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Posted to user@ofbiz.apache.org by Giulio Speri - MpStyle Srl <gi...@mpstyle.it> on 2018/02/13 09:18:42 UTC

OFBiz MRP & Manufacturing: subcontract-work

Hello everyone!

I'm writing because I would need some clarifications about MRP and
Manufacturing, in particular with the process of subcontract-working.

I read Sharan's book on the argument, it's really well made, but I would
need some extra details.

Reading the book I understood that, in the process of manufacturing a
finished good (a table for example), a list of task can be set up, each
representing a specific step required to make the finished good.
Now, I am focused on that tasks that can be subcontracted to an external
worker.

Using the example of building a table:
one of the tasks of the process, could be my company X that supplies wood
to an external worker Y, that cut it and give back to me the finished
wooden board.
Then my company can proceed with the other manufacturing tasks.
At the end, the external worker Y should bill the total cost of his working
process to my company X.

Is that correct or I missed something?
Has anybody had to handle sub-contract work with an external supplier with
OFBiz in a similar scenario?

Thanks in advance to all for help,

Kind Regards,

Giulio

-- 
Giulio Speri

*Mp Styl**e Srl*
via Antonio Meucci, 37
41019 Limidi di Soliera (MO)
T 059/684916
M 334/3779851

www.mpstyle.it

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Pierre Smits <pi...@apache.org>.
Please see inline. I trust the nuggets provided help.


Best regards,

Pierre Smits

Apache Trafodion <https://trafodion.apache.org>, Vice President
Apache Directory <https://directory.apache.org>, PMC Member
Apache Incubator <https://incubator.apache.org>, committer
Apache OFBiz <https://ofbiz.apache.org>, contributor since 2008
Apache Steve <https://steve.apache.org>, committer

On Thu, May 24, 2018 at 8:38 PM, Wolfgang Paul Rauchholz <
wp.rauchholz@gmail.com> wrote:

> I hope that works....
>
> Company needs to control WO cost and retains title of raw material
> inventory stored at Sub-Contractor
>

This is a contractual issue.



> Sub-Contractor only invoices labor cost (and sometimes freight in case of
> drop-ship to customer)
>

This is part of the contract with the sub-contractor.


>
>
> *Company* *Sub-Contractor*
> (1) Company receives SO from customer

(2) Company places purchase orders for raw mtrl to supplier
> Some raw mtrl orders are based on MRP explosion
> Some raw mtrl orders are back to back orders
> (3) Supplier drop-ships raw material to Sub-contractor
>

This could be regarded as a delivery to a secondary facility.



> (4) Company releases work order for FINGOOD
>

This could be a ProductionRun at the secondary facility


> A PO be created with the material consumed on work order and linked to WO
> routing task (can be automatic with WO release?)
>

PO can be associated with the WO.


>
> (5) Sub-contractor produces FINGOOD
>

Sub-contractor executes the ProductionRun at the secondary facility. And
when finished registers the inventory change at secondary facility.


>
> (6) Sub-contractor either
>
> drop-ships FINGOOD to customer, or
>

Sub-contractor acts as picker/packer and ships for the SO


>
> ships FINGOOD to company
>

This could be an internal transfer from one facility to another.


> (7) PO receipt of FINGOOD closes purchase order and correspondent task on
> work order routing (can be automatic with PO receipt?)
>

This could be regarded as the acceptance by primary facility warehouse
manager of the goods of the internal transfer.


>
> (8) Sub-contractor to issue invoice
>

Supplier (sub-contractor) invoice alignment with PO.


