V

Design
There are 14 Masters, 9 Data Entry forms, 6 Processes and 13 Reports for this
department.
Masters:
1. Unit of measure master
2. Make master
3. Product master
4. Item Code master
5. Item group Parameter
6. Item master
7. Item groups for activities in cost centers
8. BOM master for quotation
9. Customer submission list
10.BOM and production drawings issue stages
11.Bill of material master
12.Drawing master
13.Subassembly master
14.Activities master
Data Entry:
1. Quotation bill of material
2. Customer Submission
3. Bill of material
4. Production Drawings
5. Test parameters
6. Product Configuration
7. Design verification, validation, review
8. Reminder
9. Activity list
Processing:
1. Comparative tender quotation
2. Productwise consumption of stock items (bought out components) & raw
material
3. Man-hours analysis Tender
4. Man-hours analysis Work order
5. Budget Man-hours requirement
6. Budget Materials requirement
Reports:
1.
2.
3.
4.
5.

Tender BOM v/s Work order cost

Tender BOM man-hours
Work order BOM man-hours
BOM items addition / revision
Productwise item group consumption

6. Work order activity

7. Number of days between tender and design dates
8. Productwise number of days for design stages
9. Delay in submission / BOM / Drawings issues
10.Reminder
11.Activities due
12.Activities overdue
13.Monthly report

Masters
1 Unit of measure master Units of measure used for all items or
specifications of items used in the Company are listed in this master. The unit is
selected from this master whenever it is to be inserted for item or specification.
2 Make master Certain items are bought out from some suppliers. The
make for these items are mentioned in this master for various bought out items.
This is required when a customer wants an item from a particular manufacturer.
This is also used to define an item in the item code master.
3 Product Master For each of the products manufactured by the
Company, Product master is created by the design dept. It gives the unit of
measurement of the product, key specification by which it would be identified,
tentative price and range for negotiation purpose, number of days it takes for
erection, if any, and charges thereof, excise tariff code and the duty percentage.
Some of these details will be entered by the marketing department. The financial
part is not to be shown in design module, it will be camouflaged and will be visible
only for marketing.
The master includes the list of specifications required for designing the
product which are to be obtained from the customer in the tender. For each
specification, plus and minus tolerance is to be given. If there is a product already
designed previously and a new tender enquiry comes for the same product with
little differences in the specifications, the previous specifications can be compared
with the specifications asked for and if all the specifications are within respective
tolerances, the cost of the product would be same (excluding the inflation part). For
example, if there is a tender for a tank, the diameter 990mm, length (or height)
1850mm. etc. are given. If previously, the Company has quoted for tank with
diameter 1000mm. and length 1800mm. with other specifications being same, the
cost difference may be negligible (taken into account by the tolerances) and
designing completely for quotation purpose would not be necessary. Finding out
previous quotation for the similar product can be done by processing in the system.
The chances of getting a tender with almost same specifications may be negligible,
but even if only one tender in a year is received in this manner, whole work of
designing for this tender gets eliminated. The processing time in computer for
finding out similar tender for all tenders received will be negligible compared to
design time.
The master would also include the various tests to be carried out for the
product, whether these are routine or special, charges for the special tests and test
method, if necessary.

4 Item code master All items are given 14 digit code. Item coding is done
in the system and not manually so that there are no human mistakes and no
duplicate codes for the same item. For this, item code master is prepared in which
all the code numbers are defined. The code for any item is generated in the item
master, getting the codes for every field from this item code master. The coding
system can be easily understood by going through the following table.

ITEM CODE MASTER

Digit
1

Description
10

11

12

1
3

14

1
1
2
0
0

1
1

1
0

1
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1

0
1
2
3
4
5
6
7
8
9
0
1
2
3
4

2
1
2
0
0

1
1

1
0

Items going in product

Job Specific Items
Stock Items
Group 1
Sub-Group 1 of Group1
Sub-Sub-Group 1 of Sub-Group 1 of
Group1
Sr.No. in Sub-Sub-Group 1 of Sub-Group 1
of Group1
Any make
Make A
Make B
Make C
Make D
Make A or B
Make A or C
Make A or D
Make B or C
Make B or D
Make C or D
Make A or B or C
Make A or B or D
Make A or C or D
Make B or C or D
Items not going in product
Non stock Items (one time purchase)
Stock Items
Group 1
Sub-Group 1 of Group1
Sub-Sub-Group 1 of Sub-Group 1 of
Group1
Sr.No. in Sub-Sub-Group 1 of Sub-Group 1
of Group1
Make (If spec. make reqd., becomes part
of item description)
Capital Item

0
0
0

1
1

1
0

1
0

Group 1
Sub-Group 1 of Group1
Sub-Sub-Group 1 of Sub-Group 1 of
Group1
Sr.No. in Sub-Group 1 of Group1
Make (If spec. make reqd., becomes part
of item description.)

