Handling Part Ownership on Shop Orders—Exercises

Basic Data Setup

Discrete Manufacturing Overview Racing Engine

Purpose: The purpose of this exercise is to create the basic data that is 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. If you haven't done so already, set up your site so that it includes all the Discrete Manufacturing data for racing engines.

General exercise for Overview of Discrete Manufacturing Data

Inventory Locations

Purpose: The purpose of this exercise is to set up inventory picking locations for running functionality isolated by site.

Windows:
Inventory Locations

1. If you haven't done so already, create the inventory picking location shown in the table below.

General exercise for Entering Inventory Locations

Required Data

System Parameters

Purpose: The purpose of this exercise is to verify that the system default for creating shop orders is set correctly for the main exercises below.

Windows:
Parameters for Distribution and Manufacturing

1. Verify that the value for Create SO in status Planned is Yes.

General information about System Parameters

Inventory Part Balance - Company Owned Parts

Purpose: The purpose of this exercise is to ensure that you have the correct quantities of company owned parts in stock to be able to do the main exercises below. 

Windows:
Inventory Part Currently On Hand
Receive Inventory Part

1. Open the Inventory Part Currently On Hand window.
2. Verify that you have company owned parts in stock, in at least the quantity shown in the table below. 

3. If you do not have enough parts, for each part receive the appropriate quantity into the inventory picking locations as indicated in the table.

Note: For the serialized parts, you will need to define the serial numbers when receiving parts into inventory. When generating a range of serial numbers, the serial numbers generated can have either a prefix, a suffix, or both added to the generated set of sequential numbers, so you should decide which you prefer. The generated numbers do not retain leading zeros. To have leading zeros, the zero characters must be added manually. The serial numbers are stored in the IFS system as alphanumeric values. You may want to use your initials followed by a dash as a prefix to make the serial numbers easy to query.

General exercise for Receiving Inventory Part

Inventory Part Balance - Customer Owned Parts

Purpose: The purpose of this exercise is to ensure that you have the correct quantities of customer owned parts in stock to be able to do the main exercises below. 

Windows:
Inventory Part Currently On Hand
Purchase Part
Supplier for Purchase Part
Purchase Order
Register Purchase Order Arrivals

1. Open the Inventory Part Currently On Hand window.
2. Verify that you have customer owned parts in stock, in at least the quantity shown in the table below.

Note: If you do not have enough parts, you will need to register some basic data to enable that your company can receive parts from the customer, if this has not been done previously.

3. For the part 21-351, you will need to register a purchase part for your site.
4. For each part, create a supplier for purchase part for your site and supplier C1000. This supplier ID represents the customer 1000, when shipping parts to our company.

Note: The quickest way to do the above step is to duplicate the supplier for purchase part record for this part and supplier for site 1.

5. For each part create a purchase order for the appropriate quantity as indicated in the table, using supplier C1000. On the purchase order line, verify that the value in the Ownership field is Customer Owned and that the value in the Owner column is 1000.
6. Release the purchase order.
7. Receive the parts into the inventory picking locations as indicated in the table. Note that part 21-351 is serialized.

Note: If you are not able to put the customer owned parts in a location because some company-owned parts with the same part number already exist there, then either move the company-owned parts or use a different location.

General exercise for Supplier for Purchase Part

General exercise for Entering Purchase Orders

General exercise for Reporting Arrival

General exercise for Handling Serial and Lot/Batch Numbering

Main Exercise

Purpose: The purpose of this lesson is to show how to define and handle part ownership on shop orders.

Windows:
Shop Order
Shop Order/Tracking
Shop Order/Material
Shop Order/ByProduct
Shop Order/Detail
Inventory Part Currently On Hand
Inventory Transaction History
Shop Order Costs

Customer 1000 has subcontracted our company (company 10), to assemble the fuel system for racing engines because we have the proper equipment to do the manufacturing. The customer owns both the finished product and some of the components. We will manufacture the product, and bill the customer for the work done and any components supplied by our company.

The exercises below must be performed in the order listed. If you stop between exercises, it will be necessary to query for your order and then start where you left off.

Defining Ownership for the Shop Order Product

1. Open the Shop Order window and create a new record.
2. If the value for Site is not your site, change the value to your site.
3. In the Part No. field, enter 21-250 as the part to be manufactured.
4. In the Lot Size field, enter 5 for the quantity to be manufactured.
5. Select the Tracking tab.
6. In the Ownership list, click Customer Owned.
7. In the Owner field, enter the desired customer ID 1000, or select it from the List of Values.
8. Save the information.
9. Record the value that was automatically generated for the Order No. field so that it will be easy for you later to query for your shop order.

Note: The Ownership field may have the values Company Owned or Customer Owned. When the shop order product is customer owned, the customer shown in the Owner field can only be changed if none of the material or by-product lines are customer owned, since the owning customer must be identical for all customer owned parts (the shop order product, by-products and component material).

Defining Ownership for Shop Order Material

Note: The ownership for the component part 21-352 must be changed because the customer is not providing this part.

1. Select the Material tab.
2. Observe that for each of the material lines, the value in the Ownership and Owner fields are by default identical to that registered for the shop order product on the Tracking tab.
3. For the component 21-352, select the value Company Owned from the list.
4. Save the information. A warning message appears, asking if you still want to save the record even though the ownership of this component part differs from the ownership of the shop order product. Answer Yes.

