Managing the priority of Manufacturing Orders
In the "Schedule" view, you can drag-and-drop Manufacturing Orders (MO) to change their priority. The priority of MOs affects Material Availability and Production Deadline calculations. It enables managing tasks for the production team (i.e. production scheduling).
The priority of Manufacturing Orders that are linked to specific Sales Orders affects the priority of those Sales Orders in the "Sell" screen. Read more about Types of Manufacturing Orders.
Why is the priority of Manufacturing Orders important?
1. It affects the Material Availability
Orders with higher ranks have a priority in booking the required materials and subassemblies in stock. Materials are not directly linked to any Manufacturing or Sales Orders but are always booked based on order priorities. This means that even when you have the required ingredient in your inventory, the Material Availability for lower ranked Manufacturing Order might still show "Not available" if a higher priority Manufacturing or Sales order has already reserved the same ingredient. Reprioritizing orders can change Material Availability status.
- You have created 3 Manufacturing Orders for products, each of which requires 4 pcs of "Material X" (i.e. include this material in their Product Recipes with a quantity of 4 pcs). For simplicity purposes, let's assume no other materials are needed for producing those products and there are no open Sales Orders for which those products are "Not Available" (as the latter can also affect the Material Availability if those SOs are ranked higher).
- The inventory list for "Material X" shows that you have 5 pcs "In stock" and 4 pcs "Expected". Also, the "Committed" column in the inventory list shows 12 pcs, which are related to those 3 MOs (read more about "Inventory" view).
- The highest ranking Manufacturing Order shows Material Availability of "In stock" because quantity "In stock" is larger than required by this MO.
- The Manufacturing Order with the next rank shows Material Availability as "Expected". Although quantity "In stock" is 5 pcs, MO with a higher rank has already reserved 4 out of 5 pcs and there is not enough left for this MO. However, 4 pcs have already been ordered from suppliers and are expected to arrive in the future.
- The Manufacturing Order with the lowest rank shows Material Availability as "Not available". Although quantity "In stock" is 5 pcs and "Expected" is 4 pcs, MOs with higher ranks have already reserved 8 out of 9 pcs ("In stock" + "Expected") and there is not enough left for this MO. In this case, you should create new Purchase Orders for "Material X".
- If you change the priority of those orders, Material Availability is recalculated.
2. It affects the Production Deadline for Manufacturing Orders
Manufacturing Orders are assumed to be produced in the order of priority, starting from the top of the list. If you have enabled the automatic calculation of Production Deadlines in Katana, then deadlines are calculated based on the production time of MOs and your average weekly throughput, taking into account the priority of orders. Production time for a product can be set in Production Operations on the product card.
3. Enables managing the production schedule and setting priorities for the manufacturing team
The team can organize their tasks according to the priority of Manufacturing Orders.
If you are looking to manage the production tasks at a more detailed level, you can define Production Operations for each product and assign each operation step to a specific Resource. Use the "Tasks" view in the "Make" section to see a more detailed task list for each Resource. The production operations in the "Tasks" list are ordered in the same priority as the underlying Manufacturing Orders in the "Schedule" view.
How to change the priority of Manufacturing Orders?
You can drag-and-drop a Manufacturing Order to a new position in the "Schedule" view. Click on the icon on the left of a Manufacturing Order, then drag-and-drop it to a new position.
To recap, this is what happens when you reprioritize Manufacturing Orders:
1. The Material Availability status will be automatically recalculated based on the new priority of orders.
2. If you changed the position of a Make to Order Manufacturing Order (read more), the priorities of linked Sales Orders were also updated in the "Sell" screen.
3. The production operations in the "Tasks" view are reprioritized based on the new order of Manufacturing Orders.