Setting Up the Financial, SCM and Contract Definitions —Key Exercises

IMPORTANT
If you are a student, it is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site

Note: Throughout this document, please replace any occurrences of XX with your initials, group ID, user ID or other unique prefix, in order to separate your training data from that of other students.

Basic Data Setup

Define Sales and Purchase Part

Purpose: The purpose of this exercise is to define the top part of the structure as a sales part and a purchase part so that it can be received on a purchase order and shipped back on a customer order.

Windows:
Purchase Part

  1. Open the Purchase Part window and create a new record.
  2. In the Part No field, enter XX_ENG.
  3. In the Site field, enter XX90 and save.
  4. Right-click anywhere in the header and then click Supplier for Part.
  5. In the Supplier field, enter XX_SUP.
  6. In the Price/Curr fields, enter 0 and USD.
  7. Save.
  8. Right-click anywhere in the header and then click Create Sales Part.
  9. Select the appropriate values from the List of Values for the Sales Price Grp and Sales Group fields.
  10. Enter 0 in the Price/Base field.
  11. Click OK.

Define Turn Around Time (TAT)

Purpose: The purpose of this exercise is to set up the basic data required to define a complex assembly service agreement.

Note: The Turn Around Time record below should appear in your environment. If not you will need to create them. You may also create your own record by adding your initials in front of the Turn Around Time.

Windows:
Contract Management Basic Data/Turn Around Time

  1. Open the Contract Management Basic Data window and click the Turn Around Time tab.
  2. Create a new record and enter 90 DAYS in the Turn Around Time field.
  3. In the TAT Description field, enter A 90 Day Job and save.
Turn Around Time TAT Description
90 DAYS A 90 Day Job

Define Exhaust Gas Temperature (EGT) Margin

Purpose: The purpose of this exercise is to set up the basic data required to define a complex assembly service agreement.

Note: The EGT margin record below should appear in your environment. If not you will need to create them.  You may also create your own record by adding your initials in front of the EGT margin.

Windows:
Contract Management Basic Data/EGT Margin

  1. Open the Contract Management Basic Data window and click the EGT Margin tab.
  2. Create a new record and enter 1000 DEG in the EGT Margin field.
  3. In the EGT Description field, enter 1000 Degrees Celsius and save.
EGT Margin EGT Description
1000 DEG 1000 Degrees Celsius

Define Cost Types

Purpose: The purpose of this exercise is to set up the basic data required to define a complex assembly service agreement.

Note: The cost type records below should appear in your environment. If not you will need to create them.  You may also create your own records by adding your initials in front of the cost type.

Windows:
Contract Management Basic Data/Cost Types

  1. Open the Contract Management Basic Data window and click the Cost Types tab.
  2. Create a new record and in the Cost Type field, enter MACHINE.
  3. In the Cost Type Description field, enter Machine.
  4. In the MRO Cost Category list, click Machine.
  5. In the Life Limited list, select - .
  6. Leave the Condition Code and Ownership fields blank and then save.
  7. Repeat steps 2 to 6 for all records in the following table.
Cost Type Cost Type Description MRO Cost Category Life Limited Condition Code Ownership
MACHINE Machine Machine No    
OVERHEAD Overhead Overhead No    
PURCHASED Purchased Purchase No    
FACILITIES Facilities Tools and Facilities No    
LABOR Labor Labor No    
OTHER Other Material No    
NEW New Material Material No Default condition code value Company Owned
USED Used Material Material No USED Company Owned
LLP Life Limited Part Material Yes USED Company Owned
CUSTLLP Customer LLP Material Yes USED Customer Owned
CUSTNEW Customer New Mtrl Material No NEW Customer Owned
CUSTUSED Customer Used Mtrl Material No USED Customer Owned

Main Exercises

Purpose: The purpose of this lesson is to define a complex assembly service agreement and define customer shop visit defaults.

Windows:
Complex Assembly Service Contract
Shop Visit

Define Complex Assembly Service Contract

  1. Open the Complex Assembly Service Contract window and create a new record.
  2. Enter details as in the following table and save.
    Agreement ID  Description Customer Site
    XX_CUST_1 Agreement 1 for XX_CUST XX_CUST XX90
  3. Click the General tab and enter details as in the following table and save.
    Valid From Valid To Effective Date Top Position Part TAT
    1/1/2007 12/31/2012 1/1/2007 XX_ENG (With Rev. No 1) 90 DAYS
    EGT TAT Penalty EGT Penalties
    1000 DEG 1000 USD for each day overdue 100 USD for each degree below
  4. Click the Labor Rates tab and create a new record.
  5. Enter details as in the following table and save.
    Labor Class Sales Rate Sales Currency Payer
    1 135.00 USD XX_CUST
  6. Click the Cost Types tab and create new records with the values in the following table.
    Cost Type Sales Value Use % of List Price Fee% Currency Payer
    MACHINE Cost   10 USD XX_CUST
    LABOR Cost   10 USD XX_CUST
    PURCHASED Cost   15 USD XX_CUST
    OVERHEAD Cost     USD XX_CUST
    OTHER Cost     USD XX_CUST
    NEW List Price     USD XX_CUST
    USED List Price 50   USD XX_CUST
    LLP List Price     USD XX_CUST
    CUSTLLP Zero     USD XX_CUST
    CUSTNEW Zero     USD XX_CUST
    CUSTUSED Zero     USD XX_CUST
  7. Save.
  8. Right-click in the header of the Complex Assembly Service Agreement  window and then click Activate.

Define Customer Shop Visit Defaults

  1. Open the Shop Visit window and query for your customer XX_CUST.
  2. Click the Visit Defaults tab and create a new record.
  3. In the Top Part No field, enter XX_ENG.
  4. In the Top Part Rev field, enter *. You can also use the List of Values.
  5. Save.
  6. In the header, query for your customer again to refresh data.
  7. Click the Visit Defaults/Maintenance Level Baseline tab.
  8. You can see three records in the table window. Enter default maintenance levels for each position part as in the following table.
Part No Maintenance Level
PP/XX_ENG ML10
PP/XX_A ML10
PP/XX_A1 ML10
  1. Save.

Note : These maintenance levels are now defined as the baseline for this customer and top part combination. This means these will apply by default when defining the work scope.

  1. Click the Modification Baseline tab.
  2. Right-click in the table and then click Import or Copy Baseline.
  3. Click OK.

Note: If you wish to copy the baseline from an existing customer, then you can enter the particular customer's name in the From Customer No field.

  1. You can see two records in the table. Clear the Included In Baseline check box for the record with Modification Code XX_100.
  2. Select the Included In Baseline check box for the record with Modification Code XX_200 and save.

Note: These modifications are now the defined baseline for this customer and top part. This will automatically be indicated in the Task Summary window used later on when defining the work scope.

  1. Click the Visit Defaults/Min Release Life Definition tab and create a new record in the table.
  2. In the Oper Param field, enter EHR. You can also use the List of Values.
  3. In the Minimum Release Life field, enter 800 and save.

Note: The system will use the minimum release life and display it in the Task Summary window when defining the work scope, so that the user can make sure not to put parts with less than 800 engine hours of life remaining on the returned object.