Initially all items going in product are given codes and then other items used
in the company are codified. There would be certain items which go into the product
as well as used by other departments. Code number for such items would be
starting with 1 i.e. item going in the product. Whenever anyone tries to allot code
number to an item, the system would check 12 digits starting from 3 rd digit, and if
the item is already given a code, it will show that. It may happen that someone from
other than design dept. wants same item and tries to allot number, he would be
required to use same item which is going in the product using that code.
Conversely, if design dept. wants to use an item which is in use by other dept. that
code will also be shown indicating that the item is in use and then design dept.
would use that code. In the beginning of the financial year, all such items would be
listed from bills of materials and the 1 st digit of the code would be changed to as
that for the item going in the product. This change would be effective for the
existing stock as well and in all the depts. Similarly, if some job specific item is used
regularly for more than one product and is used for more than n number of work
orders/job orders, the 2nd code for this item would be changed in the beginning of
the year and becomes effective in all the depts..
The purchase indents for all the items (job specific as well as stock items)
going in the products are given by planning dept. If same items are required by
other depts., those depts. would raise separate purchase indents and materials
dept. would give order combining the two requirements. The purchase order for the
items would give reference of the indent number and the dept. and the stores will
not be able to issue the material to any other dept.
5 Item group parameter The specifications which define an item are the
parameters for a group of items e.g. raw material bar can be identified by diameter
(and length, if necessary), a component may be defined by drawing number or
some bought out item may be defined by the manufacturers code number. For
every sub-sub group, these parameters including UOM requirement are given in the
table. While defining the item in item master, once sub-sub group is selected the
requirement of parameters are taken from this table.
6 Item master Initially, when there is no data in the system, the fields
main, stock, group, sub-group, sub-sub group have to be selected from the drop
down list for each field. After sub-sub group is selected, parameters for the item
have to be entered. These can be available from the list of values table. For each
field selected, the code will be entered by the system in the item code field. After
entering the parameter values (and UOM, if necessary), make for the item is
selected (for most of the items any make would be only choice). If an item is
already given a code previously, the system would show that the item exists in the
system and it will show all the details entered previously in the item master. For
new item, the system would display 4 existing items 2 with parameters on lower
side and 2 with parameters on higher side of the current item. (If a diameter of bar
is entered as 22, then existing bar sizes of 20, 18, 25 and 28 are displayed and a
question asked These are the items available. Do you want to use new item?) This
exercise is done in order to keep the list of items to the minimum. If the existing
items cannot be used, then the field Yes is selected and new item code is
generated. Item description for the item as used in the Company is entered as also
description of the item which is to be given in the purchase order is written in
respective fields. Whether item is going in the product or not and whether it is
bought or shop made is also mentioned. Units of measure to be used for

purchasing, in stores and in production are entered and the conversion formulae for
converting these units in relation to one another are noted down (formulae not
giving the specific values but using the parameters). For some of the manufactured
items (shop made or off loaded) raw material item to be used is given with details.
For bought out items, remarks specific to the item to be given in the purchase order
are entered in a field. These remarks are then copied by the system in the purchase
order for the item. For the items with shelf life, a check box is clicked.
After creating sufficient number of item masters for items (at least one for
each group-subgroup-sub subgroup), item master for an item having same sub
subgroup as for new item is opened (with the help of list of values). Purchase text
for the item is copied on the clipboard. New is clicked in the menu and many of the
fields in the item master are deleted (some fields remain as they are e.g. Mat. UOM,
Stores UOM, Prod. UOM, conversion formulae etc.). The parameters are written for
the new item and the code for the new item is generated. Other details such as raw
material size etc. are entered. Purchase text is pasted from the clipboard and
parameters are changed for new item.
In this form of Item master a tab is provided for materials dept. which gives
the details such as lead time, minimum order to be placed, lot quantity for the item.
The acceptable variance in the quantity is also mentioned.
7 Item groups for activities in cost centers In every cost center the
items (group/subgroup/sub subgroup) required for the activities are given in this
master. This helps in preparation of material requirement plan as also for issues
from stores.
8 BOM master for Quotation For each product the Company
manufactures, BOM master for quotation purpose is prepared. In one table, job
specific items (sub subgroup) required for the job are mentioned and another table
gives list of stock items (either items or sub subgroup) with the quantity
requirement (average quantity taken from the work orders for the product
processed so far). This master is copied when Bill of material for a tender for the
product is to be prepared and then only quantities for the tender are entered. Some
of the items from the master may not be required and the quantity would be zero or
some additional items would be required which are to be added in the list.
9 Customer Submission List Customer drawings are to be submitted for
approval of the customer before manufacturing the product is started. There may
be variations in the list for each product. A master list of the customer drawings to
be submitted is prepared for each product. The cycle time in number of days,
number of engineers and number of draughtsmen required and the manhours for
each category is also mentioned for each drawing in the list as well as for complete
product. These are updated in the form by replacing with the average taken for the
number of work orders completed so far in the system.
10 BOM and production drawings issue stages Normally, bill of material
and production drawings are prepared and issued in stages. A master is prepared of
all the stages for a product. For each stage, an item (rather group/subgroup/sub
subgroup) for which procurement time is maximum is mentioned alongwith lead
time and the cost center number and activity where it is going to be used. The cycle
time required for preparation of this stage of BOM or production drawings is given
and no. of engineers/draughtsmen working on the job as also manhours required for

