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Outside processing for semi-finished and finished good

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Summary:

How to manage outside processing when a finished good is manufactured in two steps in two distinct work orders?

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Our customer would like to setup outside processing flow for one of its plants.

We know that, for some items, some operations are done by a supplier.

The process of manufacturing their finished goods is managed by two work orders :

  • First, they manufacture the semi-finished good from raw materials
  • Then, they manufacture the finished good from packages and consumables, mainly. The second work order is meant to be executed right after the completion of the first one.

What would happen if the supplier had to intervene in between the two work orders? Should we make an additional step to retrieve the semi-finished good in-house and then send it back to the supplier?

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