Refurbishment of Spare Parts

Purpose and Benefits:

Purpose  

• Faulty repairable spares is maintained to re-use in company, the spare part will have different valuation type to represent different values 

Benefits 

• A high value spare part or critical part will be managed with serial number. It will help to manage each piece of this spare part 
• Refurbishment process will help to reduce the spare parts inventory cost. 

Detailed Process Description:

Refurbishment Management 

In this scenario, a spare part will be procured and installed in the function location as an equipment. Serial nos. can also be assigned to the procured material. These repairable spare parts can be identified with different valuation types like New(C1), Repaired(C2) and Damaged(C3) with corresponding cost assignments. 

When there is a malfunction of the installed equipment, it will be dismantled from the functional location and a spare part / equipment can be withdrawn and installed at the functional location. The defective equipment will be returned as damaged item to the warehouse(Valuation type C3). The stock in the warehouse will be automatically updated(with valuation types) and with corresponding cost. 

The maintenance planner will create a refurbishment order. These defective repairable spare(Valuation class C3) will be withdrawn from the warehouse and will be repaired. When the refurbishment is finished, the equipment will be returned to warehouse as repaired material (Valuation type C2)  and the cost will be updated accordingly in the material master. After the settlement of the refurbishment order, the maintenance expense will be settled to the specific material, then the moving average price of this spare will be updated in the material master. So the moving average price of this spare will vary during the different phases of refurbishment.

Key process flows covered

• Equipment faulty and work order creation
• GR of bad part of store
• Initiate Refurbishment
• Order Creation
• Post operations 
• Post Materials & Order Release 
• Debit Note (If required) 
• Goods movement posting
• Refurbishment operation
• Good receipt serial numbers for refurbishment orders 
• Order Confirmation 
• Order Completion marks the completion of task.

Equipment Faulty and Work Oder Creation

• Detection of a faulty equipment
• Creation of work order for that faulty equipment
• Defining operations and Material required in Work order(2nd step)
• GR of bad part of store (3rd Step)

Initiate Refurbishment & Order Creation

• Initiate refurbishment: Manual step, Initiate refurbishment and plan the tasks
• Refurbishment order to be created on SAP, Required details include material, company/organization and business area

Post Operations

• Post operations to be performed in order. There will be a material assigned on which the order was created to the first operation.

Post Material and Release Order

• In case of additional material required for refurbishment. Post material in the components tab. 
• Note that you are already creating this order on one material which was assigned in the beginning
• Release and save order for further processing.

Debit Note

• If required this step follows the creation of order
• Make sure that the order created was released and saved prior to this step
• It is basically one print out which contains information about the material being issued by store. 
• This printout has to be submitted at store before issuing any material or in this case giving or receiving any material for refurbishment.
• This step is performed through T-code “zmm_res1”
• Goods movement posting
• This will be done on reservation number and once a copy of debit note is received by the Material Management user.
• Goods movement posting is done on T-code “MIGO”. 
• Important thing here is the reference number present in the refurbishment order components tab.
• Refurbishment operation
• Manual step
• Perform refurbishment operation using the material issued by store

Order Confirmation

• Here actual work hours and employee numbers can be assigned to the task performed
• There are two types of order confirmations.
• Individual confirmation
• Collective confirmation

Goods Receipt Serial Numbers for Refurbishment Orders

• This transaction is run by T-code IW8W
• Here user has to enter the Refurbishment
• After this, user has to follow steps in the below given order for completion of the Refurbishment Order.  
• Technically Completion 
• Settlement rule.

Settlement rule and Order Completion

• Once we click the order completion button, it automatically directs us to the settlement rule
• Cost center number is required in Settlement rule
• After the settlement rule order is to be completed
• This marks the end of process and the order cannot be changed again.