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Subcontracting. The concept of a subcontracting could be available for all three types of manufacturing, discrete, process, and lean. I decided to use the time in order to put everything into perspective for you. Let us say, a piece of process needs to be subcontracted. How do we deal with that, specifically for lean? In order to configure subcontracting, you need to deal with the vendor because your goods got to go somewhere else, be processed, and then perhaps the cost would be affected differently. Therefore, you need to create specific levels in order to find out what would be the cost group. Remember, as far as the cost group, there is a type called direct outsourcing. Now let us see how do we put things together here. You are going to go to USMF, go to Accounts payable, and we take a look at the purchase agreements that are available here. And I am going to create a brand new purchase agreement for one of the vendor that is going to act as a subcontractor. More information is available in supply chain training. So let us say, I am going to create this purchase agreements. And we are going to go to the Header as specified, perhaps adequate information in regard to effective dates, maybe expiration date, so many other factors in regard to public sector, maybe you need to have a specific activities to be specified. You would like to add additional information when it comes to procurement and sourcing and dealing with purchase agreement classification, you could include the subcontractor information as part of it, and that adds an additional fast tab into the purchase agreement. Maybe they are required to have a particular certification, they need to be certified to produce. Would you allow direct invoicing to be done or it has to go through a specific policies that you have, and you may want to add additional activities and link it to the case management, just wanted to show you these features here. Let us say, I am going to change the status to be effective in order to be able to use it immediately. Effective date and maybe we are going to expire it. I go to the Line, add a line for one of the items that I would like to have it as a subcontracted. Assume, you are producing something, you send it to a vendor, advance your works in order to do some additional processing, testing, maybe making it waterproof, et cetera. Happens that this is going to be coming from warehouse 21, goes to that vendor, and then they say how much it is going to cost you per unit, and then you could specify the expiration date for each line to be different. If you would have set it up at the header, that would be defaulted here, which again, you could override it. I make it simple, it is effective, it is ready to go. And of course, for resource group, you need to consider a new workcell to be acted as a subcontractor, and a resource of a vendor. You need to take care of that in order to make sure that your lean processing is going to consider that workcell as a subcontractor, and vendor is going to look at the purchase agreement. So let us go take a look at resources. And as matter of fact, when you create a brand new resource, you can give it a name like subcontracting vendor. And as you remember, you have so many different types of resources. For subcontracting, you have to choose Vendor. If I choose Vendor, I pick and choose the proper vendor that I have a purchase agreement for. And then I need to go back to Resource groups, create a brand new resource group, give it a name, call it like Subcontracting workcell associated for a particular site and make it to be workcell. This is important, and if you remember, at the beginning of my demonstration in regard to the lean, this has to be a workcell. You say, where you get the data from, what is the location for it, and where do you indeed place it in? Happens that in this demonstration, I am just going to use a completely different warehouse, you receive it in 11, and then you have taken it out to 13. Then after that, we are going to go to the calendar. And based on the calendar, maybe you are using a different calendar for subcontracting workcell than your production. Happens that I am using the same, but it could be different. And then of course, I am adding the resource that is acting as a vendor indeed in this scenario, which happens to be subcontracting vendor. And the capacity of the workcell, I need to negotiate that with my subcontractor, you have to create a production floor model and say when do you need to ask that subcontractor to perform operation. So I pick and choose one of these production floor model, and I change the capacity period depending on their working day. Is it a standard working day? Are they working weekly, monthly, et cetera? I use the standard work day. And then you need to see what is your average throughput. Again, you got to communicate with the subcontracting personnel. This is nothing that you decide, they are telling you what it is. And what would be the unit? Let us say, my unit... If I can be a bit more specific, can be chosen, or you could just say I do not care about the unit. But usually the vendor says we are going to have an average throughput of 100 pieces, let us say. Needless to say, you could override the ledger posting and financial dimensions when you do the subcontracting. That is where the financial team meet with your production team, and they decide accordingly.

Video Details

Duration: 5 minutes and 1 second
Language: English
Genre: None
Views: 9
Posted by: jmladero on Apr 12, 2019

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