Module 5 Subcontracting for product manufacturing

Case study 3 Subcontracting

Exercise #1: Set up subcontracting features

The production manager, want to get familiar with the setups before using the subcontracting features of Microsoft Dynamics 365 Supply Chain Management.

The company called you as their MFG functional consultant to help the production manager to better understand the setup.

Can you help?

You will have to do the following:

  • Set up the default vendor for a warehouse

  • Create a purchase agreement

  • Create a work cell for subcontracting (specific to lean manufacturing)

  • Create an activity-based subcontracting rule (specific to lean manufacturing)

  • Create and schedule a Kanban for subcontracting (specific to lean manufacturing)

  • Process and transfer jobs (specific to lean manufacturing)

Steps

Set up the default vendor for a warehouse

  1. Go to Inventory management > Setup > Inventory breakdown > Warehouses.

  2. In the list, find and select Warehouse 12-801.

  3. Verify that the Vendor account field in the General tab is set to US-801.

  4. Close the page.

Create a purchase agreement

  1. Go to Procurement and sourcing > Purchase agreements > Purchase agreements.

  2. Click New.

  3. In the Vendor account field, enter or select US-801.

  4. In the Purchase agreement classification field, enter or select General purchases.

  5. Expand the General section.

  6. In the Expiration date field, enter a date in future which agreements should be expired by.

  7. Click OK.

  8. Expand the Purchase agreement header section.

  9. In the Default commitment field, select Product value commitment.

  10. Click Lines. Click Add line.

  11. In the Item number field, enter or select S0001.

  12. In the Warehouse field, enter or select 12-801.

  13. Set Net amount to 73570.00.

  14. Click Add line.

  15. In the Item number field, enter or select S0001.

  16. In the Warehouse field, enter or select 12-801.

  17. Set Net amount to 50848.00.

  18. In the Status field, select Effective.

  19. Click Save.

  20. Close all forms.

Create a work cell for subcontracting

  1. Go to Organization administration > Resources > Resources.

  2. Click New.

  3. In the Resource field, type GTL-Sub1.

  4. In the Description field, type Subcontractor 1.

  5. In the Type field, select Vendor.

  6. Click Save.

  7. Close the page.

  8. Go to Organization administration > Resources > Resource groups.

  9. Click New.

  10. In the Resource group field, type eBookSub.

  11. In the Description field, type eBook subcontractor.

  12. In the Site field, enter or select site 1.

  13. In the Work cell field, select Yes.

  14. In the Input warehouse field, enter or select 11.

  15. In the Input location field, enter or select 11.

  16. In the Output warehouse field, enter or select 12-801.

  17. In the Output location field, enter or select 801.

  18. In the Calendars FastTab, click Add.

  19. In the Calendar field, enter or select Production.

  20. Collapse the Calendars section.

  21. In the Resources FastTab, click Add.

  22. In the Resource field, enter or select 8821.

  23. Collapse the Resources section.

  24. In the Work cell capacity FastTab, click Add.

  25. In the Production flow model field, enter or select Mid-Range Speaker 2 Flow Model.

  26. In the Capacity period field, select Standard workday.

  27. Set Average throughput quantity to 100.00.

  28. In the Unit field, type pcs.

  29. Click Save.

  30. Close all forms.

Create Activity based subcontracting rule.

  1. Go to Production control > Setup > Lean production flow > Production flows.

  2. In the list, find and click the Speaker driver link to get to the details page.

  3. Under Versions section, click Add.

  4. Click OK.

  5. In the list, find and select the new version with a status of Draft.

  6. Click Activities.

  7. Click Create new plan activity.

  8. Click Next.

  9. In the Name field, type GTL-Subcontracting activity.

  10. Click Next.

  11. In the Work cell field, enter or select eBookSub. You are assigning a work cell that is associated with the Vendor.

  12. Click Next.

  13. Click Next.

  14. In the list, find and select the row for the runtime. Type 1 in the Time field.

  15. In the Time unit field, enter or select hr.

  16. Set Per quantity to 10.00.

  17. Click Next.

  18. Click Finish.

  19. Click Create new plan activity.

  20. Click Next.

  21. In the Name field, type GTL-Transfer to subcontractor.

  22. In the Activity type field, select Transfer.

  23. Click Next.

  24. In the Replenishing field, enter or select eBookSub.

  25. In the Replenished field, enter or select eBookSub.

  26. Click Next.

  27. Click Next.

  28. In the list, find and select the row for the runtime. Type 1 in the Time field.

  29. In the Time unit field, enter or select hr.

  30. Set Per quantity to 4.00.

  31. Click Next.

  32. Click Finish.

  33. In the list, find and select GTL-Subcontracting activity.

  34. Click Add successor.

  35. In the Activity field, select GTL-Transfer to subcontractor.

  36. In the Cycle time ratio field, enter 1.

  37. Click OK.

  38. Select GTL-Transfer to subcontractor line.

  39. Click Details

  40. Expand Service terms FastTab.

  41. Click Add.

  42. In the Service field select S0001.

  43. Click Next.

  44. In the Service ratio field type 1.2.

  45. In the Service unit field select hr.

  46. In the Service quantity base field, select Activity time.

  47. Click Next.

  48. Click Finish.

  49. Close the Activity details page.

  50. Select GTL-Subcontracting activity.

  51. Click Details.

  52. Expand Service terms FastTab.

  53. Click Add.

  54. In the Service field, select S0002.

  55. Click Next.

  56. In the Service ratio field, type 1.0.

  57. In the Service unit field, select hr.

  58. In the Service quantity base field, select Activity time.

  59. Click Next.

  60. Click Finish.

  61. Close the Activity details page.

  62. Select GTL-Transfer to subcontractor.

  63. Click Add successor.

  64. In the Activity field, enter or select Speaker driver.

  65. In the Cycle time ratio field, enter 1.

  66. Click OK.

  67. Close the Activities page.

  68. Select version 1 and click Deactivate. Click OK.

  69. Select version 2 and click Activate. Click OK.

  70. Close all forms.

Create and schedule Kanbans for subcontracting

  1. Go to Product information management > Lean manufacturing > Kanban rules.

  2. Click New.

  3. In the First plan activity field, enter or select GTL-Subcontracting activity

  4. Select the Multiple activities check box.

  5. In the Last plan activity field, enter or select GTL-Transfer to subcontractor

  6. Click OK.

  7. In the Product field, type L0001.

  8. Expand the Quantities section.

  9. Set Default quantity to 50.00.

  10. In the Fixed kanban quantity field, enter 25.

  11. Click Save.

  12. Click Add.

  13. Click Create.

  14. Click Details.

  15. Expand the Jobs section.

  16. View jobs for process and transfer to a subcontractor.

  17. Close all forms.

  18. Go to Production control > Kanban > Kanban job scheduling.

  19. In the Work cell field select eBookSub.

  20. In the list, mark and select the first two rows.

  21. Click Schedule from date to open the drop dialog.

  22. Click Schedule.

  23. Close all forms.

Process and transfer jobs

  1. Go to Production control > Kanban > Kanban board for process jobs.

  2. In the Work cell field, enter or select eBookSub.

  3. In the list, mark the selected row.

  4. Click Prepare.

  5. Click Start.

  6. Click Complete.

  7. Expand the Transfer jobs section.

  8. In the list, mark the selected row.

  9. Click Start.

  10. Click Complete.

  11. Close the page.