Maximo7Inventory_FIUTrainingManual

8/10/2019 Maximo7Inventory_FIUTrainingManual

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MAXIMO7TRAINING GUIDE

INVENTORY MANAGEMENT

FLORIDA INTERNATIONAL UNIVERSITY

3451NE

1st Ave

M1008

Miami,

FL

33137


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MAXIMO7TRAINING CURRICULUM

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copyright 2010 Banetti, Inc. a Banetti University produc tion

TABLEOFCONTENTS

TABLEOFCONTENTS...........................................................................................................................................2

I CHAPTER1INVENTORYMANAGEMENT ..................................................................................................3

1 OBJECTIVES ........................................................................................................................................................ 3

2 OVERVIEW ......................................................................................................................................................... 3

II CHAPTER2STOREROOMS ..................................................................................................................... 10

1 OBJECTIVES ...................................................................................................................................................... 10

2 OVERVIEW ....................................................................................................................................................... 10

3 CREATINGSTOREROOMS..................................................................................................................................... 12

4 MANAGINGSTOREROOMS .................................................................................................................................. 13

5 REVIEWQUESTIONS........................................................................................................................................... 13

III CHAPTER3ITEMMASTER .....................................................................................................................15

1 OBJECTIVES ...................................................................................................................................................... 15

2 OVERVIEW ....................................................................................................................................................... 15

3 CREATINGANITEMRECORD ................................................................................................................................ 22

4 MANAGINGITEMMASTERRECORDS..................................................................................................................... 31


IV CHAPTER4SERVICEITEMS .................................................................................................................... 34

1 OBJECTIVES ...................................................................................................................................................... 34

2 OVERVIEW ....................................................................................................................................................... 34

3 CREATINGSERVICEITEMRECORDS........................................................................................................................ 35

4

MANAGINGSERVICEITEMRECORDS ..................................................................................................................... 36


V CHAPTER5MANAGINGTHESTOREROOMINVENTORY..........................................................................37

1 OBJECTIVES ...................................................................................................................................................... 37

2 OVERVIEW ....................................................................................................................................................... 37

3 CREATEINVENTORYRECORDS .............................................................................................................................. 39

4 CREATINGKITS.................................................................................................................................................. 58

5 MANAGINGINVENTORY...................................................................................................................................... 59


VI CHAPTER6ISSUESANDTRANSFERS ......................................................................................................63

1 OBJECTIVES ...................................................................................................................................................... 63

2 OVERVIEW ....................................................................................................................................................... 63

3 ISSUESANDTRANSFERS ...................................................................................................................................... 65



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I CHAPTER1INVENTORYMANAGEMENT

INVENTORY MODULE

1 OBJECTIVES

GiventheMaximo7platform,learnhowthevariousItem,ToolandInventoryrecordsrelateto

Storeroomsandtoeachother. Understandingthefundamentalsofstockmanagementisvital

totheoverallefficiencyofassetmanagementandthesubsequentStoreroomeconomies.

2

OVERVIEW

Managing your spare parts inventory is an important part of maintaining any asset. The

Inventorymoduletracksmaterialsneededformaintenance. Maximokeepstrackof:

Itemsinstock

Indicateswhenstockfallsbelowuserdefinedreorderpoints

Performcyclecountsandmakeappropriateadjustments

Createspurchaserequisitionsandpurchaseorderstorestockneededitems

Accuratelycapturetransactions,suchasreceipts,issues,transfersandreturns

Runreports

TheInventorymoduleworkstohelpbalancetwoopposingobjectives:

Maximizetheavailabilityofitemsforfutureworktasks

Reduceexcessinventorybalanceswiththeirrelatedcarryingcosts


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Thegoalistofindabalanceofinventorystockthatletsmaintenanceworkbeperformedwith

minimumdelaysduetounavailablematerialsandstillkeepunnecessaryorseldomuseditems

offtheshelf.

2.1

INVENTORYMODULEAPPLICATIONS

TheInventoryModuleconsistsofthefollowingapplications:

ConditionCodes: Usedtodefinethecodesusedtodescribetheconditionofitems

instock.

Inventory: Used to manage items in inventory, including tracking stock levels,

reorderingitemsandtrackingrotatingassets.

IssueandTransfers: Used to issuestock from inventory,eitherwithorwithouta

workorder,andtotransferstockfromonestoreroomlocationtoanother.

Item

Master:

Used

to

define

inventory

items

and

add

them

to

a

storerooms

stock

list.

Service Items: Used to define services that your company requisitions, either as

partofthepurchasingprocess,oraspartofaworkorder.

StockedTools: UsedtomanageToolinventory.

Storerooms: Usedtodefinestoreroomlocationsandviewthelistofitemsstocked

ateachstoreroomlocation.

Tools: UsedtodefineToolsandaddthemtostorerooms.

Inventory is a pivotal module in Maximo. It functions in a dynamic relationship with the

Preventive

Maintenance,

Work

Orders,

Contracts,

Purchasing

and

Assets

modules,

as

well

as

Companies in the Resources module. These other modules affect the quantity of items in

inventory;identifywherethoseitemsareusedandthemanufacturersandvendorswhosupply

them.

