How Items Are Set Up

The items used in contract manufacturing are created in the Product Information Management work area. The following key setup tasks are performed within the Product Information Management work area:

• Create Items setup is used to create items such as the contract manufacturing finished goods item and the contract manufacturing service item. It is also used to set the attributes as required for the contract manufacturing flow.

• Create Item Structure setup is used to create the bill of material for the contract manufacturing finished good item.

The following table displays items and the attributes for Finished Goods item, original equipment manufacturer (OEM) supplied components, contract manufacturer supplied components, and contract manufacturing service item (represented as Contract Manufacturer Finished Goods Server):

Attribute Name	Attribute Value	Attribute Value	Attribute Value	Attribute Value
Not Applicable	Finished Goods Server	Contract Manufacturer Finished Goods Server	OEM Components	Contract Manufacturer Sourced Components
Item Type	Make	Buy	Transfer	Transfer
Inventoried	Yes	Yes	Yes	Yes
Stockable	Yes	Yes	Yes	Yes
Transactable	Yes	Yes	Yes	Yes
Back-to-Back	Yes	No	No	No
Contract Manufacturing	Yes	Yes	No	No
Inventory Planning Method	Not Planned	Not Planned	Min-Max Planning (for pre-positioned components)	Not Planned
Planning Method	Not Planned (for Back-to-Back) and MPS Planning (for Plan to Produce)	Not Planned	MRP Planning (for components supplied per order)	Not Planned
Supply Type	Push	Assembly Pull	Push	Supplier

If you've defined the contract manufacturing finished goods item as a dual units of measure item, which means the Tracking Unit of Measure is set to primary and secondary, you should also define the contract manufacturing service item as a dual units of measure item.

The contract manufacturing service items set up with defaulting control as Fixed and Default are supported, whereas No Default isn't supported. You're not allowed to create a contract manufacturing service item with defaulting control No Default in Product Information Management. It's also recommended that if both the contract manufacturing finished goods item and contract manufacturing service item are dual units of measure items, then you should set up their secondary UOM, positive and negative deviation factors, and item intraclass and interclass conversions identically. The application doesn't enforce these validations.

For general details about setting up items and setup steps common to all SCM offerings, refer to the Implementing Common Features for SCM guide.