Plan and Execute Project Miscellaneous Demand

Description of process

Introduction

Material and services are procured by the project through project miscellaneous demand in the Projects Material and Services page. The demand for material and/or service is entered at project activity level.

Standard vs. Project-Specific Parts 

A material or part can either be standard or project-specific. If the part is a standard planned item, the demand for it will be seen by standard MRP and order point calculations. The part can also be reserved or issued from standard inventory if there is quantity available.

For a project-specific item, the material reservation and issuing are done from project inventory. A project owns its project inventory, ensuring that material acquired to this project cannot be issued to fulfill other demands, either from another project or from non-project related demands. No further costs are added and fed back to the project when issuing from the project inventory since the project has already taken the cost when the material was received into the project inventory.

Entering Demand for Parts

Demand for inventory parts and non-inventory (purchase) parts is entered in the Misc. Parts tab. Given the supply option, Part Type and Default Supply Type in inventory, an appropriate supply will be created for the part if it is project-specific. 

There are four available supply options:

If the part has the supply option Purchase or Shop Order, then a Purchase Requisition or Shop Order is created respectively, otherwise a DOP Header if Dynamic Order Processing (DOP) has been selected. However, if Project MRP has been selected, then a supply request is created by Project MRP when it is performed.

For more information about Project MRP, refer to the documentation "Project Material Requirements Planning" and the activity "Perform MRP in Manufacturing/Make to Stock Planning" for detailed information.

Cost and progress are fed back to the project activity when the part is reserved (committed cost), or issued (used cost and progress). The part can be reserved and issued either from inventory or from the created supply request.

Entering Demand for Services and No Parts

Demand for a service (no part) is entered in the Misc. No Parts tab. A service has no supply option to select from. It can only be purchased by default.

Entering Demand for Rental Parts

Demand for a rental part is entered on the Misc. Rental Parts tab. A rental part will have supply option Purchase if it is not a standard planned item. If the rental part is a standard planned item the part can be reserved and issued from standard inventory.

Cost and Progress Feedback 

Cost and progress are fed back to the project activity through the entire procurement phase, from planning to order processing and retrieval.

For a comprehensive description, please refer to the documention: "About Cost, Hours and Revenue Reported to Activity" and "About Earned Value and Progress".

The Main Flow 

  1. Register the demand in either the Misc. Parts Misc. No Parts or Misc. Rental Parts tab.
  2. Net the demand from standard or project inventory, if there is any quantity available.
  3. Create a supply request for the demand through the command Create Project Supply Request.
  4. Process the requisition or DOP header:
    1. If a purchase requisition has been created, convert it to a purchase order, then process and receive it.
    2. If a shop order requisition has been created, covert it to a shop order, the process it.
    3. Process the DOP header if that supply request has been created instead.
  5. For parts, reserve the part through command Reserve. Note that the quantity of a part is reserved automatically when the supply request is received, e.g., if the purchase order has been received.
  6. Create and print a pick list for the selected miscellaneous demand lines.
  7. Issue the part through the command Issue. Note that issuing (and reservation) of parts from inventory can also be done manually. 
  8. Monitor the cost and progress of the created supply request on the connected project activity.