1. Refurbishment Process

Process is servicing of defective spares to bring it to a Workable condition. Refurbished spare parts are parts that can be repaired either internally or sent out to be repaired by an external vendor. The parts are then placed back into inventory for future use. This process is necessary for parts that are no longer commercially available and for parts that can be overhauled and re-used at a fraction of the price of a new item.

2. Business Scenario

This Scenario is applicable for an Industry wherein manufacturing facility do exist like Automotive, Consumer product etc. Maintenance of facilities and equipment in good working condition is essential to achieve specified level of quality and reliability and efficient working.

Plant Maintenance is an important service function of an efficient Production system and for doing so, spares should be available for breakdown or Corrective or preventive Maintenance. Every time, it is not possible to purchase costly spare and especially if it can be refurbished. And important reason for doing with refurbishment option is cost because Refurbishment cost is very low as compared to purchase cost.

3. SAP Perspective: Major Prerequisite

  SAP is a suite of integrated modules that holds all we know about our business in one place

By using the Plant Maintenance module    the business can improve maintenance program and make more informed decisions about maintenance routines

From SAP front, mapping of above business process needs close integration between Material Management (MM) and Plant Maintenance (PM) modules. Needed major pre-requisites are as follows:

3.1Split Valuation functionality needs to be configured well and should have three valuation types

• New
• Refurb
• Defective

3.2 Serialization profile needs to be configured

3.3 Material Provision Indicators for Rework ‘s’ needs to be configured for Subcontracting Process under External Refurbishment

4. Detailed Process: Refurbishment

4.1 Internal Refurbishment: Major Steps

• This Process starts with to bring the Defective Material to stock – Maintenance order created with quantity -1(or Movement type 262) and Good Issue against reservation/Order.
• Defective Material will be issued against Reservation
• Maintenance team will complete the work - They will do Time confirmation and issue the needed material to complete the refurbishment
• Good receipt will done for Refurbished material, so material will be available in stock for issue
• Last step will be TECO, Settlement and Close of said Refurbishment order

4.2 External Refurbishment: Major Steps

• This Process starts with to bring the Defective Material to stock – Maintenance order created with quantity -1(or Movement type 262) and Good Issue against reservation/Order.
• Manual Subcontracting Purchase requisition needs to be created with Valuation type Refurb

Or

This Purchase requisition can be created automatically through Refurbishment Order however one BADI(BADI_DIAD_GOODMVT_1) needs to implement for said functionality.

• Create Subcontracting Purchase Order from Purchase Requisition
• Defective Material will be issued to vendor as Material Provided to vendor as Movement type 541
• Good Receipt will be done for Refurbished material, so stock will be generated for issue
• And if Purchase requisition is  created through Refurbishment Order, then Order needs to be TECO, settled and Closed

5. SAP Screen Shots: Flow

5.1Screen flow: Material Master Creation

Material needs to be created with three Valuation Types:

New:

Refurb:

Defective:

5.2 Screen Flow - Internal Refurbishment:

5.2.1     Bring Defective Material to stock

• PM Order Creation (Tcode - IW31) : Order has created reservation for Defective material movement type 262

Good Issue(Tcode MIGO): With this transaction, movment type 262 done for Defective material and stock has been created

Stock status after Movement 262(tcode MMBE): Stock status

5.2.2        Creation of Refurbishment order(tcode IW81): Created reservation for Defective material(Movement type 261)

Stock status after Order creation(Tcode : MMBE) : Defective Material is reserved

5.2.3        Defective Material issue (tcode MIGO) thru Reservation/Order: This will Issue Defective material(Movement type 261)

Stock After Issue(Tcode MMBE) : Stock Status

5.2.4Good receipt for Refurbished Material (tcode IW8W) thru Order: This will do Good receipt(Movement type 101)

Stock after Good Receipt(tcode MMBE) : Stock Status

5.2.5Technical Completion, Settlement & Closure

Document Flow (IW33) :  Status flow

5.3 Screen Flow - External Refurbishment:

5.3.1  Bring Defective Material to stock

• PM Order Creation (Tcode - IW31) : Order has created reservation for Defective material movement type 262

Stock status after Movement 262(tcode MMBE): Stock status

5.3.2 Creation of Purchase Requisition(tcode: ME51N): Purchase requisition with Valuation Type ‘REFURB’

Having Subcontracting Component as ‘Defective’

5.3.3 Creation of Purchase Order(tcode: ME21N): Subcontract Purchase Order with Valuation Type ‘REFURB’

5.3.4 Goods Issue to Vendor(Tcode MB1B) : Material Provided to Vendor(Movement 541)

Stock status after Movement  541( tcode MMBE) :  Stock status

5.3.5 Good receipt(Tcode MIGO) for Refurbished Material : Stock updated for Refurbished Material (movement type 101) & Movement type 543 for Defective material

Stock status after Movement  101( tcode MMBE) : Stock status

Accounting entries(including Refurbished price and Defective Material prices)