Introduction To MFG/PRO - Item Numbers

Item Numbers in MFG/PRO
Introduction to MFG/PRO – Item Numbers
MFG/PRO
What is MFG/PRO? MFG/PRO is a fully loaded ERP system, which is used by thousands of
manufacturing companies for many years. First release of MFG/PRO has been introduced by
QAD Inc. in 1986 and since then, the new version of the software is released every 18 months.
Over the last 20 years the system functionality was improved significantly, while general “look-
and-feel”, as well as the general structure is still the same.
The system consists of groups of related business activities called ‘modules’. In some cases two
related activities are combined in one module (Items/Sites for example). Some of the modules
are Distribution, Manufacturing, Financial, Service Support, Master Files, and Supply Chain.
Items
First of all – what is an “Item Number”? In general terminology it is the identification number
assigned to an item. It is also called “the part number”, “SKU number”, or “SKU” – Stock
Keeping Unit. Item number may not always represent just a physical actual item, but also a
service or any other billable entity. For example, one item number will represent a box of
finished goods, shipped to the customer, and another one – a monthly rental fee. Please note,
that the rental fee is not a stocked unit, which you can find in the warehouse, it just helps to
improve data accuracy and unification.
MFG/PRO Item Master Overview

Items in MFG/PRO are part of the core master data, and are used in nearly all system modules,
such as manufacturing, distribution and others.
Item master maintenance is located in the following menu: 1. Item/Sites->1.4. Item data menu.
This submenu includes several programs, which allow the user to maintain various item
parameters, such as basic data, inventory data, planning data and costing data. Menu <1.4.1
Item master maintenance> is used to create a new item and maintain all its parameters in one
screen. At the same time, the corresponding subscreens can be found in other standalone
programs, such as <1.4.5 Item Inventory Data Maintenance> or <1.4.9 Item Cost
Maintenance>.
Item master information, defined in <1.4.1> (or in <1.4.3 Item data maintenance>, <1.4.5
Item Inventory Data Maintenance>, <1.4.9 Item Cost Maintenance> and <1.4.7 Item Planning
Maintenance>) is utilized as a master template, which can be used later to define site-specific
data. In any MFG/PRO built-in transaction (for example, MRP, Work Order release or Sales
Order maintenance) the system always is looking first - for site-specific record, and only if it is
not found, it will use the general (template) record.
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Note: Sites.
The Site usually represents a physical place, where you manufacture or store inventory. It can
be a distribution center, warehouse, manufacturing facility, or a combination of these. Inventory
control and planning information is maintained by site, including inventory availability,
manufacturing methods and costs, sales and purchasing data, manufacturing plans and orders,
and forecasts. Sites are created and maintained in 1.1.13 Site Maintenance.
Business Considerations
Business Flow
One of the reasons to have multiple Item master sub-screens is the fact, that usually in the
organization different people (departments) are responsible for different master data. For
example, Item planning data (maintained in menus 1.4.7 and 1.4.17, such as planning
quantities and periods, lead times etc.) is updated by the company planner or scheduler.
Warehouse personnel are most likely responsible for the Item inventory data (maintained in
menus 1.4.5 and 1.4.16, such as cycle counting intervals, default site and lot/serial control).
Item Costing information (menus 1.4.9 and 1.4.18) is close to the heart of Financial group –
accountants and cost specialists.
Security access management becomes very easy with separate Item data maintenance
programs. Some organizations choose the following business flow:
- 1.4.1 menu – Item master maintenance is not accessible by the user community
(administrators only)
- Engineering department - Create a new Item in 1.4.3
- Planning department – Update Item Planning Data and/or Item-Site Planning data
- Warehouse department – Update Item Inventory Data and/or Item-Site Inventory Data
- Financial group – Update Item Site Cost data and/or item-site Cost Data
This model helps to ensure that first of all - only certain people are responsible for creating new
items, and second – that certain information can be only modified by particlular people. Usually
this business model also includes a well-defined and strict change control process, where
absolutely no data change can happen without proper multi-level authorization and process
documentation.
Segregation of Duties, Ownership and Centralized maintenance

