To set up operation subcontracting with material flow

This topic provides step-by-step instructions for the setup subcontracting with material flow. See Overview of the setup for operation subcontracting with material flow for an overview of the general subcontracting data.

To set up general subcontracting data, complete these steps:

  1. Parameters
    In the Implemented Software Components (tccom0100s000) session, complete these steps:

    1. Check that the Resources by Site concept is set to Active in the Enterprise Structures tab of the Implemented Software Components (tccom0100s000) session.

      If the status other than Active, the concept must be activated. See the Infor LN User Guide for Site Activation for details.

    2. In the Production section of the Concepts (Logistics) tab, select the Subcontracting with Material Flow check box.

      Note that if this check box is selected, both operation subcontracting with and without material flow support is enabled. If cleared, only operation subcontracting without material flow support and product subcontracting is enabled.

  2. Item groups
    In the Item Groups (tcmcs0123m000) session, create item groups for the components, outgoing subassemblies, incoming subassemblies, and end items involved in operation subcontracting.
  3. Component defaults

    In the Item Defaults (tcibd0502m000) session, complete these steps:

    1. Select item type Product.

    2. Select the item group for components that you created in step 1.

    3. On the Enterprise Units tab in the lines section of the session, click the New button, and in the Enterprise Unit field, zoom to select the applicable enterprise unit for determining the standard costs.

    4. On the Sites tab in the lines section of the session, click the New button, and select the production site.

    5. In the Warehouse field, select the production warehouse.

    6. Open the newly added production site.

    7. In the Item Control and Defaults by Site (tcibd1552m000) session, click the Item button.

    8. In the Item Defaults by Site (tcibd1551m000) session, in the Default Supply Source field, select Purchase.

    9. Repeat steps d – h, but this time select the subcontractor site, the subcontractor warehouse, and default supply source Distribution. If applicable, repeat these steps for other subcontractor sites.

  4. Outgoing subassembly defaults

    In the Item Defaults (tcibd0502m000) session, complete these steps:

    1. Repeat steps a and b of the Component defaults instructions, but this time select the item group for outgoing subassemblies.

    2. In the Order System field, select Manual.

    3. Select the Subassembly check box.

    4. On the Enterprise Units tab, click the New icon, and in the Enterprise Unit field, zoom to select the applicable enterprise unit for the standard costs.

    5. In the Cost Component Scheme field, zoom to select the applicable default costing scheme.

    6. On the Sites tab in the lines section of the session, click the New button, and select the production site.

    7. In the Warehouse field, select the production warehouse.

    8. Open the newly added production site.

    9. In the Item Control and Defaults by Site (tcibd1552m000) session, click the Item button.

    10. In the Default Supply Source field, select Not Applicable.

    11. Repeat steps d – j, but this time select the subcontractor site and the subcontractor warehouse. If applicable, repeat these steps for other subcontractor sites.

  5. Incoming subassembly defaults

    The steps are identical to those of the outgoing subassembly defaults, except for the following:

    • In step a, select the item group for incoming subassemblies.
    • Skip step k.
  6. End item defaults

    In the Item Defaults (tcibd0502m000) session, complete these steps:

    1. Repeat steps a and b of the Component defaults instructions, but this time select the item group for end items.

    2. In the Order System field, selectPlanned or Manual as applicable.

    3. Repeat steps c – g of the Component defaults instructions.

    4. In the Item Defaults by Site (tcibd1551m000) session, in the Default Supply Source field, select Job Shop.

  7. Job shop Bill Of Materials
    To link a component to an operation in a job shop Bill of Materials, complete these steps:

    1. On the Materials tab in the lines section of the Job Shop Bill of Material (tibom3600m000) session, click the New button.

    2. Add the component item and in the Operation field, specify the number of the subcontracted operation.

    3. Repeat steps a and b for any other components.
    4. Save and close the session.

    5. On the appropriate menu of Job Shop Bills of Material (tibom3100m000) session, to enable the use of the Bill of Materials, select these options:

      • Available for Planning

        The Bill of Materials can be used for Enterprise Planning.

