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Production Lot Sizes

April 24, 2014 Posted by Olof Simren Manufacturing 14 Comments

In the manufacturing part of Microsoft Dynamics NAV there are two Lot Size fields; one is on the item or stockkeeping unit card and the other one is on the routing line. Do you know what they are used for?

Here is an explanation for both of them and a trick how one of them can be applied to a common requirement.

Let’s starts with the Lot Size on the item or stockkeeping unit card, which is found on the replenishment tab.

LotSizeOnItemCard

This field is used during a cost roll-up to calculate the setup costs per unit. It should represent a typical production order size. If the setup time for an operation is 60 minutes and the lot size on the item card is set to 10, then the setup cost corresponds to 6 (60/10) minutes per unit.

Note that the setup cost is only part of the cost roll-up if this has been activated in the manufacturing setup table through the ‘Cost Incl. Setup’ field.

CostInclSetup

The next Lot Size field is on the routing line, it is a field that is not available on the page so you have to add it first before you can use it.

LotSizeOnRoutingLine

This field defines how many units that are produced per operation and it has an impact on both the cost roll-up and the scheduling. If an operation is set to 8 minutes and the lot size is 4 then it takes 2 minutes per unit and this is what the cost-rollup will be based on as well. If this field is left as 0 then Dynamics NAV assume that it should be 1.

The lot size field in the routing also exists on the production order routing (it gets transferred here from the routing during the refresh of the production order), and as with the routing line you will have to add it to the page to have it displayed. Below is the production order routing for 100 units, as you can see the expected capacity needed for operation 20 is 260 minutes (60 + (8 / 4 * 100)). You can also see that the operations that had a 0 lot size in the routing gets a lot size equal to 1 on the production order routing.

LotSizeOnProductionRouting

Note; the capacity does not recalculate if a user updated the lot size on the production order routing line, in order for it to recalculate you have to validate the run time or setup time.

Now to the trick for the common requirement; you can use the lot size field on the routing to define the throughput as units per time instead of time per unit. So if the customer says an operation is doing 150 pieces per minute you don’t have to enter this as 0.00667 minutes, you can enter 1 in the run time and put 150 in the lot size. Very useful!

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Tags: CostsItemLot SizeProductionRoutingStockkeeping Unit
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About Olof Simren

I am a Microsoft Dynamics NAV and 365 Business Central Expert, I started implementing Microsoft Dynamics NAV in 2002, back then it was called Navision Attain. Throughout the years there has been many exciting implementations in different parts of the world, all of them with different challenges but with one common theme; manufacturing. As a consultant, I bring over 20 years of experience in implementing Microsoft Dynamics NAV and 365 Business Central within manufacturing and distribution companies. The services I offer includes project management, consultation, development and training. Feel free to contact me if you need help with anything related to Microsoft Dynamics NAV or 365 Business Central. I work through my company Naviona where I team up with other skilled Microsoft Dynamics NAV and 365 Business Central Experts.

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14 Comments

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  • Dave K
    · Reply

    July 10, 2014 at 6:21 AM

    Great article and blog. Very helpful.
    I have a question about Lot sizes.
    At the planning stage (when creating the Routing) it is not known at this point what the quantities will be that will go through each machine for each production order/operation that will eventually be created.
    So, as we create the Production orders, should we set the Production order Lot size equal to the Production order Line Quantity in order for the costs to be calculated correctly (setup/run times etc.)? (Currently Lot size is set to 1 in production orders which will give an incorrect costing of (setup + run time) * quantity as if we have to set up for each item when in reality set up is once for the whole batch).
    Thanks
    Dave K

    • Olof Simren
      · Reply

      Author
      July 14, 2014 at 7:28 AM

      Hi Dave,
      If you value your inventory according to standard cost, then you need to specify the lot sizes to get the cost correctly rolled-up (assuming you want to have setup and run time build into the cost of the product). You typically use estimated average lot sizes for the cost roll-up. When you then produce you will get variances on individual production orders based what is posted.
      If you are not on standard cost, then the lot size on the item card has less of an impact. The lot size in the routing is still needed to get the correct capacity need for a planning point of view. On FIFO your costs becomes whatever you post against the production order independent on the lot sizes.

  • Glenn Cook
    · Reply

    September 25, 2015 at 12:22 AM

    Hi Olof
    I’m getting a lot out of your blog series – thank you.

    In this blog you mention adding Lot Size field to the routing line. How do you do that? Lot Size is not listed in the available columns?

