How to configure BoM with items which are sent outside for job work?

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1

Hello,

There is a machine which consist of 300 parts. This machine is manufactured in-house but there are 9 parts for which raw material is provided to another company for job work.

Let me try and explain a bit more.

There are 9 parts that are manufactured from bright bars. What happens is that first bright bars (which are purchased in weight) is cut in to smaller piece depending on the dimension of the machine to be manufactured. Then these pieces of bright bar are sent out to another engineering company along with CAD drawing for job work. This company can take anything from 24 hours to 240 hours to do the job work and return the parts.

Currently I have configured this pieces/part as a raw material and added it to machine’s BoM. So when I issue a work order the work order for job work should also get created. But this is not happening.

Can someone guide me as to how to set this up.

TIA

Yogi Yang

2

Hi Yogi
Let me give you an example and try to explain it to you
I have a
Item / Part Name – Main Rotor Spindle D48
Item / Part Number – MRS-D48-01-PRT
Now the above Item has got the following Process / Operations
List Of Operations

  1. Cut to Length
  2. Rough Turning
  3. Heat Treatment
  4. Finish Turning
  5. Hard Chrome
  6. Key Way Milling
  7. Cylindrical Grinding

Now, Each of the above Operations should be defined as Items and entered in the Item master
Let me Show You

  1. Cut to Length
    item Name - Main Rotor Spindle D48 CTL
    Item Number - MRS-D48-01-CTL-WIP

  2. Rough Turning
    item Name - Main Rotor Spindle D48 RT
    Item Number - MRS-D48-01-RT-WIP

  3. Heat Treatment
    item Name - Main Rotor Spindle D48 HT
    Item Number - MRS-D48-01-HT-WIP

  4. Finish Turning
    item Name - Main Rotor Spindle D48 FT
    Item Number - MRS-D48-01-FT-WIP

  5. Hard Chrome Plating
    item Name - Main Rotor Spindle D48 HCP
    Item Number - MRS-D48-01-HCP-WIP

  6. Key Way Milling
    item Name - Main Rotor Spindle D48 KWM
    Item Number - MRS-D48-01-KWM-WIP

  7. Cylindrical Grinding
    item Name - Main Rotor Spindle D48 CG
    Item Number - MRS-D48-01-CG-WIP

Now while creating the Item for all the above mentioned Process, You can also add valuation Rate if you know the cost of all the Process Involved
DON’T FORGET TO TICK THE CHECK BOX “Supply Raw Materials for Purchase “ FOR EACH Item in the Item Master
Now Comes Creating the BOM
As the Name Suggests… BOM is Bill Of Materials
Or in other Words the Items required to create a Master Item or an Assembly
In this case Your Master Item is - Main Rotor Spindle D48
And the Items required to manufacture the above Master Item are the 7 Items Described above as WIP
Lets Create BOM for the Master Item Main Rotor Spindle D48
In the Item Box enter — Main Rotor Spindle D48
In the Materials Section Below Enter all the Process Items ( will be visible only if you have already created Item of all the above Operations)
Item code –

  1. MRS-D48-01-CTL-WIP

  2. MRS-D48-01-RT-WIP

  3. MRS-D48-01-HT-WIP

  4. MRS-D48-01-FT-WIP

  5. MRS-D48-01-HCP-WIP

  6. MRS-D48-01-KWM-WIP

  7. MRS-D48-01-CG-WIP
    Now the Bom for the above Master Item is Ready
    The Next Part is to define Individual BOM for all the Process

  8. Item
    MRS-D48-01-RT-WIP
    Material
    MRS-D48-01-CTL-WIP

  9. Item
    MRS-D48-01-HT-WIP
    Material
    MRS-D48-01-RT-WIP

  10. Item
    MRS-D48-01-FT-WIP
    Material
    MRS-D48-01-HT-WIP

  11. Item
    MRS-D48-01-HT-WIP
    Material
    MRS-D48-01-RT-WIP

  12. Item
    MRS-D48-01-HT-WIP
    Material
    MRS-D48-01-RT-WIP

  13. Item
    MRS-D48-01-FT-WIP
    Material
    MRS-D48-01-HT-WIP

  14. Item
    MRS-D48-01-HCP-WIP
    Material
    MRS-D48-01-FT-WIP

  15. Item
    MRS-D48-01-KWM-WIP
    Material
    MRS-D48-01-HCP-WIP

  16. Item
    MRS-D48-01-CG-WIP
    Material
    MRS-D48-01-KWM-WIP
    After this, you can create a Stock entry with an Option called REPACK to convert the Last Process of MRS-D48-01-CG-WIP to MRS-D48-01-PRT
    After this you can create a Purchase Order for a particular Process that needs to be sent to Subcontract
    Once you Select the Item in Purchase Order that needs to be Subcontracted… For Example yo need to Subcontract Hard Chrome Plating
    You already have the Material MRS-D48-01-FT-WIP in stock
    Now you select MRS-D48-01-HCP-WIP for Purchase Order Creation
    Select “YES” for Supply Raw Material
    Automatically the System selects the Raw Material that needs to be sent to Subcontract
    Select your vendor
    Define your Rates / Select from Pricelist
    Fill all other required Columns in the PO
    Submit the PO and Transfer the Material to Subcontract through Stock Entry
    Regards
    Hemanth RK

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3

Would this approach work for a custom BOM every time? Each of our orders has custom components that are sent for job work.

Would dynamically populating the Item master for each new order work?

4

Hi
Sure Should Work
The Basic Funda is in creating the correct BOM and everything will work
Regards
Hemanth RK

1 Like