quality assurance course -...

Epicor ERPQuality Assurance Course10.0.700.2

Disclaimer

This document is for informational purposes only and is subject to change without notice. This document and itscontents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of itsdate of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties withregard to the enclosed information and specifically disclaims any applicable implied warranties, such as fitness for aparticular purpose, merchantability, satisfactory quality or reasonable skill and care. As each user of Epicor software islikely to be unique in their requirements in the use of such software and their business processes, users of this documentare always advised to discuss the content of this document with their Epicor account manager. All information containedherein is subject to change without notice and changes to this document since printing and other important informationabout the software product are made or published in release notes, and you are urged to obtain the current releasenotes for the software product. We welcome user comments and reserve the right to revise this publication and/ormake improvements or changes to the products or programs described in this publication at any time, without notice.The usage of any Epicor software shall be pursuant to an Epicor end user license agreement and the performance ofany consulting services by Epicor personnel shall be pursuant to Epicor's standard services terms and conditions. Usageof the solution(s) described in this document with other Epicor software or third party products may require the purchaseof licenses for such other products. Where any software is expressed to be compliant with local laws or requirementsin this document, such compliance is not a warranty and is based solely on Epicor's current understanding of such lawsand requirements. All laws and requirements are subject to varying interpretations as well as to change and accordinglyEpicor cannot guarantee that the software will be compliant and up to date with such changes. All statements ofplatform and product compatibility in this document shall be considered individually in relation to the products referredto in the relevant statement, i.e., where any Epicor software is stated to be compatible with one product and alsostated to be compatible with another product, it should not be interpreted that such Epicor software is compatiblewith both of the products running at the same time on the same platform or environment. Additionally platform orproduct compatibility may require the application of Epicor or third-party updates, patches and/or service packs andEpicor has no responsibility for compatibility issues which may be caused by updates, patches and/or service packsreleased by third parties after the date of publication of this document. Epicor® is a registered trademark and/ortrademark of Epicor Software Corporation in the United States, certain other countries and/or the EU. All othertrademarks mentioned are the property of their respective owners. Copyright © Epicor Software Corporation 2014.All rights reserved. No part of this publication may be reproduced in any form without the prior written consent ofEpicor Software Corporation.

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Contents

Quality Assurance Course......................................................................................................5Before You Begin....................................................................................................................6

Audience.........................................................................................................................................................6

Prerequisites....................................................................................................................................................6

Environment Setup..........................................................................................................................................7

Workshop Constraints..............................................................................................................................7

Overview.................................................................................................................................8Application Setup.................................................................................................................10

Company Configuration................................................................................................................................10

User Account Security Maintenance...............................................................................................................11

User Security...........................................................................................................................................11

Security Group Maintenance..........................................................................................................................11

Workshop - Create a Security Group.......................................................................................................12

New Security Group and User.................................................................................................................12

Workshop - Authorize a Security Group..................................................................................................13

Reason Code Maintenance............................................................................................................................13

Define Reason Codes..............................................................................................................................14

Workshop - Define a Reason Code.........................................................................................................14

Set the Inspection Required Check Box..........................................................................................................15

Workshop - Modify a Supplier Record.....................................................................................................15

Workshop - Add a Warehouse to a Part Record......................................................................................16

Daily Quality Assurance Processing....................................................................................17Inspect Purchase Order Receipts.....................................................................................................................18

Receipt Entry..........................................................................................................................................18

Workshop - Order and Receive Parts................................................................................................19

Create a Purchase Order...........................................................................................................19

Create a Purchase Order Receipt...............................................................................................19

Inspection Processing..............................................................................................................................20

Workshop - Inspect Received Material..............................................................................................20

DMR Processing......................................................................................................................................21

Debit/Credit.....................................................................................................................................22

Workshop - Process a DMR Record...........................................................................................22

Miscellaneous Shipment Entry.................................................................................................................23

Workshop - Return Rejected Quantities............................................................................................23

Inspect Job Materials from Inventory..............................................................................................................24

Issue Material.........................................................................................................................................24

Quality Assurance............................................................................................................................25

Workshop - Issue Material to a Job..................................................................................................25

Nonconformance....................................................................................................................................26

Workshop - Enter Nonconformance for Job.....................................................................................26

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ContentsQuality Assurance Course

Part Tracker............................................................................................................................................27

Suspect Material Investigation.........................................................................................................28

Workshop - Use the Part Tracker.....................................................................................................28

Nonconformance for Inventory...............................................................................................................29

Workshop - Enter Nonconformance for Inventory............................................................................29

Nonconformance Inspection Process.......................................................................................................30

Workshop - Inspect Nonconformance for Inventory.........................................................................30

Workshop - Inspect Nonconformance for Job..................................................................................31

Open DMR Status Report........................................................................................................................32

Workshop - Review the Open DMR Status Report............................................................................32

Non-Conformance Analysis Report.........................................................................................................32

Workshop - Review the Nonconformance Analysis Report................................................................33

DMR Processing......................................................................................................................................33

Workshop - Process DMR for Inventory............................................................................................33

Workshop - Process DMR for Job.....................................................................................................34

Labor Entry and Nonconformance..................................................................................................................36

Time and Expense Entry..........................................................................................................................36

Workshop - Enter Nonconformance from Time and Expense Entry...................................................36

Report Labor Against Job.........................................................................................................36

Inspect Nonconformance Entry.................................................................................................37

Corrective Action....................................................................................................................................38

Initiate Corrective Action.................................................................................................................38

Workshop - Initiate Corrective Action..............................................................................................39

Create Corrective Action..........................................................................................................39

Response Tracking....................................................................................................................39

RMA Processing.............................................................................................................................................40

Return Material Authorization.................................................................................................................40

Workshop - Create RMA and Receive Materials...............................................................................41

Issue RMA for Material.............................................................................................................41

Receive Returned Material........................................................................................................41

RMA Inspection Processing.....................................................................................................................42

Workshop - Inspect and Dispose Returned Materials........................................................................42

RMA Credit Memo Request....................................................................................................................44

First Articles...................................................................................................................................................44

Workshop - Inspect First Articles.............................................................................................................44

Update Existing Job.........................................................................................................................45

Report Labor in MES........................................................................................................................45

Inspection Pending Report......................................................................................................................45

Workshop - Review the Inspection Pending Report..........................................................................46

Workshop - Approve First Article Inspection............................................................................................46

Conclusion.............................................................................................................................47

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Quality Assurance CourseContents

Quality Assurance Course

This course discusses the flow of material through the Quality Assurance (QA) module and reviews the configurationand maintenance setup. This course addresses various inspections and demonstrates how the Epicor applicationprocesses them.

The course workshops guide you through the inspection process. This course covers how to dispose failed material,return material to the supplier, and use report tools available in the QA module.

Upon successful completion of this course, you will be able to:

• Describe the material flow through the QA module.

• Configure the QA module options.

• Identify part classes, suppliers, and items that require inspection.

• Receive purchased items into inspection and disposition the items to stock or jobs.

• Move job material or job assemblies to inspection for analysis and disposition.

• Identify non-conforming material and move material to the Material Review Board (MRB) for analysis anddisposition.

• Receive returned material from a customer and dispose of it through inspection.

• Evaluate quality information through reports and trackers.

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Quality Assurance CourseQuality Assurance Course

Before You Begin

Read this topic for information you should know in order to successfully complete this course.

Audience

Specific audiences will benefit from this course.

• Shipping and Receiving

• QA Inspector

Prerequisites

To complete the workshops in this course, the necessary modules must be licensed and operating in your trainingenvironment. For more information on the modules available, contact your Epicor Customer Account Managerat [email protected]. It is also important you understand the prerequisite knowledge contained in othervaluable courses.

• Navigation Course - This course introduces navigational aspects of the Epicor application's user interface.Designed for a hands-on environment, general navigation principles and techniques available in two userinterface modes - Classic Menu and Modern Shell Menu. Workshops focus on each of these modes andguide you through each navigational principle introduced.

• Inventory Management Course - This course provides an overview of the entire inventory managementprocess. Use this module to update and maintain raw materials, work in process (WIP) as well as finishedgoods inventory quantities and costs.

• System Flow Course - This course introduces a basic quote to cash scenario that includes the process fromthe initial customer quote to final cash receipts and payment of supplier invoices. This course emphasizes theseries of processes that make up the quote to cash process by using a simple scenario to highlight varioustransactions. Your organization may have more complex processing routines than those described in thiscourse.

• Industry knowledge in inventory control, work order materials management, and quality control production.

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Quality Assurance CourseBefore You Begin

Environment Setup

The environment setup steps and potential workshop constraints must be reviewed in order to successfullycomplete the workshops in this course.

Your Epicor training environment, in which the Epicor demonstration database is found, enables you to experienceEpicor functionality in action but does not affect data in your live, production environment.

The following steps must be taken to successfully complete the workshops in this course.

1. Verify the following or ask your system administrator to verify for you:

• Your Epicor training icon (or web address if you are using Epicor Web Access) points to yourEpicor training environment with the Epicor demonstration database installed. Do not completethe course workshops in your live, production environment.

