Table of Contents

Multi-Level Manufacturing Calculations

Multi-Level Calculation automatically processes all levels of nested production BOMs in a single calculation operation when used with manufacturing items.

Calculation Process

When a manufacturing item has components that are themselves manufacturing items (with production BOMs and routing), Multi-Level Calculation automatically performs the following:

  • Processes each component's production BOM
  • Calculates routing operations for each manufacturing item
  • Recursively processes any subordinate manufacturing items
  • Includes all material and capacity costs in the parent calculation

You only need to create one calculation for the top-level manufacturing item. Multi-Level Calculation handles all subordinate manufacturing items automatically within the same calculation operation.

Example BOM Structure

The following example shows a manufacturing item with nested production BOMs:

Finished Product (Prod. Order)
├── Production BOM
│   ├── Sub-Assembly A (Prod. Order)
│   │   └── Production BOM for Sub-Assembly A
│   │       ├── Raw Material B
│   │       └── Raw Material C
│   ├── Component D (Purchase)
│   └── Component E (Prod. Order)
│       └── Production BOM for Component E
│           └── Raw Material F
└── Routing

In this structure:

  • The Finished Product has a production BOM and routing
  • Sub-Assembly A is a manufactured component with its own production BOM
  • Component E is also a manufactured component with its own production BOM
  • Component D is a purchased component (no subordinate BOM)

When you create a calculation for the Finished Product with Multi-Level Calculation enabled:

  • The main production BOM is processed
  • Sub-Assembly A's production BOM is calculated, including Raw Materials B and C
  • Component E's production BOM is calculated, including Raw Material F
  • Routing costs for all three manufacturing items are included
  • Total material costs across the entire hierarchy are calculated

Setup Requirements

For multi-level manufacturing calculations to work, configure the following:

  1. Top-Level Manufacturing Item:

    • Set Replenishment System to Prod. Order
    • Assign a certified production BOM in the Production BOM No. field
    • Assign a routing if capacity costs are needed

  2. Subordinate Manufacturing Components:

    • Set Replenishment System to Prod. Order
    • Assign a certified production BOM in the Production BOM No. field
    • Ensure the production BOM has Status = Certified
    • Configure routing for each level as needed

  3. Calculation Card:

    • Enable the Multi-Level Calculation field on the General FastTab

For procedures, see Create a Multi-Level Calculation.

Common Scenarios

The following scenarios illustrate typical uses of multi-level manufacturing calculations.

Nested Assemblies in Manufacturing

A manufacturing item may include components that are themselves manufactured through their own production process:

  • Machine Assembly (top level) - final assembly routing
    • Motor Unit (mid level) - machining routing
      • Motor Housing (lower level) - casting routing
      • Raw materials

Multi-Level Calculation processes all three levels with their respective routings and material costs.

Make vs. Buy Analysis

When components can be either purchased or manufactured:

  • Components with Replenishment System = Prod. Order and a production BOM are calculated as manufactured
  • Components with Replenishment System = Purchase use the purchase price
  • Multi-Level Calculation respects each component's replenishment setting

See Also

Mixed Assembly and Manufacturing Items


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