Note: The Ownership field may have the values Company Owned, Customer Owned or Supplier Loaned. For a single shop order, the owning customer must be identical for all customer owned parts (shop order product, by-products and component material).

Defining Ownership for the Shop Order By-Products

Note: Steel sheeting is used as a part of the packaging material when the fuel tank is shipped from the customer. This material must be returned to the customer and it will be treated as a by-product to the shop order. 

1. Select the Byproduct tab.
2. Create a new record. Enter the part number 21-930, sheet steel.
3. Observe that the value in the Ownership and Owner fields are by default identical to that registered for the shop order product on the Tracking tab. Keep the values in these fields.
4. Enter a value in the Qty per Unit field, which is the quantity of by-products produced per shop order product manufactured.
5. Save the information.

Note: The Ownership field may have the values Company Owned, Customer Owned or Supplier Loaned. For a single shop order, the owning customer must be identical for all customer owned parts (shop order product, by-products and component material).

Reserving and Issuing Shop Order Component Material

1. Release the shop order.

General exercise for Releasing Shop Orders

2. Select the Material tab.
3. Select the row for the 21-350 (fuel tank) component part. Right-click on the row, and then click Manual Reservations.
4. When the Reservations window appears, verify that the correct picking location is shown.

Note: Only inventory parts with ownership corresponding to the ownership specified on the component material lines can be reserved or issued to the shop order. In this case, the location 1A which contains part no. 21-350 that are customer owned should be shown.

5. Enter 5 in the Qty Assigned field and save the information, to reserve these parts to the shop order material line.
6. Repeat steps 3-5 for the other two material lines, and verify that parts with the correct ownership are reserved.
7. Select the row for the 21-350 (fuel tank) component part. Right-click on the row, and then click Manual Issues.
8. When the Manual Issue Shop Order window appears, verify that the correct picking location is shown.
9. Enter 5 in the Qty to Issue field and save the information, to issue these parts to the shop order material line.
10. Repeat steps 7-9 for the other two material lines, and verify that parts with the correct ownership are issued.

Receiving Shop Order By-Products

1. Open the Inventory Part Currently On Hand window and query for your site and the by-product part 21-930. Record the total quantity available that is customer owned.
2. Right-click anywhere in the header of the Shop Order window, point to Material Actions, and then click Manual Receive.
3. In the first field in the Received Part area, pull down the list and click Byproduct (instead of Shop Order). Verify that the values of the other fields in the Received Part area have changed to show the information for the by-product part.
4. If no location records display in the table on the Inventory Receipt tab, create a new record. Enter 25 in the Quantity Received field and 1A in the Location No field. If a record is displayed in the table, enter 25 in the Quantity Received field for the displayed record. Save the information.
5. In the Inventory Part Currently On Hand window, query again for your site and part number 21-930. Verify that the quantity available for this part that is customer owned has increased by the quantity received.

Receiving Shop Order Product

Note: The shop order should have a status of Started with no operations reported, and all material reserved and issued. After reserving serial numbers for the shop order product, you will automatically report the operations at the same time as the shop order product is received.

1. In the Proposed Loc field on the Detail tab, enter the value 2C if there is not already a value there.
2. Reserve serial numbers for the serialized shop order product.

General exercise for Handling Serial Numbers on Shop Orders

3. Right-click anywhere in the header, point to Material Actions, and then click Manual Receive to open the Receive Shop Order window.
4. Right-click anywhere in the header of the Receive Shop Order window, and then click Build Tracked Structures. This function creates a tracked structure for the shop order product, which is necessary before you can receive the products.
5. Right-click anywhere in the header, and then click Shop Order Graphical As-Built Structure. Verify that the structures are as you expect. Close the window.
6. On the Receive Shop Order window, select the Auto Report Of Operations check box to indicate that the necessary work on the operations should be reported automatically on receipt.
7. On the Serial Inventory Receipt tab (in the Receive Shop Order window), create a new record.

Note: First, you will attempt to receive the shop order product into a location which already contains the part but which are company owned. In the Required Data section of this exercise, part 21-250 that is company owned was received into location 2C. 

8. Note that location 2C is automatically suggested. Keep this value.
9. In the Serial Number field, select one of the reserved serial numbers from the list of values.
10. Save the information. You will receive an error message informing you that it is not possible to receive the part because the chosen location already contains this part but that is not customer owned.
11. Now change the value in the Location No field, and enter 1A instead.
12. Save the information.
13. Receive the remaining products.
14. In the Inventory Part Currently On Hand window, query again for your site and part number 21-250. Verify that the quantity available for this part that is customer owned has increased by the quantity received.

Checking History and Costs on the Shop Order

1. Open the Inventory Transaction History window and query for your shop order. Study the information on the General tab for each record, and in particular note the values in the costs fields and the Ownership field. Observe that there are no costs generated on transactions due to inventory movements of customer owned parts.

Note: There will be a transaction created for movement of parts in inventory with the inventory location identified in the Location No field. The Quantity is displayed in three data fields. The first has a value of '+'  or '-' identifying the direction of movement the inventory is in relation to the inventory location ( '+' means moving into the location and '-' means moving out). The second field contains the numeric quantity for the transaction, and the last field is the unit of measure for the part. The Transaction Code field contains a value that indicates the type of transaction. 

2. Open the Shop Order Costs window and query for your shop orders. Study the available information on each of the tabs. Click the WIP Status tab on the Shop Order Costs window. Verify that only the company owned component parts have contributed to the value in the Material Cost field.