I’m looking for some feedback as to how other organizations are tracking production reject scrap/rework in BaanIVc3.

Our process is as follows:
Currently when an item is at an operation and is questionable it is rejected from the production order. We then inventory adjust the qty to a Quality Hold area (non net able warehouse) that we have setup. We have a side application that we enter in the production order, operation, and reject qty. We use this for tracking purposes

This inventory sits in the QA warehouse until they decide that the parts can be reworked or scrapped. If they are scrapped then the qty is inventory adjusted off of the QA warehouse. If they can be reworked, then a rework order is put in the system, the inventory is adjusted back into a standard location and pulled into the rework production order.

Some issues that we have:
1. It can take QA months to decide if the inventory can be reworked or not. This causes problems with the Finance Department as they are trying to balance production order etc. When it’s rejected from the production order they take a hit, and they do not know when or if there will be a reversing transaction (rework order).
2. It’s difficult to track all of the rework orders etc.

Thanks
Chris Boudreau
IMT Corporation

Hi Chris,

Iam facing the same problem here. Quality dept often needs a long time to decide goods' status.
I'm using Baan5 though, don't know whether this would help or not.

We're doing it this way:
Instead of filling out reject field when reporting, we passed all goods to QC (all are reported as completed). This is done by making a virtual QC warehouse and all manufactured items are directed to this warehouse.
After that QC will make judgement through warehouse approval (we're not using QMS).

This way we avoid making adjustment, yet can still close the production order. The production order # will always be carried when QC is making approval, thus history will be there.
However, when a reject is made, it will not be costed against the quantity of that production order (as we have already reported that as fully completed), rather it would go into an expenses account.

Hope it helps.

Regards,
Hendra

Hi Chris,

........After that QC will make judgement through warehouse approval .....

Regards,
Hendra

How do you do this Warehouse Approval transaction in BaaN?

Appreciate your time.

Hi RamSundar,

You just put the Default Order Types by Origin in the Warehouse module with Receipt Procedures that has an Approval activity for order origin Production. That's all.

When you report production complete, automatically inventory will be blocked and requires approval. Perform the approval in the approvals session. Simply enter the qty you wish to approve and reject.

btw, this is for Baan 5.0c not Baan 4. You can try it and see if it works.

Regards,
Hendra