Note It is recommended that multiple Epicor demonstration databases are installed. ContactSupport or Systems Consulting for billable assistance.

• The Epicor demonstration database is at the same service pack and patch as the Epicorapplication. Epicor's education team updates the Epicor demonstration database for each service packand patch. If your system administrator upgrades your Epicor application to a new service pack or patch,he or she must also download the corresponding Epicor demonstration database from EPICweb > Support> Epicor > Downloads and install it. If this is not performed, unexpected results can occur when completingthe course workshops.

• Your system administrator restored (refreshed) the Epicor demonstration database prior tostarting this course. The Epicor demonstration database comes standard with parts, customers, salesorders, and so on, already defined. If the Epicor demonstration database is shared with multiple users(that is, the database is located on a server and users access the same data, much like your live, productionenvironment) and is not periodically refreshed, unexpected results can occur. For example, if a courseworkshop requires you to ship a sales order that came standard in the Epicor demonstration database,but a different user already completed this workshop and the Epicor demonstration database was notrestored (refreshed), then you will not be able to ship the sales order. Epicor's education team has writtenthe course workshops to minimize situations like this from occurring, but Epicor cannot prevent usersfrom manipulating the data in your installation of the Epicor demonstration database.

2. Log in to the training environment using the credentials manager/manager. If you are logged into yourtraining environment as a different user, from the Options menu, select Change User.

3. From the Main menu, select the company Epicor Education (EPIC06).

4. From the Main menu, select the Main Site.

Workshop Constraints

All workshops in this course can be performed only once in each instance of a restored (refreshed) database. Ifa user has already completed these workshops in the database, the database must be restored (refreshed) beforeanother user can complete this course.

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Before You BeginQuality Assurance Course

Overview

The Quality Assurance module ties together all quality functions, including scrapping end parts, rejecting rawmaterials, or tracking first article inspections. Review the general process flow of items inspected and dispositionedthrough the Quality Assurance module.

Input to Inspection

Quality Assurance (QA) module processing begins with the purchase order receipt. Anything selected for inspectionis received in the QA warehouse. Inspection flags can be manually set in the Supplier Maintenance, Part ClassMaintenance, Purchase Order Entry, Job Entry, or Shipping and Receiving module.

• You receive returns through the QA area, although the major Return Material Authorization (RMA) interfaceis owned by the Order Management module.

• If a particular article is used on a part, an operation for that purpose can be created. At the appropriate time,the part is pulled off the line, checked, and returned to the job once it passes the inspection.

Non-Conformance Entry

Use the Non-Conformance Entry to add or update non-conforming materials during job production. Generally,you enter non-conformance records because the material is bad, defective, or warrants an inspection. The materialcan be an assembly, raw job material, scrap, items from a subcontractor, or parts from another source. Theinformation you enter is sent to an inspector, who then inspects the material and uses Inspection ProcessingEntry to disposition it.

• A shop employee can create a non-conformance entry whenever a part displays off the line. Thenon-conformance is entered during Labor Entry and the quantity in question can be moved to inspection.

• A discrepant assembly inspection can be requested off the floor.

Example John J. Labor discovers an assembly that is faulty and he wants an inspector to review it. Hegenerates a manual non-conformance, pulls the discrepant assembly off the floor, and sends it forinspection. Once the inspection is complete and approved, it is returned directly to the job or sent toDMR Processing for further evaluation.

Incoming materials are often received in QA before production ever knows they are there. QA completes theinspection and returns the materials to inventory. This is called a discrepant inventory material inspection.Discrepant subcontract items are pulled off at the operation and sent to QA.

• An item previously received to inventory can be removed from inventory if it is thought to be defective. Anon-conformance entry is required to make this happen.

• Discrepant Miscellaneous has no direct flow to QA. This can be used in a situation where an indirect correctiveaction is required on an item that is not part related.

QA Processing Rules - Inspection Passed

Once inside inspection, an item can either pass or fail. To complete the process, the inspector must sign off onthe item and return the item to the appropriate location, depending on where it came from. Reason codes arenot used when an item passes inspection.

• Job material is returned to a job. Subcontract operations, or parts pulled from a job, are also returned to thejob after inspection.

• Material ordered specifically for inventory is dispositioned to the appropriate warehouse and bin locationsonce it passes inspection.

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Quality Assurance CourseOverview

QA Processing Rules - Inspection Failed

When an item is failed by an inspector, a system-generated DMR (Discrepant Material Request) number is created.The DMR process requires a warehouse and a bin be defined when you configure the Quality Assurance module.Typically, failed items go before a Material Review Board, which determines if an investigation is required andthe next course of action to take. This is called a corrective action, and the process is handled inside the QualityAssurance (QA) module.

• Courses of actions may be to rework the item(s), initiate a corrective action process, reject to scrap, or returnto the supplier. Cause and Corrective Actions can be created at the Discrepant Material Report (DMR) processinspection. Companies need to develop procedures to follow when corrective actions are necessary.

• When processing Return Material Authorizations, QA can handle a credit memo suggestion, if desired; creditmemo decisions may be something Accounting handles. A credit memo request is merely a suggestion;Accounting can create an actual credit memo.

DMR Processing - Accepted (Material Review Board Overrules)

If the Discrepant Material Report (DMR) Material Review Board accepts the items, the material is returned to thejob, and subcontract material returned to the job or to inventory.

DMR Processing - Rejected

If the Discrepant Material Report (DMR) Material Review Board rejects the items, they will typically recommendto disposition the materials. Reason codes must be defined for all rejections. Five types of reason codes interfacewith the Quality Assurance (QA) module:

• QA

• RMA

• Scrap

• DMR

• Inventory

In most situations, QA only applies in the corrective action process, and the remaining reason codes tie to theDMR process.

Based on the Material Review Board's recommendation, the item can be scrapped or returned to the supplier.A debit memo can also be initiated within the QA module, even when the material is accepted as part of theDMR processing, for example, in material rework.

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OverviewQuality Assurance Course

Application Setup

This section reviews the company configuration and goes through the maintenance program setup that affectthe Quality Assurance module.

To set up the inspection process, complete the following:

• Company Configuration

• User Account Maintenance

• Security Group Maintenance

• Identify inspection departments and inspectors.

• Define reason codes, shop warnings and global alerts.

• Set the Inspection Required check box in the appropriate programs.

Company Configuration

Use Company Configuration to define company options in the Epicor application. These options allow you tocustomize the Epicor application to best fit each company.

Company configuration is usually done at the time of implementation. All Epicor application modules requiremaintenance table definition, and the Quality Assurance (QA) module is no different. This section reviewsconfigurations and tables specific to the QA module.

Modules > Production > QA

The Modules > Production > QA sheet contains the company configuration specific to the Quality Assurance(QA) module.

Receipt Inspection Options

The Receipt Inspection Options section contains the Default site and Default Inspection Warehouse fields.Before material is received, an inspection warehouse and inspection bin must be defined in the QA moduleconfiguration. The site must be valid and the warehouse does not have to be a physical warehouse. The warehousecan be virtual, where the warehouse is actually a shelf in the back room.

It is recommended to use a descriptive name, such as Inspection Warehouse, to easily identify where materialscan be found. When items are selected as Inspection Required, the warehouse field populates with the namedefined in the QA module configuration.

Initialization Options

The Initialization Options section contains the Starting Non-Conformance ID and Starting Corrective ActionID fields. All non-conformance and corrective action IDs are automatically assigned during their respectiveprocessing. If a starting number is not defined, the Epicor application begins with number one.

Defaults

The Defaults section contains the Move Costs to DMR check box; this check box applies to assemblies andcontrols the default action in the event of a failed assembly. By default, this check box is not enabled duringimplementation; therefore, you can decide whether to move the cost of a failed item to the Discrepant MaterialReport (DMR) after inspection or to leave the cost in the job.

When selected, costs for the failed assembly are moved from work in process (WIP) to the DMR pending accounts.Keep in mind, the assembly costs are not removed from the job when the assembly moves to inspection. Those

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Quality Assurance CourseApplication Setup

costs are only removed when the assembly fails in inspection and is then moved to DMR. Material costs areremoved from the job as soon as the specific material is moved to inspection by default.

Menu Path

Navigate to this program from the Main Menu:

• System Setup > Company/Site Maintenance > Company Configuration

User Account Security Maintenance

Use User Account Security Maintenance to enter basic information, security access, and application privilegesfor users. Anyone who accesses the Epicor application must be set up in this program.

Users must have a defined user ID, name, and password. In this program, you can also define addresses, phonenumbers, and other company information.

Users are commonly created by the Epicor application implementation team. The System Administrator grantssecurity permissions based on the user's role in the company.

Menu Path


• ICE External > Security > User Security

• System Setup > Security Maintenance > User Account Security Maintenance

Important This program is not available in the Epicor Web Access.

User SecurityUser Account Maintenance > Security

Use the Security sheet to establish security rights in the Epicor application.

Once the user names and passwords are established, users can be assigned to departments or responsibilitieswithin the Epicor application. In the Quality Assurance module, users define the inspectors as the resource thatperforms inspections on materials, assemblies, and parts. The system administrator usually establishes users.

