The document provides an overview of the differences in non-conformance handling between Infor LN versions 10.3 and 10.4. Key changes in 10.4 include the addition of a quarantine functionality to support processes for handling non-conforming items during purchase, warehousing and production. The quarantine functionality allows for multiple quarantine locations and supports quarantine inventory planning. The document also reviews how to set up and use the new quarantine functionality for rejecting non-conforming production materials and end items.

1. 1
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Infor LN: v10.3 – v10.4 Manufacturing
Non-conformance Handling Differences
Rollout Training
Campus Course Code: 02_0021040_EEN0471_ELN
July 2014
Robert Nooder

2. 2
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• Introduction
• Overview Non-conforming Handling
• Reject production material
• Reject production end-item
Agenda

3. 3
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Objective new quarantine functionality:
• Support processes for handling a non-conforming item
• purchase, warehousing, production (SFC)
• Support Quarantine Inventory
• multiple locations, planning
• Enhance consistency
• terminology, processes
Introduction
Pre-requisite:
• Rollout Training: 02_0021040_EEN0441_ELN
Warehouse Management, Inspection & Quarantine Differences

4. 4
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Overview non-conformance Handling LN 10.3
Materials /
Components
Warehouse
End items
Warehouse
Material
Issue
End item
Receipt
Operation
20
Operation
30
Operation
10
Production order
End item
Issue
Material
Receipt
Scrap ScrapScrapScrapScrap
Reject
Return
Scrap

5. 5
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Overview non-conformance Handling LN 10.4
Materials /
Components
Warehouse
End items
Warehouse
Material
Issue
End item
Receipt
Operation
20
Operation
30
Operation
10
Production order
End item
Issue
Material
Receipt
Scrap Scrap ScrapScrapScrapScrap
QuarantineQuarantineQuarantineQuarantineQuarantine
ReturnReturn
ReworkRework Rework*
Return
Rework
Scrap
*
*
*
*
*
*
*
*
*
* Quarantine
Rework *
*
Return *
* new

6. 6
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Overview non-conformance Handling LN 10.4
Materials /
Components
Warehouse
End items
Warehouse
Material
Issue
End item
Receipt
Operation
20
Operation
30
Operation
10
Production order
End item
Issue
Material
Receipt
Scrap Scrap ScrapScrapScrapScrap
QuarantineQuarantineQuarantineQuarantineQuarantine
ReturnReturn
ReworkRework Rework*
Return
Rework
Scrap
*
*
*
*
*
*
*
*
*
* Quarantine
Rework *
*
Return *

7. 7
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Set-up Reject Production End-item / Material
Warehouse
• Inventory Handling Parameters: Quarantine implemented
• Inventory Handling Parameters: Quarantine Inventory available for planning
• Warehouse: Quarantine implemented
• Warehouse: Designated quarantine warehouse
• Warehouse / Locations: Quarantine locations
Item:
• Item Warehouse Data: Rejects Handling: Scrap, Quarantine, Both
• Item Warehouse Data: Disposition Due Lead Time

8. 8
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• Scenario
• Production order has been created and released
• Material has been issued from the warehouse to the shop floor
• A non-conforming material is found
• In the session “Material to issue for Production Orders”
• Reject a quantity of the applicable material
• Scrap and / or quarantine a quantity of the material
• Initiate the re-issue of the scrapped and /or quarantined material
• In the session “Quarantine Inventory”
• Decide on the disposition
• Handle the quarantined inventory
Handling non-conforming Material

9. 9
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• Scenario
• Production order has been created and released
• On an operation a non-conformance is found
• In the session “Report Operations Complete”
• Reject a quantity of the manufactured item
• Scrap and / or quarantine the manufactured item
• In the session “Quarantine Inventory”
• Decide on the disposition (rework )
• Maintain and release the generated production (rework) order
• Issue the applicable quarantined item
Handling non-conforming End-item

10. 10
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Production non-conforming Material
Operation
20
Operation
30
Operation
10
Production order
Receipt
Inspection
Bulk/Pick
Quarantine
Warehouse
Staging
the material can be
moved to quarantine
If the disposition is
“return to supplier”
a return purchase order is created
the material can be
scrapped

11. 11
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Production order
Quality
Inspection
order
Receipt Inspection Bulk/Pick
Quarantine
Warehouse
Staging
If the disposition is
“rework to existing specification”
or
“rework to new specification”
a production (rework) order is created
When QM is implemented
and
if applicable the
quality inspection order
(type “routing (TI)”)
is created
Depending on the outcome of
the Quality Inspection Order
or a decision outside LN
the unfinished manufactured item
can be moved to quarantine
Production non-conforming manufactured Item
Operation
20
Operation
30
Operation
10
Production
(rework)
order
Depending on the outcome of
the Quality Inspection Order
or a decision outside LN
the unfinished manufactured item
can be scrapped)