Maximo EAM

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  • 1.  Purchase requisition still active after item stock is above reorder point

    Posted Thu October 21, 2021 08:10 AM
    Hello,

    Wondering if it is Maximo standard that a purchase requistion (PR) remains active even after the item stock goes above reorder point?
    In my opinion, the PR should be inactivated because there is no further need to purchase the item.

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    Best regards,
    Monica
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  • 2.  RE: Purchase requisition still active after item stock is above reorder point

    Posted Thu October 21, 2021 01:42 PM
    I have the same issue with auto generate PR even after I have PO already  active on the item but have not receive due to long lead time. But Maximo continue to auto generate PR.
    Should it stop after PO has been created and active?

    Thank you for any response or idea on this.

    Kent

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    Kent Sumedhatip
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  • 3.  RE: Purchase requisition still active after item stock is above reorder point

    Posted Fri October 22, 2021 09:49 AM
    Lots of thoughts here:

    First, I'll assume that both of you are using auto-reorder.
    Second, you should then check the ReorderCronTask to see if you have the ignorereorderpoint parameter set to 1.  It sounds like you'd want it to be 0.

    Kent: If you've got this set up as above, then Maximo should not keep replenishing the inventory.  Once the item is on a PR or PO, ​and that line item specifies the storeroom, and it's got the right conversion factor, then Maximo will keep track of the fact that it's in the procurement process, until one of the following happens:
    • the item is received against the PO
    • the PO line has the "Complete Receipts" action run against it
    • the PO is canceled (though if the line item came from a PR, this would re-open the PR)
    • the PR is canceled

    So under what circumstances would it auto-reorder the item again?
    • It's ordering for a different storeroom
    • The PR/PO the item had been on was canceled, or at least someone removed that line item from the open PR/PO
    • Someone changed the quantity on the PR/PO, such that what's already on order isn't enough to get above Minimum (Reorder Point)
    • More of the existing inventory was used or reserved, such that what's already on order isn't enough to get above Minimum, e.g. the Minimum is 10 EACH, your on-hand is 8, you ordered 2 on your PR/PO, but then someone uses (or at least reserves) 5 more.  Now your on-hand is 3.  With the 2 on order, that only puts you at a total of 5.  You're below Minimum.
    • Someone changed the values in the Inventory application for Minimum, Safety Stock, EOQ, or Order Unit, such that it thinks that what's already on order isn't enough to get above Minimum
    • (I think) If your ReorderCronTask's ignorereorderpoint value is set to 1
    • Or, it didn't auto-reorder; someone manually added it to the WAPPR PR/PO.  Speaking from experience there.  Check the timestamp on the row compared to that of the other rows.  It's very helpful to me to run the reorder cron early in the morning when no one would be at work, so I can easily see when someone does this.

    Monica: yes, the PR remains open.  Maybe it would be possible to build a Script that could end it, but even that could be weird -- what if that is not the only Line on the PR?  The script would need to delete just that row, which may also mean it needs to change the status back to WAPPR, and that could really mess up any Workflows you have going on.  There's a good chance you'd need a personal intervention here.

    Both: is this happening to you often?

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    Travis Herron
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  • 4.  RE: Purchase requisition still active after item stock is above reorder point

    Posted Fri October 22, 2021 11:42 AM

    Hi Travis,

     

    First, thank you for your response and great information on my issue.

     

    I have check and verify that ReorderCron Task is set to 0.

     

    My scenario probably fall on to your bullet point #4. In our inventory particularly for this item in question we have two BIN locations with quantity 18 and 42 but it show only one BIN @18. I think Maximo see only balance in that BIN and is below ROP so it kick out PR. However, because the long lead time on this item and future reserve in that time frame Maximo still seeing it not meet minimum number for ROP. Therefore it kick out another PR to satisfy the ROP. I think that's the case on my issue with PR. This happened on random items here and there many times.

     

    Since I have you response, this morning when I came in to office and checking on Maximo. I have found that all of my ROP number have increase to a very high numbers which it trigger to generate auto PR. I have seen this on some items in the past but not this many across the board. Do you have any idea what causing this to happened?

     

    Thank you for taking time to answer my question and response.

     

    Kent

     






  • 5.  RE: Purchase requisition still active after item stock is above reorder point

    Posted Fri October 22, 2021 12:06 PM
    If you have two bins in the same storeroom, Maximo should look at the sum of the two bins, plus qty on PR/PO for the storeroom, minus expired, minus reserved, and compare that to Reorder Point.  If that calculation returns a value less than or equal to Reorder Point, then it would be auto-reordered.

    But it sounds like you're saying that in real life you have the item in two bins, but in Maximo you only have it in one bin.  In real life you have 42 in a second bin but Maximo is currently unaware of their existence.  That's an easy, obvious fix.

