“Rework” refers to additional job processing required to correct defective items. Sometimes defective items are detected while a job is still open. If the defects are relatively minor, rework can be done within the existing job. When defects are major, however, the job should be closed and the defective items corrected using a rework job. In cases where defects are discovered after a job is closed, they should always be corrected using a rework job.
Correcting defective items within an existing job
If defective items are discovered while a job is still open and can be easily corrected by issuing additional material or re-running processes, you can perform the rework within the existing job.
In the Job Labor screen, reopen any closed sequences that need additional processing by clicking the button in the Status field and answering yes to the reopen prompt. Enter a negative Completed quantity for the number of units to be reworked, then click Update. Entering the negative completion keeps the sequence open and listed within the Shop Control Panel.
Perform the rework against each rework sequence and issue additional material as required. When the rework is completed, update the Completed quantity, which will automatically close the sequence if completed in full, or manually close the sequence if the completed quantity is less than expected.
Receiving defective job items to stock for future rework
When defects are relatively major, it may not be practical to perform the rework in the existing job. Instead, the defective items can be stocked and accumulated over time until sufficient quantity exists to justify a rework job.
In this case, an item ID must be created to represent the defective version of the item, which can be done by appending a suffix to the standard item ID. In the job, go to the Details tab and select the Outputs option in the upper panel. Add a line for the defective item ID and an associated quantity. You can optionally enter a Cost Ratio if you wish to allocate a percentage share of overall job cost to the defective items.
When job outputs are received to inventory in the Job Receipts screen, the completed items will be received to stock against the standard item ID and the defective items will be received to stock against the defective item ID.
Creating a rework BOM
If rework is to be done using a rework job, you must create a rework bill of manufacturing. The item’s standard BOM cannot be used because reworking an item is completely different than manufacturing it.
A unique item ID is needed to represent the reworked version of the item, which can be done by appending a suffix to the standard item ID. Create a bill of manufacturing using the rework item ID as the BOM parent. If there are any standard reqork-specific processes, add them to the routing. At a minimum, create one routing sequence associated with the work center where rework is initiated. This way the rework job gets listed for work center scheduling within the Shop Control Panel.
If the defective version of the item is in stock (see the previous section), add it as a BOM component as well as any other components that are known to be needed for rework purposes.
Create a manual rework job
When you are ready to perform the rework job, create it manually in the Jobs screen. A manual job is required because there is no net demand for the rework version of the item to drive MRP.
Modify job details as needed during the course of the job
Rework may require processes or components that cannot be anticipated in the rework BOM and can only be known out on the shop floor as rework takes place. Add appropriate processes and components as needed. Otherwise, job processing – job issues, job labor, job receipts – is the same as with standard manufacturing jobs.
Use a lateral stock adjustment to restore the standard item ID
Completed reworked items are received to stock in the Job Receipts screen against the rework item ID. These items are no longer defective and must be restored to the standard item ID so that they are available for jobs or shipment to customers. This is done by performing a lateral stock adjustment.
Go to the Stock Adjustments screen and deduct stock against the rework item ID. Take note of the unit Cost. Make a second transaction where stock is increased against the standard item ID. Apply the same Cost to this second transaction. The stock is now restored against the standard item ID.
