Unlocking the Secrets of WIP Nadia Truxell

Logan Consulting Unlocking the Secrets of WIPNadia Truxell

Introduction – Nadia Truxell • Operations/Materials Manager – Scherdel Sales & Technology Automotive Supplier of Springs and Stampings Implemented QAD • Project Manager – Logan Consulting QAD Implementations and Business Process Consulting Automotive Food & Beverage Consumer Goods Industrial Products

Unlocking 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.

The 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

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

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

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

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

Data Structure • Department • Work Center/Machine • Routing

Data Structure Routing Example - NO Visibility to WIP

Data Structure • Routing Example – Multi Operations

Data Structure • Department

Data Structure • Work Center

Data Structure • Routing

Data Structure • Routing Example – Multi Operations

Data Structure • Routing Subcontract

Data Structure • Operation • Work Center/Machine • Milestone • Subcontract

Tracking WIP - Transactions • Backflush • Move • Scrap • Reject • Rework • Adjust

Tracking WIP - Transactions • Backflush

Tracking WIP - Transactions Backflush Transaction moves reported quantity through the manufacturing process between milestone operations.

Tracking WIP - Transactions Move Transaction

Tracking 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

Tracking WIP - Transactions Scrap Transaction

Tracking WIP - Transactions Use Scrap Transaction to remove quantities from either the input, output, or reject queues of a manufacturing operation.

Tracking 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

Tracking WIP - Transactions Reject Transaction

Tracking WIP - Transactions Reject Analysis Report

Tracking WIP - Transactions 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 Rework Transaction

Tracking WIP - Transactions Rework Transaction

Tracking WIP - Transactions

Tracking WIP - Transactions WIP Adjust Transaction

Tracking WIP - Transactions WIP Adjustment Analysis Report

Tracking 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

Tracking WIP - Reports Routing Detail Browse (Custom)

Tracking WIP - Reports Op_Hist Detail Browse (Custom)

Tracking WIP - Reports WIP Status Report

Tracking WIP - Reports WIP Valuation Report

Tracking WIP - Reports

Common 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.

Common 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.

Common 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

Common Pitfalls Accuracy of information requires commitment and discipline throughout the organization.

Questions?

Thank You • Nadia Truxell • ntruxell@logan-consulting.com

Unlocking the Secrets of WIP Nadia Truxell