Backflushing Labor Operations in Epicor Kinetic

Overview

Backflushing labor operations in Epicor Kinetic provide a streamlined way to capture production activity without requiring operators to manually report time at every step. Instead of recording labor at each operation, the system automatically applies labor based on predefined production standards once downstream activity is completed.

This approach reduces shop floor data entry, improves efficiency, and ensures consistency in how labor is recorded across jobs.

In simple terms, backflushing allows you to record labor indirectly by tying it to production progress rather than individual operator input.

How Backflushing Works

When an operation is configured for backflushing, the system does not expect direct labor reporting. Instead, labor is automatically applied when a subsequent operation is completed and the backflush process runs.

For example:

• Operation 10 is configured as backflushed with a standard of 2 hours

• Operation 20 requires manual time and quantity reporting

When Operation 20 is completed, the system automatically records 2 earned hours for Operation 10 during the backflush process.

It is important to understand the following limitations:

• The final operation in a routing cannot be set to backflush

• Subcontract operations are not eligible for backflushing

• Materials tied to subcontract operations will not be backflushed

• Materials associated with backflush-enabled operations will be issued automatically alongside labor

When to Use Backflushing

Backflushing is not a one-size-fits-all solution. It is most effective in scenarios where manual tracking adds little value or creates unnecessary administrative effort.

1. Long or Passive Time Segments

Some operations involve time that is not actively worked, such as testing or curing periods. Instead of requiring operators to track these durations manually, a backflush operation can be used to represent that time in the schedule.

A common example is a “Long Test” operation:

• Adds time to the schedule

• Does not require labor reporting

• Can be configured with a zero labor rate if cost should not be applied

2. Procurement or Lead Time Representation

Backflushing can also be used to model long lead times for materials or external dependencies. By introducing a backflush operation such as “Procurement,” organizations can:

• Trigger material requirements earlier

• Improve scheduling visibility

• Avoid artificially inflating labor costs by using a zero-rate setup

3. Picking and Material Staging

Some organizations prefer to manage picking as an operation rather than using separate material issue transactions.

In this case:

• A picking operation can be configured for backflush

• Materials are issued automatically when production begins

• Labor cost can be included or excluded depending on whether picking effort should be reflected in product cost

Backflushing and Performance Measurement

Because backflushed labor is applied using standard production rates, accuracy depends heavily on how those standards are defined.

There are two primary ways to validate performance:

• Time studies that establish realistic production standards

• Comparing paid hours versus earned hours to measure efficiency

If standards are outdated or inaccurate, backflushing can distort performance metrics. Regular review is essential to maintain meaningful reporting.

Configuration in Epicor Kinetic

Setting up backflushing correctly requires alignment across multiple areas of the system. Each component plays a role in ensuring accurate labor and cost application.

Operation Setup

Epicor Kinetic includes a “Default Labor Entry Method” setting that allows specific operations to default to backflush.

This is useful for standardized activities such as cleaning or inspection that should consistently follow the same reporting method. Existing operations can be updated using tools like the Data Management Tool (DMT).

Employee Configuration

Backflush labor is applied using a designated employee record. This allows the system to assign appropriate labor and burden rates.

Best practice is to create separate backflush employees for different cost structures.

For example:

• BF-Assembly with one rate

• BF-Welding with a different rate

This ensures accurate costing across resource groups.

Resource Group Setup

Each resource group that uses backflushing should have a default backflush employee assigned. This links the operation to the correct cost structure during processing.

Bill of Operations

At the routing level, the labor entry method must be explicitly set to “Backflush” for any operation that should follow this behavior.

Backflush Labor Process

The Backflush Labor Server Process must be configured to run in the background. Without this process, labor will not be applied automatically.

There are two common approaches:

• Continuous Processing

  Runs at defined intervals. A minimum of every 15 minutes is recommended, though this should be adjusted based on operational needs

• Scheduled Processing

  Runs at specific times throughout the day, such as every few hours, often aligned with other batch jobs

Choosing the right approach depends on how frequently you want labor to be updated and how your production environment operates.

Monitoring and Troubleshooting

Backflush activity is logged by the system, providing visibility into how and when labor is applied.

• In on-premise environments, logs can be accessed through the company directory

• In cloud environments, logs are available through server file download tools

Regular review and periodic cleanup of logs are recommended to maintain system performance.

Key Considerations

Before implementing backflushing broadly, keep the following in mind:

• It reduces manual effort but also reduces visibility into actual labor activity

• Accurate standards are critical for meaningful reporting

• Not all operations are suitable candidates for backflushing

• It works best in stable, repeatable processes with predictable durations

Final Thoughts

Backflushing labor operations can significantly simplify shop floor execution and improve consistency in labor reporting. When applied thoughtfully, it helps reduce administrative overhead while maintaining accurate scheduling and costing.

The key is not just enabling backflushing, but understanding where it adds value and ensuring that supporting data, especially production standards, remains accurate over time.