> > >> [1] https://en.wikipedia.org/wiki/Original_equipment_manufacturer
> > >>
> > >> Best regards,
> > >>
> > >> Pierre Smits
> > >>
> > >> Apache Trafodion <https://trafodion.apache.org>, Vice President
> > >> Apache Directory <https://directory.apache.org>, PMC Member
> > >> Apache Incubator <https://incubator.apache.org>, committer
> > >> Apache OFBiz <https://ofbiz.apache.org>, contributor since 2008
> > >> Apache Steve <https://steve.apache.org>, committer
> > >>
> > >> On Wed, May 23, 2018 at 2:40 PM, wp.rauchholz@gmail.com <
> > >> wp.rauchholz@gmail.com> wrote:
> > >>
> > >> >
> > >> > Following up on you discussion of sub-contracting. I am testing too.
> > >> > I defined the BOM and routing task with type Subcontracting. This
> > >> routing
> > >> > task was assigned a routing and all components that go to the
> > >> subcontractor
> > >> > were added using 'EDIT ROUTING PRODUCT LINK'.
> > >> > When releasing a work order, the system does not seem to create a PO
> > >> > automatically.
> > >> > This PO should have the components attached and move the material
> from
> > >> > their inventory to the sub-contractor facility. By receiving the PO
> > >> back,
> > >> > the task in work order should close too.
> > >> > Am I missing something or does this functionality not exist?
> > >> >
> > >> > How do I do a BOM / routing cost roll-up over the standard
> BOM/routing
> > >> to
> > >> > set the standard cost?
> > >> >
> > >> > Thanks, Wolfgang
> > >> >
> > >> >
> > >> >
> > >>
> > >
> > >
> > >
> > > --
> > >
> > > Wolfgang Rauchholz
> > >
> > >
> > >
> > >
> >
>
>
>
> --
>
> Wolfgang Rauchholz
>

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Wolfgang Paul Rauchholz <wp...@gmail.com>.
I hope that works....

Company needs to control WO cost and retains title of raw material
inventory stored at Sub-Contractor
Sub-Contractor only invoices labor cost (and sometimes freight in case of
drop-ship to customer)


*Company* *Sub-Contractor*
(1) Company receives SO from customer
(2) Company places purchase orders for raw mtrl to supplier
Some raw mtrl orders are based on MRP explosion
Some raw mtrl orders are back to back orders
(3) Supplier drop-ships raw material to Sub-contractor
(4) Company releases work order for FINGOOD
A PO be created with the material consumed on work order and linked to WO
routing task (can be automatic with WO release?)

(5) Sub-contractor produces FINGOOD

(6) Sub-contractor either

drop-ships FINGOOD to customer, or

ships FINGOOD to company
(7) PO receipt of FINGOOD closes purchase order and correspondent task on
work order routing (can be automatic with PO receipt?)

(8) Sub-contractor to issue invoice

On Thu, May 24, 2018 at 6:36 PM, Pierre Smits <pi...@apache.org>
wrote:

> Hey Wolfang,
>
> Unfortunately the ASF removes attachments from emails sent to mailing
> lists.
>
>
>
>
> Best regards,
>
> Pierre Smits
>
> Apache Trafodion <https://trafodion.apache.org>, Vice President
> Apache Directory <https://directory.apache.org>, PMC Member
> Apache Incubator <https://incubator.apache.org>, committer
> Apache OFBiz <https://ofbiz.apache.org>, contributor since 2008
> Apache Steve <https://steve.apache.org>, committer
>
> On Thu, May 24, 2018 at 9:25 AM, Wolfgang Paul Rauchholz <
> wp.rauchholz@gmail.com> wrote:
>
> > Attached a simplified process description of the scenario to be
> > implemented:
> > Important is:
> > (1) Company controls cost of out-sourced production
> > (2) Company retains title of ownership of raw material @ sub-contractor
> > site
> >
> > To make this process as automatic as possible, it would be helpful if a
> PO
> > is created automatically when work order (WO) is released and that WO is
> > closed once that PO was received.
> > Is this possible?
> >
> > Wolfgang
> >
> >
> >
> >
> > On Wed, May 23, 2018 at 9:37 PM, Pierre Smits <pi...@apache.org>
> > wrote:
> >
> >> Are we addressing here the supply chain involving an OEM (see [1]) where
> >> one manucaturer produces parts (or even the entire product) for a
> >> 'manufacturer'  that incorporates it into its product (think Foxconn
> >> producing for Apple)?
> >>
> >> Or are we addressing the issue of having people participating in the
> >> manufacturing process?
> >>
> >> If it is the latter case, then this becomes like a 'hiring a temp'
> >> business
> >> case handled between HRM and the Purchasing Department (establishing
> >> service agreements) to raise the correct 'service' P.O.
> >>
> >> If it is the first case (supply chain) then it is way more complex.
> >>
> >> Looking at this from the the viewpoint of the Manufacturing Manager of
> >> internal company (the party using OFBiz) and the OEM providing parts to
> >> the
> >> production run at the right moment in time (JIT), a task to produce the
> >> part would - for some -make sense. But if we're talking JIT delivery,
> then
> >> it is actually not a production step, but rather the delivery of the
> part
> >> to the warehouse just before the ProductionRun (or even a task therein)
> is
> >> started. Making it more an issue of setting correct facility and order
> >> thresholds for the component in the catalog app. When the ProductionRun
> is
> >> confirmed (in the Manufacturing component, by the Manufacturing
> Manager) ,
> >> the ATP should be checked and if it doesn't meet the ProductionRun
> >> requirements it should trigger the creation of the P.O.
> >>
> >> Entity-wise everything is in place. SECA-wise there might be some gaps.
> >>
> >> All in all there is more to this (more details - business analysis-
> >>  required than outlined outlined in the various postings in this thread.
> >>
> >>
> >> [1] https://en.wikipedia.org/wiki/Original_equipment_manufacturer
> >>
> >> Best regards,
> >>
> >> Pierre Smits
> >>
> >> Apache Trafodion <https://trafodion.apache.org>, Vice President
> >> Apache Directory <https://directory.apache.org>, PMC Member
> >> Apache Incubator <https://incubator.apache.org>, committer
> >> Apache OFBiz <https://ofbiz.apache.org>, contributor since 2008
> >> Apache Steve <https://steve.apache.org>, committer
> >>
> >> On Wed, May 23, 2018 at 2:40 PM, wp.rauchholz@gmail.com <
> >> wp.rauchholz@gmail.com> wrote:
> >>
> >> >
> >> > Following up on you discussion of sub-contracting. I am testing too.
> >> > I defined the BOM and routing task with type Subcontracting. This
> >> routing
> >> > task was assigned a routing and all components that go to the
> >> subcontractor
> >> > were added using 'EDIT ROUTING PRODUCT LINK'.
> >> > When releasing a work order, the system does not seem to create a PO
> >> > automatically.
> >> > This PO should have the components attached and move the material from
> >> > their inventory to the sub-contractor facility. By receiving the PO
> >> back,
> >> > the task in work order should close too.
> >> > Am I missing something or does this functionality not exist?
> >> >
> >> > How do I do a BOM / routing cost roll-up over the standard BOM/routing
> >> to
> >> > set the standard cost?
> >> >
> >> > Thanks, Wolfgang
> >> >
> >> >
> >> >
> >>
> >
> >
> >
> > --
> >
> > Wolfgang Rauchholz
> >
> >
> >
> >
>



-- 

Wolfgang Rauchholz

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Pierre Smits <pi...@apache.org>.
Hey Wolfang,

Unfortunately the ASF removes attachments from emails sent to mailing lists.




Best regards,

Pierre Smits

Apache Trafodion <https://trafodion.apache.org>, Vice President
Apache Directory <https://directory.apache.org>, PMC Member
Apache Incubator <https://incubator.apache.org>, committer
Apache OFBiz <https://ofbiz.apache.org>, contributor since 2008
Apache Steve <https://steve.apache.org>, committer

On Thu, May 24, 2018 at 9:25 AM, Wolfgang Paul Rauchholz <
wp.rauchholz@gmail.com> wrote:

> Attached a simplified process description of the scenario to be
> implemented:
> Important is:
> (1) Company controls cost of out-sourced production
> (2) Company retains title of ownership of raw material @ sub-contractor
> site
>
> To make this process as automatic as possible, it would be helpful if a PO
> is created automatically when work order (WO) is released and that WO is
> closed once that PO was received.
> Is this possible?
>
> Wolfgang
>
>
>
>
> On Wed, May 23, 2018 at 9:37 PM, Pierre Smits <pi...@apache.org>
> wrote:
>
>> Are we addressing here the supply chain involving an OEM (see [1]) where
>> one manucaturer produces parts (or even the entire product) for a
>> 'manufacturer'  that incorporates it into its product (think Foxconn
>> producing for Apple)?
>>
>> Or are we addressing the issue of having people participating in the
>> manufacturing process?
>>
>> If it is the latter case, then this becomes like a 'hiring a temp'
>> business
>> case handled between HRM and the Purchasing Department (establishing
>> service agreements) to raise the correct 'service' P.O.
>>
>> If it is the first case (supply chain) then it is way more complex.
>>
>> Looking at this from the the viewpoint of the Manufacturing Manager of
>> internal company (the party using OFBiz) and the OEM providing parts to
>> the
>> production run at the right moment in time (JIT), a task to produce the
>> part would - for some -make sense. But if we're talking JIT delivery, then
>> it is actually not a production step, but rather the delivery of the part
>> to the warehouse just before the ProductionRun (or even a task therein) is
>> started. Making it more an issue of setting correct facility and order
>> thresholds for the component in the catalog app. When the ProductionRun is
>> confirmed (in the Manufacturing component, by the Manufacturing Manager) ,
>> the ATP should be checked and if it doesn't meet the ProductionRun
>> requirements it should trigger the creation of the P.O.
>>
>> Entity-wise everything is in place. SECA-wise there might be some gaps.
>>
>> All in all there is more to this (more details - business analysis-
>>  required than outlined outlined in the various postings in this thread.
>>
>>
>> [1] https://en.wikipedia.org/wiki/Original_equipment_manufacturer
>>
>> Best regards,
>>
>> Pierre Smits
>>
>> Apache Trafodion <https://trafodion.apache.org>, Vice President
>> Apache Directory <https://directory.apache.org>, PMC Member
>> Apache Incubator <https://incubator.apache.org>, committer
>> Apache OFBiz <https://ofbiz.apache.org>, contributor since 2008
>> Apache Steve <https://steve.apache.org>, committer
>>
>> On Wed, May 23, 2018 at 2:40 PM, wp.rauchholz@gmail.com <
>> wp.rauchholz@gmail.com> wrote:
>>
>> >
>> > Following up on you discussion of sub-contracting. I am testing too.
>> > I defined the BOM and routing task with type Subcontracting. This
>> routing
>> > task was assigned a routing and all components that go to the
>> subcontractor
>> > were added using 'EDIT ROUTING PRODUCT LINK'.
>> > When releasing a work order, the system does not seem to create a PO
>> > automatically.
>> > This PO should have the components attached and move the material from
>> > their inventory to the sub-contractor facility. By receiving the PO
>> back,
>> > the task in work order should close too.
>> > Am I missing something or does this functionality not exist?
>> >
>> > How do I do a BOM / routing cost roll-up over the standard BOM/routing
>> to
>> > set the standard cost?
>> >
>> > Thanks, Wolfgang
>> >
>> >
>> >
>>
>
>
>
> --
>
> Wolfgang Rauchholz
>
>
>
>

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Wolfgang Paul Rauchholz <wp...@gmail.com>.
Attached a simplified process description of the scenario to be implemented:
Important is:
(1) Company controls cost of out-sourced production
(2) Company retains title of ownership of raw material @ sub-contractor site

To make this process as automatic as possible, it would be helpful if a PO
is created automatically when work order (WO) is released and that WO is
closed once that PO was received.
Is this possible?

Wolfgang




On Wed, May 23, 2018 at 9:37 PM, Pierre Smits <pi...@apache.org>
wrote:

> Are we addressing here the supply chain involving an OEM (see [1]) where
> one manucaturer produces parts (or even the entire product) for a
> 'manufacturer'  that incorporates it into its product (think Foxconn
> producing for Apple)?
>
> Or are we addressing the issue of having people participating in the
> manufacturing process?
>
> If it is the latter case, then this becomes like a 'hiring a temp' business
> case handled between HRM and the Purchasing Department (establishing
> service agreements) to raise the correct 'service' P.O.
>
> If it is the first case (supply chain) then it is way more complex.
>
> Looking at this from the the viewpoint of the Manufacturing Manager of
> internal company (the party using OFBiz) and the OEM providing parts to the
> production run at the right moment in time (JIT), a task to produce the
> part would - for some -make sense. But if we're talking JIT delivery, then
> it is actually not a production step, but rather the delivery of the part
> to the warehouse just before the ProductionRun (or even a task therein) is
> started. Making it more an issue of setting correct facility and order
> thresholds for the component in the catalog app. When the ProductionRun is
> confirmed (in the Manufacturing component, by the Manufacturing Manager) ,
> the ATP should be checked and if it doesn't meet the ProductionRun
> requirements it should trigger the creation of the P.O.
>
> Entity-wise everything is in place. SECA-wise there might be some gaps.
>
> All in all there is more to this (more details - business analysis-
>  required than outlined outlined in the various postings in this thread.
>
>
> [1] https://en.wikipedia.org/wiki/Original_equipment_manufacturer
>
> Best regards,
>
> Pierre Smits
>
> Apache Trafodion <https://trafodion.apache.org>, Vice President
> Apache Directory <https://directory.apache.org>, PMC Member
> Apache Incubator <https://incubator.apache.org>, committer
> Apache OFBiz <https://ofbiz.apache.org>, contributor since 2008
> Apache Steve <https://steve.apache.org>, committer
>
> On Wed, May 23, 2018 at 2:40 PM, wp.rauchholz@gmail.com <
> wp.rauchholz@gmail.com> wrote:
>
> >
> > Following up on you discussion of sub-contracting. I am testing too.
> > I defined the BOM and routing task with type Subcontracting. This routing
> > task was assigned a routing and all components that go to the
> subcontractor
> > were added using 'EDIT ROUTING PRODUCT LINK'.
> > When releasing a work order, the system does not seem to create a PO
> > automatically.
> > This PO should have the components attached and move the material from
> > their inventory to the sub-contractor facility. By receiving the PO back,
> > the task in work order should close too.
> > Am I missing something or does this functionality not exist?
> >
> > How do I do a BOM / routing cost roll-up over the standard BOM/routing to
> > set the standard cost?
> >
> > Thanks, Wolfgang
> >
> >
> >
>



-- 

Wolfgang Rauchholz

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Pierre Smits <pi...@apache.org>.
Are we addressing here the supply chain involving an OEM (see [1]) where
one manucaturer produces parts (or even the entire product) for a
'manufacturer'  that incorporates it into its product (think Foxconn
producing for Apple)?

Or are we addressing the issue of having people participating in the
manufacturing process?

If it is the latter case, then this becomes like a 'hiring a temp' business
case handled between HRM and the Purchasing Department (establishing
service agreements) to raise the correct 'service' P.O.

If it is the first case (supply chain) then it is way more complex.

Looking at this from the the viewpoint of the Manufacturing Manager of
internal company (the party using OFBiz) and the OEM providing parts to the
production run at the right moment in time (JIT), a task to produce the
part would - for some -make sense. But if we're talking JIT delivery, then
it is actually not a production step, but rather the delivery of the part
to the warehouse just before the ProductionRun (or even a task therein) is
started. Making it more an issue of setting correct facility and order
thresholds for the component in the catalog app. When the ProductionRun is
confirmed (in the Manufacturing component, by the Manufacturing Manager) ,
the ATP should be checked and if it doesn't meet the ProductionRun
requirements it should trigger the creation of the P.O.

Entity-wise everything is in place. SECA-wise there might be some gaps.

All in all there is more to this (more details - business analysis-
 required than outlined outlined in the various postings in this thread.


[1] https://en.wikipedia.org/wiki/Original_equipment_manufacturer

Best regards,

Pierre Smits

Apache Trafodion <https://trafodion.apache.org>, Vice President
Apache Directory <https://directory.apache.org>, PMC Member
Apache Incubator <https://incubator.apache.org>, committer
Apache OFBiz <https://ofbiz.apache.org>, contributor since 2008
Apache Steve <https://steve.apache.org>, committer

On Wed, May 23, 2018 at 2:40 PM, wp.rauchholz@gmail.com <
wp.rauchholz@gmail.com> wrote:

>
> Following up on you discussion of sub-contracting. I am testing too.
> I defined the BOM and routing task with type Subcontracting. This routing
> task was assigned a routing and all components that go to the subcontractor
> were added using 'EDIT ROUTING PRODUCT LINK'.
> When releasing a work order, the system does not seem to create a PO
> automatically.
> This PO should have the components attached and move the material from
> their inventory to the sub-contractor facility. By receiving the PO back,
> the task in work order should close too.
> Am I missing something or does this functionality not exist?
>
> How do I do a BOM / routing cost roll-up over the standard BOM/routing to
> set the standard cost?
>
> Thanks, Wolfgang
>
>
>

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by wp...@gmail.com, wp...@gmail.com.