    As far as changing your Reorder Point numbers:  there is NOTHING out-of-the-box in Maximo that would do that.  I live in Florida, and we get a lot of hurricanes, so I did set up an Escalation that would raise the ROP on certain crucial items at the beginning of hurricane season, then drop it back down after hurricane season.  Maybe you have some Escalation like that happening.  Other than that, if I were you, I'd start asking my colleagues what they did.  My guess is that with the current problems in the global supply chain, someone started upping the minimum on-hand quantities, either manually, or someone ran a SQL script on the database to increase minimums on lots of items in big batches.

    Any chance you have eSig/eAudit enabled on the Reorder Point field?

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    Travis Herron
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  • 6.  RE: Purchase requisition still active after item stock is above reorder point

    Posted Fri October 22, 2021 12:24 PM

    Only some items we have two BINs because the quantity too large to fit on the shelves but not many of those we have. However, it's happened to be on this item that kick out PR because of that. I have my store guy adjust the quantity on existing BIN to fix and Maximo should not kick out another PR since new quantity meet minimum ROP

     

    For the ROP number change our operations is not that big and Las Vegas where we are do not have situation like yours.  So in general we are not adjust ROP that often.

     

    What is the eSig/eAudit?

     

    Kent

     






  • 7.  RE: Purchase requisition still active after item stock is above reorder point

    Posted Fri October 22, 2021 12:46 PM
    If you adjust the quantity in the existing bin, that will correct things for now, but eventually someone will probably do a cycle count and adjust the quantity back down.  I'd recommend adding a second bin, even if you just call it "overstock."

    eSignature and eAudit are features that are disabled by default, but can be enabled through the Database Configuration application on any Attribute.  These help by recording an audit trail for who changed the value on a field and when they did it.  eAudit happens silently in the background; eSig makes the user enter their credentials and a reason for making the change.  Read more about it here in an IBM knowledge article.

    As far as ROP's changing, the only other thing I can think of is that maybe someone is changing the Order Units because either they're changing Vendors or the Vendor changed their package quantity.  E.g. you used to buy widgets from VendorX in a case of 24, and you bought one case at a time, but now you're having to get these as 6-packs, so you'd want to increase the ROP to 4 in order to still get the same quantity in Issue Units.  You'd really have to start asking the people who have access to the Inventory application what they're doing and why.  I'd still guess someone decided to raise the minimums in response to the global supply crunch.  Or maybe a side effect of a purchasing agreement your organization is entering into.  Nonetheless, I'd suspect Operations made some business decision that spurred someone to raise the values, and no one has told you about it yet.

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    Travis Herron
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  • 8.  RE: Purchase requisition still active after item stock is above reorder point

    Posted Fri October 22, 2021 09:13 AM
    Monica,

    I need more information to understand your scenario. Since you're specifically talking about the reorder point, I'm assuming you're not talking about direct issue PRs?    

    If you're doing an automated Maximo reorder, part of that calculation looks at open purchase records to avoid purchasing excess of the part. Are you saying that you're increasing the balance in another way (item returned to the storeroom or a balance transfer from another site) after the PR has been generated? And that you would expect the existing PR to then be canceled in that scenario? Assuming that's your scenario, Maximo not doing anything with the PR is intended.

    My expectation is that this would be a rare edge case and would be manually handled by the purchasing department. That PR could have already been converted to a PO and sent to the vendor by the time the balance is changed. That PR could consist of multiple items, some of which may now have sufficient stock but others that still need to be reordered. Trying to handle all the distinct scenarios that could come up doesn't seem like something you could do reliably in an automated fashion. 

    Less importantly, out of the box, there is nothing to distinguish a reorder from a manually created PR. Yes there's a generated description, but that's not a real indicator since that can be freely changed. I've also seen people duplicate reorder PRs, leaving the original description in place. 

    Kent,

    If you have an open PO that would take it to a sufficient stock level it shouldn't generate a PR. The reorder calculation is based on available balance though, and given your message of a long lead time, I believe what you are seeing is that your available balance on the storeroom is decreasing as you have additional hard reservations due to long lead times so Maximo is ordering additional of the part. If the lead time is 10 weeks and you need the part for WO X in 9 weeks, it will be a hard reservation as you can't get the part from a vendor in time based on what Maximo knows.

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    Steven Shull
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  • 9.  RE: Purchase requisition still active after item stock is above reorder point

    Posted Fri October 22, 2021 11:26 AM

    Good morning Steven,

     

    Thank you for your response. I think my case is because the long lead time and there are some future hard reserve during the time order and waiting for item to deliver. Maximo see that we don't have enough quantity to meet ROP and it kick out another PR as results.

     

    Thank you again for your information and response on this. Really appreciated very much.

     

    Kent