Understanding PeopleSoft Manufacturing

This chapter discusses:

Click to jump to parent topicPeopleSoft Manufacturing

PeopleSoft Manufacturing consists of a suite of applications that streamline, automate, and augment business processes to provide a comprehensive, global supply chain management solution.

PeopleSoft Manufacturing incorporates into the standard system design such functionality as:

PeopleSoft Manufacturing incorporates key technology and functionality, including embedded workflow, realtime planning, mixed-mode production, multimedia attachments, and document attachments.

Click to jump to parent topicSolutions for Production Management Challenges

The core mission of a production management system is to provide consistent, well-defined execution and control of manufacturing processes. It must provide accurate, up-to-date information and be flexible to accommodate and manage rapid change. It requires the integration of every task—from product planning and purchasing, to maintaining bills of material (BOMs), to inventory planning and quality control.

The PeopleSoft Manufacturing business solution synchronizes planning and execution throughout an enterprise, enabling you to respond quickly to customer requests and order changes. One of the features the PeopleSoft Manufacturing production management business solution provides is on-demand planning capability. You can perform what-if scenarios without affecting actual data and without running optimization. With up-to-the-minute precision, you can schedule and dispatch production by production area or work area and accurately track production completions and work-in-process. You also have visibility of incoming purchase orders and allocation of inventory. The comprehensive plan-to-produce solution that the PeopleSoft Manufacturing system provides includes powerful core functionality such as backflushing, shift reporting, subcontracting, multiple cost sets, cost roll-ups, Just-In-Time (JIT) support, and serial and lot tracking.

Click to jump to top of pageClick to jump to parent topicPeopleSoft Manufacturing Production Management Business Solution Applications

The PeopleSoft Manufacturing production management business solution provides an integrated suite of applications that enables you to improve the efficiency of the supply planning and management processes. Whether the production is discrete, repetitive, make-to-order, assemble-to-order, make-to-stock, or mixed-mode, this PeopleSoft business solution enables you to plan and manage the processes flawlessly. Enterprise-ready applications provide swift, efficient access to the information you need at every level of the enterprise.

The PeopleSoft Manufacturing production management business solution includes:

PeopleSoft Manufacturing

Within PeopleSoft Manufacturing, you can dynamically maintain complex product structures or BOMs, resources, work centers, tasks, and routings. In addition to the basics, such as revision control, component yield, and master routings, PeopleSoft Manufacturing streamlines and enhances key administrative engineering processes. For example, you can automate approvals and controls between engineering and manufacturing, and attach multimedia representations and instructions to complex operation steps.

To complete important tasks such as forecasting, material planning, allocating materials to production, or doing cost roll-ups, you need accurate and reliable BOMs. PeopleSoft Manufacturing enables you to manage all complex product and process structures and multiple subcontracting and nonsubcontracting scenarios.

You can:

After you decide what product you are going to produce, use the detailed routings (including scheduling options, cost codes, tasks, and routing times) and work centers with their associated resources (crews, machines, tools) in PeopleSoft Manufacturing to specify how you will build the product. You can maintain crew, machine, and tool data by incorporating multimedia attachments and text.

PeopleSoft Manufacturing works with PeopleSoft Engineering, PeopleSoft Cost Management, PeopleSoft Supply Planning, PeopleSoft Inventory, PeopleSoft Purchasing, and PeopleSoft Asset Management. Use with PeopleSoft Engineering to transfer BOMs and routings from manufacturing to engineering or engineering to manufacturing by approved engineering change order or by assembly item. You can also make mass BOM changes.

The PeopleSoft Manufacturing system synchronizes planning and execution throughout the enterprise, enabling you to respond quickly to customer requests and order changes. You can manage production for discrete, repetitive, make-to-order, and hybrid environments. Core functionality such as backflushing, shift reporting, subcontracting, JIT support, and serial and lot tracking enables you to shape the production functions to match the way you organize your business.

Use PeopleSoft Manufacturing to establish the foundation of the system based on multiple transaction processing entities (business units). You have the ability to centralize or decentralize certain key business functions. To minimize data redundancy and promote standardization, you can set up data, such as items, to be shared among multiple business units.

