Discrete Job – Outside Processing

    This post covers the entire business process for outside processing. In case of Manufacturing, outside processing job can be one operation among several operations for making a finished good. To simplify the business case I am considering only 1 operation for our Routing which is an Outside processing operation

  1. Create Items

    RKFinishOPItem – Finished Subassembly

     


     

    RKOPItem – This is the part that we ship it to outside processing vendor for value addition.

     


     

    OPRKRawOPItem – This is the part that we receive from outside processing vendor after value addition. Requisition is created for this part

     


     

     

        

  2. Create Outside Processing Resource

     

    This is the outside processing resource. Costing happens as soon as PO Move occurs because of ‘PO Move’ Charge type.

    Outside processing item ‘OPRKRawOPItem’ is associated to this resource so that when the resource gets used, requisition is created for this item

     

     

    Associate Frozen cost for this Resource

     

     

    Associate applicable Overheads for this Resource. Actual overhead cost will be determined when you associate this resource to the department

     

     

  3. Create ‘Lead time’ Resource

     

    It is a good practice to create a resource to capture lead time. This is primarily used to capture the number of days Outside processing operation takes.

     

     

  4. Create Department and associate Resource

     

     

    Association of Overhead rates to the Department

     

     

    Associate Outside Operation resource and Lead time resource to the Department. Default Units for each department resource can be defined here. It can overwritten at Routing level.

     

     

  5. Create Routing with outside processing operation

     

     

    Resources for the operation

     

     

    Lead Time operation will be scheduled

     

     

     

     

  6. Create Bill of Material

     

     

     

  7. Create Discrete Job

     

    Create Work order for RKFinishOPItem.

    Operations of the Job

 

 

Note that completion date is offset by 10 working days because of Lead Time Resource

 

 

 

Components of operation 10

 

When Discrete Job is in Unreleased status, nothing is in ‘In Queue’, Running or ‘To Move’ or Completed Status

 

Resources for the operation 10

 

  1. Change Discrete Job Status to Released

     

     

    Discrete Job ‘In Queue’ quantity changed to 1

     

  2. Move the Operation 10 from Queue to move status

     

     

    Operation Move status updates to 1 and Completed also updates to 1

     

    This will trigger ‘Requisition Import’ program

     

  3. Ensure that the requisition is created for our Job ‘RKDemoOPJob’. Also notice that the item that is used for requisition is the item that is associated to the outside processing resource

     

     

  4. Perform Autocreate for 96494 requisition to create a purchase order

     

     

     

     

  5. Approve the Purchase order

     

     

     

     

     

  6. Receive the Purchase Order

     

     

     

  7. Close the Work order

     

     

     

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