Overview of the product subcontracting setup-procedure

You can use product subcontracting to subcontract an item's entire production process. If you use product subcontracting, no production order is created.

This topic provides a general overview of the product subcontracting setup-procedure. See To set up product subcontracting for step-by-step instructions.

Prerequisite

Before you can set up product subcontracting, you must set up the general subcontracting data discussed in To set up general subcontracting data.

Items

When manufacturers subcontract the production of an item, they may send components to the subcontractor that the subcontractor uses to produce the item.

Both the end item, that is, the item produced by the subcontractor, and the components must be defined as individual items. See the Infor LN User Guide for Item Setup for details about general item setup.

The item setup described in this topic includes the settings by site, the costing settings, and the warehousing settings for the end item and the components required for product subcontracting.

Product subcontracting model

The subcontractor model is defined in the Product Subcontractors List (tisub1100m000) and Product Subcontracting Model (tisub1600m000) sessions.

For each combination of production site and item, this data is specified:

  • The subcontractor
  • The subcontractor site
  • The subcontracting planning cluster
  • The subcontractor warehouse
  • The ship-from business partner
  • The lead times
  • The components

In this way, you can specify that an item manufactured in a production site is subcontracted to a subcontractor, and that the item is manufactured in a specific subcontractor site. The components, if any, are sent to the warehouse on the subcontractor site.

The ship-from business partner is retrieved from the subcontractor site.

The lead times consist of supply times and transport times.

The default transport times between the manufacturer site and the subcontractor are retrieved from the subcontractor site.

The supply times, which represent the production time at the subcontractor, are specified in the Product Subcontracting Model (tisub1600m000) session, because these can be different for each product.

The item setup described in this topic and the general data setup described in General subcontracting data setup, such as sites, planning clusters, and subcontracting relationships, must be defined before you can set up the product subcontracting model.

Calculate and actualize standard costs

When the data setup is completed, the standard costs of the end item must be calculated and actualized.