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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