    Thanks
    Glenn

    • Olof Simren
      · Reply

      Author
      September 25, 2015 at 9:12 AM

      Hi Glenn,
      This is a field that needs to be added to the page using the object designer in the development environment.
      It is page 99000765 (and also page 99000767 if you are using versions of routings).
      If you are an end-user you might need to get your Dynamics partner to do this, depends on how you normally handle changes to objects.
      Hope this helps.

      Thank you for your comment! 🙂

      /Olof

  • Steve Pena
    · Reply

    February 23, 2017 at 4:54 PM

    Hi Olef,

    I’m looking for some advice on using Lot Sizes. My client can setup a machine once and pass six different products through the machine at once. How should the lot sizes be setup on each of the six items?

    The production orders for each of the six items will be for one unit. So, if we set the lot size at six for each item, we will get variances.

    How can we capture the efficiency of setting up a machine and producing six different items at once?

    Thanks,

    Steve

    • Olof Simren
      · Reply

      Author
      February 26, 2017 at 12:00 PM

      Hi Steve,
      Have you looked at the production families?
      If you use those, then NAV will have one routing across all the six items and the cost from the routing will be distributed evenly (you have one production order for all six products then).
      The lot size on each of the items will in that case be 1.
      Maybe this will do it…

      /Olof

  • Steve Pena
    · Reply

    March 2, 2017 at 6:41 PM

    Hi Olof,

    I have not looked at product families, but I surely will! Thanks for the advice.

    Steve

  • Hank
    · Reply

    February 7, 2018 at 10:26 AM

    Hi Olof,

    Thanks for this. Good tip for pieces per minute. We have following requirement. Item base unit of measure is KG, but we produce in pieces (CU=consumer unit). For example 8 CU in 1 KG. We want to enter the runtime in CU in the routing, how can we do this when using the lot size field. Is this field always representing base UOM?

    • Olof Simren
      · Reply

      Author
      February 18, 2018 at 10:37 PM

      Hi Hank,
      The lot size field is always in the base UOM, so if I understand your requirement correctly you can put 0.125 in the lot size and the run time will then be per CU.

      /Olof

  • Göran Jönsson
    · Reply

    June 19, 2018 at 3:23 AM

    Hi Olof,
    I found your blog regarding Dynamics NAV. Very useful.
    I have a question regarding Lot Size in NAV.

    I have a customer with a simple demand but I cant find a solution.

    The customer have a few steps in the manufacturing process.
    The first operation OP100 have a fixed batch size of 150 per batch.
    The output of OP100 is an Item Item100
    The second is process op200 is using 100 kg per batch the 50 left should be put in to Stock of ITEM100
    I cant get the OP100 to pan a fixed batch size of 150 the planing always plans 100 that tis the net requierment

    /Göran

    • Olof Simren
      · Reply

      Author
      July 29, 2018 at 6:43 PM

      Hej Göran,
      Not sure I fully understand. But it almost sound like you should have item 100 as a separate production order line (either on the same production order or on a separate order). I am saying this since you are describing that output of OP100 should be item 100 and then a second operation is using 100 kg of item 100 to produce something else while the remaining 50 kg of the item 100 batch should remain in inventory. If you have two separate production order lines you can have two separate quantities, one can be a multiple of 150 kg, the other can be a multiple of 100 kg.
      Hope this helps.

      Sorry for the late reply, this was stuck for some reason.

      Thanks for your comment!

      /Olof

  • somnath
    · Reply

    April 28, 2019 at 3:54 AM

    Hi Mr. Simren,

    Please guide me on this –

    My work center capacity is 22, and run time is 120 minutes in routing and lot size is 10. Calendar from 8 AM to 8 PM, Concurrent capacity is 1.

    Production order Qty. 100.

    Based on Prod Order qty, start time end time showing 8 AM to 4 PM of next day. ( 20 hours )

    now my question is – my RUN time is fixed which is 120 minutes, My Bowler machine will run 120 minutes for any kind of qty, if i put 10 kg its will run for 120 minutes or 100 kg it will run for 120 minutes, Work center capacity only change based on qty but systems increase or decrease the start time end time how will handle this situation,
    Please guide.

    • Olof Simren
      · Reply

      Author
      June 4, 2019 at 5:52 AM

      Hi Somnath,
      If it is always 120 min independent of the quantity of the order, then you can try setting the setup time to 120 min instead of the run time. This should accomplish this.

      /Olof

  • Isabel de los Santos
    · Reply

    February 19, 2025 at 7:12 PM

    Hi Olof I am becoming a NAV Super User thanks to your Blogs!

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