Dear Sirs, we are trying to set up a demo for a prospect involving subcontractor work. We were unable to build find out the right structure/parameters to model this simple situation. Item BOM: 0. P1 1. S1 2.S2 3. A1 3. A2 The qty per is always 1. We normally build internally P1, S1 and S2, but as an exception we sucontract the production of item S2 to our supplier 3001 or 3002. In brief we check our capacity load and in some cases we issue a subcontracting order to supplier 3001 or 3002 (the choice is made on their free capacity). We obviously send them A1 and A2 and we receive S2. Our needs are: 1. Check the availability of A1 and A2 in the subsuppliers warehouses 2. Receive from the system a purchase order proposal of S2 (based on the needs of S1), with the choice to firm it for vendor 3001 or 3002. Obviously the purchase price of S2 should include only the subsupplier work and not the material cost and should be read in the trade agreements with the subsupplier. 3. Receive from the system the proposal of how many A1 and A2 are to be sent to the subsupplier for satisfying the purchase order and obviously being able to edit it, perhaps adding other components as well. 4. Issue the correct delivery note documents for the material sent to the subsupplier and keep track of how many goods were already sent (with the link to the various delivery notes) and what remains to be sent. 5. Register the delivery note for S2 from the subsupplier ; this should accordingly register the correct consumption of A1 and A2 from the subsupplier warehouse. 6. Register invoice from subsupplier In particular for point 3, as written in the document DocID: AX-300-ILT-077-v01.00-ENUS , page 1-3, I"f raw materials are to be released to the sub supplier in connection with the purchase order, the item should be created as a BOM type", it seems that a purchase order and a production order type vendor should be created and linked automatically if the parameters are set up correctly, but it doesn’t work. Desiderata needs: 7. Issue a subcontracting “spot” order for item S2 to a subsupplier, that is not linked to S1 needs and use the same procedure as above 8. Group different subcontracting items on one subsupplier order, with more then one line (example order for S2, S2_B, S2_C, etc) on the basis of for example period coverage (example 10 working days). 9. Check the capacity load on the subsupplier site in terms of hours per day, with the detail of the orders. Thank you in advance for your support. Giuseppe Di Giovanni Business Consultant
Hi Guisseppe, I started to reply to this and got an error, but it seems to have part posted a message. Unsure what happened [:D]. Just looking at your requirements and will post my thoughts as soon as I have gathered them!
Hi Guisseppe, Okay here are my thoughts as best as I can collate them within the system, what I will say is that I have not run this through, and this will not be the only way to approach it. I have also tried to remain within the standard software and not type “Modification Required” a lot [:D]; 1. To be able to check the availability of components at the subcontractors you would need to create a location for the subcontractor and move stock on a presupposed reorder level between the locations based on planning recommendations or manually using the item reclassification or item transfer journals. In this manner the standard item availability views could be used. However the downdating of stock is not particular to locations in the BOM or routing, as you may come across in other systems, instead the location is from the production order, that in turn is generated to fulfill the sales order at a set location. The subcontract purchase order is location specific so it could be altered at this point, but the receipt of it would require a manual journal to move the stock to the production order location, or if you are manually consuming stock the location on the consumption journal can be altered for the components, or you could modify the system to handle this gap. 2. Make S2 an item that has a requisition system of Production Order, with a routing defined as a subcontract work centre. The BOM of S2 will need to be set up in the following manner. Create a Production BOM for A1 where the component is A1 (type Item) and the quantity is 1. Create a Production BOM for A2 where the component is A2 (type Item) and the quantity is 1. Create a BOM for S2 with components A1 and A2 specified and the type set as Production BOM. In this manner you will get a production order for S2 that produces a purchase order from the routing. The vendor choice comes from the vendor specified against the workcentre, one will default in, and on the subcontract worksheet you can redefine it, although I think you require a vendor preference setting against the work centre which I am afraid does not exist. The purchase price is derived from the setting against the workcentre. A unit cost can be specified and for ach item that goes through the work centre this cost is applied, or probably more pertinent to you you can select the specified unit cost flag, which will bring the unit cost per from the routing. In this way the cost is based upon the item going to the supplier rather than a set fee per item (no matter what it is) going to the supplier. I will just say at this point I have not tested this [:D]! 3. From the released production order for S2 that is creating the purchase order the print of the material requisition will display the components necessary for the completion. These components can be altered directly on the released production orders under the item button and components. Altering these figures will also adjust the material requisition report, which I am assuming you could use as an indication of components sent. However in reality the supplier will use their own stock as well as that being sent, so somehow you are also going to have to downdate the stock of the components at the suppliers site - this of course could be manually controlled via the consumption journals, although it is not very clean. Furthermore the components against the order can be added to and these will also appear on the material requisition print. 4. Are you advocating part-shipment of components? As you may already have gathered I do not think Navision is geared as standard for your supplier to hold component stock, well for this to be used as part of the sub-contract process anyway. The subcontract dispatch list will display all of the goods theoretically sent to the supplier, I say theoretically because once the purchase order is raised you see the requirement of the parent on the report and the components “sent” although these in all probability will still be on your site, so this would probably need tightening up for you. There is no direct link to delivery notes because they do not exist in this concept, but you do get a purchase order and production order cross reference by product. 5. The purchase order receipt will process normally, but the downdating of stock is dependant upon the operation completion of the works order, although the quantity on component lines will indicate what is in use and the routing link codes could be used to make this easier on the completion of the operation to downdate the stock when you wanted it, although this will be linked to the production order rather than the purchase order. 6. The supplier invoice would be registered as normally against any purchase order. This bit should be standard and easy. It is not perfect to your requirements, but a lot of it you can handle - I think from your initial statement. I’ll let you get on with digesting these suggestions and if you have any further questions please feel free to post more questions!!
Hi Guisseppe, I printed your request out and for some reason only got one page, meaning I missed requests 7-9 [:I] 7. If you make the demand of S2 not connected to S1, i.e. it has its own requisition requirements, then this would be picked up in the normal manner in MRP, so reorder levels, etc. 8. The subcontracting worksheet is by production order and supplier, but if I assume (dangerous[:D]) it takes the same charcteristics as the MRP purchase order generation then the make orders routine will create one purchase order. However as the purchase order and production order are intrinsically linked for the updating of routes and the backflushing of orders my guess would be you cannot do this for good proceesing reasons, i.e. it is a purchase order - production order relationship not a production order to purchase order and purchase order line relationship. i think this would have to be modified (carefully) but feel free to check it. 9. The work centre capacity figures should be able to be generated in the standard manner, it is simply a work centre with a set capacity against it and work loaded upon it so the load calculations should give you this, although I have never set it up for a subcontracted work centre - most people would not take the further step and monitor the capaciyt of a supplier, they would let the supplier monitor their own capacity and simply demand the work in quicker than the lead time anyway!