Security Group Maintenance

Use Security Group Maintenance to establish security groups that define various functions either throughoutyour organization or for a specific company. You then use these security groups to assign or limit access to variousareas within the Epicor application.

You can assign a user to a security group in User Account Maintenance, and then you can select security groupson various security sheets in other programs. While optional, security groups are useful because they can categorizeemployees by role or department.

Epicor recommends you create security groups and assign all users to specific groups. You then simplify yoursecurity setup, as you do not need to assign security to individual users. This approach also ensures you implementsecurity through an organized and clearly defined method.

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Application SetupQuality Assurance Course

Before you begin assigning security, consider the various areas of security your company needs. You should thendesign a security plan and enter security groups that reflect this plan. While you set up this plan, consider thatroles tend to be more generic, while job titles tend to be more specific. Several job titles can fulfill the responsibilitiesof a single role.

Menu Path


• ICE External > Security > Security Group

• System Setup > Security Maintenance > Security Group Maintenance


Workshop - Create a Security Group

In this workshop, create a new security group.

Navigate to Security Group Maintenance.

Menu Path: System Setup > Security Maintenance > Security Group Maintenance


1. Click New.

2. In the Group Code field, enter QA.

3. In the Description field, enter Quality Assurance.

4. Click Save.

5. Exit Security Group Maintenance.

New Security Group and User

Set Up a New Security Group Setup

Security groups allow one security level to be set for many users within one group.

Example The system administrator creates a Quality Assurance security group and defines menu securityfor this group rather than for each user. If a specific individual is allowed to accept and reject material butis not allowed to request a debit memo, another security level creation is available in Menu Maintenance.

New User Creation

Once the security group is defined, it is populated through the User Security table. It is suggested to use the sameuser ID assigned initially throughout the Epicor application. The user ID entered should coincide with all otherIDs within the Epicor application. Access rights are assigned in the Security sheet.

Many of the inspection windows contain sub-menu security, so even access to a particular sheet does notnecessarily give a user access to all the fields on the sheet. For example, DMR Processing limits access rights toaccept or reject material and request a debit memo.

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Workshop - Authorize a Security Group

In this workshop, authorize the security group you created in the Workshop - Create a Security Group.

Navigate to User Account Maintenance.

Menu Path: System Setup > Security Maintenance > User Account Security Maintenance


1. In the User ID field, search for and select Inspector Clousseau.

2. Navigate to the Group sheet.

3. From the Available list, select Quality Assurance and click the right arrow to move the group to theAuthorized list.

4. Click Save.

The Changes to security may take up to five minutes to take effect message displays.

5. To the message, click OK.

6. Exit User Account Maintenance.

Reason Code Maintenance

Use Reason Code Maintenance to assign standard explanations for Customer Relationship Management (CRM)events, labor scrap and rework, inventory adjustments, and Return Material Authorization (RMA) entries.

To use reason codes, select the appropriate options in Company Configuration. Next, set up the codes in ReasonCode Maintenance and select the reasons in the following programs:

• Count Discrepancy Reason Code Entry

• Time and Expense Entry

• Inventory Adjustment Entry

• RMA Processing

• RMA Dispositions

• Opportunity/Quote Entry

The following reason codes are used in manufacturing:

• Scrap - This is used to identify a non-conformance quantity.

• Quality Assurance - This is used for inspection and corrective actions.

• Inventory Adjustments - This is used to identify items pulled from inventory that are non-conforming.

• Rework - This is used for items sent back to be re-worked.

Menu Path


• Financial Management > Deferred Revenue Accounting > Setup > Reason Code

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• Material Management > Inventory Management > Setup > Reason Code

• Production Management > Job Management > Setup > Reason Code

• Production Management > Quality Assurance > Setup > Reason Code

• Sales Management > Customer Relationship Management > Setup > Reason Code

• Service Management > Field Service > Setup > Reason Code

For CRM users, the Main Menu appears as:

• Customer Relationship Management > Sales and Marketing Management > Setup > Reason Code

Define Reason Codes

Many reason codes are already defined, but you can add more reason codes to meet specific needs. Reason codedescriptions can be of a general or informational nature. Reason codes defined in the Discrepant MaterialReport (DMR) or the Inventory Adjustment category can carry an offsetting General Ledger (GL) accountnumber by the code.

The five definition sections in the Detail sheet are:

• Scrap

• Inspection

• DMR

• Quality Assurance

• Inventory Adjustment

Note Use these sections to define the circumstances under which a reason code can be used.

Example The Inspection section in Reason Code Maintenance includes check boxes which , when selectedfor a specific reason code, ensure that the defined reason code displays in the Operations, Materials, POReceipts, and Inventory sheets in Inspection Processing Entry. The check boxes activate only if the DMRreason type is selected in the Reason Type field.

Workshop - Define a Reason Code

In this workshop, define a new reason code for scrap due to rust or corrosion.

Navigate to Reason Code Maintenance.

Menu Path: Production Management > Quality Assurance > Setup > Reason Code

1. In the Reason Type field at the top, verify Scrap defaults.

2. From the New menu, select New Reason Code.

3. In the Reason Code field, enter RC.

4. In the Reason Description field, enter SC-Rust/Corrosion.

The prefix SC is used to indicate Scrap. It keeps all the scrap reason descriptions together when conductingsearches.

5. Accept all the defaults.

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Since this new reason code is defined as scrap, the options listed under the Scrap section are automaticallyselected. The options available depend on the Reason Code type selected. You can adjust the check boxesas necessary for the specific code.

6. Click Save.

If the code is entered as part of the DMR or Inventory Adjustment types, you have the option to enter anoffsetting General Ledger (GL) account unique to that code.

7. Exit Reason Code Maintenance.

Set the Inspection Required Check Box

When you select the Inspection Required check box, it indicates that the parts received must be inspected. TheInspection Required check box controls inspection requirements for assemblies and materials in the followingprograms:

• Part Class Maintenance

• Supplier Maintenance

• Job Entry

• Purchase Order Entry

• Requisition Entry

Note For more information about these programs, refer to the Application Help.

If the Inspection Required check box is selected in any of these programs, the part must be inspected. If aninspection requirement is controlled at the maintenance program level, the field is not available at the transactionentry level.

If you select the Inspection Required check box in either Supplier Maintenance or Part Class Maintenance, youcannot change it anywhere in the Epicor application.

• If the Inspection Required check box is set at a supplier level in Supplier Maintenance, all purchase itemsfrom the supplier must be received to the inspection area before they can be released to the job or floor.

• If the Inspection Required check box is set at the part class level in Part Class Maintenance, it applies to allclass members and cannot be overridden. Although some General Ledger (GL) accounts are established inthe Company Maintenance > Control Account sheet, this sheet is one of the places where the default GLaccounts for inspection and Discrepant Material Report (DMR) can be overridden. In the Epicor applicationhierarchy, part class has the highest override level.

Workshop - Modify a Supplier Record

Your company has decided to order part BS-CR-RD-150 from a supplied called Seaside Steel on a regular basis.As a result, all of the ordered parts will have to go through an inspection process once they are received. In thisworkshop, modify the Seaside Steel supplier record so all the received parts from this supplier go through inspectionbefore they are received to stock.

Navigate to Supplier Maintenance.

Menu Path: Material Management > Inventory Management > Setup > Supplier

1. In the Supplier field, search for and select Seaside Steel.

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2. In the Status pane, select the Inspection Required check box.

3. Click Save and exit Supplier Maintenance.

Workshop - Add a Warehouse to a Part Record

As the BS-CR-RD-150 part requires inspection on receipt you have to link it to the warehouse used for theinspection process. In this workshop, add the inspection warehouse for part BS-CR-RD-150.

Navigate to Part Maintenance.

Menu Path: Material Management > Inventory Management > Setup > Part

1. In the Part field, enter BS-CR-RD-150 and press Tab.

The part information populates.

2. Navigate to the Part > Sites > Detail sheet.

3. In the Primary Warehouse field, select the Receiving Area warehouse.

4. Click Save and exit Part Maintenance.

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Daily Quality Assurance Processing

As reviewed in the Overview section, you can request inspections in several ways. This section focuses on thequality assurance transactional processes for a purchase order receipt, receipt to inventory, non-conformingquantity receipt, return material authorizations (RMAs), and first articles.

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Daily Quality Assurance ProcessingQuality Assurance Course

The elements that make up the Quality Assurance process include:

• Ability to move material to inspection from inventory or jobs

• Ability to move assemblies to inspection from inventory or job

• Automatic receipt of customer returns via RMA to inspection

• Scrap by reason code

• Discrepant Material Record (DMR) disposition by reason code with an assigned General Ledger account number

• Ability to move reject costs to DMR or leave them in the job

• Ability for specified parts to go to the inspection queue before going into stock or a job

• Audit trail of rejected parts from inspection, inventory, or a job

Inspect Purchase Order Receipts

If the part number being received as material has been designated as Inspection Required, the items are sent tothe default inspection warehouse once Shipping and Receiving department receives the material. If all is well andinspection approves the materials, they are transferred back to the job or into inventory, depending on the typeof order.