Componentsoftheoverallsystemadministrationandconfigurationnecessarytoestablishsuch

supportingfunctionsasChartofAccounts,OrganizationsandCronTaskSetupareaddressedin

theSystemAdministrationtraining,andareconsideredoutsidethescopeofthisdocument.

Maximos inventory management applications include applications for creating item records

andseparateapplicationformanagingthoseitemsinstorerooms,seeFigure1.1.


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Figure1.1InventoryModuleApplicationsRelationships

You use the Storerooms application to define financial and billing information for storeroom

locations,forexampletheGeneralLedger(GL)accountcodesandaShipToAddressforeach

storeroom location. Storeroomscanbephysical locationsoremployeeswhoareresponsible

for transporting or holding inventory items, e.g. a worker who stores spare parts in their

vehicle.

Before

you

create

item

records

you

should

define:

UnitsofMeasurementandconversionvaluesforeach,

AmasterlistofallconditionsforeachItemSet.

You use the Item Master application to create records for items and materials that your

companyusesformaintenancepurposes. Youalsousethe ItemMasterapplicationtodefine

thecharacteristicsandspecificationsofrotatingitemsthatcanbeusedtocreaterotatingasset


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records,forexample informationtechnology(IT)assets. Itemsareaddedtothemasterstock

listforastoreroomintheItemMasterapplication.

Item balances are managed in the Inventory application. Maximos reorder process can

automaticallyreorder

items

when

item

balances

reach

aspecified

point.

When

the

receipt

of

ordereditemsisrecordedintheReceivingapplication,Maximoupdatesinventorybalancesfor

theitems.

You use the Service Items application to create records for the standard services that your

company purchases. Service Items can be used on job plans, work orders, purchase

requisitions,andpurchaseorders.

YouusetheToolsapplicationtocreaterecordsforToolsthatwillbeissuedfromandmanaged

inaToolstoreroom. ToolbalancesaremanagedintheStockedToolsapplication.Youcanlist

items,services,

and

Tools

on

job

plans

and

work

orders.

Inventory

reservations

are

created

for

itemsandToolswhenaworkorderstatusischangedtoapproved(APPR). YouusetheIssues

andTransfersapplicationtoissueandtransferitems,andtheStockedToolsapplicationtoissue

and transfer Tools. Items and Tools can be issued to an individual if they are listed in the

Locationsapplicationasa labortype location. Costsfor itemsandToolscanbechargedtoa

workorder,asset,location,orGLaccountcode

2.2 INVENTORYANDMULTISITEITEMSETS

Inventoryitemsandmaterials,ServiceItems,andToolsarecreatedaspartofanItemSet. An

Item

Set

consists

of

an

ID

that

identifies

a

list

of

items

that

can

be

shared

by

one

or

moreOrganizations. Only one Item Set can be specified for an Organization, but more than one

Organization may use the same Item Set. Items and Tools can be transferred between

Organizations that share the same Item Set. When creating item records, all item identifiers

must be unique within an Item Set. Everywhere that an item ID is referencedon a Maximo

recordthereisalsoanItemSetID.

ConversionvaluesbetweenOrderUnitsandIssueUnitsaredefinedattheItemSetlevelviathe

Add/Modify Conversions action available from the Select Action menu of several of the

inventoryandpurchasingapplications.

UnitsofmeasurementforOrderUnitsandIssueUnitsaredefinedattheOrganizationlevelvia

theAdd/ModifyUnitsofMeasureactionavailablefromtheSelectActionmenuofseveralof

theinventoryandpurchasingapplications.

NOTE: It isrecommendedthatallpossiblecombinationsofunitsofmeasureandtheir

conversionvaluesbedefinedbeforecreatingitemmasterrecords.


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2.3 COMMODITYGROUPS

A commodity is a thing or product that you purchase. Some companies organize their

purchasingdepartmentsbycommodity. Purchasingmanagersmaycreatebudgets,createand

manage purchase orders, and manage vendor relationships based on commodities. You can

createcommodity

group

and

commodity

code

records

in

Maximo

that

can

be

applied

to

item,

company, and contract records. When you associated a Commodity Group and Commodity

Codewithanitemrecorditallowsusers,forexampleplannersorpurchasingagents,tosearch

foritemsbycommoditycode.

Commoditycodesaredefinedandmanaged using the Add/Modify Commodity Codesaction

availablefromtheSelectActionmenuofthefollowingapplications:

Companies

Item

Master

PurchaseOrders

ServiceItems

Tools

CommoditycodesaredefinedattheItemSetlevel. Commoditygroupnamesmustbeunique

fortheItemSet. Acommoditycodecanonlybelongtoasinglecommoditygroup. Youcannot

deletecommoditygroupsorcodesiftheyareassociatedwithotherMaximorecords.Youcan

also createservice typecommodities tohelpyoucategorizeandmanageservices. Formore

informationaboutservicetypecommodities,see"ServiceCatalog,"below.

2.4 KITS

AKit isacollectionof itemsthatcanbe issuedasasingleunit. Akitrecord iscreated inthe

ItemMasterapplication,andconsistsofaparentitemrecord,andassociatedchilditemrecords

thatare listedonthe ItemAssemblyStructuretab. Usingkitsallowsyoutoputallthe items

needed for ajob plan or maintenance task into one container and manage them as a single

unit.

