Hi All, I need advise on how to best setup BOM for items that have 2 workstation operations, 2 outside supplier operations then 1 workstation operations.
Example
Operation 1 Machining
Operation 2 Machining
Operation 3 Outside Supplier for Heat Treat
Operation 4 Outisde Supplier for Grinding
Operation 5 Machining
Operation 6 Packaging
My current ERP would have Operations 3 and 4 above as workstations SUBHT and SUBGRIND (Sub meaning Sub Contract). There it would allow Purchase Orders to be cut against the Sub operations. ERPNext of course does it as a item that allows outside purchase orders against it. How do others handle this?
Thanks in advance
You should look at/refer the sub-contracting scenario in ERPNext which is close to your example:
https://docs.erpnext.com/docs/user/manual/en/manufacturing/subcontracting
https://docs.erpnext.com/docs/user/manual/en/manufacturing/articles/managing-multi-level-bom
In your case, you’d need to create 2 or 3 levels of subassemblies:
level 1 - internal operations. So OP 1 and 2.
Once this subassembly is created, then it will be transferred to the subcontractor. If you are supplying additional materials (apart from the intermediatory item created) then those will be added in BOM 2.
Subcontracting takes place here where the items are transferred to the vendor who will complete their processes and send the level 2 item from their end.
Once received, you will move to the third level, ie, final finished good manufacturing via a second work order for OP 5 and 6. This is level 3.
when you do production planning or Work Order creation, the system will allow you to plan and consider the subassemblies as well.
Thank-you Kenneth! I appreciate the input.