• If the material fails, it goes directly to the Discrepant Material Report (DMR) process. The DMR process has aMaterial Review Board (MRB) that reviews the items and makes a second decision. If passed, the materialgoes back to the job or to inventory.

• If the MRB fails the material, a corrective action is requested; the materials are rejected completely and returnedto the supplier. The MRB can also recommend to scrap the material rather than return it.

The Shipping and Receiving department and Quality Assurance department are not the same.

Receipt Entry

Use Receipt Entry to enter the receipt of inventory and non-inventory materials and subcontract parts.

Important Use RMA Processing to receive parts returned by the customer.

Receipt line items are either purchase order receipts (recorded against a purchase order) or miscellaneous receipts(material received that is not associated with a purchase order). Receipt information updates the purchase orderand creates transactions to update inventory or job quantities and costs.

You cannot update invoice receipts.

If the Quality Assurance module is enabled in your environment, use Inspection Processing to inspect partsyou receive.

Receipt entries can be saved to generate accounts payable invoice entries. Use the Modules > Finance > AccountsPayable sheet within Company Configuration to indicate whether you want to save receipt entries for accountspayable.

If you have the Document Management module installed, you can add Certificate of Compliance documentsto the receipt line.

Menu Path


• Material Management > Shipping / Receiving > General Operations > Receipt Entry

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Quality Assurance CourseDaily Quality Assurance Processing

Workshop - Order and Receive Parts

Our company, ABC Shelving, has decided to order 50 units of part BS-CR-RD-150 (1 1/2" round bar) from theSeaside Steel supplier. In this workshop, enter the purchase order for this part, select a buyer, and process thereceipt of the part.

Create a Purchase Order

Navigate to Purchase Order Entry.

Menu Path: Material Management > Purchase Management > General Operations > Purchase Order Entry

1. From the New menu, select New PO.


3. In the Buyer field, select Henry Crabtree.

4. Navigate to the Lines > Detail sheet.

5. From the New menu, select New Line.

6. In the Part/Rev field, enter BS-CR-RD-150 and press Tab.

7. In the Due Date field, enter tomorrow's date.

8. In the Our Qty field, enter 50.

9. Navigate to the Summary sheet.

10. Select the Unapproved check box.

The PO status is changed to Approved.

11. Click Save.

12. Note the PO Number ______________.

13. Exit Purchase Order Entry.

Create a Purchase Order Receipt

The ordered items have arrived from Seaside Steel so the next step is to enter a new receipt. In this workshoptask, enter a new receipt for 50 units of part BS-CR-RD-150.

Navigate to Receipt Entry.

Menu Path: Material Management > Shipping / Receiving > General Operations > Receipt Entry

1. From the New menu, select New Receipt.

2. In the PO field, enter the PO number created in the Create a Purchase Order workshop task and pressTab.

3. In the Packing Slip field, enter the PO number created in the Create a Purchase Order workshop taskand press Tab.

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4. From the New menu, select New Stock Line.

The Stock > Detail sheet displays.

5. In the Line field, enter 1 and press Tab.

This populates the Line and Rel fields.

6. In the Receiving Quantity pane, in the Quantity field, verify 50 displays.

7. In the Receiving Quantity pane, in the Supplier Qty field, verify 50 displays.

8. In the Warehouse field, select Inspection Area.

9. In the Bin field, search for and select INSI.

10. Select the Line Received check box.

11. Navigate to the Summary sheet.

12. Click Save.

Notice the Received All check box is selected.

13. Exit Receipt Entry.

Inspection Processing

Use Inspection Processing Entry to inspect the non-conformance entries. You can also inspect purchase orderreceipts and customer returns.

Important Once inspection information is entered for a non-conformance record, that record is consideredClosed; it cannot be updated or deleted.

For more information on the flow of discrepant/non-conformant material through the Quality Assurance module,review the Quality Assurance module in the Application Help.

Menu Path


• Production Management > Quality Assurance > General Operations > Inspection Processing

Workshop - Inspect Received Material

The BS-CR-RD-150 parts are now in your warehouse waiting for inspection before they are used in production.While the material was on truck, the steel straps holding the bundle of steel bars together broke. The outsidebars received nicks and scratches from hitting other steel bars on the truck. The inspector determines that 35 of50 bars are okay and will be moved to stock, but 15 are questionable because of the nicks and scratches.

In this workshop, inspect the received items.

Navigate to Inspection Processing Entry.

Menu Path: Production Management > Quality Assurance > General Operations > Inspection Processing

1. Click the Binoculars (search).

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The Inspection Processing Search window displays.

2. In the Tran Type pane, select the All check box to disable check boxes.

3. In the Tran Type pane, select the PO Receipts check box and click Search.

4. Select the purchase order (PO) number created in the previous workshop and click OK.

5. In the tree view, expand the PO Receipts node. and select PO Receipts: PO: XXXX Line:1 Part:BS-CR-RD-150 (where XXXX is the PO number created in the Create a Purchase Order Receipt workshoptask).

The PO Receipts > Detail sheet displays.

6. In the Inspector ID field, select Inspector Clousseau.

7. In the Passed pane, in the Passed Qty field, enter 35.

8. In the Received To section, verify the Stock radio button is selected.

9. In the Passed pane, in the Warehouse field, select Main.

10. In the Passed pane, in the Bin field, search for and select 01-01-01.

11. In the Application of Failed Quantity pane, in the Failed Qty field, enter 15.00.

This moves the remaining 15 bars to Material Review Board (MRB) pending.

12. In the Application of Failed Quantity pane, in the Reason field, select Failed, Shipping Damage.

13. In the Warehouse field, select or verify MRB Pending displays.

14. In the Bin field, select or verify MRB-1 displays.

15. Navigate to the PO Receipts > Comments > Failed sheet.

16. In the Failed Comments pane, enter 15 pieces received nicks and scratches while in transit.

17. Click Save.

The Discrepant Material Report (DMR) number displays.

18. Record the DMR number and click OK ___________.

19. Exit Inspection Processing Entry.

DMR Processing

Use DMR Processing to process job material, job assemblies, inventory, customer returns, or purchase orderreceipts that fail inspection. These discrepant parts are then placed on the Discrepant Material Report (DMR).

In this program, you decide how to deal with discrepant parts. You can accept them, deciding they still can beused, or you can reject them, sending them back to your supplier. You can create a debit memo request fromthe supplier for the rejected parts.

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Tip Packing slips for DMR rejected parts are processed in Miscellaneous Shipment Entry in order tostandardize shipping procedures and enable the tracking of parts returned to suppliers.

You can enter as many acceptances, rejections, and debit memo requests as necessary for a single DMR. Forexample, you can accept a quantity into your stock, accept a quantity into a job material record, reject a quantityand assign it an RMA number so you can return it to the supplier, and reject a quantity you will scrap. The rejectedand accepted quantity total must equal the discrepant quantity total on the DMR.

Important The Advanced Material Management (AMM) license automatically creates a Mtl queuetransaction to have the people on the floor move the goods from one area to another. At the DMR level,whether the AMM license is installed or not, the user is able to process the DMR by accepting or rejectingthe material. Accepting means the defective material stays in the company for rework or is kept in stock(even if defective). Rejecting means the company will take an extra action such as sending it back to thesupplier or asking for credit/refund.

For more information on the discrepant material flow through the Quality Assurance module, review the QualityAssurance Module Flow topic in the Application Help.

Menu Path


• > DMR Processing

• Production Management > Quality Assurance > General Operations > DMR Processing

Debit/Credit

Use the Debit/Credit sheet to view debit/supplier credit memo information for a Discrepant Material Report(DMR) quantity. You first request the debit memo or supplier credit memo using the Resolution field for theDMR quantity in the Reject sheet, and process the actual demo or credit memo in AP Invoice Entry.

Workshop - Process a DMR Record

During the inspection process of part BS-CR-RD-150 the inspector found 15 damaged items and therefore hadto move them to another level of the quality assurance control process. The supplier offers to take the itemsback, but the company decides to move five of them to stock because they can still be used, and return the tendamaged ones back to the supplier. The supplier agrees to reimburse the company for the returned ones. In thisworkshop, use DMR Processing to designate which quantities will be accepted or rejected, and suggestreimbursement through a credit memo.

Navigate to DMR Processing.

Menu Path: Production Management > Quality Assurance > General Operations > DMR Processing

1. In the DMR Number field, enter the DMR number created in the Workshop - Inspect Received Materialand press Tab.

2. Navigate to the Reject > Detail sheet.

3. From the New menu, select New Reject Material.

4. In the Resolution field, select Request Debit Memo.

5. In the Quantity field, enter 10.

6. In the Reason field, select Failed, Shipping Damage.

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7. Select the Return to Supplier check box and click Save.

8. Navigate to the Accept > Stock > Detail sheet.

9. From the New menu, select Accept - Stock.


11. In the Reason field, select Accepted, use as is.

12. In the Warehouse field, select Main.

13. In the Bin field, search for and select 01-01-01.

14. Click Save and exit DMR Processing.

Miscellaneous Shipment Entry

Use Miscellaneous Shipment Entry to enter packs for miscellaneous (non-billable) material. Use this programto enter and print packs for the return of discrepant parts to a supplier from a Discrepant Material Report (DMR)record.

