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Rework Assemblies

Business Example

You are a chair manufacturer that has rejected a lot of 100 completed chairs due to an overly glossy finish. You have decided to rework these chairs on a non-standard discrete job.

Assumptions

You have 100 rejected chair assemblies in a non-nettable Material Review Board (MRB) subinventory.

Since this type of rework occurs frequently, your manufacturing engineers have already defined standard rework operations for stripping, sanding, repainting, and reinspection with appropriate resources.

Setup

Use the Discrete Jobs window to define a non-standard discrete job for the chair assembly with a job quantity of 100. Since it is highly likely that you will be 100% successful in reworking the chairs, enter 100 in the MRP Net Quantity field. Select an asset type non-standard accounting class since you are building up an asset.

Use the Operations window to manually create a routing for the stripping, sanding, repainting, and reinspection operations needed.

Use the Material Requirements window to manually create the only component requirement (the chair assembly) at the stripping operation. Enter Push as the supply Type since you will likely push the assembly to the stripping operation, and specify the supply subinventory as the MRB subinventory. Do not check MRP Net if you do not want to create demand for items that are supplied from a non-nettable subinventory.

Print the Discrete Job Pick List Report and release the job using the Discrete Jobs window.

Transactions

Use the WIP Material Transactions window to issue the chair assembly to the non-standard discrete job. Use the Move Transactions window to move the chairs from operation to operation and to charge resources and overhead.

Use the Completion Transactions window to complete the perfectly finished chairs into a nettable finished goods inventory.

Costing

When all the chairs are completed, the job status changes to Complete. Your cost accountants can run a Discrete Job Value Report to check all the charges.

The job must have an ending balance equal to the cost of the resource and overhead charges only. The material charges for the chair assemblies net to a zero balance because the only material on the job was the chair assemblies that you issued to and completed from the job. Ending resource and overhead charge balances are written off as a variance when you close the job.

See Also

Defining Discrete Jobs Manually

Adding and Updating Material Requirements

Adding and Updating Operations

Issuing and Returning All Push Components

Performing Move Transactions

Completing and Returning Assemblies

Overview of Discrete Job Close

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