Manufacturing re-work ... this is a critical area.

Assume this scenario:

  • Item X is produced
  • Released Production Order (RPO) is created to produce item X
  • When output is done, we realized item X is not good and needs to be sent back to shop floor for a re-work
  • Under same RPO as above, we consume item X
  • This is rework and this is output again with the proper quality
  • All this is done on the same day

Mmmm ... I see some issues on this business process:

  • First: what about if I would like to perform an analysis on the quality of your manufacturing process? Here, I am using same RPO is used to produce and to re-work what was produced earlier. Thus, it would be difficult to analyze if my manufacturing processes need to be improved or not: everything is consolidated together. We might need to have the re-work isolated so you can check and improve your manufacturing process.
  • Second: what about costing? What about if RPO is based on the consumed together plus the re-work. Also, costing desing in NAV prevents producting 1 item which is also consumed on same production order line. This will cause a loop.

If you would like to minimize your re-work activities, better to analyze why those happen by having a separate entity (separate production order maybe). If you would like to understand how much it cost to produce the item better to have also a separate entity.