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From the Maximo Support Desk - Warranty Claim Prossessing During Storeroom Reorder in Transportation Application

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Abstract

From the Maximo Support Desk - Warranty Claim Prossessing During Storeroom Reorder in Transportation Application

Body

Here's a good question... "Is the deficient quantity of an item under a Warranty Claim contract considered during the item reorder process?"

 

The short answer is no.  When a No Cost PO is generated for a Warranty Claim, the Reorder process for items in a Storeroom does not consider this to be a reservation, or a deficient quantity.  The basis of this business logic is that the item which is on order via the No Cost PO is a replacement (not a replenishment) for an item that has already been issued.  For this reason, a Warranty Claim Item is not included in the Storeroom Reorder.

 

Please consider the high level summary of steps below, which illustrate that the intended functionality of an Item Warranty Claim is to replace an item that has already been issued.  In the context of the Maximo reorder process, it is implied that this item has already been considered in the Maximo reorder calculation.

1. A rotating item exists in Item Master (Tr) and has been added to a Storeroom with a Current Balance of 2, and a Standard Cost of 35000;

    PRINT-1
    Order Unit: EACH
    Issue Unit: EACH
    Reorder Point: 2
    Economic Order Quantity: 1


2. Create an Item Warranty Contract for item PRINT-1, Duration of 6 months, authorize the contract for a site, and approve the contract;

 

3. Create a Work Order in Work Order Tracking (Tr) against an asset; approve it, and add PRINT-1 under Actuals/Materials; (warranty flag = N)

    Duplicate the WO, (to simulate a secondary Work Order that uses the warranty item)
    Approve the Work Order and add PRINT-1 under Actuals/Materials; (Warranty message appears this time)
    View Inventory (Tr) balance for PRINT-1; it is now 0


4. On the second Work Order/ From Select Action | Warranty Claims | Generate Warranty Claim, NOTE: identify the Return to Storeroom value as the originating Storeroom for the warranty item;

    Enter the Claimed Quantity, and generate a claim.


5. Go To Warranty Claims (Tr) and approve the claim and Create No-Charge PO.

    at the point where the No Cost PO is WAPPR: current balance is 0, reorder preview quantity is 3 (expected)


6. Go To Purchase Orders (Tr) application and approve the PO.

    at the point where the NO Cost PO is APPR: current balance is 0, reorder preview quantity is 3 (expected)


7: Go To Receiving (Tr) and receive the No Cost PO; view the current balance in Inventory (expected to be 1)

    at the point where the current balance is 1, the reorder preview quantity is 2 (expected)


The intended functionality of Item Warranty claims in Maximo (Transportation) is summarized in the scenarios below. Please note that the Item Warranty Contract feature is not a component of core Maximo; it is only part of the Transportation add-on. This is partly the reason that the functionality
of the Warranty Claim/No-Cost PO operates independently of the base Maximo reorder logic.

Example Item details:
Item = PRINTER
Current Balance = 2
Reorder Point = 2
EOQ = 1
-An Item Warranty Contract exists for this item
--------------------------------------------------------------

Example Scenarios:

1. The User issues a Quantity of 1 to a Work Order:
a. The Current Balance decreases to 1
b. If a Reorder is executed, then a Quantity of 2 will be reordered to exceed the Reorder Point of 2;
The Maximo reorder logic calculation is [reorder quantity = (reorder point + 1)]

2. The User issues a Quantity of 1 to a Work Order, and a Warranty Claim and No-Cost PO is created:
a. The Current Balance decreases to 1
b. If a Reorder is executed, then a Quantity of 2 will be reordered to exceed the Reorder Point of 2;
The Maximo reorder logic calculation is [reorder quantity = (reorder point + 1)]
c. The item that was issued to the Work Order will be replaced by the item that was ordered on the No-Cost PO, and the

The exception and amendment to this is described below:

NOTE: The timing of the Reorder and whether or not the receipt, and subsequent re-issue of the No Cost PO item is working as expected. This is not a bug, nor could there be a way for Maximo code to determine if the User is intending to re-issue the replacement item to the Work Order or not.
The code behind the Reorder process is only concerned with the Current Available Balance, Material Reservations, and how they match up with the Reorder Point.

In the scenario where the item under Warranty has already been issued to a Work Order, the Current Balance has correctly been updated. Once the No Cost PO has been created, this is NOT considered to be a material reservation because the item has already being issued... it will be REPLACED via receipt of the No Cost PO. If a Reorder is processed during this time, the reorder logic will correctly evaluate the current balance by NOT taking the pending receipt of the warranty item into account. Again, that warranty item has already been issued, and has already updated the current balance.
Please note the following scenario:

If the No Cost PO gets created for the issued item, and the No Cost PO is received to the same Storeroom from which it was issued, then this will update the Current Balance of the item as expected. The implied and expected action of the Maximo User is to issue the warranty item back out to the Work Order from which the Warranty Claim was identified on. If a scenario exists whereby the Reorder process is conducted BEFORE the warranty item has been received from the No Cost PO, and has been issued back out to the Work Order, then the Reorder process will consider this as part of the available Current Balance; this scenario will be considered in the reorder calculation.

 

Hopefully, this article can also be used as a quick start guide to using the Warranty Claims application!

 


Tom Richardson is an IBM Maximo Support Engineer and frequent contributor to the Asset Management Blog community.  For a complete index of links to his articles, visit
Index of articles by Tom Richardson, Support Engineer

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