Packs entered in this program are not invoiced, but they are tracked in the Miscellaneous Shipments Tracker.You can also insert references to orders, jobs, or projects.

Tip Use Customer Shipment Entry to enter shipments to invoice.

Menu Path


• > Miscellaneous Shipment Entry

• Material Management > Shipping / Receiving > General Operations > Miscellaneous Shipment Entry

• Service Management > Field Service > General Operations > Miscellaneous Shipment Entry

Workshop - Return Rejected Quantities

In this workshop, return the rejected parts and generate a packing slip for the return of ten discrepant parts.

Navigate to Miscellaneous Shipment Entry.

Menu Path: Material Management > Shipping / Receiving > General Operations > Miscellaneous ShipmentEntry

1. From the New menu, select New Pack.

2. In the Related To pane, in the PO Number field, enter the purchase order number created in the Createa Purchase Order workshop task.

3. In the Related To pane, in the DMR Number field, enter the DMR number created in the Workshop -Inspect Received Material and press Tab.

4. Click Save.

5. Navigate to the Lines > Detail sheet.

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6. Verify the following information displays:

DataField

1Line

BS-CR-RD-150Part

10.00Quantity

7. Click Save and exit Miscellaneous Shipment Entry.

Inspect Job Materials from Inventory

Occasionally, materials issued to a job or subcontracted parts are received to a job before a discrepancy is noticed.Use the Quality Assurance (QA) module to move the parts from a job or from a subcontracted operation andinto QA for disposition.

Issue Material

Use Issue Material to issue material from inventory to a job. This program issues material to a job one part ata time. To issue the required parts to a job at once, use Mass Issues to Manufacturing.

When you issue material to a job, several events occur:

• The IssuedQty and TotalCost values on the job material or assembly record update with the quantity issuedand the extended cost. Extended Cost is calculated as the issue quantity multiplied by the current inventoryAverage, Standard, or Last unit cost (depending on the inventory costing method).

• The On Hand quantity and the Allocated quantity for the part in the part master file are reduced by thequantity issued.

• A transaction history record is created for the part. The transaction type is STK-MTL (job material issue).

Important To use the Manufacturing Execution System (MES) to issue job material, the Advanced MaterialManagement (AMM) license must be installed in the Epicor application. Once you install this license, youcan define shop employees as Material Handlers in Shop Employee Maintenance; these users can thenissue or move material on the manufacturing center.

An AMM license must also be installed for proper access to the To Warehouse and To Bin fields in IssueMaterial. If it is not, warehouse and warehouse bin numbers display in each respective field, but the fieldsthemselves are disabled and cannot be accessed. When this occurs, an Issue Material error displays whenyou attempt to save the transaction. To save the transaction and get rid of the error message, you can usethe following workaround procedure:

1. Navigate to Resource Group Maintenance located in the Production Management > JobManagement > Setup folder.

2. Search for and select a resource group.

3. Verify the Detail sheet is active.

Note The Detail sheet contains three warehouse fields, labeled Input Warehouse, OutputWarehouse and Backflush Warehouse.

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4. Click into each warehouse field once; even if the field is empty and displays as disabled.

5. Change another control or field in the group (for example, by populating a field or selecting a checkbox).

6. Click Save.

7. Navigate to the Resources sheet and repeat steps 2 - 5 for each resource that displays in the sheet.Remember to click Save after changing a resource, and moving on to the next one. Do this for eachlisted resource, and resource group.

Note If you complete this workaround properly, the error message should no longer displayin Issue Material and the To Warehouse field still displays as disabled, but also as empty (novalue). You can then click Save to complete the transaction.

Menu Path


• Material Management > Inventory Management > General Operations > Issue Material

• Service Management > Maintenance Management > General Operations > Issue Material

Quality Assurance

Before quality assurance (QA) can inspect material from a job, material must be issued to a job. Issuing materialto a job is generally not a task of the QA department, but it is helpful to understand how materials are issued toa job.

Workshop - Issue Material to a Job

Assembly ADD-200-S needs 1,050 raw castings to be issued to job 2041. In this workshop, issue material to thejob.

Navigate to Issue Material.

Menu Path: Material Management > Inventory Management > General Operations > Issue Material

1. Navigate to or verify the Detail sheet displays.

2. In the Job field, search for and select job 2041.

3. In the Mtl field, select 10.

4. In the Quantity field, enter 1,050.

5. In the Warehouse field, verify Main displays.

6. In the Bin field, verify bin 01-02-02 displays.

7. In the Lot Number field, search for and select CS000209152008.

8. Click OK.

9. Exit Issue Material.

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Important An Advanced Material Management (AMM) license must be installed for proper accessto the To Warehouse and To Bin fields in Issue Material. If it is not, warehouse and warehouse binnumbers appear in each respective field, but the fields themselves are disabled and cannot be accessed.When this occurs, an Issue Material error appears when you attempt to save the transaction. TheApplication help for Issue Material contains a published workaround to use if this occurs.

Nonconformance

Use Nonconformance to add or update non-conformant materials during job production. Generally,non-conformance records are entered because the material is bad, defective, suspect, or warrants inspection.

The material can be an assembly, raw job material, scrap, items from a subcontractor, or parts from anothersource. The information you enter is sent to an inspector, who then inspects the material and uses InspectionProcessing to disposition it.

When non-conformant materials are reported through Time and Expense Entry as part of the employee’s workrecord, and that record is saved, a non-conformance record is created that is then accessible in this program. For these types of records, you can only modify the quantity and the reason fields in Nonconformance. Theother fields are unavailable.

For more information on the discrepant material flow through the Quality Assurance module, review the QualityAssurance Module Flow topic in the Application Help.

Tip If your Epicor application is integrated with the IQS Advanced Quality Module (AQM), the AQMapplication performs the inspection processes for jobs, inventory receipts, and purchase receipts.

To track these AQM records within Non-Conformance, Service Connect uses an identifier to link the AQMrecord to the non-conformance record. This field, AQMNCMNum, is located on the List sheet. This labelis an abbreviation for Advanced Quality Module Non-Conformance Material Number and displays theidentifier originally generated by the AQM application.

Menu Path


• Production Management > Quality Assurance > General Operations > Nonconformance

Workshop - Enter Nonconformance for Job

Linda Carter (employee number 106) is working on part of a job and discovers there is a defective quantity of150. In this workshop, enter a non-conformance quantity from a job and send the material to the inspectionarea.

Navigate to Nonconformance.

Menu Path: Production Management > Quality Assurance > General Operations > Nonconformance

1. From the New menu, select New Material.

2. In the Employee field, enter 106 and press Tab.

3. In the Job field, enter 2041.

4. In the Material field, select 10.


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6. In the Lot field, search for and select CS000209152008.

7. In the Reason field, select SC-Rust/Corrosion.

8. In the Operation Seq field, select 10.

9. In the From Warehouse field, select Floor Stock-Main.

10. In the Bin field, verify bin A-101 displays.

11. In the To Warehouse field, select or verify Inspection Area displays.

12. In the Bin field, search for or verify bin D-1 displays.

13. Click Save and record the Transaction ID __________.

14. Remain in Nonconformance for the next workshop.

Part Tracker

Use the Part Tracker to access current information on parts in the database. This includes information such asrevisions, on-hand quantities, costs, locations, inspection, and planning data.

You can use the Part Search feature to pull multiple part records into the Part Tracker. The tracker displays onlyone part at a time. You cannot add or edit records in this tracker.

Numerous sheets are available in the Part Tracker. Many of them are read-only versions of sheets that display inPart Maintenance. The Part Tracker also pulls in Quality Assurance information for the part.

Use the Part field context menu to access additional programs. If you enter a part number in the Part field beforeyou select a program from the context menu, the program automatically populates with that part number. Youcan access the following programs from the Part field context menu:

• Part Entry

• Part Transaction History Tracker

• Part Display

• Part Advisor

• Part Search

• Purchase Advisor

• Time Phase

• Job Manager

• Available to Promise

• Part On Hand Status

Additional information is available from the Part Tracker Actions menu, including:

• Approved Suppliers

• Forecast

• Configurator

• Where Used

• Master Production Schedule

• Price List

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• Attachments

• Memos

• Change Logs

Tip To view inactive part records, create a special dashboard. To do this, copy the zPartTracker01 queryand change its filter settings to display parts that have the Inactive status. For more information, refer tothe Dashboard topic in the Application Help.

