Considering Subcontracted Operations

If you use outside suppliers to perform an operation, set up and maintain the routing and operation list to take this into consideration. A subcontracted operation can be defined when setting up a task, a work center, an operation on a routing, or when creating or maintaining an operation list.

When you specify that an operation will be performed by a subcontractor, also select a preferred supplier for performing the work. If you do not select a preferred supplier, PeopleSoft Purchasing uses autosourcing to determine the supplier.

If you're creating or maintaining a subcontracted operation, note that:

• Any production with one or more subcontracted operations on the operation list must be tracked using a production ID.

• If you're using count points, all subcontracted operations must be defined as a count point.

• You must copy the routing to production during release.

  Select the Copy Routing to Production check box on the Routing header to ensure that the routing is copied to production during the release process.

• You can specify only labor planning and costing operation times.

• You cannot generate multiple outputs such as co-products or by-products at subcontracted operations.