B1it Production Add-On for SAP Business One

The SAP Business One ERP system includes basic manufacturing functionality, such as managing material requirements, material usage, and logistics operations. However, in a real production environment, significantly more advanced support functions are often required.

With the B1it Production Add-On and the accompanying web-based B1PDC shop floor data collection tool, much more sophisticated production tracking becomes possible. Beyond material usage, it enables tracking resource costs and usage, subcontractor administration, outsourced tasks, scheduling of specific production phases, and real-time monitoring of operations.
Bill of Materials as a Foundation

A key element of production management is the Bill of Materials (BOM). It contains the operations, along with the material and resource requirements for each operation. You can specify human and machine resource needs at each step. The system also supports subcontracted work. For any given operation, you can define which subcontractors can perform the task, specifying their rates—even at the product level.

When creating a production order, the BOM generates a production instruction, which can be modified if needed. Materials can be swapped, and resources executing operations can be adjusted. If the BOM specifies a resource group or capability instead of a specific resource (machine), the exact resource can be selected in the production instruction.

If an operation is outsourcable (i.e., can be performed by a subcontractor), you can specify which subcontractor will handle the task.
Shop Floor Execution via PDC Terminals

The execution of issued production instructions is carried out through shop floor data collection (PDC) terminals. Workers can view their assigned tasks and receive all necessary information, including specific details related to the production instruction. Through these terminals, workers can also report:

Materials used (including batch- or serial-managed items).
Completed and defective operations.
The exact resource used for the operation, if not predefined.

PDC terminals allow real-time tracking of operation execution times, with customizable time calculations ranging from predefined norms to stopwatch-based tracking.

Data input can be simplified with barcode scanning for worker identification, production instructions, operations, materials, and their batch or serial numbers.
Quality Control Integration

PDC terminals support in-process and final inspections. Quality controllers can perform required checks at any terminal, ensuring that subsequent operations can only proceed with approved workpieces. This process also allows classification of products into quality categories.

Both workers and quality controllers can log defective items, specifying the defect cause from a predefined list. This data can later be used for reporting, aiding quality improvement efforts and identifying recurring defects.
Real-Time Production Management

The production management system operates in real-time, meaning data reported via the PDC terminal is immediately available in the system and visible on various production dashboards. These dashboards allow users to monitor:

All production tasks in the facility.
Planned, in-progress, and completed production orders.
Progress levels, material and operation costs, and key dates.

Dashboards also enable operations like authorizing or closing production instructions, replacing materials in case of shortages, and performing bulk updates across multiple instructions.
Subcontracting Control Panel

Subcontracting-related administrative tasks are managed through a dedicated Subcontracting Control Panel, which provides a comprehensive view of all subcontracting operations. Users can:

  • Generate subcontractor orders.
  • Initiate the handover of workpieces and raw materials.
  • Create transfer and receipt documents.
  • Log returned items (both good and defective).
  • Approve subcontractor performance.

These transactions are seamlessly integrated with SAP’s financial, accounting, and controlling modules.
Grouped Operations

The system supports the grouping of operations, which is crucial for processes where multiple production instructions can be executed together. For instance, in laser cutting, one operation might produce parts for several different components. Similar technologies include heat treatment, powder coating, and injection molding. When a grouped operation is logged, the system automatically handles material usage and finished products for all affected production instructions.
Master Data Configuration

The system uses pre-configured master data, including three key components:

Resources:
Tools and machines used for operations.
Resources have defined capabilities (e.g., the operations they can perform) and can be grouped into homogeneous groups (machines with similar capabilities). This allows specifying a required capability or resource group in production instructions instead of a specific machine.

Employees:
Detailed information can be stored about each employee, including qualifications (e.g., tasks they are certified for). Similar to resources, employees can be grouped into teams, enabling assignment of required qualifications or teams rather than specific individuals.

Shift Models:
Define the operating schedule of the facility. Resources and employees can be assigned to specific shift models.

Seamless Integration with SAP Business One

The B1Production and B1PDC add-ons are fully integrated into SAP Business One. Transactions related to material handling, production costs, and subcontractor orders are directly recorded in SAP’s logistics, financial, and accounting systems. This integration ensures not only real-time visibility into production processes but also immediate insight into their financial implications.

Contact us

E-mail: info[at]b1it.hu