Menu Path


• Executive Analysis > Trackers > Part Tracker

• Material Management > Inventory Management > General Operations > Part Tracker

• Material Management > Purchase Contracts Management > General Operations > Part Tracker

• Material Management > Purchase Management > General Operations > Part Tracker

• Material Management > Shipping / Receiving > General Operations > Part Tracker

• Material Management > Supplier Relationship Management > General Operations > Part Tracker

• Production Management > Engineering > General Operations > Part Tracker

• Production Management > Job Management > General Operations > Part Tracker

• Production Management > Material Requirements Planning > General Operations > Part Tracker

• Production Management > Quality Assurance > General Operations > Part Tracker

• Production Management > Scheduling > General Operations > Part Tracker

• Sales Management > Configurator Management > General Operations > Part Tracker

• Sales Management > Customer Relationship Management > General Operations > Part Tracker

• Sales Management > Order Management > General Operations > Part Tracker

• Sales Management > Quote Management > General Operations > Part Tracker

• Service Management > Field Service > General Operations > Part Tracker


• Customer Relationship Management > Configurator Management > General Operations > Part Tracker

• Customer Relationship Management > Sales and Marketing Management > General Operations > Part Tracker

• Customer Relationship Management > Order Management > General Operations > Part Tracker

• Customer Relationship Management > Quote Management > General Operations > Part Tracker

Suspect Material Investigation

If there is a discrepancy in the materials on a job, you may decide to check the materials that remain in inventory,as well as material shipped to the customer. Both the Job Tracker and the Part Tracker are excellent tools toreview these jobs because they include the material and monitor transactions against the part.

Workshop - Use the Part Tracker

The item under investigation is a lot number tracked item. The lot number is referenced throughout the processof the parts and therefore, can help locate the parts down to the machine they came from. Any time a lot numberis active, it must be referenced throughout the Epicor application. In this workshop, review the transaction historyfor part CS-87-4578 using the Part Tracker.

1. In the Part field, right-click CS-87-4578 and select Open With > Part Tracker.

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The Part Tracker displays.

2. Navigate to the General > Part sheet.

3. Right-click the Part field, and select Open With > Part Transaction History Tracker.

The Part Transaction History Tracker displays.

4. Click the Retrieve button.

5. In the Transaction History grid, review the transactions.

Notice that 1,050 pieces were issued from stock and 150 were moved to inspection.

6. Exit the Part Transaction History Tracker.

7. Exit the Part Tracker.

8. Remain in Nonconformance for the next workshop.

Nonconformance for Inventory

Use the Inventory sheet to add, update, or delete non-conformance records that relate to discrepant materialin inventory. You can only update or delete open non-conformance records. Open non-conformance recordshave not been processed through inspection yet.

Workshop - Enter Nonconformance for Inventory

Due to the problem with previously issued material, Linda Carter has been assigned to check the remaininginventory for part CS-87-4578 to make sure that there are no any defective pieces. During the inventory checkshe did not find any corroded pieces but discovered that further 150 items do not meet dimension standards. Inthis workshop, enter nonconformance for material CS-87-4578.

Navigate to Nonconformance.

Menu Path: Production Management > Quality Assurance > General Operations > Nonconformance

1. From the New menu, select New Inventory.

The Inventory sheet displays.


3. In the Part field, search for and select part CS-87-4578.


5. In the Lot field, search for and select CS000209152008.

6. Verify the Request Move check box is selected.

Note The Request Move check box defaults as selected and creates a Material Queue record. If aMaterial Queue record is not required, clear the Request Move check box.

Important An Advanced Material Management (AMM) license is required for the Request Movecheck box to be selected by default. This check box is cleared and greyed out if the user does nothave the AMM license.

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7. In the Reason field, select Non-Conforming-General.



10. In the To Warehouse field, verify Inspection Area defaults.

11. In the Bin field, search for and select bin INSI.

12. Click Save and record the Transaction ID __________.

13. Exit Nonconformance.

Nonconformance Inspection Process

After non-conformance entries are made, notify the Epicor application to return the items by completing theinspection process.

Workshop - Inspect Nonconformance for Inventory

Once items have a non-conformance created for them, they display in Inspection Processing to be passed orfailed. During the Inspection Process for the CS-87-4578 material the inspector discovers that some of theCS-87-4578 items do not met conformance standards. The inspector determines that 100 of the 150 bars areokay. In this workshop, inspect 150 units of part CS-87-4578.



1. On the Standard toolbar, click the Binoculars (search) icon.

2. In the Tran Type pane, clear the All check box.

3. In the Tran Type pane, select the Inventory check box and click Search.

4. In the Search Results grid, select the inventory record for part CS-87-4578 and click OK.

5. In the tree view, select Inventory > Inventory: Part CS-87-4578 Qty 150.00.

The Inventory > Detail sheet displays.

6. In the Inspector ID field, select Inspector Clouseau.

7. In the Passed pane, in the Passed Qty field, enter 100 and press Tab.

8. In the Passed pane, in the Warehouse field, verify Main displays.

9. In the Passed pane, in the Bin field, verify bin 01-02-02 displays.

10. In the Failed pane, in the Failed Qty field, enter 50 and press Tab.

11. In the Reason field, select Failed, Dimension Specs.

12. In the Failed pane, in the Warehouse field, select or verify MRB Pending displays.

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13. In the Failed pane, in the Bin field, search for or verify bin MRB-1 displays.

14. Navigate to the Inventory > Comments > Failed sheet.

15. In the Failed Comments pane, enter The specifications were incorrect when this product wasdesigned.

16. Click Save.

The DMR Number = XXXX (where XXXX is your DMR number) message displays.

17. Record the DMR Number and click OK ____________.

18. Remain in Inspection Processing Entry for the next workshop.

Workshop - Inspect Nonconformance for Job

During the Inspection Process for the CS-87-4578 material, the inspector determines that 100 units can bereturned to job 2041 and 50 units do not comply with material standards. In this workshop, inspect 150 unitsof part CS-87-4578.



3. In the Tran Type pane, select the Job Material check box and click Search.

4. In the Search Results grid, select the job 2041 record and click OK.

5. Navigate to the Materials > Detail sheet.


7. In the Application of Passed Quantity pane, in the Passed Qty field, enter 100 and press Tab.

8. In the Issue To section, select the Job Material radio button.

9. In the Application of Passed Quantity pane, in the Warehouse field, verify Production Floor displays.

10. In the Application of Passed Quantity pane, in the Bin field, verify bin MCH displays.

11. In the Application of Failed Quantity pane, in the Failed Qty field, enter 50 and press Tab.

12. In the Application of Failed Quantity pane, in the Warehouse field, verify MRB Pending displays.

13. In the Application of Failed Quantity pane, in the Bin field, verify MRB-1 displays.


15. Navigate to the Material > Comments > Failed sheet.

16. In the Failed Comments pane, enter The specifications were incorrect when this product wasdesigned.

17. Click Save.

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18. Record the DMR Number and click OK ____________.


Open DMR Status Report

The Open DMR Status Report includes basic information about all open Discrepant Material Reports (DMR),as well as a transaction history section. This report includes subtotals for each DMR and a total value of all openDMRs.

Tip Actions on this report are printed in dimensional units of measure.

Important For more information on how to review the status of a report you print, preview, or generate,refer to the System Monitor Overview topic in the Application Help.

Menu Path


• Production Management > Quality Assurance > Reports > Open DMR Status

Workshop - Review the Open DMR Status Report

In this workshop, review the Open DMR Status Report.

Navigate to the Open DMR Status Report.

Menu Path: Production Management > Quality Assurance > Reports > Open DMR Status

1. On the Standard toolbar, click Print Preview.

The Open DMR Status Report displays.

2. Use the right arrow at the top of the report to find the transaction history for both previously created DMRs.

3. Review the Transaction History section for both DMRs and close the Open DMR Status Report.

4. Exit the Open DMR Status Report.

Non-Conformance Analysis Report

Use the Non-Conformance Analysis report to list all non-conformance entries within a particular date range.This report is separated by defective units, material issues, and scrapped materials. Cost totals are also providedfor defective units, material issues, and scrapped materials.

Use the Selection sheet to select the report parameters. Use the Filter sheet(s) to select the specific records toinclude on the report. For more information, refer to the Filters Overview topic in the Application Help.


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Menu Path


• Production Management > Quality Assurance > Reports > Nonconformance Analysis

Workshop - Review the Nonconformance Analysis Report

In this workshop, review the Nonconformance Analysis Report.

Navigate to the Nonconformance Analysis Report.

Menu Path: Production Management > Quality Assurance > Reports > Nonconformance Analysis

1. Navigate to the Filter sheet.

2. Click the Part button.

The Part Search window displays.

3. In the Starting At field, enter CS-87-4578 and click Search.

4. Click OK to select the part.


The Nonconformance Analysis Report displays.

6. Review and close the Nonconformance Analysis Report.

7. Exit the Nonconformance Analysis Report.

DMR Processing

Now that the inspection process is complete, the Discrepant Material Request (DMR) must be processed.

Workshop - Process DMR for Inventory

The inspector failed 50 out of 150 castings due to the failed dimension specification so the castings must nowgo through the Discrepant Material Request (DMR) process. In this workshop, process the DMR created in theWorkshop - Inspect Nonconformance for Inventory.



1. In the DMR Number field, search for and select the DMR for inventory created in the Workshop - InspectNonconformance for Inventory.


3. Navigate to the Accept > Stock > Detail sheet.

4. From the New menu, select Accept - Stock.



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9. Click Save.



12. In the Quantity field, enter 40 and press Tab.


14. Navigate to the Debit/Credit > Detail sheet.

15. From the New menu, select New Debit Memo.

16. In the Unit Price field, enter 5.00.



19. Navigate to the Debit/Credit > Comments sheet.

20. In the Comments pane, enter Defective castings.

21. Click Save.

22. Navigate to the Header > Detail sheet.

23. Verify the Closed status displays.

24. Remain in DMR Processing for the next workshop.

Workshop - Process DMR for Job

In this workshop, process the DMR created in the Workshop - Inspect Nonconformance for Job.

