Some work order operations may need to be completed by outside suppliers/subcontractors. Subcontract operations are often used when there is insufficient manufacturing capacity or when operations require specialized equipment and machinery.

You can use the SFC module with the Work Orders (16) and Purchasing (5) modules in the subcontract cycle for closer tracking of WIP.

Subcontract items are received into WIP. The receipt updates the quantity completed at the designated work order operation and sets the operation status to C. In Purchase Order Receipts, specifying “Move to Next Operation” sets the status of the next operation to Q (queue) so it appears on the dispatch list.