PeopleSoft Supply Planning

PeopleSoft Supply Planning is one of the keys to advanced planning and scheduling (APS) capabilities for optimizing the supply chain and providing true asset optimization at the plant level. PeopleSoft Supply Planning provides an APS system that enables realtime optimization of plant-level procurement and production.

PeopleSoft Supply Planning enables you to weigh constraints (such as cost, lead time, capacity, material, and inventory) that may affect your ability to respond to your customer. It can simultaneously optimize material, aggregate capacity, and safety stock, as well as customer requested and scheduled ship dates, producing down-to-the-second production schedules.

PeopleSoft Inventory

PeopleSoft Inventory provides integration capabilities; tracking, analysis, and reporting tools; and item maintenance and storage location features.

PeopleSoft Inventory uses PeopleSoft Workflow to route item approvals to appropriate role users. PeopleSoft Workflow works in conjunction with item approval processing. A scheduled background process scans the database for unapproved items and sends an electronic message to the appropriate role user. PeopleSoft Workflow also supports hierarchical approval processing, sequentially routing an approval item to multiple users.

PeopleSoft Quality

PeopleSoft Quality enables you to control the processes, automate labor intensive tasks, improve communication within the enterprise, and accelerate ISO 9000 certification.

PeopleSoft Quality combines online statistical process control (SPC) data collection with the power of a relational database. You can use PeopleSoft Quality to configure the process environment, but you can also use industry standard quality controls or create your own, monitor process performance, and perform online quality data analysis using the interactive tools in PeopleSoft Quality.

PeopleSoft Cost Management

To operate a business successfully, you must have a complete costing solution. PeopleSoft Cost Management enables you to define the cost foundation, manage product costs, cost and create accounting lines for financial-related inventory transactions, and analyze financial transactions and manufacturing variances.

PeopleSoft Engineering

PeopleSoft Engineering helps you manage the product introduction and change process throughout an enterprise in a dynamic design-to-deploy business solution. Features such as ECOs, engineering change requests (ECRs), engineering bills of materials (EBOMs), engineering routings (ERTGs), item revisions, substitute items, and automated workflow perform together to optimize the engineering and manufacturing process.

See Suite of PeopleSoft Product Development Business Solution Applications.

PeopleSoft Flow Production

PeopleSoft Flow Production focuses on streamlined shop floor execution. Define replenishment attributes to provide a powerful automated tool for signaling replenishment and moving material within the supply chain. The goal is to effectively communicate production and material replenishment signals using a variety of methods, most notably by creating and scanning Kanban cards and labels; routing replenishment requests using Kanban cards, workflow, Pull Lists, and Pull Tickets; or triggering replenishment through completions.

See PeopleSoft Flow Production PeopleBook.

Click to jump to parent topicSolutions for Product Development Challenges

The core mission of a solution designed to manage product development is to effectively manage the communication of information between product and manufacturing engineering and the shop floor.

The PeopleSoft Product Development business solution places you in control of the current engineering environment by providing each individual in the engineering process access to the information that they need, as well as the ability to accurately pass that information through each phase of the product development life-cycle. This workflow driven solution enables engineers to proactively process new product introductions from concept through detailed design through prototyping and into full-scale production. Post-release engineering change requests resulting from product defects, enhancements, material and component and substitutions are also effectively managed. The business solution for managing product development is flexible enough to be tailored to meet the unique requirements of your business; yet, it clearly provides the necessary structure to manage this complex process.

Click to jump to top of pageClick to jump to parent topicRobust Functionality

The PeopleSoft Product Development business solution enables you to define and maintain ECRs, ECOs, EBOMs, ERTGs, and item revisions.

You can manage documents with secure versioning and a supported computer-aided design (CAD) viewer. Clicking one field sets up the integration to Documentum™. You accurately control product revision history, always associating or accessing the correct documents for the appropriate revision.

You can also roll up and calculate the cost of new or changed products, make mass BOM changes, and incorporate PeopleSoft Workflow.

The work resides in an independent engineering workbench that isolates changes from production data. You can transfer BOMs and routings to manufacturing either by assembly item or by approved ECO.

Click to jump to top of pageClick to jump to parent topicIntegrated Process-Oriented Solution

Engineering, planning, costing, quality, shop floor, marketing, customer service, as well as suppliers and customers can all use one tool set and user interface to access crucial product development data.

