Workflow Examples for Processing Item/Parts and Work Orders

Overview

This article provides insights into various strategies for integrating item/parts management with work orders to streamline the ordering and delivery processes, while effectively managing inventory inflows and outflows associated with work order usage.

Note:
This article is meant for you to understand various workflows that could be used. Your internal processes may differ. Do not use this as a definitive guide.

Definitions

Parts Requisition: A formal request made by a department or individual within an organization to obtain specific parts, materials, or components needed for a work order.

Purchase Order: Also referred to as a "PO", is a commercial document issued by a buyer to a seller, indicating the type, quantity, and agreed price for products or services that the buyer wishes to purchase. It serves as a legally binding contract between the buyer and the seller, outlining the terms and conditions of the transaction.

Purchase Order Receipt: Also reffered to as a receiver, is the acknowledgment or confirmation of the receipt of goods or services specified in a purchase order.

Pick List: Also known as a picking list or pick ticket, is a document or electronic record used in warehouse management and order fulfillment processes. It contains a list of items and quantities that need to be retrieved (picked) from inventory to fulfill customer orders, replenish stock, or fulfill work order quantities.

Purchasing Parts for a Work Order

In this example, we are purchasing items needed for a work order.

1. A work order is opened, and a technician is assigned to the work order.
2. The technician diagnoses the machine and finds that the machine will require parts to be replaced.
   
3. The technician opens a new Parts Requisition, and inputs the following:
   1. The work order and segment number
   2. Part Numbers needed and the quantity
      • A part can be added even if description or pricing is unknown, or if the part has not been added to the Parts Master.
4. After the technician confirms all parts are added to the Parts Requisition, the technician will submit it for review.
5. A Service Manager or Parts Manager will review the Parts Requisition and transfer the parts to the Work Order.
6. The items on the Parts Requisition are not in stock, therefore, a Purchase Order will have to be opened to order these items. The Service/Parts Manager will then transfer the items to the Purchase Order.
7. Once the parts are physically received, the Service/Parts Manager will receive the items on the Purchase Order, verifying the actual cost price and quantity delivered.
8. Once the Purchase Order Receipt is generated, the delivery quantities on the Work Order will be updated.

It's also possible to skip the parts requisition step and open a Work Order type Purchase Order directly. 

Picking Inventoried Parts for a Work Order

In this example, we are picking parts from inventory needed for a work order.

1. A work order is opened, and a technician is assigned to the work order.
2. The technician diagnoses the machine and finds that the machine will require parts to be replaced.
3. The technician opens a new Parts Requisition, and inputs the following:
   1. The work order and segment number
   2. Part Numbers needed and the quantity
      • A part can be added even if description or pricing is unknown, or if the part has not been added to the Parts Master.
   3. After the technician confirms all parts are added to the Parts Requisition, the technician will submit it for review.