Handling Shop Order Subcontracting—Key Exercises

Basic Data Setup

Discrete Manufacturing Overview Racing Engine

Purpose: The purpose of this exercise is to create the required data that will be used in the Discrete Manufacturing exercises. This sets up data for your site and needs to be done only once for the Discrete Manufacturing courses exercises.

1. Set up your site for discrete manufacturing of racing engines.

General exercise for Overview of Discrete Manufacturing Data

Required Data

Inventory Part Balance

Purpose: The purpose of this exercise is to ensure that you have the correct quantities of parts available for the main exercises.

Windows:
Inventory Part Currently On Hand
Receive Inventory Part

1. Open the Inventory Part Currently On Hand window.
2. Verify that you have the quantity of part shown on the table below. If you do not have enough parts, receive the appropriate number for each part so that the indicated quantity will be available.

General exercise for Receive Inventory Part

Shop Order

Purpose: The purpose of this exercise is to set up a manually created shop order with the default information that will be processed in the exercises below.

Windows:
Shop Order

Note: Record the shop order number so that it will be easy to identify the correct shop order for the exercise.

1. Create a shop order for the part and lot size shown in the table below.

General exercise for Creating Shop Orders Manually

Main Exercises

Purpose: The purpose of these exercises is to process a shop order that has subcontracting work in the routing. We are using part number 21-321 (Camshaft, Treated) because it has a subcontracted operation (20).

Windows:
Shop Order
Shop Order/Operation
Shop Order/Material
Purchase Requisition Lines
Register Purchase Order Arrivals

You are the person responsible for maintaining the shop order information. Today you need to enter and process the following events for the shop order:

• Release the shop order and the outside operation.

• Issue the component material to the order and report the operations prior to the outside operation.

• Ship the work in process (WIP) to the supplier.

• Process the purchase requisition, which was automatically generated for the outside operation, through the purchasing process to receipt.

Releasing an Outside Operation

Release the shop order and the outside operation.

1. Open the Shop Order window and query for the shop order for this exercise.
2. Right-click anywhere in the window header and then click Release. This will release the order which, in turn, releases the operations. Releasing the outside operation automatically generates a purchase requisition for the subcontracting work.

Note: The operation can be released before the order so that the purchasing process could begin before the order is released. However, if this is not required, a step can be saved by releasing the shop order as we just did.

3. Right-click anywhere in the window header, click Report. This will open the Report Shop Order Operation form with your order queried.
4. Click the Subcontract tab. Scroll to the right until you can see the Req. No field. Verify that there is a value in this field and record that value below for future reference. (This value is the purchase requisition number generated for the outside operation.)

Issuing Material and Reporting Operations

Issue the component material to the order and report the operations prior to the outside operation.

1. Return to the Shop Order window or open it if the window is closed and query for your shop order. Click the Material tab, and select the row for component part 21-421 (Camshaft, Untreated). Right-click on the row and then click Reserve.
2. Verify that the value for the Qty Assigned field has changed to 10. Verify that the value of the State field has changed to Reserved.
3. Right-click anywhere in the window header, point to Material Actions, and then click Issue. Select the Issue all reserved material check box and click OK.
4. Verify that the value for the Qty Issued field has changed to 10 and the Qty Assigned field has changed to 0.
5. Right-click anywhere in the header, and then click Report.
6. Click the Operations tab, select the row for operation 10 (Prep Camshaft), right-click on the row, and then click Report Time.
7. Verify that the value of the Operation State has changed to Closed and that the value of the Qty Complete field has changed to 10.

Note: The amount of WIP that you can ship to the supplier is limited to the quantity that has been completed by the previous operation.

Shipping WIP to Supplier

Ship the work in process (WIP) to the supplier.

1. Refresh the Shop Order window, and click the Operation tab.
2. Select the row for outside operation 20 (Heat Treat Camshaft), right-click on the row and then click Ship WIP to Supplier.
3. When the Ship Outside Operation Items to Supplier dialog box displays, select the Ship Full Quantity check box and click OK.

Note: You can ship the WIP a portion at a time or all at once.

Processing the Purchase Requisition to Receipt

Process the purchase requisition, which was automatically generated for the outside operation, through the purchasing process to receipt.

1. Open the Purchase Requisition Lines window and query for the purchase requisition number that you recorded above.
2. Select the purchase requisition row, right-click on the row, and then click Release.
3. Right-click on the row again, and then click Requisition to Order.
4. When the Requisition to Order Parameters dialog box appears, click Auto Select.
5. When the Purchase Order(s) Successfully Created dialog box appears, record the purchase order number for future reference and click the OK button. This dialog box displays the requisition information and the newly generated purchase order line to which it has been assigned.

6. Right-click on the purchase requisition row again in the Purchase Requisition Lines window, and then click Purchase Order. This will open the Purchase Order window and query the purchase order to which your requisition was assigned.
7. In the Purchase Order window, right-click anywhere in the header and then click Confirm.
8. Verify that the value of the Status field has changed to Confirmed.
9. Open the Register Purchase Order Arrivals window and query for the purchase order. Select the row for the purchase order, right-click on the row and then click Receive Order.
10. When the Receive dialog box appears, click OK.
11. Return to the Shop Order window and refresh it to see the changes to your shop order or open it if the window is closed and query for your shop order.
12. Click the Operation tab (if it is not the tab selected) and verify that the value for the Remaining Qty field has changed to 0 and that the value for the Outside Qty Shipped field has changed to 10.

Report Outside Operation with Backflushing

Process an outside operation using the backflushing options.

1. Open the Shop Order window and query for your shop order. Copy this shop order and take note of the new shop order number.

2. Modify the value in the Outside Op Supply Type field to Released Purchase Order.
3. Modify the value in the Outside Op Backflush field to Purchase Order Arrival.
4. Right-click anywhere in the window header and then click Release. This will release the order, which in turn, releases the operations. Releasing the outside operation automatically generates a released purchase order for the subcontracting work.
5. Right-click anywhere in the window header, and then click Report. This will open the Report Shop Order Operation window with the order you retrieved.
6. Click the Subcontract tab, select the row for operation 20 (Heat Treat Camshaft), right-click on the row, and then click Outside Operation Reporting.
7. When the Outside Operation Reporting dialog box opens, select the Report Full Quantity and the Auto Report Preceding Operations check boxes, and click OK.
8. Verify that the value of the Operation State field has changed to Closed, and that the value of the Qty Complete field has changed to 10.
9. In the Shop Order window, query for your shop order and see the changes. 
10. Click the Operation tab and verify that the value for the Remaining Qty field has changed to 0 (zero), and that the value for the Outside Qty Shipped field has changed to 10.