The process-oriented approach enables you to view data in terms of business processes rather than as raw transactions, making it easy for managers and directors to access the information that they need to meet operational objectives.

Click to jump to top of pageClick to jump to parent topicSuite of PeopleSoft Product Development Business Solution Applications

The PeopleSoft Product Development (or design-to-deploy) business solution includes these applications:

PeopleSoft Engineering

PeopleSoft Engineering provides both specific product development functionality and openness to other systems. It provides an independent engineering workbench environment consisting of EBOMs, ERTGs, ECRs, ECOs, cost roll-up capability, online EBOM comparisons, and seamless integration to a leading document management vault product. This workbench enables you to create and maintain engineering data without affecting production.

This functionality, combined with the workflow-enabled PeopleSoft architecture, enables you to manage the routing, approval, and notification of ECRs, ECOs, and associated BOM and routing additions or changes.

Integrated Engineering Functionality

You can tailor the implementation and complexity of PeopleSoft Engineering to meet your business needs. You can use it to maintain new and pending product structures or to manage the engineering change order approval process throughout the organization. PeopleSoft Engineering delivers:

Click to jump to parent topicSupport for the Consumer Product Industry

PeopleSoft Manufacturing addresses the needs of the process-oriented consumer products industry by providing the capability to:

See Also

Maintaining Bills of Material

Maintaining Production Orders and Production Schedules

Click to jump to parent topicFlow Production

Flow production is a JIT-based pull system that manufactures to customer order rather than to forecasts. You design the production lines and processes to produce a constantly changing mix of products at a steady rate (known as TAKT time). Use schedules for mixed model production instead of work orders to drive production. The schedules for the mixed models are sequenced based on customer orders, and material is replenished using Kanban Cards or replenishment requests. The role of material resource planning (MRP) in flow manufacturing is primarily only for long-term planning of material and capacity requirements.

With PeopleSoft Flow Production, you can source a WIP location directly from a vendor, a feeder line, or an inventory storage location. Replenishment requirements can be communicated using workflow, email, fax, and electronic data interchange (EDI). You can use Kanban cards or replenishment requests to request that more material be sent to the WIP location. You can also import Kanban cards and replenishment requests into the system using the replenishment request EIP. Use backflushing, Kanban cards, or a manual system to trigger replenishment.

Kanban replenishment requests can be printed in two formats: pull list or pull ticket. The pull list is a list of Kanban IDs with associated details, similar to a pick list. Pull tickets are similar to Kanban cards in that you print one pull ticket per Kanban ID. Once you complete a pull ticket, the system changes its Kanban ID status to complete, which is similar to the way in which a one-time Kanban card works.

If you have PeopleSoft eSupplier Collaboration, after the replenishment request is dispatched, the vendors can view the request on the internet.

See Also

Maintaining Kanban Cards and Replenishment Requests

Reviewing Supplier Account Activity

Click to jump to parent topicDiscrete Manufacturing

Typically, you use discrete manufacturing to track production by batches. PeopleSoft Manufacturing defines production batches using production IDs, production type (production, rework, or teardown), quantity, status, backward or forward scheduling, start date, and due date. PeopleSoft Supply Planning uses production IDs to plan for material and capacity usage. You can identify and track costs and variances by discrete order or batch. Production IDs also enable you to report intermediate completions at various operations in an item's manufacturing process. In addition, production IDs let you set up any operation on the item's routing as a subcontracted operation. You move production IDs through the manufacturing process by releasing production, recording completions, closing production, and analyzing and reporting costs and variances by production ID. You track material and conversion costs by production ID rather than day and shift.

See Also

Maintaining Production Orders and Production Schedules

Click to jump to parent topicRepetitive Manufacturing

With PeopleSoft Manufacturing, you can use repetitive methodology for the repeated production of the same products or families of products. You enter quantities for a day of the week, and the system determines the due date when the schedule is added, allowing you to sequence production throughout the day. You can create multiple schedule quantities per shift. You also have the option of adding a production schedule after you have completed manufacturing an item. This feature enables you to record completions for an assembly item. When you record completions, the system automatically creates the production schedule. Following backflushing, components are consumed and costs are posted for the completed quantity. The system collects costs and variances by day and shift for the production area and item combination.

