SAP B1 has a capable production module for straight forward operations but there is not much provided in the way of workforce productivity in SAP B1. Let’s not beat around the bush, to set up a full manufacturing module and maintain it in any ERP system can be a daunting task. I’ve seen scores of companies take advantage of the production capabilities in SAP B1 without using the advanced features because it is too resource intensive to do so. Here is a shortcut to calculating workforce productivity in SAP B1 for your production workers.
Define Cycle Times per Unit
The first step into measuring your workers’ performance is to understand and define the number of time units (i.e. minutes, hours, etc.) that it takes to build each product. For simplicity sakes, we are going to assume that all of your production or assembly workers are equal. Once you have the cycle time to create one unit for each product, you need to put them in SAP. You can add a user-defined field on the Item Master in order to easily upload the times into SAP B1.
Calculate Work Hours
You can use your payroll data, time sheets or other known information about how many people are working on the production floor to calculate the number of hours available in the day. You can start with something as simple as saying I have 8 assemblers times 8 hours so that gives me 64 hours capacity.
Report Units Completed
Before calculating the total standard time that it takes to build all the products that were on the floor for the day, we need to get a report of the number of units completed. This can be taken from production receipt data inside SAP B1 and then used in calculating the standard time expected for the number of units produced.
Calculate Standard Time
Now that we have all the pieces, we can put together a report of standard time to build product for a given period and compare it against the actual time worked by those on the production or assembly floor. The units completed per product will be multiplied by the standard time to build captured on the Item Master for each product. All calculated times will be summed for a given period to compare to the timesheet records or actual hours worked for the same period. This will then allow you to look at the productivity and utilization of production workers.
Making it Happen
If you’d like to get help getting this to work for your company or you would like help setting up more aspects of production inside SAP B1, please contact us. You can check out off-the-shelf solutions at our store or request a report to suit your specific needs.
(The shortcut to efficiency measurement)