Repair/Replace Items

[rekblad]

My client manufactures & sells a customer-specific product with multiple parts & assemblies. The customer also signs a maintenance agreement with the client to repair/replace defective parts. When there is a problem, the client's service people adjust the defective part into inventory to begin managing it. This often gets very confusing as they cannot easily tell if the item is good or defective (a held inventory location doesn't work as the item is regularly transferred between sites and vendors since it may be repaired by the client or the vendor). MRP is an issue and costs are an issue.
Has anyone got a solution/ideas for managing these repair items and how they are seen in the system?

 

[Krofire.com]

This entire question of Customer Returns and their repairs is covered, functionality-wise, in the CSMS Modules (System 17). This has been under a state of flux and may be called "SWM" now (for Service & Warranty Management).

The repair would occur under a Service Order. The Repair Business Unit is outside of the MRP. Treat the Item like a Fixed Asset in the Install Base and track it by its Serial Number. This has a Status Code that can tell you if the Item is operational or down for repair.

CSMS also includes the RMA functionality, cost tracking and such things as having Service Performed by a third-party.

I guess this doesn't really help much if you don't have CSMS. However, the fallback position is to have a network of Branch/Plants to store such Inventory in. I have seen this used for such things as Consignment stocks or Mfg Scrap so it isn't unusual.

 

[mns_cfpim]

There are a number of approaches you can use, and Mark has one. Another is to get involved with the equipment maintenance module. If the failure modes /repair modes happen often enough for a given item you can preload a series of "preventive maintenance" schedules for the items so that the parts lists and routings are readily available for attachment to a maintenance work order, and you can the specific items history by serial # if you so choose.

Perhaps the simplest approach, however, might be to use normal manufacting functionality. The new make part would have its "normal" part number (for example: 123xyz). The reparable could be adjusted in to stock as 123xyzR. The R suffix indicating the reparable return. From stock it can be issued to a repair/rework order with a parts list/routing created on-the-fly, or the repair order header can call in a specific alternate preloaded repair BOM by BOM type and repair routing by routing type. The repair BOM would include the 123xyzR as a component.

Depending on whether or not you distingiush between "new make" and repaired or remanufactured items the repair rework order produce the 123xyz item or an R123xyz - the 'R' prefix indicating it as a serviceable repaired item.

This naming scheme allows for distinguishing between new, reparable, and repaired items, and for assigning different cost/price structures. (The reparable could be a "buy" item so you give the customer a "credit" for the reparable return.)

Use a bit of imagination creativity and play a bit in a test environment. There are other potential solutions,including hybrids that combine pieces of those already discussed.

Good luck.

 

[rekblad]

Thanks Guys --- you've got me thinkin' now....

Question about costing the WO using the "alternate item" approach:

I setup a BoM with 123xyz as the parent and 123xyzR & Misc (to charge off miscellanous materials) as the components; then I add a routing for "repair center"@50 and link it to the BoM. Make up the WO and add the parts list. During repair, I add an extra part.

At WO completion, I get a repaired part back into inventory & capture labor as well as parts (voila!).

But what about the costing to flow through at WO completion time. Do I have to have to rollup to get a standard cost, or will it cost for the default costing method (remember I'm in WORLD, but also curious about EO)? If a rollup is used, then the extra part would be caprtured as a variance -- right?

Thanks Mucho,
Rob

 

[mns_cfpim]

The accounting side isn't my forte, and job cost is far from an area of intimacy, so take these opinions with a bit of skepticism. From what little I know of the customer service management system, I suspect it might offer you the best options for tracking costs, especially if you have things set up under an existing repair agreement.
The next most effective might be the equipment maintenance option. It has been years since I worked in that environment (It was World 6.1) but as I remember the costing was handled a bit differently (more like job cost) than manufacturing, but I also seem to remember that the maintenance WO program did some different behind the scenes accounting than the manufacturing work order program, and one of these differences was the creation on the fly of an "estimate" and "cost standard". I'm very rusty here, so I would encourage you to play a bit and test/verify that what I'm saying doesn't result from time distorted memory.

The "manufacturing" solution may be the simplest to implement from a materials perspective, but might be the most restrictive from an accounting perspective. The effort to restore a reparable to a serviceable will vary from time to time based on the amount of wear or type of damage to be repaired/restored. I suppose you could pick one "common" repair BOM and routing and use that for the cost rollup of the R123xyz. That will give you a Standard Cost based on some standard cost component values. Now, any deviation from that "M" BOM and "M" routing for the R123xyz will result in variances. You may want to experiment with using P31410 to attach BOMs and routings (even preloaded non "M" types versus attaching them manually to see the differences, if any, on the planning variances. If you further digress from the parts list and routing with extra or substitute parts, or with extra or substitute operations, you will get your manufacturing variances. This assumes you are doing standard costing. In OW at or after Xe there is capability to do manufacturing at actual (not standard) cost. I do not know if that ever deployed to World, and if so, at what release level.
The bottom line is TEST, TEST, and TEST some more. See what options seem to work best for your particular situation. Then simulate and test some more with scenarios developed with user input. The more you test before you try to turn on your model in your live production environment, the happier everyone will be. Good luck, and let us know how it turns out.

 

[denishermann]

Hi Rob
You don't really need to create extra items / bill of material and roll up .
Juste create a work order with an extra routing (repair -RWK ) , the item on work order is 123xyz ... , you issue the original item on the work order , cost of repair will be track as variances on the work orders. To track physicall location of the product , use location in work order header.

hope this help
Regards
D.