logan consulting unlocking the secrets of wip unlocking the secrets of wip nadia truxell
TRANSCRIPT
Logan Consulting
Unlocking the Secrets
of WIPNadia Truxell
Unlocking the Secrets
of WIPNadia Truxell
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gIntroduction – Nadia TruxellIntroduction – Nadia Truxell
• Operations/Materials Manager – Scherdel Sales & TechnologyAutomotive Supplier of Springs and StampingsImplemented QAD
• Project Manager – Logan ConsultingQAD Implementations and Business Process ConsultingAutomotiveFood & BeverageConsumer GoodsIndustrial Products
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gUnlocking the Secrets of WIPUnlocking the Secrets of WIP
What is WIP and how can it help you?
Data Structure for Optimizing Information through Adv Rep Production Reporting
Pitfalls – Common Errors to Avoid and How to Recognize and Fix them when they happen.
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gThe Basics… WIPThe Basics… WIP
• Work in Process
Material that has been partially processed but not yet transformed into its final state and not normally usable as is. The status of WIP material is usually described by its current routing operation location
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gHow Can WIP Help You?How Can WIP Help You?
• Provide visibility of cost of material that currently being processed
• Provide better control of material in process as it moves through the production process
• Provide visibility of material being processed by a subcontractor at an external supplier location
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gHow Can WIP Help You?How Can WIP Help You?
• As material moves throughout the manufacturing process it becomes work in process (WIP)
• Picks up cost as it moves through operations• Consumes materials and labor
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gHow Can WIP Help You?How Can WIP Help You?
Why some companies don’t use WIP functionality:
• No business requirement to track at operational level
• Lack of understanding of software functionality
• Pain from incorrect transactions
• Limited resources for accurate and timely data collection
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gHow Can WIP Help You?How Can WIP Help You?
Why some companies should use WIP functionality:
• Multiple steps throughout the manufacturing process where it is necessary to track costs at the operational level.
• Desire to increase visibility and control of material as it moves through the process
• Ability to scrap and reject material by operation
• Subcontract operations exist in the manufacturing process
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gData StructureData Structure
• Department
• Work Center/Machine
• Routing
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gData StructureData Structure
Routing Example - NO Visibility to WIP
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gData StructureData Structure
• Routing Example – Multi Operations
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gData StructureData Structure
• Department
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gData StructureData Structure
• Work Center
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gData StructureData Structure
• Routing
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gData StructureData Structure
• Routing Example – Multi Operations
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gData StructureData Structure
• Routing Subcontract
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gData StructureData Structure
• Routing Subcontract
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gData StructureData Structure
• Operation
• Work Center/Machine
• Milestone
• Subcontract
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gTracking WIP - TransactionsTracking WIP - Transactions
• Backflush
• Move
• Scrap
• Reject
• Rework
• Adjust
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gTracking WIP - TransactionsTracking WIP - Transactions
• Backflush
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gTracking WIP - TransactionsTracking WIP - Transactions
• Backflush
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gTracking WIP - TransactionsTracking WIP - Transactions
Backflush Transaction moves reported quantity through the manufacturing process between milestone operations.
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gTracking WIP - TransactionsTracking WIP - Transactions
Move Transaction
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gTracking WIP - TransactionsTracking WIP - Transactions
Move Transaction
Use Move Transaction to transfer a quantity from the input queue of a manufacturing operation to the output queue of the following operation, or if there is no following operation, to finished material inventory
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gTracking WIP - TransactionsTracking WIP - Transactions
Scrap Transaction
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gTracking WIP - TransactionsTracking WIP - Transactions
Use Scrap Transaction to remove quantities from either the input, output, or reject queues of a manufacturing operation.
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gTracking WIP - TransactionsTracking WIP - Transactions
Reject Transaction
Reject previously backflushed units from an operation's output queue to the same operation's reject queue or to the reject queue of any preceding operation
Reject units from an operation's input queue and record the reject at the previous operation
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gTracking WIP - TransactionsTracking WIP - Transactions
Reject Transaction
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gTracking WIP - TransactionsTracking WIP - Transactions
Reject Analysis Report
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gTracking WIP - TransactionsTracking WIP - Transactions
Rework Transaction
Use Rework Transaction to transfer item quantities from the reject queue of one manufacturing operation to one of the following:
The output queue of the operation at which you are reporting (reporting operation)
The output or input queue of any operation subsequent to the reporting operation
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gTracking WIP - TransactionsTracking WIP - Transactions
Rework Transaction
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gTracking WIP - TransactionsTracking WIP - Transactions
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gTracking WIP - TransactionsTracking WIP - Transactions
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gTracking WIP - TransactionsTracking WIP - Transactions
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gTracking WIP - TransactionsTracking WIP - Transactions
WIP Adjust Transaction
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gTracking WIP - TransactionsTracking WIP - Transactions
WIP Adjustment Analysis Report
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gTracking WIP - TransactionsTracking WIP - Transactions
Subcontract Shipping
Moves material into inventory location of the Subcontract Supplier Code
PO Receipt moves material into next operation in Routing
WIP Item Number can be assigned to material while it is in the Subcontract Routing operation
Components
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gTracking WIP - ReportsTracking WIP - Reports
Routing Detail Browse (Custom)
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gTracking WIP - ReportsTracking WIP - Reports
Op_Hist Detail Browse (Custom)
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gTracking WIP - ReportsTracking WIP - Reports
WIP Status Report
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gTracking WIP - ReportsTracking WIP - Reports
WIP Valuation Report
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gTracking WIP - ReportsTracking WIP - Reports
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gTracking WIP - ReportsTracking WIP - Reports
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gCommon PitfallsCommon Pitfalls
Issue: Move Next Op = No
Quantity stays in the output queue of the last operation
Fix: Use Move Transaction to push the quantity through
Issue: Incorrect Quantity Reported
Fix: Reverse incorrect quantity and report correct quantity at the appropriate operation using backflush transaction
Issue: Wip Status Report shows incorrect quantities at operations
Fix: Cycle count Work Center inventory and use Scrap Transaction and/or Move transaction to adjust.
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gCommon PitfallsCommon Pitfalls
Issue: Backflush transacted at non-milestone operation
Fix: Reverse the transaction and redo at the correct operation
Issue: Previous operation negative when backflushing a later operation.
Fix: Count work center inventory to ensure correct. Ensure backflush transaction was completed for previous milestone operation.
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gCommon PitfallsCommon Pitfalls
Issue: Backflush transacted at non-milestone operation
Fix: Reverse the transaction and redo at the correct operation
Issue: Previous operation negative when backflushing a later operation.
Fix: Count work center inventory to ensure correct. Ensure backflush transaction was completed for previous milestone operation.
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gCommon PitfallsCommon Pitfalls
Issue: Backflush transacted at non-milestone operation
Fix: Reverse the transaction and redo at the correct operation
Issue: Previous operation negative when backflushing a later operation.
Fix: Count work center inventory to ensure correct. Ensure backflush transaction was completed for previous milestone operation.
When ALL ELSE FAILS – use the WIP Adjust Transaction
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gCommon PitfallsCommon Pitfalls
Accuracy of information requires commitment and discipline throughout the organization.
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Questions?
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