1. On the Standard toolbar, click the Clear icon.

2. In the DMR Number field, search for and select the DMR for inventory created in the Workshop - InspectNonconformance for Job.


4. Navigate to the Accept > Material > Detail sheet.

5. From the New menu, select Accept - Job Material.



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8. In the Warehouse field, verify Production Floor displays.

9. In the Bin field, verify bin MCH displays.

10. Click Save.





15. Navigate to the Debit/Credit > Detail sheet.

16. From the New menu, select New Debit Memo.

17. In the Unit Price field, enter 5.00.



20. Navigate to the Debit/Credit > Comments sheet.

21. In the Comments pane, enter Defective castings.

22. Click Save and exit DMR Processing.

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Labor Entry and Nonconformance

Employees track their time through Time and Expense Entry. In addition to recording time against operationsand jobs, an employee can create a non-conformance if he discovers damaged materials during production. Asthe employee enters time against a job or operation, any discrepant quantity can be entered in theNon-conformance field.

Time and Expense Entry

Use Time and Expense Entry to enter labor into the Epicor application from the Job Management module.

You can also enter labor directly from the site floor using the Data Collection module and the ManufacturingExecution System (MES).

Important Use Time and Expense Entry, to change labor entered through Office Data Collection and theMES. However, multiple breaks are deducted from pay time only if the time is entered through Office DataCollection.

Menu Path


• Production Management > Job Management > General Operations > Time and Expense Entry

• Service Management > Expense Management > General Operations > Time and Expense Entry

• Service Management > Field Service > General Operations > Time and Expense Entry

• Service Management > Maintenance Management > General Operations > Time and Expense Entry

• Service Management > Project Management > General Operations > Time and Expense Entry

• Service Management > Time Management > General Operations > Time and Expense Entry

Workshop - Enter Nonconformance from Time and Expense Entry

A production worker completed 240 pieces on job 2041 and noticed that some pieces show sign of corrosion.She is concerned that these pieces would not satisfy customer standards so she decides to have them inspected.In this workshop, report labor against job 2041 and enter a non-conformance for the corrosion suspected items.

Report Labor Against Job

Navigate to Time and Expense Entry.

Menu Path: Production Management > Job Management > General Operations > Time and Expense Entry


2. In the Calendar, select the date two days ago.

3. From the New menu, select New Time Detail.

The Time > Daily Time > Detail > Detail sheet displays.

4. In the Job field, enter 2041 and press Tab.

5. In the Operation field, select 10.

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6. In the Labor Qty field, enter 240 and press Tab.

7. Click Save.

8. In the Calendar, select the yesterday's date.





13. Click Save.

14. In the Calendar, select the today's date.





19. In the Non-Conform Qty field, enter 50 and press Tab.

20. In the Non-Conform Reason field, search for and select SC-Rust/Corrosion.

21. Click Save.

22. Click the Submit button.

23. Exit Time and Expense Entry.

Inspect Nonconformance Entry





3. In the Tran Type pane, select the Operations check box and click Search.

4. Click OK to select the line for part ADD-200-S.

5. Verify the Operations > Detail sheet displays.


7. In the Passed pane, in the Passed Qty field, enter 45 and press Tab.

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8. In the Failed pane, in the Failed Qty field, enter 5 and press Tab.

9. In the Reason field, select Failed, Cosmetic.

10. Click Save.


11. Record the DMR number and click OK ____________.


Corrective Action

Use Corrective Action to specify what actions to take on non-conforming items. These items are specified innon-conformance entries in Nonconformance.

A corrective action entry consists of a description of the action to take, the non-conformance entry the descriptionapplies to, the employee responsible, the date the action must occur, and the inspection information.

Example Non-conformance entry 1255 states that three pens do not have printing on them as specified.The description for the corrective action is: Reprint the labels on the pens, in response to non-conformanceentry 1255. This action is assigned to the Printing department, to employee number 200 and has a duedate one week from today. An inspector can re-inspect these pens on a particular date.

This program interfaces with DMR Processing. When an entry is added or updated in DMR Processing, if aNon-conformance entry number is specified, Corrective Actions entered in this program can be viewed or edited.

Corrective Action can be accessed from the following places:

• General Operations folder for the Quality Assurance module

• Inspection Processing

• DMR Processing

• RMA Dispositions

For more information on the flow of discrepant material through the Quality Assurance module, refer to theQuality Assurance Module Flow topic in the application help.

Menu Path


• Production Management > Quality Assurance > General Operations > Corrective Action

Initiate Corrective Action

At times, management can decide to look further into the reason why material fails inspection. Reasons whymaterial fails inspection can include a problem with the supplier or with material storage.

The Material Review Board (MRB) can open a corrective action to determine the cause of material failure andhow to fix the problem. The first step to initiate a corrective action is to have the MRB determine if the failedparts must be returned, re-worked, or scrapped. The entry of a corrective action includes a description of theaction to take and provides a comment section to record steps taken to resolve the problem. Information includingthe employee(s) responsible for the investigation, deadlines, and needed changes to the inspection format afterthe correction are all part of the action itself.

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Once the MRB creates a corrective action record, that record is accessible through DMR Processing where it canbe viewed and edited.

The MRB can investigate a non-conformance to determine if the faulty items are due to an internal process orthe supplier's process. A corrective action provides an action trail until the issue is resolved. At that time, thecorrective action is closed.

Note The initiation of a Discrepant Material Report (DMR) can also lead to an investigation of why theproblem occurred. This can be useful in the case of supplier materials.

Workshop - Initiate Corrective Action

Management opened a corrective action to determine if the cause of the corroded items is due to internal storageand handling or if it is supplier related. This task is assigned to John J. Lewis. In this workshop, create a correctiveaction for the corroded items and track the investigation results.

Create Corrective Action



1. In the DMR Number field, search for and select the DMR number created in the Inspect NonconformingEntry workshop task.

2. From the Actions menu, select Corrective Actions.

Corrective Action displays.

3. In the Description field, enter ADD-200-S.

4. In the Assign To field, search for and select John J. Lewis.

5. In the Due Date field, enter the date one week from today.

6. In the Root Cause field, select First Article Inspection.

7. Navigate to the Root Cause Investigation sheet.

8. In the Comments pane, enter Need to determine whether the cause of the corrosion is an internalstorage issue or a supplier material problem.

9. Click Save and remain in Corrective Action.

Response Tracking

John J. Lewis determined that the cause of the corrosion is due to a new process the supplier is using to extrudethe material. In this workshop task, record this information as an action comment.

1. Navigate to the Action Comments sheet.

2. In the Comments field, enter Spoke with Seaside Steel and they have just started a new process toextrude materials.

3. Click Save.

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4. Navigate to the Detail sheet.

5. In the Action Complete field, enter today's date.

6. In the Audited By field, search for and select John J. Lewis.

7. In the Audit Date field, select today's date.

8. Click Save.

9. Exit Corrective Action and DMR Processing.

RMA Processing

In most cases, a return material authorization (RMA) is issued to a customer by sales when there is a defectivematerials complaint. Once the RMA is issued and the customer returns the defective material, the Shipping andReceiving department receives the material.

The RMA is tied to the customer who returns the materials. The details are entered from the purchase order,unless the RMA was received directly from the customer. The sales order must always be referenced but doesnot have to be an open order, so the former sales order can become part of the new job created for rework ofthe materials. In addition, the RMA order line must be tied to the original sales order for costing and creditpurposes. Job costs can be retrieved even if the sales order and job are closed.

Return Material Authorization

Use Return Material Authorization to control and track customer returns. Enter information about the returnand communicate that information to the different groups that need to take action, such as inspection, billing,and order processing.

The Epicor application does not automatically create credit or shipping transactions, or rework jobs based onthese returns. RMA Processing provides the communication tools to ensure the necessary actions are taken forcustomer returns. Based on the reason for the return and customer needs, you can enter or change jobs, createcredit transactions in the Accounts Receivable module, or re-ship parts as necessary.

Menu Path


• Financial Management > Accounts Receivable > General Operations > RMA Processing

• Material Management > Shipping / Receiving > General Operations > RMA Processing

• Sales Management > Customer Relationship Management > General Operations > RMA Processing

• Sales Management > Customer Relationship Management > General Operations > RMA Processing withService Connect

• Sales Management > Order Management > General Operations > RMA Processing

• Service Management > Field Service > General Operations > RMA Processing


• Customer Relationship Management > Sales and Marketing Management > General Operations > RMAProcessing

• Customer Relationship Management > Sales and Marketing Management > General Operations > RMAProcessing with Service Connect

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• Customer Relationship Management > Order Management > General Operations > RMA Processing

Workshop - Create RMA and Receive Materials

You received a call from customer IMC. The customer says they are rejecting an order for 500 units of a proprietaryitem. They noticed some of the cartons showed water damage and when they opened one of them, the toplayer of items was corroded. They are rejecting the entire shipment and sending the items back. In this workshop,issue Return Material Authorization (RMA) for the units being returned and receive the units.