See Also

Maintaining Production Orders and Production Schedules

Click to jump to parent topicConfigure to Order

If you use PeopleSoft Manufacturing with PeopleSoft Product Configurator, you can create make-to-order or assemble-to-order assemblies. PeopleSoft Product Configurator is a rules-based system that enables you to capture customer requirements and dynamically generate corresponding production requirements. You can define order entry pages for entering and validating configuration information. The configuration information that you enter determines the specific components and operations used in the production process.

The production configuration process takes the detailed configuration information captured during order management and sends requirements to PeopleSoft Manufacturing. The production configuration rules enable you to specify component and operation list elements dynamically without having to create standard BOMs or routings for each specific configuration. The production configuration process generates configured production IDs, component lists, operation lists, and configured costs that you can then track using a configuration code through PeopleSoft Manufacturing.

See Also

Maintaining Production Orders and Production Schedules

PeopleSoft Product Configurator PeopleBook

Click to jump to parent topicThird-Party Integration

This section discusses:

See Also

Integrating with Third-Party Systems

Click to jump to top of pageClick to jump to parent topicIntegration with Item Content Providers

The proliferation of web-based catalogs has provided manufacturers with an easy and effective tool to locate items with the desired specifications at the lowest cost. The traditional catalog function now comes in a variety of forms to improve business to business communication between systems. Examples include component supplier management systems, market site aggregators, independent trading exchanges, and traditional catalog providers with new web interfaces. These systems benefit the design and purchasing of new products by accelerating item location, maximizing design reuse, and reducing acquisition costs.

The PeopleSoft Manufacturing system provides an EIP to these systems, which maximizes the ease of importing item data into the PeopleSoft database. Using PeopleSoft Application Messaging technology, you can keep item and vendor/item information synchronized within the PeopleSoft system. In particular, you can launch, search, and import vendor/item information from the item content provider into the PeopleSoft database.

Click to jump to top of pageClick to jump to parent topicIntegration with Other Product Data Management Systems

Product data management (PDM) systems effectively and quickly track and implement new product introductions and product changes. These systems provide engineering-centric software that often pulls together CAD and product documentation, BOM and item information, ECOs, and workflow.

PeopleSoft Manufacturing enables ongoing, one-way transfer of items, item revisions, and BOMs from a third-party PDM system to a PeopleSoft system. Using PeopleSoft Application Messaging technology, a third-party system can publish PDM messages to the PeopleSoft system.

See Also

Integrating with Third-Party Systems

Click to jump to top of pageClick to jump to parent topicIntegration with Product Life Cycle Applications

You can now send item, revision, and manufacturing BOM information using product life cycle management (PLM) applications to manage new product introductions and change orders externally from PeopleSoft using the product data exchange (PDX) version 1.0 XML format.

See Integrating Oracle's PeopleSoft Manufacturing with Product Life Cycle Management Applications Using PDX 1.0 XML.

Click to jump to top of pageClick to jump to parent topicIntegration with Manufacturing Execution Systems

You can use an MES to enable the optimization of production activities from production order launch to completion of finished goods. MES functions include:

To facilitate the flow of information between PeopleSoft and the MES, a group of EIPs provides a flexible link between the two systems. With PeopleSoft Manufacturing, you can:

You continue to use PeopleSoft Manufacturing for planning, material movement into WIP, validation of completion data, and production costing functions. The PeopleSoft system is the system of record for setup information, including item masters, BOMs, and routings.

Click to jump to top of pageClick to jump to parent topicIntegration with Electronic Data Collection Systems

PeopleSoft Manufacturing and PeopleSoft Flow Production enable you to use a bar code scanner, wedge connected to a PC, or radio frequency device to scan data. The PeopleSoft system provides EIPs that feed data from PeopleSoft Manufacturing and PeopleSoft Flow Production. You can use electronic data collection with these transactions:

You can also print bar coded labels for completed items and bar code-enabled reports.

Note. PeopleSoft SCM applications do not support the printing of bar codes from processes running on OS390 servers. You should run your SQRs that print barcodes on a process scheduler server that is running on a non-OS390 operation system.