      • Use for Planning

        The Bill of Materials is used for production planning.

      • Use for Costing

        The Bill of Materials is used in the standard costs calculation process.

      • Approve Revision

        The Bill of Materials is approved.

  8. Reference operations

    To create a reference operation for a subcontracted operation, complete these steps:

    1. In the Reference Operations (tirou4150m000) session, click the New button.

    2. Specify the ID, the production site, and, in the Labor Resources for Production (FTE) field, specify a minimum value. Leave the Machine Type field blank.

  9. Operation subcontractors list

    To specify that for a production site an operation can be subcontracted to a subcontractor, subcontractor site, and subcontractor warehouse, complete these steps:

    1. In the Operation Subcontractors List (tisub2100m000) session, open a production site.

    2. Click New, and in the details session, zoom to select this data:

      • The reference operation from the Reference Operations (tirou4150m000) session. The reference operation represents the operation to be subcontracted,

      • The subcontractor from the Subcontractors (tisub0120m000) session.

      • The subcontractor site from the Subcontractor Locations (tisub0125m000) session.

    3. Specify effective and expiry dates.

    4. Zoom to select the subcontractor’s warehouse from the Warehouses (whwmd2500m000) session.

    5. Specify the capacity at the subcontractor site.

    6. Save the data.

    7. To specify that the same operation can be subcontracted to a different subcontractor and subcontractor site, click the New button.

    8. Select the reference operation selected in step b again.

    9. Select a subcontractor (other than the subcontractor selected in step b).

    10. Select a subcontractor site and repeat steps c – f.

    11. Return to the main session to select the subcontractor that is to be used for planning and for costing. This is done by selecting the subcontractor/reference operation combination and selecting Use for Planning and Use for Costing option on the appropriate menu.

    Note: 

    Links between the subcontractor and the subcontractor site and between the subcontractor site and the production site must be set up before you can model the operations that must be subcontracted to specific subcontractors. Otherwise, an error message is displayed.

    Subcontractor sites by subcontractor and production sites are defined in the Subcontractors (tisub0120m000) and Subcontractor Location (tisub0625m000) sessions. See To set up general subcontracting data for details.

  10. Job shop routings

    To set up a job shop routing that contains subcontracted operations, complete these steps:

    1. In the Job Shop Routings (tirou4100m000) session, look up the appropriate production site and click New.

    2. In the Job Shop Routing (tirou4600m000) session, select the product, that is, the end item for which one or more operations are to be subcontracted.

    3. On the Revision tab, select the Subcontracting with Material Flow check box.

    4. Specify the code of the new routing.

    5. On the Operations tab in the lines section of the session, click New to create the first operation of the routing.

    6. In the Job Shop Routing Operation (tirou4601m000) session, select the Subcontracting check box if this operation is to be subcontracted.

    7. In the Reference Operation field, select the appropriate reference operation.

    8. If the operation is to be subcontracted, select a subcontracting work center as discussed in To set up general subcontracting data.

    9. On the Logistics tab, in the Selection Method field, select Planning or Planning as required. This is the method used to select the subcontractor.

    10. Save the record.

    11. If applicable, select the subassembly that is built during this operation. This is done as follows:

      1. On the Operations tab in the lines section of the session, open the newly created operation.

      2. In the Subassembly field in the Logistics tab in the Job Shop Routing Operation (tirou4601m000) session, zoom to the Items (tcibd0501m000) session to select the subassembly.

      3. Save the record and close the Job Shop Routing Operation (tirou4601m000) session and return to the Job Shop Routing (tirou4600m000) session.

    12. Back in the Job Shop Routing (tirou4600m000) session, repeat steps e – k to create more routing operations.

    13. On the Actions menu of the Job Shop Routing (tirou4600m000) session, select Validate. If the routing setup is correct, the routing is validated. Otherwise, errors are displayed in a report.

    14. Close the Job Shop Routing (tirou4600m000) session.

    15. In the Job Shop Routings (tirou4100m000) session, complete these steps:

      1. Select Use for Planning and Use for Costing from the Actions menu as appropriate.

      2. Select Approve Revisions on the Actions menu.