, any outstanding material requests for this material must be manually removed.
    • Child Order
      If, at the time of split, the full quantity of required materials has already been shipped to the operation on the parent order and no more unfilled warehouse orders exist, no child order level warehouse orders to issue materials need to be created for the same operation. A portion of the actual material costs (based on the order split quantity proration) will be acquired from the parent order.
    • If only a portion of the required materials had been shipped to an operation at order split, warehouse orders are created for the quantity of materials to be issued to the operation on the child order level.

    Note:

    If, on operation level, the quantity of the manufactured item is completely delivered, LN creates a warehouse order for material if both these conditions are met:

    • At the time of splitting, the actual quantity of material issued against the parent order is lower than the quantity required
    • Outstanding warehouse orders to issue the remaining quantity are present
    • If both conditions are met, on the child order level a warehouse order is created that contains a quantity to be issued which equals the outstanding quantity that was supposed to be issued on the parent order level.

    When the operation status becomes Completed, a portion of the actual material costs is obtained from the parent order. The exact portion of the material costs to be transferred is determined based on the value of the Actual Material Costs breakdown for Transfer Postings field in the Production Order Parameters (tisfc0100s000) session, which is applied to completed operations.

    Issued materials can be returned only from the production order that holds the actual warehouse issue for the material. Even if materials were issued to the parent production order, and at order split actual material costs were transferred to a child production order, the return can only be executed from the parent production order, as the warehouse order lines were linked to the parent.

  • Splitting production orders with multiple subcontracted subassemblies

    Production orders with subcontracted operations can be split only if the subcontracted operation is not yet active, or the operation necessary for production have been completed. If subcontracting with material flow is used, the returned subassemblies must be processed and completed as well.

    If he Production Order Reference on Subassemblies check box in the Production Order Parameters (tisfc0100s000) session is selected, al subassemblies must be issued before the order can be split as the subassemblies can only be issued to the order they are linked to.

Example

In the following situation, errors will occur:

  • A production order has two subsequent operations that are subcontracted to different subcontractors. The first operation was completed and the subassembly received.
  • If the Production Order Reference on Subassemblies check box is selected, the received subassembly has a production order reference.
  • You decide to split off the remainder of the production order, including the second subcontracted operation.

A subassembly returning from the subcontractor can only be issued to an operation on the same production order as it was shipped from. If the production order was split, the returning subassembly cannot be issued to the child production order as the child order has a different production order number than is referenced on the returning subassembly.

Material supply lines can only be handled and the subassembly transferred and issued to the shopfloor warehouse linked to the receiving operation, if a subcontracting purchase order with the status Active.

Note: A production order with a subcontracting purchase order with the status Active cannot be split.

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