each category are given. The lead time (from the issue of the BOM/production
drawing to the receipt of the item mentioned in the master), cycle time, no. of
engineers/draughtsmen and their manhours consumed are updated in the system
by calculating the average for the work orders completed so far.
11 Bill of Material Master Every product has mostly same item groups
going into the product. So, bill of material master is prepared for every product
which can be copied for any work order. Product name can be selected from the list
of values and then other fields for the product are taken from the product master.
Item sub subgroup description is entered in the table (taken from list of values), and
the code, stores and purchase UOMs, production activity where this item is used are
entered in the system. It is possible that some of the items (instead of item group)
are definitely going in the product. In that case, instead of item group item with full
item code is entered in the master and copied in the BOM for work order. Quantity
may not be entered here so that when master is copied, the engineer specifically
enters the quantity required instead of winking at it (to avoid any sort of mistake).
12 Drawing Master Similar to bill of material master a production drawing
master is prepared which refers to drawing to be used in the production dept. In this
case an additional column is provided in the table to give production nomenclature
for an item (if necessary), e.g. same valve may be used as sampling valve or drain
valve in the production. All other things are like bill of material master.
13 Subassembly Master There are some components going directly in a
product and some components are assembled to make a subassembly which goes
into the product. Some of the subassemblies are specific for a product, whereas
some of the subassemblies are used in a number of products. A subassembly is
given an item code like other items. Subassembly master is prepared for each
subassembly giving list of components going into the subassembly.
14 Activities master A list of activities which are to be monitored (and can
be) in the department are listed in this master; e.g. completion of design for
quotation, submission of drawings to customer (activity for both marketing and
design), issue of bills of materials/production drawings etc.

Data Entry
When an engineer or a draughtsman starts design work (and not just filling in
the form) on a tender or work order he has to open the respective form, enter the
identifying number (tender no. or work order no. etc.) and select start in the
combo box for status. If the employee leaves at the office time, he need not worry
about entering the Pause at the end of the day, but if he is working late hours,
then he should enter Pause in the status so that his actual working hours are taken
into account (if he goes at office hours that is taken care by the system). If the
attendance of the employees is recorded electronically and is connected to the
server, then the employees working hours are recorded and he does not have to
enter the status every day. For any reason, if he has to stop the work in between
and take up another job, he has to mark the status as Pause and enter the Start
status on the new job. After the work on tender/work order is completed, he fills in
the respective form and marks the status as Complete. It may happen that some
rework has to be done in the work already completed. In that case the status

