Consignment Details Steps

Consignment Inventory Process Responsibility Description

1. Operation Level need inform IT on the setup

Position Hierarchy:
a) MT Blanket Position Hierarchy
- Sourcing need to inform IT for the setup if have new user who need to create
the Blanket Purchase Agreement.
Subinventory
b) SM PR Hierarchy
Setup
- Buyer need to inform IT for the setup if have new user who need to create the
manual PR.
2. Setup for compulsary Consign Transaction and Operation Level need to
inform IT if have additional consign transaction needed
IT (refer next work sheet)
Setup the subinventory for eg : CONSIGNNEP ( refer next work sheet )

Organization item setup for Operation Level need to inform Finance on the setup to Pay on at Supplier Site.
Consign Finance ( refer next work sheet )

Admin Tick the Consign in Organization Item

ConsignmentSetup/Blanket PO Agreement Sourcing Create Blanket Purchase Agreement (PO type)

Tie up the Blanket Purchase Agreement (BPA) into the ASL
And tick the Consigned from supplier

Send Blanket PO agreement for Send the BPA for approval

SCM

Run MRP SCM Issue Consignment PO

a) Auto Create b) Create

manual PR for the consigment with quantity

Auto Create SCM Consignment PO Type must be set as standard PO

Consigned
PO with PO type =
Standard

Change Ship- to and PO Type to Consign, Consignment PO Ship To related Organization & must fill in the subinventory as
Set Subinventory SCM well. For eg : CONSIGNNEP

SCM Send Consignment PO for approval

Submit Consigned
PO for Approval

receeive of Consigned PO shipment

Perform Receiving Transaction & stick the orange sticker on the Consignment
a) Perform receiving. b)
Store part.
Label Must indicate Consign PO.
c) Stick the orange sticker with wording " CONSIGN "on the receiving part.

QA QA perform inspection per quality plan/quality inspection required.

Incoming QA perform quality
inspection

If inspection failed for Purchase Item Inspection -> QA need to perform reject in
QA system then deliver to Consign incoming MRB.
If inspection failed for non-inspection part -> QA only perform deliver to Consign
incoming MRB.
Inspection passed? Reject User Item Type = If passed QA need to perform accept in system (for Inspection part only)
Purchase Item
Inspection

No
Accept
Yes

System Transaction = Reject

User Item Type =

Purchase Item Inspection ?
Deliver to CONSINCMRB QA QA perform transaction to deliver to CONSINCMRB

Yes
NO
System Transaction = Accept SCM SCM to follow up disposition with supplier and collection
Consignee Disposition

For accepted part, perform delivery in system and move the stock to vendor
Store warehouse /consigned locator
For Rejected Part:
SCRAP SCM will request CN from vendor Or request DN from Finance.
QA need to transact from CONSINCMRB to CONSIGNMRB. Store
RTV need to perform Scrap if there is no replacement from vendor .
Store/SCM/QA
Request CN /DN from
Move to stock
Tag Material Ownership as For replacement or rework needed, QA need to perforn RTV to re-open the PO.
Supplier/Customer (Consignment If the rework perform by third party, buyer to follow up on rework return and
Deliver to CONSIGNMRB co-ordinate with IQA & store for MDR transaction.

System Re -Open PO
System & Physical SCRAP
transaction
NO
Require DJ ?

Yes

Order Fulfillment Release DJ in system for module order.

Release DJ for module
Production/
Manufacturing
Engineer Issue MIS for piece part order.

Piece Part order

- ME issue MIS.

System will auto generate

the move order.

Store perform
transaction to WIP Print out move order and transact materials issuance in system.
Print Out the move order and
Once the part is transacted out from consigned locator, the ownership turn to
issue materials to production.
Store SAM
Perform transaction after ME
verified.

IT have created daily auto schedule run for consumption advice to forward
Finance to specific AP personel.
Finance will send out the consumption report that generated
Auto Schedule
Change Ownership from suplier to Reference PO unit by system to Program (if consigned by customer) or to vendor directly.
Consumption
Organization price to Blanket PO a) Daily Schedule for running Consumption Advice
Advice
- Consignment Consumption Advice Schedule <Org Code> (Report Set)
- Example: Consignment Consumption Advice Schedule 037 (Report Set)

Reject at production
Production/
Manufacturing For part found rejecetd due to quality or form fit test at production,
Engineer Production/Manufacturing Engineer will raise the MDR.
With PRODMRB subinventory :-Production/Manufacturing Engineer will do the
ME/Production raise Send the Consumption Advice system transaction to move the stock from WIP to Production ConsignMRB for
the MDR to supplier the oracle sub-inventory from Production ConsignMRB )

Without PRODMRB subinventory :- Not required to do the system transaction

Production with " for disposition in oracle.
PRODMRB "
subinvemtory in oracle

UAI
Production/
Return to WIP Manufacturing
Engineer If UAI, Production/ME move it to WIP locator.
Disposition ?

AP match invoice with

UAI
Consumption Advice (issue CN
to Ter)
Reject
Reject
IQA
CONSIGNMRB
QA Will perform transaction from Production CONSIGNMRB to CONSIGNMRB

Pay
Vendor collect Request vendor If no replacement, SCM will request vendor CN/issue DN to vendor. Store will
CN/issue DN to vendor Invoice
Virtual C QA/SCM/STORE perform scrap.
If need for replacement, QA will transact to VIRTUALC
Once replacement part returned by vendor, QA will transact to CONSIGNMRB
as MRBC. The lot will be pending for IQA inspection.

Once the part Inspected and confirmed accept, Store will deliver to RM location.

Replacement Scrap internally

End
CONSIGNMRB (MRBC)

Move to
RM