It is every company’s internal decision how to implement the item number creation process. In
most cases the engineering department is responsible for assigning the number s and other vital
product/item parameters. In multi-site MFG/PRO implementation the situation may arise where
different company subdivisions (sites) are responsible for different items (for example, primary
Sales and distribution office – for Finished Goods and Manufacturing division – for components
and subassemblies. Though this practice is acceptable, it is always recommended to centralize
Item Master maintenance to avoid problems in item standardization and unification, such as
different descriptions or ABC classification. If multiple MFG/PRO databases are used, this
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becomes both business and technical challenge. First of all, the company management should
agree that only one department is responsible for the new item creation. (Site- specific
information will be still maintained locally). Then, some sort of data synchronization should be
implemented. It will help to copy master data between MFG/PRO databases automatically, and
to minimize manual input as well as to reduce the potential number of errors and the risk of
data inconsistency. To synchronize item master (as well as some other master files), one can
use the following options:
- QAD Data Sync Product
- Automatic CIM load (where information is sent from the master database to the target
databases)
- Semi-Automatic (automatic notification about data changes in the master database, and
then manual local input)
In Multi-system operation – when MFG/PRO coexists with other systems, such as Financial,
Supply chain or any other – master data synchronization becomes even more important. In this
case master records have to be maintained in one system, and then replicated into another. It is
still recommended to have only one source of master data and to make the synchronization
process as automatic as possible.
Item numbering
Item numbering concepts are being discussed in the business community as long as ERP
systems exist. Two major approaches are:
- Item number has some meaning, for example it may indicate, that this is a Finished
Good, manufactured at the Plant A, to be stored in cold place.
- Item number has no meaning at all – it is just a code, assigned randomly or (if it is a
number), sequentially.
Both concepts have their pros and cons. Meaningful Item numbers may be very user-friendly,
helping system users to identify the products easily. At the same time there is always a
possibility (and it happens quite often), that the company will run out of option at some point.
Here is an example: let’s say the second digit of an item number represents the color. When the
number system was implemented (years ago!), the company had only 3 colors of this product,
and everybody was sure, that the opening for 10 different colors is good enough. But years
passed, the number of products and their options increased, and now the product may be
manufactured in 15 different colors. 15 options means 2 digits in the item number, when there
is only one position. What are the choices? To create an item number with 2 digits for color? But
this will change the code length and as a result will affect the way the item number is printed or
displayed in various reports and documents. To substitute the digit with the letter? This will
change the initial numbering system, and still will not guarantee that similar things will not
happen in the future.
In contrast, the meaningless item number is free of all the problem, discussed earlier. It is just a
sequential number, it does not mean anything, and every new product or component will just be
represented by a new number. Of course, in this case a lot of people will complain, that there is
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no system in numbering (and they will be absolutely right), and therefore it is more difficult to
remember. But some researches show, that our mind can remember anything, regardless of
whether we understand the meaning of it or not.
So it is every company’s internal decision, which approach to take. Be careful!
Item Descriptions
Item description in MFG/PRO consists of two lines, but the second line is not always printed on
the reports. Therefore, it is recommended to include as much as possible information into the
first 24 characters. Also, it is recommended, for the similar items to keep the description in
similar format. It will help in looking for an item while using lookups. For example:
Item A BOX, WOOD ,12”x15”
Item B BOX, PLASTIC, 8”x15”
In this case, when pressing F2 for a lookup, and sorting items by description, you will get all
your similar items (Boxes in this example) together.
Data Accuracy
Data accuracy is extremely important for the successful MFG/PRO implementation. Here is a few
examples:
Inventory data is critical for the warehouse operations. Incorrect ABC class and cycle counting
interval for an item will directly affect inventory accuracy, since the item will not be counted in
time. Inaccurate location type, which controls the storage, where this item can be placed, may
result in item displacement and potential physical loss.
Planning data is essential for the proper production scheduling and procurement planning. Order
Policy controls the way the item is planned by MRP, and its wrong value may have a direct
effect on the product availability and production.
Item Cost Data (GL Cost Set) is used by the system to generate GL transactions and to evaluate
the inventory in the warehouse. Erroneous item cost will result in the wrong account balances
and incorrect financial statements.
Here we tried to cover only the most essential aspects of item master maintenance in MFG/PRO.
Max Viskov
Senior Consultant, 32Soft Inc.
If you have more questions, please contact Max Viskov at max.viskov@32soft.com
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Item Numbers in MFG/PRO

Introduction to MFG/PRO – Item Numbers

MFG/PRO Item Master Overview

Segregation of Duties, Ownership and Centralized maintenance

If you have more questions, please contact Max Viskov at max.viskov@32soft.com

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