Rework has to be entered when rework is started and at the end Complete status
is to be marked.
It would be possible to work out the man-hours required for design of a
tender or work order for a product as a result of this exercise. The system would
calculate for these as also time spent on the rework, if any.
Whenever there is a revision in any of the items, the revision no. is changed
from R0 to R1, R1 to R2 etc. The system date changes to the current date for the
revised item. When cursor is taken to the changed item the date of revision is
shown in the system date field.
1 Quotation Bill of Material When the process comparative tender
specification gives previous tender no. which is equivalent to the present tender,
the quotation BOM master for that quotation can be copied and changes if any, are
entered. Otherwise, either quotation BOM master for the product for which
quotation is to be prepared is copied or previous quotation BOM master for the
same product is copied and new tender/quotation no. is entered. When new no. is
entered, all the quantities for the items become nil. The tender submission date
which comes from the tender document entered by the marketing dept. is shown in
the respective field. Most of the items (or item group/subgroup) remain same for the
new quotation with changes in the quantities. Those quantities are entered against
the items. Some of the items may not be required and may be deleted or some
additional items are to be entered with their quantities. This holds good for both job
specific and stock items. The average consumption for each item for the work
orders for the product completed so far is shown in a column against the item. If
any new item is introduced, the source for procurement of this item is to be
mentioned against the item.
2 Customer Submission Customer submission form is opened and work
order no. is entered. Details of work order including date of submission are entered
by the system. The details of drawings to be submitted are copied from the master
for the product. The drawing numbers are entered against the respective drawing.
3 Bill of Material After opening the Bill of Material form, work order no.
and stage is entered; the fields for other details of the work order are entered by
the system. The details of the items may be copied from the master or previous
work order for the same product. The quantity for each item has to be entered
manually. The job specific items given in the BOM are copied as purchase indent. If
there is any change in any of the items specification or quantity, revision no. of
the BOM would change from R0 to R1. The changed item would be highlighted in
the BOM. In case the purchase order is already raised for the item, the system will
not allow the change in the item and would show the remark PO raised for the
item. Design engineer has to approach materials personnel and request for
cancellation of the PO. After talking to the supplier, materials dept. would cancel the
PO and the change in the BOM can be carried out. If the material against the PO is
already supplied, the item in the BOM cannot be changed since PO is completed and
the changed item comes as an additional item in the BOM. (If only quantity is to be
reduced leaving the specification as it is, there need not be any change in the BOM
and the additional quantity received becomes unused material in the stores.) If
partial quantity against PO is received, the PO can be amended for the quantity and
changed item can be added in the BOM (for change in specification).

4 Production Drawings This is similar to Bill of Material form, only

difference being instead of quantities for items, drawing numbers for the drawings
mentioned are given.
5 Test Parameters When work order no. is entered in the form, the fields
for details of the product, date by which the test parameters are to be issued (as
per design issue plan) are filled up by the system. All the tests to be carried out and
the testing methods (if any) are copied in the table by the system. The inputs
necessary and expected output of the test along with the guaranteed output to the
customer are entered in the table.
6 Product Configuration There are some machines or equipments in the
factory where more than one job can be loaded at a time with the restriction of
weight or dimensions of the job e.g. a furnace or oven. For this purpose, the
machine details are required which are given in the machine master. The operations
for which the jobs are going on these machines are given by planning dept. The
weight and/or maximum dimensions of the item or subassembly at the stage are
given by design in this table which is used by the system while preparing production
plan.
7 Design Verification, Validation, Review This form is used for
completion of the requirement of ISO. The design parameter is verified using
different method and similar previous work order results are shown to validate the
design. During the design reviews at various stages, whatever changes are
suggested in the meeting are noted down and then the completion dates for the
changes are entered.
8 Reminder An employee can add reminders for the things he wants to
carry out at particular time on a specific day. He has to enter date, time and action
required in brief.
9 Activity list There are some activities which cannot be captured in the
system when completed.The list of such activities is given in this form. Entry of
completion of such activity has to be done manually in the form. Once this entry is
done, the activity would not be shown as due/overdue activity.

Processing
1 Comparative Tender Quotation When a new tender is received, all the
specifications are entered in the tender document form. The processing for the
comparative tender quotation is started. The first specification in the tender is
compared with previous quotation. If the specification value in the quotation is
within tolerance given in the product master, then 2 nd specification is compared. The
process is carried out till it comes across a specification which is not within
tolerance. It goes to earlier quotation to compare the specification values. If all the
specifications in a particular quotation match those in the tender in question, then
that quotation no. is displayed mentioning that the quotation is comparable. This
quotation is then studied to prepare quotation for new tender.
2 Productwise consumption of stock items (bought out items) and
raw material Last 10 work orders for a product are considered for working out