KitsaredefinedintheItemMasterapplication,andmanagedintheInventoryapplication. You

cannot create kits that contain items that are conditionenabled, lotted, or are defined as

rotatingitems.

NOTE: The individual itemsthatmakeupakitareconsideredpartofthekit,andare

not tracked separately in inventory once they have been assembled into a kit. This

means thatbalances foran itemrecorddonot includeany instancesofthat item that

havebeenassembledintoakit.


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2.5 CONDITIONCODES

AConditionCodeenablesyoutospecifythatanitemrecordhasadifferentvaluedependingon

thephysicalconditionofanitem. Forexample,anitemthathasbeendamaged,worn,used,or

rebuiltwouldnothavethesamevalueasanewitem. AConditionCodehasarateassociated

withit,

which

can

be

used

to

calculate

the

value

of

non

new

inventory

items.

For

example,

you

mightcreatetwoconditionsforanitem,"new"wherethevalueoftheitemis100%,and"used"

wherethevalueoftheitemis50%ofthefullvalue.

You use the Condition Codes application to create a master list of Condition Codes for each

ItemSetdefinedinyourdatabase. FormoreinformationaboutItemSetsrefertotheMaximo

SystemAdministrator'sGuide. TheConditionCodesyoucreatecanbeappliedtothefollowing

typesofMaximorecords:

itemrecords

created

in

the

Item

Master

application

rotatingassetrecordscreatedintheAssetsapplication

2.6 MULTISITEANDCONDITIONCODES

ConditionCodesaredefinedattheItemSetlevel. ItemSetsexistbelowtheSystemlevel,but

abovetheOrganizationlevelsothatOrganizationscansharedata. Thismeansthat:

KeyfieldsfornewrecordsmustbeuniquewithintheItemSet.

RecordsareavailabletoallusersintheOrganizationsthatsharetheItemSetandwho

havesecurity

permissions

to

the

application.

EachItemSethasaseparatelistofConditionCodes. ItemSetscanbesharedbymorethanone

Organization.

2.7 CONDITIONCODESANDASSETS

Condition Codes are an inventory function, but they can be applied to rotating assets, since

rotatingassetrecords includeavalue intheRotating Itemfield. Formore informationabout

rotating items, see the section on Item Master Records and Assets. For more information

aboutrotating

assets,

see

Maximo

help.

2.8 CONDITIONCODESANDINVENTORY

ConditionCodesareusedtoindicatethevalueofinventoryitemsinvariousphysicalconditions.

Theyarealsousedtohelpcalculatethevalueofwornoruseditemsthathavebeenreturnedto

inventory.Whenyouaremanagingaconditionenableditemrecord,enteringaConditionCode

valueismandatorywhenusingthefollowinginventoryactions:


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IssueCurrentItem

TransferCurrentItem

InventoryAdjustments>CurrentBalance

InventoryAdjustments

>Physical

Count

NOTE: YoucannotapplyaConditionCodetoakit,becauseeach item inthekitcould

potentiallyhaveadifferentcondition.

2.9 CONDITIONCODESANDISSUESANDTRANSFERS

A new item received into inventory in the Receiving application has a Condition Code

equivalent to "new" with a rate of 100%. The item can be issued, used, and returned to

inventory,atwhichpointtheconditionwouldnolongerbe"new"andthevalueorratewould

no longer be 100%. When an item is returned (issued back to) to a Storeroom, the existing

Condition

Code

is

displayed

in

the

From

Condition

Code

field

for

the

item,

and

the

new

conditioncanbeenteredintheToConditionCodefield.

2.10 CONDITIONCODESANDITEMRECORDS

Whenyoucreate itemrecordsthatwillhaveConditionCodesappliedtothemyoumust first

select the Condition Enabled? check box, then enter a row in the Condition Codes table

windowforeachconditionyouwanttoapplytotheitem.

2.11 CONDITIONCODESANDTOOLS

Youcannot

apply

aCondition

Code

to

aTool

record.


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II CHAPTER2STOREROOMS

SET-UP AND MANAGING STOREROOMS

1 OBJECTIVES

Given the Maximo 7 platform, learn to create and configure Storeroom records. Learn the

followingconceptsandhowbesttoapplythemtoyourownOrganizationenvironment:

HowStoreroomsrelatetotheItemMasterrecords

UtilizationofGLAccountsanddefaultaddressesinStoreroomconfiguration

2 OVERVIEW

A storeroom is a location that contains Inventory items. Storerooms have General Ledger

accountcodesassociatedwiththemtohelptrackInventorycosts.

Youuse theStoreroomsapplication tocreatenewStoreroomrecords,definetheGLaccount

codes to be associated with a storeroom, and view a readonly list of items stocked at that

storeroomlocation.

NOTE:

Inventorystock

can

be

issued

to

acourier

or

labor

location,

but

these

"inventory

type"locationsarenotconsideredstorerooms.

2.1 MULTISITEANDSTOREROOMS

StoreroomrecordsareattheSitelevel. Thismeansthat:


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MaximorequiresthatkeyfieldsbeuniquetoaSite,butallowsduplicationofrecordIDs

usedbyotherSitesorOrganizations. Forexample,youcouldhaveastoreroomnamed

"Central"ateachSite.

