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Outsourcing

Can DBA be used to manage outsourcing?

DBA has a complete architecture in place for managing the subcontracting of services or outsourced manufacturing from suppliers.

In the BOM and job routing you can define subcontract sequences, which are the points during production when PO's are sent to outside suppliers.

In the case of subcontract services such as painting, plating, and heat-treating, you generate the PO using the Buy-for-Job screen and send the items to be serviced with the PO to the supplier.

In the case of outsourced manufacturing, if the supplier is furnishing the raw materials, you do not define the materials in the job bill of material; only the total cost of the manufactured item or assembly. If you are supplying the raw materials, you define them in the job bill of material. A PO is generated for the outsourced manufacturing via the Buy-for-Job screen. When you are supplying the raw materials, they are issued to the job and are then sent with the PO to the outside supplier.

When subcontract PO's are received, the cost is added to the total jobs cost and is categorized on job cost reports as a "Subcontract" cost. You can also keep track of items that get scrapped during subcontract processing.

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