the consumption of stock items. The average consumption for each item is taken
into consideration. Some of the components made in house require raw material
which is a stock item. Item master for the component gives the raw material
required for the component. Based on the consumption of the component for the
work order, raw material requirement for this work order is worked out. The average
raw material (itemwise) requirement is then calculated for the product.
3 Man-hours analysis Tender After the quotation for a tender is
submitted, processing for the man-hours requirement for the tender is carried out
by entering TQ no. In the processing, starting date and time for engineer is taken
(from process stage in the tender quotation form) and actual man-hours required for
the design till completion are calculated (considering all the engineers time spent).
The time spent on revision (if any) is also calculated and entered separately. Same
process is continued for the time taken by draughtsmen and total time required by
engineers and draughtsmen is entered.
4 Man-hours analysis Work Order Same process is carried out for work
order once the job is dispatched.
5 Budget Man-hours Requirement Since the pace of manufacturing
activity differs in every quarter of the financial year, man-hours requirement also
varies from quarter to quarter and is reflected in the output of the processing.
Productwise average of 10 (or n) numbers of tenders and work orders are taken for
calculation of the man-hours requirement. Monthwise budget is given by the
marketing dept. From these figures man-hours required for productwise tenders and
work orders are calculated and then totals for each quarter are taken. Yearly total is
taken at the end. These figures would help in deciding the manpower required
considering the absenteeism percent for each quarter.
6 Budget Materials Requirement Some of the tenders which are
expected to be converted into work order in the budget year are completed and the
material requirement is already available. Similarly, the BOMs for some of the work
orders to be executed in the budget year are completed and the material
requirement is available. The material requirements for the balance expected work
orders are taken from the average consumption figures for item sub subgroups for
every product. Monthwise totals of these quantities are shown in the table after the
processing is completed by the system.

Reports
1 Tender BOM V/s Work order cost This report gives the cost
comparison for the material planned in the tender quotation for the work order and
actual material used as per the BOMs for the work order. The BOM of tender
quotation gives the list of material expected to be used for the job. The cost of the
job specific items is taken as per unit cost of the similar item used for latest work
order of the same product multiplied by the quantity expected to be used for the
tender in question. In case of special items the cost estimate from the supplier/s of
the item is obtained. (These may be modified by the costing dept.) Cost of the stock
items is taken from the latest unit prices for the items (or sub subgroup) multiplied
by the quantity to be used. Actual materials used for the work order are taken from
the BOMs issued by the design dept. and the costs are taken from the stores issues.

2 Tender BOM Manhours The progress stages for the work on the
tender BOM are entered by design engineer/s and draughtsmen. This data is
collected by the system and the man-hours required for completing the design is
calculated. Man-hours required for revisions are taken separately. The man-hours for
all the tenders of a product are tabulated together (with man-hours for revisions
given separately). The date from which the report is expected is given at the
beginning and the report for all the tenders so far is given.
3 Work Order BOM Manhours Similar to tender BOM man-hours, manhours for work orders are also calculated. In this case, however, man-hours for
customer submissions, BOMs, production drawings and for test parameters are
given alongwith revision man-hours. Productwise work orders are tabulated
together. Both these reports help in calculating man-hours and therefore manpower
requirement for the budgeted production.
4 BOM items addition / revision - The items added (or revised) in the
BOMs for various work orders by design dept. are listed in this report. The report is
for previous day to current day by default, but the starting date can be changed so
that the report is for a week or so. For job specific item in the list, if purchase order
is raised the PO no. is shown against the item so that the orders to be raised for the
balance items is known.
5 Productwise item group consumption Consumption of an item sub
subgroup for every work order of a product is tabulated in this report. Date from
which work orders are to be considered is entered initially and all the wok orders so
far are tabulated productwise. This report helps in preparing BOM for tender.
6 Work order activity Scheduled start and completion dates as per design
plan and the progress stage for the activity is given in this report for work order.
Customer submission, BOM stages, Production drawings stages and test parameters
are the activities listed in the report. The progress stages are start, complete or
revision and the dates for the progress stage are given against the activity.
7 Number of days between tender and design dates The difference
between tender date and the completion date of design for the tender for all the
tenders are given in this report productwise.
8 Productwise number of days for design stages Work orderwise
number of days consumed for each design stage are arranged productwise and
shown in the report.
9 Delay in submission / BOM / Drawings issues Number of days the
design submissions to the customers are delayed, the BOM or drawing issues are
delayed compared to the planning dates are given productwise.
10 Reminder - The reminder an employee has set would be shown at that
time as a small window irrespective of what he is doing. He can also see the list of
future reminders he has entered as a report.
11 Activities Due Activities expected to be completed within next 7 days
as per design issue plan and tender quotation submission dates are given in this
report for the dept.

12 Activities Overdue The activities which are not completed as per the
requirement are listed in this report.
13 Monthly Report The monthly report consists of 4 parts. First part gives
details of tender quotations completed during the month and those under progress.
Customer submissions completed and those under progress forms the second part
of the report. The submissions which are delayed than expected date are
highlighted. Thereafter in the third part Work Order BOMs, production drawings and
test parameters issued for completed (design) work orders and those under
progress are given. Those items that are not completed on due date as per design
issue plan are mentioned separately. Total number of revisions for every tender
quotation, customer submissions and work orders are also shown. Design reviews
done in the month are listed in the fourth part giving the dates of completion of
changes suggested in each review.

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