Hose and Kit Assembly Process for Companies Using Maintenance Order

This document describes a simple process for selling hoses and kits that are assembled during customer order process where the structure might be dynamic. It also describes how to request a hose or kit to a work order either as a complete hose or kit or as individual piece parts, as well as the possibility to have a simple process making hoses and kits as pre-assembled stored items.

The target audience of this document are companies that are using maintenance orders.

Selling hoses or kits through Customer Order or request a hose through Work Order

In all cases, the user is required to specify the same non-inventory account kit item at the order line.

The result is a full screen entry including all parts in the kit product structure.

In case of customer order, this depends on the settings in OIS010
In case of work order, MOS107 will open.

Case 1 – No assembly

In case the customer wants to assemble the hose or kit themselves, select only the piece parts and update the order.

Case 2 – Assembly complete hose or kit

In case the customer wants an assembled hose or kit and no pre-assembled variant exists, select all piece parts and the assembly item and update order.

Case 3 – Assembly complete hose or kit but use the customer’s reusable parts

In case the customer brings his own reusable parts and only wants the damage parts replaced and assembled, select only the piece parts that are needed and the assembly item and update the order.

If it's unsure whether a reusable part is available, keep all parts and let warehouse personnel decide during report of picking list.

Case 4 – Pre-assembled hose or kit

In case a pre-assembled item exists, it will be included in the kit structure together with all piece parts and assembly item. Select all included piece parts, the assembly item and the pre-assembly item. Update order, so OIS101 or MOS101 is updated with all parts. In OIS101/B it is possible to have a view where balance is included. The user can then select to remove either the piece parts and assembly item or the pre-assembly item depending of that balance check.

When an order is registered, it will result in an allocation and print of picking list. If there is an assembly item in picking list it will indicate for the warehouse personnel that the customer wants an assembled hose or kit. In case reusable parts are supplied together with the order, warehouse personnel report only used parts and set non-used parts as complete.

Manufacture of pre-assembled hoses and kits

This process is intended for those cases when the assembly process does not require a follow up on assembly costs or when no lot controlled items are included and there is a need for a very limited administration process.

In these cases user only want to report the finished hoses or kits. The reported quantity will create a put away transaction of the complete hoses and kits that update storage quantities and issue transactions of the included items automatically. There is also possibility to have operations in the structure. Time reporting will be made automatically on standard time set in the structure.

By using maintenance program MOS049, it is possible to have the product structure only in consolidated facility. In case maintenance order process is not used, it is possible to use program PMS260 instead. It has no support for structures in consolidated facility. In such case a product structure is needed at each applicable facility. Reporter fills in product, structure type, warehouse, location and quantity of assembled hoses or kits. The product is the pre-assembled inventory accounted item.

Outcome

The outcome of this process is a simple and easy to use order process where only one item number is used for all different cases. It also includes a simple and easy to use report of assembly of pre-assembled kits or hoses that includes put away of complete hoses and kits and issue of included parts and operations.

Configuration setup

Kit item

A non-inventory accounted kit item used for order must be set up in MMS001.
The kit item should not have a record in MMS002 and MMS003.
A product structure for the non-inventory kit item must be set up in PDS001 with kit structure type. PDS002 shall include all piece parts, eventual pre-assembled kit item, and the assembly item. The kit needs to be dynamic, that means possible to be edited. The kit must be priced and reserved according to its included parts.

Included piece parts

All included piece parts must be set up as normal inventory accounted items.

Pre-assembled kit item

In case of stored pre-assembled hoses or kits, an inventory accounted pre-assembly item must be set up with product structure in either local facility or in consolidated facility.
In case the product structure exists only in consolidated facility, user must use MOS049 to report order less manufacturing.

In case product structure exists in local facility, it is possible to report orderless manufacturing in PMS260.

PDS002 needs to include piece parts and the structure can also include operations. The cost and price of the operations must reflect the assembly item cost and price so the cost for the pre-assembled kit or hose should have the same cost as the hose or kit assembled during order process.
Planning method in MMS002 must be 0, manual.
The pre-assembled kit item needs to have order less manufacturing parameter on in item/facility MMS003.
Pre-assembly item needs to have acquisition code 6 Maintenance, if it is pre-assembled internally or 2 Purchase if it is bought as complete kit from supplier.
In case maintenance order is not in use, it is possible to use acquisition code 1 manufacturing.

Assembly item

An inventory accounted assembly item is needed to indicate that a warehouse personnel need to assemble the kit or hose and not just pack the piece parts individually. This item needs to be reported without balance check in MMS002.
Issue method=1 and allocation method=4
The price of this item needs to represent the price the customer needs to pay for having it assembled. You can also have it with price zero and instead connect a charge to the item representing this price.
Assembly costs can be represented by this item but if there is no need for such cost follow up, it can be zero cost instead.
This item will create negative balances in stock and needs to be accounted differently to avoid wrong values in inventory account in case it is accounted according to standard cost.
If an assembly instruction is needed for the warehouse personnel, or just a list of included items to avoid mix up when more than one hose are on the same order, a text block can be connected to the assembly item in 'Document Text. Open' (OIS035). This text block is then printed on the picking list depending of settings in 'Dispatch policy. Open' (MWS010). This requires one assembly item for each hose configuration.
Planning method in MMS002 should be done manually to avoid purchase of this item.

General settings

Customer order line item search sequence must include kit items. See OIS101/P
Maintenance order line item search sequence must include kit items. See MOS101/P
Accounting rules should be set up for event MO11, MO21, and MO31.