Manufacturing-outside operations

I am not sure how good someone may be in Manufacturing and I am hoping someone can help.

We are testing to make things automated and we will be using outside operations part of manufacturing.

We plan on using a Sales order with a W line type to gerenate the WO and PO but I am running into a bit of an issue. We made energy bars, so all we keep in house are the wrappers, trays and shipper and send it to our contractor(outside operations) but that contractor also makes the bars for us. Do you know the best way to have a Purchase order made for the raw bar for our finished good while using the sale order with the W line type? We are trying to make all this automated

Hi adekunle,
Kindly correct me, if I m wrong. Scenario is, to make “B” (finish item, for which you will raise SO) you are sending “A” RM item for subcontracting or some time without sending “A”, subcontractor is providing you “B” as finish item by using his own RM.
In this case you have to define;
1.Two different items “D1” “D2”.
2.“D1” with stocking type M-Manufacturing, whenever you get it manufactured from vendor, you create Work order of D1
3.“D2” with stocking type P-Purchase, wherever you get it as a bought out item from vendor, you raise RM purchase item for this.
4.Now you got on hand stock of D1 or D2.
5.Create one different item as an intermediate item e.g. “C”; which will be the child item of “B”
6.Create two BOMS for C, D1 as a child –standard BOM and D2 as a child –alternate BOM, with standard “Inspection” routing operation.
7.Generate in house work order of “C”
8.Generate Sale order of item “B” with “W” line type set up.
Please find attached flow chart for more details.
Thanks
Antara.

I Can you use this method you are describing? Let me provide a complete picture.
We can to make this automated as possible that is why we are useing the sales order with the line type W.

we have a contractor who makes our candy bars We do not keep any material for that in house. We create a PO to order the bar

We keep the wrapper, trays, shipper in house and ship it to the same contractor to put the bars in and complete the finished goods.

So I understand about the work order generating a PO but how can I have the same Sales order create a seperate PO for the bars and have everything done as once.

When the sales order is close will it close out the PO or WO or will all three docs have to be close seperately?

Antara

I am running into the issue. even thou my contract is making the bar and our finished goods having an issue genereating the PO for the bars.

You see have the Bar to order first
Then create the Sale order with W line type to generate the WO
put trying to get the Bar on the same work order and have it create it's own PO so everything is together.

Can you Advice?

Hi adekunle,
Thanks for the updates, now I am very clear about your requirements;
1st are you using MRP? If yes we can make all the process automated right from generation of PO for Bar items till WO creation of finish goods have to be dispatched and closing of respective PO/WO.
1. You have to generate BOM for finish goods where its child items will be all BAR, wrapper, trays, shipper etc. and routing will be subcontractor which will not create any subcontracting Purchase Order.
2.Then create SO with ‘W’ line type,
3.You have to generate RM PO on that contractor.
4.Once all items are in stock, process finish items work order, complete it and do the invoicing.
If any concern, kindly let me know.
Thanks and regards,
Antara

Antara,

No we are not using MRP. We are new to Manufacturing. We have decide to use the outside operations because nothing is done in house.

So I understand about the SO W line type to create our wo/po. but the bar you say I have to create a RM PO to the contractor can that be automate with the SO W line type?

Our current process is we made a PO for the Bars(UOM in EA) and once the Contract confirms they recvd the PO, we can it and make another PO for finished goods(UOM in Boxes) with the RM(packaging) we send to the contractor.

So we never have the BARS in stock.

IS it possible to have a PO for the BArs to trigger the SO W line type(which will be an outside operation)?


Thanks

Ade

So is there a way to have the a PO for the

Hi Ade,

If you don’t want BAR in stock, your intention is only to pay the BAR cost to the contractor and send the material (Finish goods ) to the contractor, you can use “w” line type with subcontracting PO scenario. In that case your production cost bifurcation will never show you correct RM cost as we have added it as a subcontracting cost D1, it’s your internal decision if you are more concern about the finish product cost then never bother about the RM cost.

Kindly let me know if further assistance is required.

Thanks
Antara

Hi Ade,

If you don=E2=80=99t want BAR in stock, your intention is only to pay the B AR
cost to the contractor and send the material (Finish goods ) to the
contractor, you can use =E2=80=9Cw=E2=80=9D line type with subcontracting P O scenario.
In that case your production cost bifurcation will never show you
correct RM cost as we have added it as a subcontracting cost D1, it=E2=80 =99s
your internal decision if you are more concern about the finish
product cost then never bother about the RM cost.

Kindly let me know if further assistance is required.

Thanks
Antara


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ich

antara,

You are really go at this. When you send the raw material to the contractor, how do you know it leaves the warehouse. Can be put in place? do you have process that you use? is there customization involved? Is there something with JDE once you run the R31410 and the warehouse picks the order how does it know it removed from inventory, how can the warehouse adjust if there is not enough material for the order. IS there a threshold to put the order on hold ? Can you please assist me with this

Hi adekunle,
There are different inventory issue methods for consuming the RM to the work order, as per your questions the answer is;
1. How do you know it leaves the warehouse? –
ANS : in that case if you are using super backflush issue, whenever you are transferring the inventory from warehouse to vendor place you do Inventory Transfer from warehouse location to Vendor location, and put the lot on hold. Since issue type is super backflush issue, consume the RM at the time of work order completion.
2.Is there customization involved? –
ANS: No there is no customization involved
3.Is there something with JDE once you run the R31410 and the warehouse picks the order how does it know it removed from inventory?-
ANS: if you use preflush issue The system automatically deducts materials from inventory when you run the Order Processing program (R31410).
4.How can the warehouse adjust if there is not enough material for the order? IS there a threshold to put the order on hold?-
ANS: if you are using backflush issue When the parts list includes lot-controlled items, the system first issues the parts list lines with lot numbers because those quantities are already hard-committed. When these quantities are not sufficient, the system searches for additional lots at the work center location and issues material from those lots based on the commitment method.

Now you fixup the requirement and acordingly do the setups.
Thanks and Regards,
Antara

Antara

I will be running outside operations for Manufacturing and after I run the R31410 and generate my PO. which is fine, but what process or screens within JDE can I have my warehouse people pick the parts for the finished goods and where do they go to put in they picked or that the parts are short, also where is a notification with the system to state that the parts have been shipped out. I need someone's assistance

Thank you

Ade