See Also

Integrating with Third-Party Systems

Integrating to Electronic Data Collection Systems

Click to jump to parent topicAdditional Manufacturing Functionality

Among the various features that PeopleSoft Manufacturing delivers, you can also find the item substitution, component use up, rounding rules, rework, and teardown functionality to optimize the manufacturing processes.

Click to jump to top of pageClick to jump to parent topicItem Substitution

With substitute items, you can predefine valid alternates for an item to use when that item is unavailable. Using PeopleSoft Inventory, when an ordered item is unavailable (either temporarily or permanently), the proper replacement item is automatically substituted to fill the order. When using substitute items with PeopleSoft Manufacturing, PeopleSoft Supply Planning automatically suggests the substitute item when the original is in short supply. You can define substitute items at three levels:

Item Definition (Item SetID level)

This level is primarily used for PeopleSoft Purchasing, and is the default for the business unit level substitutions.

Item Attributes by Unit (BU/Item level)

This level is used by PeopleSoft Manufacturing and Inventory, and as a default for setting up BOM/EBOM level substitutions. Substitute information appears by default (optionally) at this level from the SetID level.

Maintain BOMs/EBOMs (BOM/EBOM level)

This level is used by PeopleSoft Manufacturing for all item substitutions. Information at this level appears from the business unit (BU) level.

You can define substitutes for an item in the Item Definition and Item Attributes by Unit pages and use them as defaults when maintaining components on a BOM. When defining substitutes, you can specify start and end dates, as well as a conversion factor. The conversion factor defines how many of the substitutes are required to replace the original item. You can set a priority by which the substitute item with the highest priority or lowest number is substituted first in the PeopleSoft Supply Planning solvers.

Using the Item Definition pages, you can define substitutes for an item. You can define user security and limit access to those individuals permitted to define the substitutes.

You have the option to push the item level substitutes to the Item/BU level. If you create an effective date for a substitute, the item can only be substituted within the effective to obsolete date range.

Use the BOM Maintenance Substitute page to define substitutes for BOM components. The system calculates the quantity based on the conversion factor specified (if defined at the item level) and the original item's quantity per.

You can copy the substitute list from the item attributes at the business unit level to the BOM/EBOM level. This functionality isn't available if substitutes don't exist at the BU level.

BOM inquiries include the list of substitutes for each component. Additionally, you can search for components defined as substitutes using the Component Where Used Inquiry.

When copying and transferring BOMs and EBOMs, you can also copy and transfer the substitute list for the BOM/EBOM components. Additionally, mass maintenance on the substitute list is supported.

PeopleSoft Supply Planning enables you to set the level of substitution that occurs during solving. Define these settings at the BU level:

Allow Substitution

Denotes whether the solvers can fulfill the production component demand of an item with a defined substitutes available supply.

Create Substitute Supply

Determines whether the solvers can create new supply for substitute components to resolve constraints. If this option is not checked, the substitute algorithm may only use on-hand quantities. This option is only possible if substitutes are allowed in the BU.

Check Substitute First

Determines whether the solvers will attempt to use substitute components before using alternate sourcing options. If the flag is not checked, the solver checks alternate sourcing options first before trying to use substitutes to resolve a constraint failure. This option is only possible if substitutes are available for the BU.

PeopleSoft Supply Planning passes the list of valid substitutes to the planning engine. When the projected on-hand quantity of the primary item cannot meet the demand, the feasible and enterprise feasible solvers can use substitutions when creating new planned production, if these criteria are met:

When a production ID or production schedule is identified as frozen for substitutes, no substitution is performed. Solvers use substitutions for dependent demand only. They do not use substitutions for end items, such as sales orders, transfers, or forecasts. Solvers consider substitute items (all of the items effective for the period considered) according to the order of their priority.

Note. PeopleSoft Supply Planning assigns higher low-level codes to substitute items rather than to primary items. This ensures that primary items are planned before substitute items.

The substitute item projected quantity on hand must meet the total demand of the substitute item quantity needed for each primary item multiplied by the conversion factor. The solvers do not use partial substitutions. If the solvers cannot meet this demand with substitutions, they plan supply for the primary item.

