What is the difference between the unit of operation and unit of stock?

Work order operations can be tracked based on the default unit of the stock unit of the produced good or the unit set on the operations.

Thanks to the selections available in Setup, Manufacturing, Entry transactions, Production tracking, Operation/Manufacturing tab, Default unit.

To enable the default unit selections, check the “Unit can be modified” check box. Then you will have the options “Unit of operation” or “Unit of stock” for selection. When default operation is set to “unit of operation”, you can define an operation unit that is different to the product being produced by the routing.

For example, a product managed by unit is subject to three different operations, none of which produce intermediate stock:

  • Operation 1: Mixing time, is expressed for a lot in Kg.
  • Operation 2: Extrusion time, is a rate in meters per hour.
  • Operation 3: Cutting time, is expressed in hours per unit.

By using different units for each operation, it eliminates the need to create semi-finished products for each production phase.

The operation unit is associated with a conversion coefficient for the stock unit of the product being produced by the routing and the operation unit.

To illustrate this, I am going to select the STD production tracking entry transaction and a production BOM with two different operations with different units.

Unit of measures:

  • Finished product = EA (each)
  • Pack unit = PAL (pallet),
  • Operation 10 unit = PAL (STK-OPE conversion is 980.00)
  • Operation 20 unit = CAR (carton) STK-OPE conversion = 1

Production tracking entry transaction, default unit = Unit of operation

Production BOM setup with one component line.

For each routing operation use a different UOM and a coefficient:

Operation 10

Operation 20

Generate a WO for a released quantity of 20 PAL.

On the work order operations tab, take a note of the planned quantity which is expressed in the operations unit.

  • Operation 10 = 19,600.00 LB (980.00 x 20)
  • Operation 20 = 20.00 CAR (1 x 20)

Generate a production tracking using the STD entry transaction.

“Total actual quantity” is showing the quantity tracked based on the above parameter and its coefficient.

Next, change the production tracking entry transaction default unit parameter to “unit of stock

Generate a new WO and track the work order.

Notice, total actual quantity is 20 EA for both operations, which is the stock unit of the finished product.

I hope this setting is useful when you have operations with different unit of measure.

  • Hi Kevin, You are welcome. It is not required to have a manufacturing unit also have to be setup as a packing unit on the product master of the item being produced. In WIPCOST table the STU unit of the operations will be in the operations unit when the parameter is set to 'unit of operation'.   

  • Hi Joel thanks for this article I don't recollect utilizing this functionality before.  Does the manufacturing unit also have to be setup as a packaging unit on the product master of the item being produced.  When you declare in the manufacturing unit is the stock record generated in that unit of measure?