On 2018/02/15 16:38:14, Yashwant Dhakad <ya...@hotwaxsystems.com> wrote: 
> Hi Giulio,
> 
> You can also setup multi-level BOM for contract manufacturing product. When
> you create job and the dependent production run automatically created for
> contract manufacturing product. You can issue materials into dependent
> production run and once the dependent production run completed. New
> inventory produced from dependent production run and which would be used in
> its parent job.
> 
> Thanks & Regards
> --
> Yashwant Dhakad
> HotWax Systems
> http://www.hotwaxsystems.com/
> 
> On Tue, Feb 13, 2018 at 2:48 PM, Giulio Speri - MpStyle Srl <
> giulio.speri@mpstyle.it> wrote:
> 
> > Hello everyone!
> >
> > I'm writing because I would need some clarifications about MRP and
> > Manufacturing, in particular with the process of subcontract-working.
> >
> > I read Sharan's book on the argument, it's really well made, but I would
> > need some extra details.
> >
> > Reading the book I understood that, in the process of manufacturing a
> > finished good (a table for example), a list of task can be set up, each
> > representing a specific step required to make the finished good.
> > Now, I am focused on that tasks that can be subcontracted to an external
> > worker.
> >
> > Using the example of building a table:
> > one of the tasks of the process, could be my company X that supplies wood
> > to an external worker Y, that cut it and give back to me the finished
> > wooden board.
> > Then my company can proceed with the other manufacturing tasks.
> > At the end, the external worker Y should bill the total cost of his working
> > process to my company X.
> >
> > Is that correct or I missed something?
> > Has anybody had to handle sub-contract work with an external supplier with
> > OFBiz in a similar scenario?
> >
> > Thanks in advance to all for help,
> >
> > Kind Regards,
> >
> > Giulio
> >
> > --
> > Giulio Speri
> >
> > *Mp Styl**e Srl*
> > via Antonio Meucci, 37
> > 41019 Limidi di Soliera (MO)
> > T 059/684916
> > M 334/3779851
> >
> > www.mpstyle.it
> >
>
Following up on you discussion of sub-contracting. I am testing too.
I defined the BOM and routing task with type Subcontracting. This routing task was assigned a routing and all components that go to the subcontractor were added using 'EDIT ROUTING PRODUCT LINK'.
When releasing a work order, the system does not seem to create a PO automatically.
This PO should have the components attached and move the material from their inventory to the sub-contractor facility. By receiving the PO back, the task in work order should close too.
Am I missing something or does this functionality not exist?

How do I do a BOM / routing cost roll-up over the standard BOM/routing to set the standard cost?

Thanks, Wolfgang



Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Giulio Speri - MpStyle Srl <gi...@mpstyle.it>.
​Hi all,

thank you very much for your answers and sorry for my late answer.
In these days I am evaluating, along with my colleagues, the Manufacturing
and MRP module of OFBiz against the same module on our ERP, to exactly know
the differences between two systems, in order to put down a list of
requirements to develop/integrate.

I'll keep you up to date.

Have a good day,

Giulio

2018-02-16 6:45 GMT+01:00 Karamjeet Kaur <ka...@viithiisys.com>:

> Hi Giulio,
>
> You can use the "supplies wood Y" as a BOM (Manufacturing Bill of
> Materials). It depends on how much quantity of BOM's use to Manufacturing
> the X product as well as use the Production Run between the time of
> Manufacturing the X product (finished good). It's depend on the status of
> Production Run.
> -> If BOM not available in a stock Production run in creating status.
> -> If BOM available in stock Production run in process status.
> -> The production run is closed after X product (finished good) is ready.
> The total cost of Manufacturing the X product is based on Unit Cost of BOM
> 'S and quantity to be used for Manufactured the X product.
>
> Thanks & Regards,
> Karam
>



-- 
Giulio Speri


*Mp Styl**e Srl*
via Antonio Meucci, 37
41019 Limidi di Soliera (MO)
T 059/684916
M 334/3779851

www.mpstyle.it

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Karamjeet Kaur <ka...@viithiisys.com>.
Hi Giulio,

You can use the "supplies wood Y" as a BOM (Manufacturing Bill of
Materials). It depends on how much quantity of BOM's use to Manufacturing
the X product as well as use the Production Run between the time of
Manufacturing the X product (finished good). It's depend on the status of
Production Run.
-> If BOM not available in a stock Production run in creating status.
-> If BOM available in stock Production run in process status.
-> The production run is closed after X product (finished good) is ready.
The total cost of Manufacturing the X product is based on Unit Cost of BOM
'S and quantity to be used for Manufactured the X product.