RecordscanonlybeviewedbyuserswhohavesecuritypermissiontotheSiteandthe

application.

2.2 STOREROOMSANDINVENTORY

TherecordsintheInventoryapplicationareforanitem/storeroomcombination. Balancesfor

eachitemrecordaretrackedseparatelyforeachstoreroomthatstockstheitem. Balancesfor

all storerooms can be viewed using the View Item Availability action in the Inventory

application,seeFigure3.1.

Figure3.1InventoryApplicationViewItemAvailability

2.3 STOREROOMSANDITEMRECORDS

After a Storeroom has been created, you can create a master stock list by associating Items

withthe

Storeroom

in

the

Item

Master

application

using

the

Add

Item

to

Storeroom

action.

Itemsarealsodeletedfromastoreroom'smasterstock list inthe ItemMasterapplicationby

deletingtheStoreroomfromtheitemrecordsStoreroomstab.

2.4 STOREROOMSANDPURCHASING

Some companies do all of their purchasing at a central storeroom, and have all other

storerooms"purchase"theirstockfromthatstoreroom. Maximoreferstothistypeoftransfer


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asaninternalpurchaserequisitionorpurchaseorder. YouselecttheUseinPO/PR?checkbox

toindicatethatastoreroomcanbeusedasa"vendor"forinternalpurchases.

3 CREATINGSTOREROOMS

TheStoreroomsapplicationletsyouaddnewstoreroomlocationrecords. Storeroomlocations

are the names of your inventory storerooms, the places inventory items are stored in and

issued from.Thisapplication isusedtosetthegeneral ledgeraccountstobeassociatedwith

each new storeroom location. You can indicate whichGL Accountcode is to be charged for

each typeof inventory transactionassociatedwith the location. Checkwithyouraccounting

departmentifyouneedinformationonprovidingtheproperGLaccountcodes.

NOTE: Depending on your company's business practices, you might need security

authorization

to

create

storeroom

locations

and/or

to

provide

GL

account

code

informationforstoreroomlocations.

TOaccesstheStoreroomsapplication,clicktheapplication linkonyourStartCenter,orselect

Inventory>StoreroomsfromtheGOTOmenu,seeFigure3.2.

TheStoreroomsapplicationcontainsthefollowingtabs:

ListtosearchMaximoforstoreroomrecords.

Storeroom to define storeroom locations and provide default GL account code

information.

Items

to

view

aread

only

list

of

items

associated

with

the

storeroom.

Figure3.2StoreroomApplicationStoreroomTab

Ship to and Bill to fields on a storeroom record are used as default shipping and billing

informationbyMaximo'sreorderprocess.


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4 MANAGINGSTOREROOMS

Items are added to and deleted from a Storeroom's master stock list in the Item Master

application.

Youcan

delete

astoreroom

record

using

the

Delete

Storeroom

action

available

from

the

Select

Actionmenu. YoucannotdeleteastoreroomifthereareItemsorToolsstockedinit.

For more information about the record deletion rules, refer to the Maximo System

Administrator'sGuide.

5 REVIEWQUESTIONS

1. FollowingtheinstructionsinSection3above,createanewStoreroomintheStoreroom

application.

2. WhatdoyouhavetodotomakesurethisStoreroomissetuptobeusedasa"vendor"

forinternalpurchases.


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III CHAPTER3ITEMMASTER

ITEM CREATION AND MA INTENANCE

1 OBJECTIVES

The Item Master application is used to define Items that will be procured and stocked in

storerooms. You will learn to navigate to the Item Master application and use it to create,

modifyandmanageItemrecords. ItemsaregroupedintoItemSetswhichpermitsthesharing

ofItemsbyOrganizationsthatusetheItemSet. YouwilldevelopanunderstandingoftheItem

SetfunctionalityandhowitappliestotheInventory.

ThischapterwillalsodiscusstherelationshipbetweenItemandInventoryrecordsandhowthe

Item/Inventoryhierarchyprovidessupporttothemaintenancedepartmentsinitiativeto:

EfficientlymanagingStoreroombalances,

Minimizestockoutoccurrences,

AccuratelycaptureInventorytransactions,suchasissues,transfersandreturns.

2 OVERVIEW

AnItemrecorddefinesanitemormaterialthatisstockedinacompanystoreroom.Whenyou

usetheItemMasterapplicationtocreateanitemrecordyoucandefinethetypeofstockthe

item is, whether it is lotted or nonlotted, associate hazards and Material Safety Data Sheets

(MSDS)withtheitem,definetheitemasarotatingitemthatcanbe listedonrotatingassets,

andidentifyalternateitemsthatcanbeusedassubstitutesfortheitem.


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Youalsocan defineother information related to items,suchas thestoreroom locations that

stockthe item,vendor informationforthe item,ClassificationandSpecificationsforthe item,

itemassemblystructures,anddocumentsoutsideofMaximothatrelatetotheitemrecord.

