OSP Cycle Osp cycle is only carrying out to incur the cost value in wip summary report,osp is usually

doing only for each job,osp is generally mapping at wip operations level,once u r operations comming for osp know, that time automatically/manually we have to creat purchase req,and press the outside processing button at the footer level,then it is asking for u r desctete job number,and go ahead to creat the pur req for that osp,then receive the osp item directly to shop floor,and the a/c is automatically in wip summary and in GL a/c.

OSP - Outside process Most of the Manufacturing company, they are not doing all defined process In House except few critical operation for their products. Reason is to eliminate the Resource buying cost, Maintenance cost,Manpower cost and other parameters OSP Cycle : ( To complete OSP cycle the following need to be create) 1) OSP Item code 2) OSP Resource 3) OSP department 4) While creating of routing the OSP operation should be defined and the OSP resources should be attached Note: UOM should be take care during the creation of OSP item code and Resource,departments based on the OSP requirements (Kg,EA,Liter and etc...) 5)discrete Job Creation (manual or through MRP) 6)Move transaction ( Move to OSP Operation) Note: To Maintain the proper transaction we can assign shop floor status, the function is to have a control without

doing receiving transaction the user cannot move to next operation for transaction. it will avoid the error transaction during the receipt. 7) Once the proper receiving transaction have been done the shop floor status function allow the component to move next operation 1. create OSP item in master item 2. define outside processing operation as a resource in the routing 3. associate the outside resource with a mfg dept , so u can attach the resource to teh routing. 4. define move transaction with : TO STEP :(queue & transact)--this will automatically create the pr 5. auto create a po and note the po no, 6. receive the item after outside processing as per the po no. 2. define outside processing operation as a resource in the routing 3. associate the outside resource with a mfg dept , so u can attach the resource to teh routing. 4. define move transaction with : TO STEP :(queue & transact)--this will automatically create the pr 5. auto create a po and note the po no, 6. receive the item after outside processing as per the po no. Let me complete this answer : 1) Create Item and enable the OutSide Processing attribute under Purchasing Tab and apply the Purchasing Template on

it and assign the item to manufacturing Organization. 2) Go to BOM-->Routings-->Resources :: Create Resource with following attributes : Resource Name : Item created in step 1 (recomended but not mandatory) Resource Type : Person Charge Type : PO Receipt Outside Processing : Enable it Item = Item Created in step 1 Make cost enabled and enter the OSP account. 3) Create Department but remember : a) Naming like CM (Contract Manufacturing - only recomended) b) Location (Mandatory) otherwise WIP will have problem. c) Go to Resource (Button) enter resource creted in step 2. d) Enter Shift ( this is related to the calander for this mfg org). If the resource if 24 hours available, then not required. 4) Create Operations : a) Name ( like OSP) b) Department ( created in step 3) c) you can enter the resource(s) requried at this operation ( created at step 2, but optional). if entered, will default at your routing. You can enter the usase here or at routing level also. 5) Create Routing (normal process, assembly code. remember this is not the item created in step 1) and add the Operation where you need osp service. Pls note that you can attached this OSP Operation at Master routing or can create another routing with an alternate. Genarally alternate is recomended. 6) Create BOM and enter routing created at step 5.Note that if the routing is on alternate, then, try to have the BOM also on alternate. This will be your OSP BOM.

7) WIP-->Descrete-->Creat Job and enter the assembly at operation 6. Release the Job, if the ASL is created and Blanket is available, requisition and release will be created automically after the job is released. If the ASL and Blanket is not available then only requisition, provided in item, use only ASL flag is unchecked.