unlocking the secrets of wip nadia truxell
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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 - PowerPoint PPT PresentationTRANSCRIPT
Logan Consulting
Unlocking the Secrets
of WIPNadia Truxell
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Introduction – Nadia Truxell• Operations/Materials Manager – Scherdel Sales & Technology
Automotive Supplier of Springs and StampingsImplemented QAD
• Project Manager – Logan ConsultingQAD Implementations and Business Process ConsultingAutomotiveFood & BeverageConsumer GoodsIndustrial Products
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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.
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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
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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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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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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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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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Data Structure
• Department
• Work Center/Machine
• Routing
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Data Structure
Routing Example - NO Visibility to WIP
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Data Structure
• Routing Example – Multi Operations
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Data Structure
• Department
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Data Structure
• Work Center
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Data Structure
• Routing
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Data Structure
• Routing Example – Multi Operations
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Data Structure
• Routing Subcontract
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Data Structure
• Routing Subcontract
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Data Structure
• Operation
• Work Center/Machine
• Milestone
• Subcontract
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Tracking WIP - Transactions• Backflush
• Move
• Scrap
• Reject
• Rework
• Adjust
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Tracking WIP - Transactions• Backflush
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Tracking WIP - Transactions• Backflush
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Tracking WIP - TransactionsBackflush Transaction moves reported quantity through the
manufacturing process between milestone operations.
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Tracking WIP - TransactionsMove Transaction
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Tracking WIP - TransactionsMove 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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Tracking WIP - TransactionsScrap Transaction
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Tracking WIP - TransactionsUse Scrap Transaction to remove quantities from either the input,
output, or reject queues of a manufacturing operation.
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Tracking WIP - TransactionsReject 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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Tracking WIP - TransactionsReject Transaction
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Tracking WIP - TransactionsReject Analysis Report
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Tracking WIP - TransactionsRework 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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Tracking WIP - TransactionsRework Transaction
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Tracking WIP - Transactions
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Tracking WIP - Transactions
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Tracking WIP - Transactions
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Tracking WIP - TransactionsWIP Adjust Transaction
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Tracking WIP - TransactionsWIP Adjustment Analysis Report
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Tracking WIP - TransactionsSubcontract 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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Tracking WIP - ReportsRouting Detail Browse (Custom)
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Tracking WIP - ReportsOp_Hist Detail Browse (Custom)
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Tracking WIP - ReportsWIP Status Report
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Tracking WIP - ReportsWIP Valuation Report
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Tracking WIP - Reports
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Tracking WIP - Reports
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Common PitfallsIssue: 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 ReportedFix: Reverse incorrect quantity and report correct quantity at the
appropriate operation using backflush transaction
Issue: Wip Status Report shows incorrect quantities at operationsFix: Cycle count Work Center inventory and use Scrap
Transaction and/or Move transaction to adjust.
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Common PitfallsIssue: Backflush transacted at non-milestone operationFix: 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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Common PitfallsIssue: Backflush transacted at non-milestone operationFix: 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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Common PitfallsIssue: Backflush transacted at non-milestone operationFix: 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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Common PitfallsAccuracy of information requires commitment and discipline
throughout the organization.
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Questions?
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