Managingyoursparepartsinventoryisanimportantpartofmaintaininganyasset. Therearea

series

of

applications

involved

with

the

management

of

Inventory

with

the

Item

Master

serving

as thecentral repositoryof item records. The Inventorymodule tracksmaterialsneeded for

maintenance. Itallowsyouto:

Trackitemsinstock

Indicatewhenstockfallsbelowuserdefinedreorderpoints

Createspurchaserequisitionsandpurchaseorderstorestockneededitems

Performcyclecountsandmakeappropriateadjustments

Recordallinventorytransactionsincludingreceipts,issues,transfersandreturns

Runreports

TheInventorymoduleworkstohelpbalancetwoopposingobjectives:

Maximizetheavailabilityofitemsforfutureworktasks,

Reduceexcessinventorybalanceswiththeirrelatedcarryingcosts.

2.1 INTRODUCTIONTOINVENTORYMANAGEMENTINMAXIMO7

An Itemrecorddefinesan itemormaterialthat isstocked inastoreroom.Whenyouusethe

ItemMasterapplicationtocreateanitemrecordyoucandefinethetypeofstocktheitemis,

whetherit

is

lotted

or

nonlotted,

associate

hazards

and

Material

Safety

Data

Sheets

(MSDS)

with the item, define the item as a rotating item that can be listed on rotating assets, and

identifyalternateitemsthatcanbeusedassubstitutesfortheitem.

Youalsocan defineother information related to items,suchas thestoreroom locations that

stockthe item,vendor informationforthe item,ClassificationandSpecificationsforthe item,

itemassemblystructures,anddocumentsoutsideofMaximothatrelatetotheitemrecord.

For manymaintenanceorganizations, thequickestandmostsubstantial"harddollar"returns

areachievedthroughthematerialsmanagementmodules InventoryandPurchasing. Intheir

earlyyearsofexistence,theprimaryInventoryfocusofMaximoandotherCMMSproductswas

therecordingofpartissuesandcosttrackingofInventorytransactionstoWorkOrders. Today,enhancements to these software products now assist Organizations in achieving superior

Return on Investmentthrough deployment of sound Inventory Management principles.

Therefore,thiscourseisdesignedtodemonstratehowtobest:

Handletheprocessof issueandreceipt transactions,accuratelyexpensing thecostof

purchasedmaterialstothecorrectWorkOrderand/oritsassociatedGLaccount,and


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Managestoreroombalancesandoptimizethesupplychain,generatingvaluablehard

dollarreturnstotheOrganizationthroughsoundmaterialsmanagement.

Due to inefficiencies and the high cost of maintaining a substandard stores management

department,

a

growing

number

of

Organizations

have

now

outsourced

their

Inventory

departments to thirdparty contractors. This need not be the case. The course will cover

strategies used by such contractors including JustinTime Inventory, Vendor Analysis, Parts

staging and the normalization of stock keeping units (SKUs) to make spare parts easier to

locate.

To achieve these objectives, it is important to understand how the Maximo 7 Inventory

applicationsareconstructed. TheapplicationswithintheInventorymodulearehierarchicalin

structure. Thetop leveloftheParthierarchyistheItemMasterrecord. Thisrecordincludes

theinformationaboutaPartthatisconstant,regardlessoftheStoreroomlocationofthatPart.

As

shown

below,

the

Item

Number,

Stock

Type

(category),

MSDS

Reference

Number

and

other

fieldsmakeuptheItemdataset,seeFigure4.1.

Figure4.1

Item

Application

Item

Tab

AtthesecondleveloftheParthierarchy,Maximo7gatherstheStoreroominformationforthat

Part. For each Part/Storeroom combination (the Inventory record), there is a unique and

individualrecordthatisdisplayedintheInventoryapplication. Thiswillbecomeacriticalissue

as to how we define Storerooms in our Organization, which will be discussed later in this

document. Note that in the illustration below, the Item below (FLTR003) exists within two


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differentstorerooms. Thus,thereisoneItemrecord,buttherearetwoInventoryrecords,see

Figure4.2.

Figure4.2ItemApplicationStoreroomTab

Forthemoment,letsswitchfromlookingattheItemMasterscreentoobservethesecondtier

level

the

Inventory

application.

By

looking

closely

at

two

of

the

Inventory

application

screens

below (InventoryandReorderDetailsscreens),noticethateachPart/Storeroomcombination

has itsown uniquebalance,coststructure, reordervalues,primaryvendorand issuehistory,

see Figures 4.3 and 4.4. The values for the fields listed above for the Part (FLT003) in

Storeroom CENTRAL can be entirely different for Storeroom PKG. Therefore, by definition,

Maximo7treatstheconceptofStoreroomasalocationthatwillactindependentlyoftheother

StoreroomsintheOrganization.

Figure4.3InventoryApplicationInventoryTab


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Figure4.4InventoryApplicationReorderDetailsTab

Fordatabase

and

reporting

purposes,

there

is

athird

tier

table

(the

INVBALANCES

table)

which

holdsthebalanceinformation. ThisisrequiredsinceMaximowillallowtheuseofmultiplebins

forthesamepartinthesameStoreroom.

2.2 MULTISITEANDITEMMASTERRECORDS

ItemmasterrecordsaredefinedattheItemSetlevel. ItemSetsexistbelowtheSystemlevel,

butabovetheOrganizationlevelsothatOrganizationscansharedata. Thismeansthat:


Recordsare

available

to

all

users

in

the

Organizations

that

share

the

Item

Set

and

who

havesecuritypermissionstotheapplication.