Note. The material solver performs substitutions only when a component is beyond its phase-out date and there is a dependent demand for the component.

Once a substitution occurs, the original item required and the substitute item are received and applied. When the system creates the component list, substitute items are distinguished from the original required component.

Using PeopleSoft Manufacturing, you can make manual substitutions during the picking process and when recording component consumption. You can also indicate a substitute on the component list in advance, viewing the list of valid substitutes for that component. Alternatively, you can request a list of valid substitutes if insufficient supply exists for the original item when generating a production pick plan. During the review plan process, you can indicate that a substitute item was picked, rather than the original.

When recording completions and scrap, you can indicate a substitute item was consumed. You can also freeze the component list to prevent further substitutes from occurring when the next planning optimization occurs.

See Also

Maintaining Bills of Material

Maintaining Engineering Bills of Material

Maintaining Operation Lists

Issuing Material to Production

Completing Operations and Recording Scrap


PeopleSoft Supply Planning PeopleBook

Click to jump to top of pageClick to jump to parent topicComponent Use Up

Frequently, you may need the ability to plan for end of life of components and beginning of life for their replacements. This occurs when one component is replaced by another component for reasons such as an engineering change, a more technically advanced component, or lower cost.

Here are some examples when you might want to use this functionality:

You can define items that are going to be used up or phased out, drive the inventory level of the use up item to zero, and then manually replace the discontinued item on the BOM with a new item. You can store the use-up date for the item at the BU level because each BU can discontinue items with different use-up dates. Use up works in conjunction with item substitution. After the use-up item is consumed, one of the substitutes for the use-up item on the BOM substitution list can replace it on that particular production order or schedule. If no substitution items are defined for the use-up item and the obsolete date for the item has not been changed, the use-up item will be short.

At the Item Attributes by Unit level, you indicate a discontinue date for the item. After this date, PeopleSoft Supply Planning does not create any planned production, purchase, or transfer orders for that item. Define two new statuses, one representing the current item status and the other representing the future status of the item. To use up the item, set the future status to Discontinued. When you select a future status, you also define the date that the future status becomes effective, which is the date that planning begins to use up existing supply of the item.

PeopleSoft Supply Planning verifies the current and future status for the item. If the status is set to Discontinued, PeopleSoft Supply Planning begins to use up the item on the date indicated.

After the item is used up, PeopleSoft Supply Planning uses substitution logic to determine replacement items. PeopleSoft Supply Planning calculates a projected use-up date and passes it back to production. This is the date when the on-hand balance is projected to reach zero or remain constant for the duration of the planning horizon. You can use this date to initiate ECOs or BOM effective and obsolete changes for the used up item.

See Also

Maintaining Bills of Material

Maintaining Engineering Bills of Material

PeopleSoft Supply Planning PeopleBook

Click to jump to top of pageClick to jump to parent topicRounding Rules in Manufacturing

Numerous transactions in PeopleSoft Inventory, PeopleSoft Purchasing, and PeopleSoft Manufacturing involve converting item quantities from one unit of measure (UOM) to another. You can ensure consistency when stocking and manufacturing item quantities by establishing whole number validation rules. Whole number validation consists of two components:

Quantity precision

Specifies whether item quantities for a given UOM are expressed as whole numbers or as decimals.


Determines how fractional values are rounded so that calculations result in whole numbers.

See Also

Working with Items

Click to jump to top of pageClick to jump to parent topicQuantity Rounding Exceptions in PeopleSoft Manufacturing

Rounding rules do not apply within these three areas of PeopleSoft Manufacturing:

Click to jump to top of pageClick to jump to parent topicRework

PeopleSoft Manufacturing enables you to repair or rework previously completed assemblies to replace defective components, fulfill an ECO or product recall, or refurbish scrapped subassemblies.

Using PeopleSoft Engineering and PeopleSoft Manufacturing, you can define rework BOMs if you typically have a standard rework process that requires additional components. Rework routings enable you to define common rework processes for a large volume of rework production. As with production BOMs and routings, you can define a primary rework BOM and routing and up to 98 alternates each.

