Set Up a Work Definition in Contract Manufacturing

In contract manufacturing, multiple supply scenarios are possible, resulting in a Bill of Materials (BOM) for each of the supply scenarios.

The following are a few supply scenarios:

• Make in-house.

• Purchase from a supplier.

• Alternative Contract Manufacturer Suppliers: CM1or CM3.

• Work definition is set up for each contract manufacturer's manufacturing plant.

• The following section lists the recommendations for setting up a work definition:

  • Contract Manufacturer Finished Goods Server is defined as one of the components for the last operation and is an example of a contract manufacturing service item. Define only one Contract Manufacturer Finished Goods Server as a component, with a BOM quantity of 1 EA.

  • Set up the supply subinventory and locator (if subinventory is locator controlled).

  • Dummy work centers are required only for lead-time calculation. It is expected that the Contract Manufacturer supplier doesn't report any resource consumption.

  • Work definition need not be limited to only those operations that the OEM is interested in tracking. Work definition can include all the operations, and the operations (milestone operations) on which the OEM needs a progress update from the Contract Manufacturer. Those operations are marked as count point operations.

  • All the milestone operations are count point operations, and auto-transact operations may exist in a contract manufacturing work definition.