WIP Inventory

WIP Inventory

HelpID: 715822026

Inventory for use by a manufacturing order can be “reserved” for that MO by transferring it into a WIP Location Code. MORI will still “backflush” inventory with each receipt, but when WIP Sites are set up, it will consume raw materials out of the WIP Site rather than regular inventory.

MORI looks for transfers into WIP and adjusts the Picklist accordingly. As shown below, 0.75 have been transferred into WIP. The original picklist line has been reduced by 0.75, and a new line has been added for 0.75. Notice that the new line has the Issue From of WIP.

Using a WIP Site with Inventory Transfers into WIP has several benefits.

First, inventory can be pulled from regular stock by transferring it into the WIP site at the moment it is picked. This ensures that the inventory quantities in GP are accurate and current.

Second, because the main inventory site has accurate inventory, and the Picklist is adjusted for the WIP inventory, Materials Requirements Planning can accurately detect shortages.

Third, since the Picklist is updated automatically to reflect the transfers into WIP, the Picklist becomes a tool for quickly viewing inventory remaining to issue, and inventory sitting in WIP.

Lastly, because the inventory is transferred to another Site in GP, it remains in a state that can be counted. The WIP inventory site can by cycle-counted.

A transfer into WIP is reflected on the Picklist as shown above. The WIP line will reflect the entire quantity transferred into WIP, which may be greater than the original Picklist quantity. For example, you might issue a 10-LB BAG for a line where only 6.6 LBS are needed. The original line will be reduced until it reaches zero, and the WIP line will be increased as needed to record all inventory transferred into WIP.

If inventory is transferred back into regular inventory (i.e. an Inventory Transfer from WIP to WAREHOUSE), the original Picklist line will be increased until it reaches its original quantity, but not beyond. In the previous example, if the 10-LB BAG is transferred out of WIP, the original Picklist line will be increased from 0 to 6.6, and the WIP line will be decreased from 10 to 0.

The WIP Inventory functionality in MORI is intended to be used with external Shop Floor control systems, or Warehouse Management systems, that can create and post Inventory Transfers. The purpose of the WIP functionality is, as described above, to help improve inventory accuracy for long running manufacturing processes using the Two Step MORI process (i.e. the MO already exists in GP).

If you are also integrating the Picklist with each receipt, the Issue From Site should be set to the WIP Site from the outset. The WIP Inventory functionality runs BEFORE any MO Receipts are processed, and an MO Receipt that backflushes inventory will be adjusted to draw from WIP rather than the normal Issue From Site. However, with an integrated Picklist, that information will replace the “default” picklist created by MORI, so the integrated Picklist should be added to the W7158MOPick table with the WIP Site already set to the Issue From site.

Setup

Navigation: From the MO Generator window, click the GoTo button >> WIP Sites.

There is a one-to-one relationship between a “regular” inventory Site and a WIP Site. MORI can support an unlimited number of WIP Sites, so that different manufacturing sites can have different WIP Sites. For example, NORTH might have a WIP Site called WIP-NORTH.

Once an Issue From Site is linked to a WIP Site, MORI will begin using it. See Using WIP Inventory. Unlike some of the other MOGen setup options, WIP Sites are NOT user-specific.

Using WIP Inventory

Once the Issue From Site is linked to a WIP Site, MORI will begin consuming inventory for MOs out of the WIP Site.

MOs should still be created with the Issue From Site set to your main inventory site. In Fabrikam this would normally be WAREHOUSE. This will ensure that MRP sees the inventory demand from Picklist as coming out of WAREHOUSE. As inventory is transferred into WIP, MORI will adjust the Picklist so that demand for raw materials is reduced in WAREHOUSE and increased in WIP.

MORI will attempt to backflush out of the WIP Site, all inventory for an MO with an Issue From of WAREHOUSE.

There is one exception to this. Specific components can be set to always draw from the Issue From Site specified on the BOM Line (shown below).

To force a component to always be consumed out of a specific site:

  1. Set the Issue From site on the Component Line
  2. Set the BOM Component User Defined #1 to YES

When a WIP Site exists, MORI will do two things:

  1. If transactions are populated into the MOIVTrx table, it will adjust picklists to reflect the transferred inventory. Inventory can be transferred into WIP, and out of WIP as needed. The changes will be reflected in updates to the Picklists.
  2. Partial Receipts will automatically consume out of the WIP site regardless of any other information provided

Inventory Transfers used to transfer inventory into WIP should be MO-Specific. The Key on the MOIVTrx table is:

  1. Manufacture Order
  2. IV Document Number

When WIP Sites are used, each time MORI checks for MO Receipts it will first check if there are any inventory transfers to process. If so, it processes transfers into WIP before transfers out of WIP. Once the transfers are processed (by updating the associated Picklists), it will begin the normal MORI receving process.

It is not a requirement to use the MOIVTrx table when using WIP Sites. Providing MORI with the Inventory Transfers ensures that the Picklists are updated, which primarily affects MRP. If you are not using MRP, this feature may not be as important.

You can transfer inventory into WIP without populating MOIVTrx. When an MO Receipt is posted, it will draw inventory out of WIP instead of from the Issue From Site recorded on the MO.

The MOPick table can still be used to provide specific material consumption information.