Report and Unreport Component Scrap on Shop Orders—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 course 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 a sufficient quantity of parts 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 at least the minimum quantity of parts as specified in the table below. If you do not have enough parts, receive the indicated quantity into at least two different inventory picking locations for each part. 

General Exercise for Receiving Inventory Part 

Shop Orders

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

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 identified in the table below. If the status of the shop orders is Planned, release the shop orders. 

2. Edit the material lines for the shop order, changing the scrap factor attributes according to the table below. The quantity remaining is incremented to reflect the anticipated scrap volumes for these components (i.e. these amounts are considered planned scrap). 

General Exercise for Creating Shop Orders Manually 

Main Exercises

Purpose: The purpose of this exercise is to report and un-report component scrap on a shop order in different ways. 

Windows:
Shop Order
Issue Material Using Pick List

Assume that you are the person responsible for performing work on shop orders. The activities you would to perform are:

• Issue material as required, to the shop order that has a lot size of 5.
• Report any damaged component material as scrapped, in the course of production.
• Decide whether to reverse any of the scarp transactions.
   

Issuing Material Automatically to a Shop Order

You issue reserved material to the shop order.

1. Open the Shop Order window, and query for the shop order for this exercise. 
2. If the status of the shop order is Planned, release the shop order. 
3. Once the status of the shop order is Released, reserve the material on the shop order. 
4. Right-click anywhere in the header, point to Material Actions, and then click Issue.
5. When the Enter criteria for issue dialog box is displayed, select the Issue all reserved material check box in the Criteria for Issue area. Click OK.
6. On the Material tab of the Shop Order window, for all three rows, verify that the value for the Qty Issued field has changed to 5, the value for the Qty Assigned field has changed to 0 (zero), and the value for the State field has changed to Issued.
    

Report Component Scrap for a Shop Order

After issuing material and starting production operations, you notice some component material is damaged in the course of production. You decide to report this material as scrapped. 

1. Open the Shop Order window and query for the shop order for this exercise. 
2. Click the Material tab. Verify that the values for the Qty Required field and the Qty Issued field are the same for all three component parts. Verify that 0 (zero) is the value for the Qty Scrapped field for all three component parts.  Take note of the values for Fix Scrap Qty field for each component.
3. Select the component part rows for parts 21-330 and 21-331 in the material table, then right-click and click Report Component Scrap.
4. When the Report Component Scrap window appears, verify that all the components you selected appear in the upper table.
5. In the upper table, select the component 21-330.  The lower table should display all issued transactions that have occurred for this part.
6. In the lower table, select an issue transaction for materials to be scrapped, enter 5 in the Qty to Scrap field and save this information.
7. Now repeat the scrap action for component 21-331, again scrapping a quantity of 5.
8. Refresh the Shop Order window. On the Material tab and on the rows for the 21-330 (Ignition System) and 21-331 (Starting System) component parts, verify that 10 is the value for the Qty Issued field, 10 is still the value for the Qty Required field, and 5 is the value for the Qty Scrapped field.  On the Material History tab verify that a material history action appears describing the scrap transactions of component WIP. Note the value in the Assoc Material History Id field for these records corresponds to the Material History record for the original issue transaction(s).

Note: No inventory transaction or accounting records are written as a result of the component scrap reporting, since the material had already been issued to WIP, and is no longer in the inventory. Also note that the quantity required has not been affected during transactions, since the quantity scrapped was less than or equal to the planned scrap amount, as per the Fix Scrap Quantity and Scrap Factor field values for these material lines.

Reporting Component Scrap by Operation

For the shop order, you decide to report component scrap associated with a specific shop order operation.

1. Open the Shop Order window and query for the shop order for this exercise. 
2. Right-click on the header and select Report.
3. When the Report Shop Order Operation window opens, operations associated with this shop order can be seen. Select the row for Operation 20, right-click, and then click on Report Component Scrap. Be careful not to select Report Scrap which is used for scrapping of parent work-in-progress, and not for the components.
4. When the Report Component Scrap window opens, verify that all the shop order components appear in the upper table.
5. In the upper table, select the component 21-332.  The lower table should display all issued transactions that had taken place for this part.
6. In the lower table, select an issue transaction for materials to be scrapped, enter 5 in the Qty to Scrap field, and save the information.
7. Refresh the Shop Order window. On the Material tab and on the rows for the 21-332 (battery system), verify that 10 is the value for the Qty Issued field, 5 is now the value for the Fix Scrap Qty field, 10 is now the value for the Qty Required field, and 5 is the value for the Qty Scrapped field.  On the Material History tab verify that a material history action appears describing the scrap transaction of component WIP. Note the value in the Operation No field for these records corresponds to the Shop Order Operation record where the scrap was reported.

Note: The operation number is added to the material history record as a means of tracking total scrap, problem trends for a specific operation, or work center.  Also, since the quantity scrapped (5) exceeded the planned scrap quantity (0), the system increments the values of Fixed Scrap Qty and Qty Required fields by the excess scrap reported. You must now reserve and issue additional materials in order to use the original expected quantity of the component per parent unit.

Reverse Component Scrap Reporting on a Shop Order

You decide to reverse one of the component scrap transactions you reported earlier.

1. In the Shop Order window, click on the Material tab. Note the values of the Qty Issued, Qty Required, Qty Scrapped, Fix Scrap Quantity, and Scrap Factor fields for component 21-331.
2. Select the component part row for parts 21-331, right-click and then click Unreport Component Scrap.
3. When the Unreport Component Scrap window appears, verify that the component you selected appears in the upper table.
4. In the upper table, select the component 21-331. The lower table should display all component scrap transactions that had taken place for this part.
5. In the lower table, select a scrap transaction to be reversed, right-click and then click Unreport Component Scrap.
6. Refresh the Shop Order window. On the Material tab for the 21-331 (Starting System), verify that 10 is the value for the Qty Issued field, 5 is still the value for the Fix Scrap Qty field, 10 is the value for the Qty Required field, and 0 (zero) is now the value for the Qty Scrapped field.  On the Material History tab verify that a material history action appears describing the reversal of the previous scrap transaction of component WIP. Note the value in the Assoc Material History ID field for these records, corresponds to the earlier Material History record where the scrap was reported.

Note: When reversing component scrap, no adjustments to Fix Scrap Quantity are made even if the original scrap has increased the quantity. Any necessary adjustments to the required quantity will have to be done manually.