Make Rework Visible and Then Tackle It
Is minimizing the time and materials spent on rework on your list of initiatives? Check that you are set up to capture and measure rework and ensure you are getting the full picture of your efforts.
INDUSTRIOS offers the ability to track time and materials spent on Rework. Transactions can be flagged as rework during transaction entry or users can pull material and track rework time right from the shop floor.
Setup is explained below:
Production Application Settings control whether ‘Update Rework Time’ transactions can be created. This must be set to Yes for any tracked time to be flagged as Rework.
The cost of rework time will always be reflected separately on the Job Summary in Job Entry Browse. You can control what happens to that cost when the job closes. If included in Job Cost, the cost (and ultimately cost of sales) includes the rework, penalizing the job. If Expensed is chosen, the rework costs are booked to the Rework expense accounts assigned to the Cost Center where the Rework occurred. This allows you to monitor rework amounts separately at the GL account level.
Similar Application Settings for Inventory control rework material transactions.
Allowing Rework Transactions on the Shop Floor
For production staff to track rework time, their Shop Floor Menu Group must include the Rework transactions.
With these menu options enabled, production staff can pull and return material used for rework and start/stop rework time transactions for a specific job and work center.
The Shop Floor Tracking Activities screen indicates that the employee has rework transactions running.
A similar transaction can be used to pull material for rework purposes. Please note that there are separate menu options for the rework transaction when using Shop Floor.
Recording Rework via Material and Labor Transactions
When recording rework material and time using Material and Labor Transactions, a Rework flag is used to indicate that the transaction is rework.
Visibility to Rework Costs
Rework costs are considered ‘additional costs’ on the job. The rework amounts are included in the related section on the Job Cost Summary and the Additional Costs button is lit.
Clicking on the Additional Costs button reveals the rework costs as well as tracked costs excluding the Rework amounts.