Some of the data on an item record may be specific to a single Organization or Site. For

example, storerooms listed on the Storerooms tab are at the Site level, and the companies

listedontheVendortabareattheOrganizationlevel.

YouusetheItem/OrganizationDetailsactionavailablefromtheSelectActionmenutospecify

OrganizationspecificdatasuchasHazardsandTaxCodesforeachOrganizationthatusesthe

ItemSet.

Commodity codes are also defined at the Item Set level. For more information about

commoditycodes,seethesectiononItemMasterRecordsandCommodityCodes.


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2.3 ITEMMASTERRECORDSANDASSETS

Itemrecordsareusuallycreated forconsumable itemsormaterials. Butyoucanalsocreate

itemrecordsforitemsthatcanbereusedorrefurbished,andthereforemustalsobetrackedas

assetssothatyoucankeepamaintenancehistoryfortheitem. Maximoaccomplishesthisby

allowingyou

to

create

rotating

item

records

that

can

be

used

to

create

rotating

asset

records.

A rotating item is a specialcategory of item record, used to indicate items that can be used

interchangeably as a replacement for a like item, for example, fire extinguishers, motors, or

pumps, but that are repaired or refurbished when they are removed from service. Rotating

itemscanbemanaged likeanyother itemrecord;theycanbestocked instorerooms, issued

andtransferred,reorderedandsoforth.

Rotatingassetsareaspecialcategoryofassetrecords,usedtoreferananyassetrecordthat

containsavalueintheRotatingItemfield. Rotatingassetsconsistofmultipleinterchangeable

assets,witheachassethavingthesameitemnumberandadifferentassetnumber.

These items are tracked both by their item numbers in the Inventory module and by their

individualassetnumbersintheAssetsmodule. Thetermrotatingitemisusedwhenreferring

to inventoryrecordsandmanagement,andthetermrotatingasset isusedwhenreferringto

assetrecordsandmaintenance.

To illustratehowarotating itemrecord isused, let's imaginethatyourcompanypurchasesa

dozenidenticalfireextinguishers. Youwouldcreateasinglerotatingitemrecordforthemodel

thatyoupurchased, thencreateaseparateasset record foreach individual fireextinguisher.

All twelve asset records would have the same item number in the Rotating Item field, but

different

asset

numbers.

The

asset

records

allow

you

to

keep

a

maintenance

record

for

each

extinguisher;youcan listeachfireextinguisher locationonan inspectionroute,recordmeter

readings,generatepreventivemaintenanceworkordersandsoforth. Thefactthattheasset

recordssharethesameitemnumberallowsyoutoeasilyfindreplacementfireextinguishersin

yourstoreroomswhentheyareneeded.

NOTE: Anitemcannotbebothasparepartandarotatingitem.

2.4 ITEMMASTERRECORDSANDCOMMODITYCODES

The

term

commodity

is

used

to

describe

classifications

of

inventory.

Commodity

codes

areusedtodistinguishgroupsofinventoryitemsthatcanbeusedforreportingandanalysis. Your

purchasing department might include Commodities Managers who track spending by

commodityandmakedecisionsaboutvendorrelationshipsbasedonthatdata.

WhenyoucreateanitemrecordyoucanassociatetheitemwithanexistingCommodityGroup

and Commodity Code by listing them on the item record. Commodity codescan be defined


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andmanagedusingtheAdd/ModifyCommodityCodesactionavailablefromtheSelectAction

menuofthefollowingapplications:

Companies

ItemMaster

PurchaseOrders

ServiceItems

Tools

NOTE: CommodityCodesaredefinedattheItemSetlevel.

2.5 ITEMMASTERRECORDSANDCONDITIONCODES

A Condition Code specifies the physical condition ofan item, and is used to indicate that an

item is not new. Condition Codes are also used tohelpcalculate thevalueofwornorused

itemsthathavebeenreturnedtoinventory. YouusetheConditionEnabled?checkboxonan

itemrecord

to

indicate

if

Condition

Codes

can

be

applied

to

inventory

records

for

the

item.

Beforesavingaconditionenabled itemrecordyoumustassignat leastone fullvalue (100%)

ConditionCode to the item. YoucanassignmultipleConditionCodes toan itemrecord,but

onlyonecanhavearateof100%.

When an item is added to a storeroom via the Add Items to Storerooms action in the Item

MasterapplicationtheConditionCodealwaysdefaultstothe100%rate.

Whenyouaremanagingaconditionenabled itemrecord,enteringaConditionCodevalue is

mandatorywhenusingthefollowingInventoryactions:

IssueCurrent

Item

TransferCurrentItem


InventoryAdjustments>PhysicalCount

NOTE: YoucannotapplyaConditionCodetoakit,becauseeach item inthekitcould

potentiallyhaveadifferentcondition.

2.6 ITEMMASTERRECORDSANDCONTRACTS

Item records may be specifically listed on purchase or lease contracts, or they may be

coveredunder

ageneric

agreement

with

avendor

where

you

company

has

agreed

to

spend

aspecificamountonpurchasesfromthevendor.

