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Logan Consulting
Unlocking
the Secrets
of WIP
Nadia 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
• 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
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
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
Tracking WIP - Transactions
Rework Transaction
Tracking WIP - Transactions
Tracking WIP - Transactions
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
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.
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
[email protected]