Issue RMA for Material

In this workshop task, create an RMA record.

Navigate to Return Material Authorization.

Menu Path: Sales Management > Order Management > General Operations > RMA Processing

Tip The CRM menu path is: Customer Relationship Management > Order Management > GeneralOperations > RMA Processing

1. From the New menu, select New RMA.

2. In the Customer field, search for and select International Machine Company.

3. From the New menu, select New Line.

4. In the RMA Details grid, in the Order field, enter 5034 and press Tab.

5. In the Line field, enter 1 and press Tab.

6. In the Reason Code field, select Damaged in Shipment.


8. Click Save.

9. Record the RMA number _________.

10. Remain in Return Material Authorization for the next workshop task.

Receive Returned Material

The Return Material Authorization (RMA) is issued. Customer IMC returned the items and they are waiting in thedock to be processed by the Shipping and Receiving department using the RMA Receipt functionality. In thisworkshop task, receive the returned items.

1. Navigate to the Receipts > Detail sheet.

2. From the New menu, select New Receipt.

3. In the Warehouse field, select Inspection Area.

4. In the Bin field, search for and select INSI.

5. Click Save.

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6. Exit Return Material Authorization.

RMA Inspection Processing

Once the material is received, the items are moved to the Quality Assurance department. The material is visibleonline in Inspection Processing Entry.

The inspector determines how to disposition the parts: stock, job, or fail. The disposition selected depends onthe status of the job and part.

Move Items to Stock

The inspector signs off on the quantity received and where it was sent. The transaction code becomes INS-STK.

Move Items to a Job

If the part needs rework and the job is still open, the items can be returned to the job for rework. An operationis added to perform the rework. In addition, the operator should select the Rework check box in Labor Entry sothe rework activity is viewable in reports. Once items are reworked, they can be received to stock (if it is a stockeditem) and re-shipped to the customer.

Fail Items.

Line by line information is added with the quantity. An appropriate reason code is required, and, if applicable, acorrective action can be created at the same time.

If the part must be scrapped, a new job must be opened to build replacement items. The sales order must bere-opened with another line added to ship the items again. To avoid invoicing the customer again, enter the salesorder line at a zero price.

A non-conformance entry is not created if the item is dispositioned from inspection to stock or rework. Anon-conformance entry is created only if the item is scrapped. The non-conformance can also be created manually.

Note If the decision is made to credit the customer, a credit memo can be generated directly from theReturn Material Authorization (RMA). Each line detail is entered separately, and the amounts can beoverridden any time. Although this process creates a miscellaneous invoice with the job header information,the invoice does not go through the Epicor application as a live credit memo at this point. Once a suggestionis created, the request is sent to Accounts Receivable for processing.

Workshop - Inspect and Dispose Returned Materials

Once Return Material Authorization (RMA) items are received, the inspector determines the items' disposition.One hundred out of five hundred items passed inspection and will move to stock. The remaining defective itemswill be corrected.

Navigate to Inspection Processing.




3. In the Tran Type pane, select the RMA's check box and click Search.

4. Select the RMA created in the Issue RMA for Material workshop task and click OK.

5. Navigate to the RMA's sheet.

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6. From the Actions menu, select RMA Disposition.

The RMA Disposition Entry displays.

7. Click New.

The Disposition > Detail sheet displays.

8. In the Dispose To field, select Stock.


10. In the Inspected By field, select Inspector Clouseau.

11. In the Warehouse field, select Main.


13. Navigate to the Disposition > Comment sheet and enter 100 units accepted.

14. Click Save.

15. Click New.

The Disposition > Detail sheet displays.

16. In the Dispose To field, select Fail.


18. In the Reason field, select Failed, Cosmetic.

19. In the Inspected By field, select Inspector Clouseau.

20. Select the Create Corrective Action check box.

21. Click Save.

Corrective Action displays.

22. In the Description field, enter IBM-200-D.

23. In the Assigned To field, search for and select John J. Lewis.

24. In the Due Date field, select the date one week from today.

25. In the Root Cause field, select Final Inspection.

26. Click Save.

27. Navigate to the Root Cause Investigation sheet.

28. In the Comments pane, enter Water damage to the top layer.

29. Click Save.

30. Exit Corrective Action.

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31. Exit RMA Disposition Entry and Inspection Processing Entry.

RMA Credit Memo Request

A credit memo can be requested at any point during the Return Material Authorization (RMA) process. In someorganizations, a credit memo is requested immediately upon issuing an RMA. In other companies, the creditmemo request is held until after the inspection process.

After a request is processed, it is pulled into Accounts Receivable by a get RMA process similar to the get DMRprocess.

First Articles

Engineering enters a First Article Sample Quantity on the job operation that requires first article inspection.This entry provides Engineering the ability to determine where first articles are necessary and of what sample sizeper operation.

When a job with such an operation is released to the site floor, the Epicor application generates a site floorwarning. In addition, you can specify to alert Inspection through email. When a shop employee clocks into suchan operation through Data Collection, a new first article record is added to the First Article Inspection queue.You also can establish a shop warning that notifies Inspection electronically through e-mail.

Procedures

A QA inspector selects First Article inspection records from the inspection queue. If data collection was not used,the inspector can manually add an inspection record. Either way, the QA inspector processes the first article anddetermines the status based on external documents that may be tied to the first article record through documentmanagement. Status options include Approved, Provisional, Resubmit, and Waiting. The status is markedby a Job/Assembly/Operation combination and by machine/resource.

• All quantity updates that are good, scrap, and non-conformance are done through labor processing andtracked by an audit log. If the status is Resubmit, a new first article queue record is generated. Each time afirst article is processed, a new transaction is generated.

• If the first article status is Approved, shop employees can clock in to production for the Job/Assembly/Operationand machine/resource. If the status is Resubmit or Waiting, this cannot be done.

• If the status is Provisional, shop employees can clock in to production for the Job/Assembly/Operation andmachine/resource; an option is that the employee can receive a shop warning to alert him or her of the status.The responsibility lies with the shop employee and Quality Assurance personnel to document the provisionalstatus and ensure compliance.

Workshop - Inspect First Articles

An operation is coded when a first article inspection is necessary. To code an operation, complete a field withthe number of first articles that must be submitted. For this process to work correctly, the operation must alsohave a setup time designated. When a site floor employee reports that setup has started, an entry is placed inthe inspection queue under the First Article sheet.

In this workshop, select a job in Job Entry and specify the number of first articles required. Clock in to setup inthe Manufacturing Execution System (MES), clock into Production on the job modified, and perform the inspection.

Navigate to Job Entry.

Menu Path: Production Management > Job Management > General Operations > Job Entry

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Update Existing Job


2. In the tree view, right-click the job number and select Tree > Expand Tree.

3. In the tree view, select Opr: 10 OP: SHEAR.

The Job Details > Operations > Detail sheet is displayed.

4. In the Scheduling Factors pane, in the First Article Quantity field, enter 5.00.

5. Click Save and exit Job Entry.

Report Labor in MES

1. On your desktop, double click the MES icon.

The Log On window displays.

2. In the User name field, enter manager.

3. In the Password field, enter manager.

4. Click OK.

The MES Menu displays.

5. In the Employee ID field, enter 106 and press Tab.

6. Click the Start Setup Activity button.

The Start Setup Activity window displays.



9. Click OK.

10. Exit MES.

Inspection Pending Report

The Inspection Pending Report lists all items you have received to inspection through Receipt Entry or ReturnMaterial Authorization.

This report includes the value of each item received to inspection, as well as the total value of all items awaitinginspection. It also indicates if there is a variance in the costs. If there is an asterisk (*) next to a cost, there is avariance between the purchase order cost and invoice cost for the receipt.


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Menu Path


• Production Management > Quality Assurance > Reports > Inspection Pending

Workshop - Review the Inspection Pending Report

In this workshop, review the Inspection Pending Report.

Navigate to the Inspection Pending Report.

Menu Path: Production Management > Quality Assurance > Reports > Inspection Pending

1. In the Report Options pane, clear all the check boxes.

2. Select the First Article check box.


The Inspection Pending Report displays.

4. Review and close the report.

5. Exit the Inspection Pending Report.

Workshop - Approve First Article Inspection

In this workshop, inspect and approve the first article for job 2094.





3. In the Tran Type pane, select the First Articles check box and click Search.

4. Select the first article for job 2094 and click OK.

The setup has started on operation 10 on job number 2094. An inspector must proceed to the Shear areato make this inspection.

5. In the tree view, select First Articles (1) > First Articles: Job: a2094 Part: DCD-100-SP Qty:5.00.

The First Articles > Detail sheet displays.


7. In the Quantity field, enter 5.00.

8. Select the Approve radio button.

9. Click Save and exit Inspection Processing Entry.

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Conclusion

Congratulations! You have completed the Quality Assurance course.

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ConclusionQuality Assurance Course

Index

I

issue material 24

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Quality Assurance CourseIndex

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this site, you need a Site ID and an EPICweb account. To create anaccount, go to http://support.epicor.com.

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