2.7 ITEMMASTERRECORDSANDINVENTORY

Itemrecordsarecreated inthe ItemMasterapplication,but itembalancesaretracked in

theInventoryapplication.


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2.8 ITEMMASTERANDSAFETY

If an item record is for a hazardous material, you can list the Material Safety Data Sheet

numberissuedbytheOccupationalSafetyandHealthAssociation(OSHA)intheMSDSfield

ofthe itemrecord.Because itemrecordsareatthe ItemSet level inMultisiteandhazard

records

are

at

the

Organization

level,

you

use

the

Item/Organization

Details

action

to

associatehazardswithan itemrecord. TheCanHaveHazardousMaterials?checkboxon

the hazard record must be checked before it can be associated with an item record.

Associatingahazardrecordwithanitemrecordallowswarehouseandstoreroomworkers

toview thehazard information for the item. Whenan itemwithanassociatedhazard is

listed on a work order, Maximo automatically displays safety information to the work

order'sSafetyPlantab.

2.9 ITEMMASTERRECORDSANDSTOREROOMS

Youuse

the

Storerooms

tab

of

an

item

record

to

view

storeroom

information

about

the

item, includinga listofallstoreroomsthathavethe itemontheirstock list,balances,and

costsfortheitem.

YouusetheAdd ItemtoStoreroomaction inthe ItemMasterapplicationtoaddan item

recordtoastoreroomlocation'sstocklist. Addinganitemtoastoreroomisoneofthefew

timesyoumakeanentryintheCurrentBalancefield. Usually,thisfieldiseithercalculated

by Maximo or updated after inventory is received in the Receiving application. Rotating

itembalancesarezerountilanassetrecordiscreatedfortherotatingitemnumber.

Youcandeleteanitemfromastoreroom'sstocklistiftheitembalanceinthestoreroomis

zeroby

deleting

the

storeroom

on

the

Storerooms

tab

of

the

item

record.

3 CREATINGANITEMRECORD

It is recommended that all possible combinations of units of measure and their conversion

valuesbedefinedbeforeyoucreate ItemMasterrecords. Youuse theAdd/ModifyUnitsof

MeasureactionandtheAdd/ModifyConversionsactionavailablefromtheSelectActionmenu

todefinethesevalues.

YoucanusetheDuplicateItemactiontocreateacopyofanexistingitemrecord,forexampleif

youhave

similar

items

with

different

specifications.

Once

you

duplicate

an

item

you

can

then

modifyitasneeded.

TheItemMasterapplicationcontainsthefollowingtabs:

ListtosearchMaximoforitemrecords.

Itemtoenter,view,ormodifyitems,andtospecifyalternateitems.


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Storeroomstoviewareadonly listof informationaboutstoreroomsthatstockthe

item.

Vendors to enter, view, modify, or delete information about vendors and

manufacturersforanitem.

Specifications

to

classify

an

item

and

add,

view,

modify,

or

delete

specifications

that

givedetailsabouttheattributesoftheitem

ItemAssemblyStructuretoenter,view,ormodifyitemassemblystructures.

Letsreturntothe ItemMasterapplicationandfocusonthefunctionalityofthecriticalfields

andhowtocreateanewItemrecord. TocreateanewItemrecord:

ToaccesstheItemMasterapplication,clicktheapplicationlinkonyourStartCenter,or

selectInventory>ItemMasterfromtheGoTomenu.

FromtheListtab,clicktheNewItemButton(blankpageicon)

Enteravalue

for

the

Item

record

number

and

all

other

fields

that

are

required

by

the

systemorbyyourbusinessprocesses.

A record is not created until the user saves the record. Users must click the Save

(diskette)iconbuttononthetoolbartoexecuteasavetransaction.

3.1 ITEMTAB

3.1.1 PRIMARYCOMPONENTFIELDS

Item: KeyfieldtoidentifythePart. ThisIDconstitutestherecordnumberwithintheMaximo7

database

and

must

be

a

unique

value

from

all

other

Item

records.

This

field

becomes

read

only

afterthefirstsave.

Description: Thedescription fieldvalueprovidesa longertext field fordescriptivepurposes.

Remember,thedescriptionfieldisnotonlyaprimaryqueryfieldforrecordsearcheswithinthe

Inventoryapplications,butalsoforsearchesonpartswithinotherapplicationscreens,suchas

WorkOrderTrackingandPurchasing. Foroptimalresults,createthedescriptionfieldvalueas

nounfirst(e.g. Filter)followedbyattributeadjectives. Ifthepartdescriptionexceedsthefield

length,additionalinformationcanbepopulatedintothelongdescriptionfieldbyclickingonthe

PageicontotherightoftheDescriptionfield. Whenpopulated,thepageiconwillchangetoan

orangecolor.

Commodity Group/Commodity Code: These fields help classify parts into logical group

categories such as Belts, Bearings, Pumps, and Motors. Such groupings will assist with the

reporting and query functions, as well as supporting Organization epurchasing initiatives.

Values can be entered at the discretion of authorized users, using the Select Action/

Add/ModifyCommodityCodeoption. CommodityCodesactaschildrentoCommodityGroup

values. AftercreatinganewCommodityCodeandassociatingitwithoneormoreCommodity


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Groups,thatvaluewillappearintheSelectValuelistwheneverarecordisselectedthathasa

parentassociationtotheCommodityCodevalue.

