Standard Operating Procedure:

OSP Setup and Processing

Revision: 001 Release Date: 07/20/2007

This document defines the steps to setup Outside Processing and the procedure steps to run the OSP process. First you must have setup the OSP Resource and OSP Item. Setting up the item is just like setting up any other item except you must use the Outside Processing Item Template. You must also be sure to let the List Price item attribute for the requisition import process to work properly. Now you need to setup the OSP resource. Use the navigation below to setup the resource. Always setup the OSP resource with a type of Amount and the charge type as PO Receipt and the UOM to USD. Link the resource to the OSP item you setup previously. Make sure the resource is costed and set the rate to 1 dollar. Once you have setup the resource and saved it, you now need to assign it to a department. Use the screen below for navigation. When the department form opens you can query up the department you wish to add the resource too. You can then press the RESOURCES button to open the resources form.

Confidential

Page 1

5/27/2011

Standard Operating Procedure:

OSP Setup and Processing

Revision: 001 The form below will appear. Enter the resource and the number of units. Use 10000 for OSP resources. This completes the setup for the OSP resource. You can now use the resource in your routing. To enter the routing, use the navigation shown below. Release Date: 07/20/2007

Once you have entered your operation information, press the Operation Resources button. The screen below will appear. Here you will set the usage to the dollar amount per item it will cost for the OSP operation. This completes the setup of the OSP Routing. You can now release work orders from the MRP workbench to generate the requisitions for the OSP items. Refer to the Workbench to Receipt document for the details of how to process the requisitions into purchase orders and receipts.

Confidential

Page 2

5/27/2011

Standard Operating Procedure:

OSP Setup and Processing

Revision: 001 Release Date: 07/20/2007

The only differences you will see are the following: When the work orders are released from the workbench, if there are OSP operations, then a background process called requisition import will run to create the requisitions for the OSP items. When the OSP items are received, they are NOT received into stock but instead into the Work Order. Below is a flow diagram of the OSP process.

Release the WO off of the MRP workbench

Run Requisition Import

Perform Autocreate in Purchasing to create PO

Ship Material to OSP Supplier

Receive Material from OSP Suppler

Inspect Material

Deliver Material back to the WO

Confidential

Page 3

5/27/2011