When you add a rework production ID, you select from the predefined rework BOMs and routings. When you release the rework production ID, the system automatically creates the component list with the assembly item to be reworked in addition to the components defined on the rework BOM. If you select a rework routing, the system also creates an operation list. If you don't choose a rework BOM and a rework routing, you can manually maintain the component list and operation list.

You must create rework production in the Released status unless the production is in the future, in which case you create Firmed rework production IDs. Once the rework production ID is created, you can either modify the appropriate start and due dates manually, or if capacity and material availability are concerns and you've created a component list and operation list for the rework, you can optimize the production ID using PeopleSoft Supply Planning. PeopleSoft Supply Planning considers rework requirements on a resource the same as regular production, but it won't create rework production recommendations.

In PeopleSoft Manufacturing, rework production is managed with production IDs, not production schedules. The assemblies to be reworked must be picked from non-nettable, non-WIP locations in PeopleSoft Inventory using the Kit Issue method. Additional components must use the Kit Issue method as well. PeopleSoft Supply Planning does not recommend rework production; it reschedules rework production to repair capacity constraints.

You can record completions and scrap at intermediate operations, consume the additional components, and earn labor costs associated with the rework. When you close production, any additional component and labor costs incurred are charged to the rework expense account. You can view all rework costs in PeopleSoft Cost Management.

Click to jump to top of pageClick to jump to parent topicTeardown

Often, you need to break an assembly down into its component parts and return the components to inventory. With PeopleSoft Manufacturing, you can:

Effects of Teardown on BOMs and Routings

When maintaining a production or engineering BOM, you can indicate whether the component could be a potential output from a teardown order. By selecting a check box on the Component Summary page, you designate the component as a teardown output. If you select this check box, the system automatically copies the component details to a new Teardown Outputs page when you create a new teardown order. If you do not select the check box, it indicates that the component is not an output of a torn-down assembly.

You can include teardown outputs when you copy a BOM. Additionally, you can delete the teardown outputs. All BOM inquiries include a new page used to display teardown outputs.

You can create a teardown routing. The teardown routing can differ from the production routing, but it can use any of the existing tasks or work centers defined for production. As with production routings, you have the option of having a primary teardown routing and up to 98 alternates. When copying a routing, you can copy a teardown routing to another item ID or business unit.

Effects of Teardown on Production

When you select the production type of Teardown during production ID maintenance, you indicate whether the list of teardown components is based on a previous component list or the production BOM code. Use the Transaction History search to find the original production ID used to create the item to be torn down. If multiple production IDs were used to create this item, the system generates a list of production IDs. Once you select the production ID from the list, the system copies the components designated as teardown components to the teardown production ID output list, and the assembly item is copied to the component list. You have the option of using the original operation list or you can use a predefined operation list from a teardown routing.

If there is no original production ID for the item, you use a teardown BOM and routing. When you indicate that a component is a teardown output during production BOM maintenance, the system automatically copies the component details to a teardown page. The outputs appear when the item is torn down and enables you to override the output quantity or operation sequence.

When recording completions on teardown orders, you can report the number of assemblies torn down. The system calculates the quantity of each component removed from the assembly item. In addition, because teardown components are reported at any operation, you are provided the functionality necessary to report teardown completions. You can route the teardown components to another production ID, back to stock, or to a container in the same manner as any completed item. You can reassign lot and serial numbers for the components.

The system uses a teardown variance type to collect any additional expenditure from tearing down the assembly, as well as to account for lost conversion costs.

Click to jump to top of pageClick to jump to parent topicYield by Operation

Operation yield allows you to specify the quantity of goods expected to make it through the process. The expected loss can then be incorporated into the cost of the usable end items. Additionally, PeopleSoft Supply Planning can take into account process yield and increment the demand by the expected loss to ensure that demand will still be met once the manufacturing process is complete. This function enables you to specify a yield percentage on the routing operation step and calculates the additional resources necessary to meet the scheduled quantity with the anticipated yield loss.

Click to jump to top of pageClick to jump to parent topicSerial Genealogy

PeopleSoft Manufacturing enables you to trace the location and constituent components of finished goods items and to trace source and usage of component parts during the production process. Serial genealogy tracks the source and destination of any serialized item. A serialized item may be used in a serialized assembly, scrapped, or used in a higher level serialized assembly that is then shipped to a customer.