3 Replies Latest reply: Jun 25, 2012 2:42 PM by Sandeep Gandhi, Consultant RSS

    Best practice - over issue of move orders in WIP

      Hi Business analyst guru's,

      I am working for a electronics manufacturing industry. I am trying to use work orders functionality across our organizations. I am stuck with a logic. Please advise me what you do in this scenario.

      BoM : I have a a board assembly which requires 10 components say one of each component on BoM.
      all component's WIP supply type is push, Supply subinventory blank for all BoM components
      Release backflush components is not enabled in WIP parameters.

      one fine day I want to build 100 board assemblies and created the work order for 100, and released the move order through compoentn pick release form with transaction type as WIP component issue.
      Now the warehouse picker went into warehouse to pick 100 of each component with a move order with 10 lines on it. 2 components are in reels which he can not split the reel and split reel can not be used in production floor (reel size is 1000). He can issue 1000 against on the move order
      Now all the material went into production and build the assembly by 100 units. But two reels are left over with 900 of each. here I can do a WIP component return against the job.
      But expectation is if I want to build another work order (say qty by 100 again) this 900 of two components should be available for the next work order. If I do component pick release, the move order should request only 8 components.

      Is this possible? If not what is the best practice to avoid WIP return transaction and avoid splitting the reel size?

        • 1. Re: Best practice - over issue of move orders in WIP
          Sandeep Gandhi, Consultant
          1) If you have these items as Push, you will get a move order line for 100. Therefore, even if you move a whole reel the floor, only 100 will get transacted out of warehouse. Someone will have to manually transact additional 900 to the floor otherwise your inventory accuracy will go for a toss.

          Have you considered making those items pull?
          1) As and when the worker needs reel, he raises a signal. (different ways of doing this - could be Oracle kanban, could be a visual signal, could be a holler - whatever works for you)
          2) You transfer 1000 to the fllor
          3) As and when jobs complete, the 100 units get issued to work order
          4) Whatever is left over (say 800 after the 2 work orders) and not needed is transferred back to warehouse and you do a subinv xfer transaction.

          2) If you can't make them pull, then you will be forced to move the 900 back to warehouse when the first job is done.

          3) If you can't make them pull, you do a component pick release (CPR) for multiple jobs at a time? You can group your pick tickets by destination operation. This way, upon component release, you will have 1 move order line with qty =200. The picker transacts the move order line for 200 and a subinv xfer to WIP for 800.

          4) Here is the best case scenario. Don't know if your floor layout or factory processes will support this.
          You make the items pull on BOM. You have a temporary holding area on the floor (aka supermarket) . When operator needs the item, a visual signal is raised. The supervisor (aka spider) checks the supermarket and brings a reel to the operator. Upon completing the job(s), whatever is left of the reel goes to the supermarket. Once the reel is no more needed for the day (or week or month), you do a subinv xfer from supermarket to warehouse of whatever is left. The components get issued to work order upon completion (of operation/assembly).
          Do the best you can out of this scenario. :)

          Sandeep Gandhi
          • 2. Re: Best practice - over issue of move orders in WIP
            Hi Sandeep,

            Thanks very much for detailed answer and for your time.

            Yes we have pull items and push items on the BoM to balance the warehouse picking vs. inventory on production floor. Pull items are replenished through two bin system.

            But some board building process's will have 90% only push type items. Here we will have reel size implications.

            As you said in #3, our products have more unique components. Hence pickslip grouping does help much.

            your #4, is nothing but a kanban replenishment system may be not two bin,

            I did not understand the #2, what forces me to move 900 back?

            I am thinking of one scenario: In my question as I said, I over issue 1000 instead of 100 to the job. I may have 50 different jobs running at the same time, those jobs may have various over issued components. As soon as my job is completed, my operator will run a script/report from frond end, that will suggest him what are all the components over issues vs Oracle BoM qty multiplied by Build qty on the Job. so that he can collect the same material and do reverse transaction against the job. This is not lean... :-( What do you suggest?
            • 3. Re: Best practice - over issue of move orders in WIP
              Sandeep Gandhi, Consultant
              what forces me to move 900 back?
              Nothing. The operator will have to ensure that the 900 are transacted back to warehouse if they return a reel.

              You are in a funk for sure. Even if you have automated scripts to do the calculations and reverse transactions, you have a bigger problem.
              Say you overissue 1000 to the first job.
              When you do CPR for the 2nd job, it may not find on-hand in the warehouse and may create an impression that you are short of the component.
              Your best bet is to drive towards a pull system.