Thanks & Regards,
Karam

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Yashwant Dhakad <ya...@hotwaxsystems.com>.
Hi Giulio,

You can also setup multi-level BOM for contract manufacturing product. When
you create job and the dependent production run automatically created for
contract manufacturing product. You can issue materials into dependent
production run and once the dependent production run completed. New
inventory produced from dependent production run and which would be used in
its parent job.

Thanks & Regards
--
Yashwant Dhakad
HotWax Systems
http://www.hotwaxsystems.com/

On Tue, Feb 13, 2018 at 2:48 PM, Giulio Speri - MpStyle Srl <
giulio.speri@mpstyle.it> wrote:

> Hello everyone!
>
> I'm writing because I would need some clarifications about MRP and
> Manufacturing, in particular with the process of subcontract-working.
>
> I read Sharan's book on the argument, it's really well made, but I would
> need some extra details.
>
> Reading the book I understood that, in the process of manufacturing a
> finished good (a table for example), a list of task can be set up, each
> representing a specific step required to make the finished good.
> Now, I am focused on that tasks that can be subcontracted to an external
> worker.
>
> Using the example of building a table:
> one of the tasks of the process, could be my company X that supplies wood
> to an external worker Y, that cut it and give back to me the finished
> wooden board.
> Then my company can proceed with the other manufacturing tasks.
> At the end, the external worker Y should bill the total cost of his working
> process to my company X.
>
> Is that correct or I missed something?
> Has anybody had to handle sub-contract work with an external supplier with
> OFBiz in a similar scenario?
>
> Thanks in advance to all for help,
>
> Kind Regards,
>
> Giulio
>
> --
> Giulio Speri
>
> *Mp Styl**e Srl*
> via Antonio Meucci, 37
> 41019 Limidi di Soliera (MO)
> T 059/684916
> M 334/3779851
>
> www.mpstyle.it
>

Re: OFBiz MRP & Manufacturing: subcontract-work

Posted by Sharan Foga <sh...@apache.org>.
Hi Giulio

(I'm still having intermittent issues responding to this mailing list! So am sending this response again)

I'm glad that my book was helpful!

So yes you can allocate a specific routing task to a party (so this could be an external contractor). If you simply want to send them the wood and then book it into stock when it comes back (or give them access to the system to book it in when they are finished), that works.

It also depends on how you want to track the costs of their work. Do you want to track their work costs as part of the production process ? (so you can estimate what their bill will be?) or do you trust them to bill you correctly for the work they do?

If you want to track the potential costs as part of the production run then you could look at setting up some costing that is based on the time spent for the routing (e.g. rate per minute or hour etc). As part of completing their work, they would need to record how much time they spent working on it.

You could then use the estimated cost to cross check against the actual invoice sent by the subcontractor.

Hope this helps.

Thanks
Sharan


On 2018/02/13 09:18:42, Giulio Speri - MpStyle Srl <gi...@mpstyle.it> wrote: 
> Hello everyone!
> 
> I'm writing because I would need some clarifications about MRP and
> Manufacturing, in particular with the process of subcontract-working.
> 
> I read Sharan's book on the argument, it's really well made, but I would
> need some extra details.
> 
> Reading the book I understood that, in the process of manufacturing a
> finished good (a table for example), a list of task can be set up, each
> representing a specific step required to make the finished good.
> Now, I am focused on that tasks that can be subcontracted to an external
> worker.
> 
> Using the example of building a table:
> one of the tasks of the process, could be my company X that supplies wood
> to an external worker Y, that cut it and give back to me the finished
> wooden board.
> Then my company can proceed with the other manufacturing tasks.
> At the end, the external worker Y should bill the total cost of his working
> process to my company X.
> 
> Is that correct or I missed something?
> Has anybody had to handle sub-contract work with an external supplier with
> OFBiz in a similar scenario?
> 
> Thanks in advance to all for help,
> 
> Kind Regards,
> 
> Giulio
> 
> -- 
> Giulio Speri
> 
> *Mp Styl**e Srl*
> via Antonio Meucci, 37
> 41019 Limidi di Soliera (MO)
> T 059/684916
> M 334/3779851
> 
> www.mpstyle.it
>