This chapter describes how Oracle Spares Management External Repair Execution functionality manages the external repair process for service parts in a field service supply chain.
This chapter covers the following topics:
Repair execution is a key part of the field service supply chain. The repair execution process includes recovery and consolidation of defective parts, as well as the repair, and replenishment of these parts to the field service warehouse inventory.
Internal repair activities are charged to an internal work order. With external repair, a repair purchase order authorizes a supplier to complete repairs. Spares Management provides functionality for both internal and external repair. For information about the internal repair, see Creating and Shipping the Internal Order and Managing Defective Parts.
This chapter describes external repair execution, where defective parts are sent to a supplier for repair.
External Repair Business Needs Include:
Consolidated view of process documents and transaction details.
Integration with the Warehouse Replenishment Planning application.
Integration with the Purchasing application.
Integration with financial applications.
Asset tracking.
The External Repair Execution (ERE) module provides an automated alternative to the multistep manual process that uses the Planner's Desktop notifications functionality. The ERE process begins in Oracle Spares Management Warehouse Replenishment Planning:
This diagram illustrates the spare parts business flow:
Spare Parts Flow Diagram
Executing a planned order for repair begins the external repair execution process described in the table.
Step | Role | Activity |
1 | Planner | Approve repair planned order in Warehouse Replenishment Planning. |
2 | System * | Automatically create a purchase requisition. |
3 | Buyer | Create and approve repair purchase order (RPO). |
4 | System * | Create internal order when RPO is approved. |
5 | Inventory Planner - Defective Warehouse | Pick and ship defective parts to a repair supplier. |
6 | Repair Supplier | Receive parts and report discrepancies. |
7 | System * | Create a work-in-process (WIP) order. |
8 | Repair Supplier | Repair and then ship repaired parts to the field service warehouse. Report scrap. |
9 | Repair Administrator | Enter transactions for adjustments and scrap. |
10 | Field Service Warehouse | Receive repaired parts into inventory. |
11 | System * | Complete a WIP order. Receive into Finished Repair subinventory at the repair supplier organization. Transact out of Finished Repair subinventory at the repair supplier organization. |
12 | Repair Administrator | Reconcile repair purchase order when necessary. |
*
Important: The process steps performed by the External Repair Execution system are the same, regardless of the repair program. The sequence, however, differs depending on the program. See Repair Programs in this chapter.
Repair programs can vary from company to company, but can be grouped into three general strategies:
Repair and Return:
The defective parts are sent to the repair supplier for repair. The repaired parts are shipped from the repair supplier and received as replenishment by the field service warehouse.
Exchange:
When the repair supplier receives the defective parts, serviceable parts are shipped from the repair supplier's stock to the field service warehouse for replenishment. The repair supplier can repair the defective part and use it to replenish the buffer inventory used by the repair supplier to support the Exchange program. This strategy eliminates lead time associated with repairing the item.
Advance Exchange:
When the repair supplier receives the purchase order, serviceable parts are shipped to the field service warehouse against the purchase order. The repair supplier can repair the defective part and use it to replenish the buffer inventory used by the repair supplier to support the Advance Exchange program. This strategy eliminates lead times associated with shipping the defective parts to the repair supplier and repairing the parts.
Note: The choice of repair program influences lead time. Lead times are used in Warehouse Replenishment Planning for calculating safety stock and reorder point.
Rules for serial number control for external repair execution in the field service supply chain are as follows:
The serial number control can be used at the defective warehouse organization.
The serial number control cannot be used at the repair supplier organizations.
The serial number control is available at the field service warehouse finished repair subinventory.
Serial number control at repair supplier organizations is not possible due to the automated backflushing of the parts at the repair supplier when the receipt is executed at the field service warehouse.
You can Search for Repair Purchase Orders by:
Purchase Order (number)
Requisition (number)
Repair to Item (number)
Repair Supplier
Destination Organization
Defective Organization (an inventory organization designated for defective parts)
The search results table shows retrieved repair purchase orders, along with:
Purchase Order (number)
Requisition (number)
Repair to Item (number)
Creation Date
Repair Program
Status
Destination Organization
Defective Organization (an inventory organization designated for defective parts)
Need Date
Delivery Date
Show details provides additional information. See Searching for Repair Requisitions and Orders.
The Repair Purchase Order Details user interface provides for a consolidated view of all process documents and transactions. The interface also provides functionality needed to transact scrap and adjustment activity. The planner or administrator can use the user interface to reconcile with the repair supplier any residual balance due on the purchase order.
The header region in the Repair Purchase Order Details user interface provides the following information:
Purchase Order
Requisition
Creation Date (for the purchase order)
Repair to Item (see Supersessions)
Status (of the process)
Repair Supplier
Destination Organization (warehouse being replenished)
Defective Organization (warehouse defective parts were shipped from)
Need Date
Delivery Date
Repair Program
Quantity (shipped from the defective warehouse)
Received (quantity)
Scrap (quantity)
Adjustment (quantity)
Balance Due (Ordered - Received - Scrap +/- Adjustments)
The Transaction Details shows all transactions and documents related to the process:
Requisition Incomplete
Requisition Approved
Purchase Order Created
Purchase Order Approved
Internal Order Created
Internal Order Shipped
Internal Order Received
WIP Order Created
WIP Order Received
Scrap Transactions
Adjustment Transactions
Shipment Notification
Purchase Order Receipt