Add as Spare Part?: To expedite the process of constructing a correct Parts list (Bill of

Materials)for

an

Asset,

individual

Item

records

can

be

set

to

automatically

build

aPart/Asset

association,baseduponthatPartbeingissuedagainstaWorkOrdercoveringaspecificAsset.

Thefeature,AddasSparePart,isanoptionalYes/NocheckboxfieldontheItemMastermain

screen. It is an effortless, costeffective way to allow the Work Order system to build the

association of Parts to Asset. The Maximo 7 outofthebox default establishes the Add as

SparePartfieldasnotchecked(settoNo). Thus,tobuildtheongoingPartslist,Organizations

will need to activate the Add as Spare Part function, either on a selective PartbyPart (Item

record) basis, or globally for all Parts. The logic was to allow users to leave this function

inactive for certain (or all) Parts, so as not to create a Part/Asset association. Examples of

specifically excluded Parts would include those Parts which are associated more with a

procedure

than

the

Asset

being

worked

on,

such

as

miscellaneous

hardware

(fasteners),

or

catalysts(cleaningfluidandsafetyglasses).

Lot Type: Lots can be identified for a Part when received through the Maximo Purchasing

applicationsto identifytheshipmentinwhichthePartwasreceivedandtheexpirationofthe

usefullifeoftheItemsshipped.

MSDS: ThisfieldisdesignedtostoretheproperMaterialSafetyDataSheetnumberinorderto

provide proper user safety information and to satisfy the requirements of OSHA and other

safety organizations. The reference number can be used to search for hazard and

reaction/remedy information from printed forms or data sources on the Web. The Linkeddocumentsfunctionalityisalsoavailabletostoresuchinformation.

Status: WhenanewItemrecordiscreated,theItemrecordstatus,andallassociatedInventory

recordstatusesforthatPartaresettoPENDING. Inthisstatus(andalsotherecordstatusof

PLANNING),thePartcannotbe issuedfromaStoreroom. The Inventoryrecordsstatusmust

be changed toACTIVE to be able to fully utilize the Item functionality in Maximo. Other

statusesincludeOBSOLETEandPENDOBS. StatuschangesaremadeeitherattheInventoryor

theItemrecordlevelutilizingtheStatusChangeicononthetoolbar,seeFigure4.5.


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Figure4.5ItemMasterApplicationStatusChange

Rotating?: ThisisaYes/NofieldwiththedefaultsettingsetatNo. WhenchangedtoYes,the

Rotating field is used to identify those Parts that have the characteristics of both Asset and

Parts. AftertheRotating Itemrecord issaved, individualserializedAssetrecordscanthenbe

establishedforeachcommonRotatingPartobject. ThisisdonebypopulatingtheRotatingPart

IDrecordnumbervalueontheAssetrecord inthe Item field. Commonexamplesofrotating

partsincludemotorsandpumps. Tosummarize,therewouldbeoneItemrecordfora10HP

Motor,butmultiplerecordsforeachtangibleAsset(completewiththecurrentLocation,Serial

Number,etc.).

From

the

Rotating

asset

tab

in

the

Inventory

application,

acurrent

view

and

countofallrotatingassetcarryingthatItemreferencecanbeseen.

Capitalized?: IftheRotatingfieldissettoYes,theCapitalizedfieldbecomesactivated. Ifthe

CapitalizedfieldissettoYes,thentheCostofthePart/AssetobjectisnotchargedtotheWork

Order(orotherassociatedchargeaccount)whenitisissuedfromtheStoreroom. Rather,itis

placedontheOrganizationbooksasadepreciableassetandwouldbeexpensedonamonthly

basisover time. IftheCapitalized field issettoNo,thenthecostof theRotatingPart/Asset

objectwillbechargedtotheappropriateWorkOrderandassociatedGLaccountsuponissue.

Outside?: ThisisafieldthatcanbeusedtodifferentiatebetweenthosePartsthatareowned

internally,versusthosethatareownedorheldbyanOutsideVendor/Contractoronbehalfof

your Organization (e.g. Graybar, Briggs Weaver, etc.). The field does not change the

functionality of the application, but allows Users to run reports and queries based upon the

Partsinternal/externalownership.

Status

Change

Icon


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3.1.2 SELECTACTION>ADD/MODIFYIMAGE

An imagecanbeaddedtothefrontscreenofthe Itemrecordbyspecifyingafileaddressfor

theimage. Justaswithattacheddocuments,besurethepathwillworkforallMaximoUsers

notjustaccessiblebytheUserattachingthedocument.

3.1.3 DESIGNATINGALTERNATEITEMS

Alternate items are items that can be used interchangeably with other inventory items, for

example,twodifferentbrandsofmotoroil. YouusetheAlternate Itemstablewindowto list

anyitemsthatcanbeusedasanalternateforthecurrentitem.

Inmanycases,oneitemcanbeanalternateforanother,buttheopposerelationshipmightnot

bedesired. Asaresult,MaximodoesnotautomaticallycreatedmatchingrowsintheAlternate

Itemstablewindowwhenanitemrecordislistedasanalternate. Ifyouwanttwoitemstobe

listedasalternates foreachother,youmustgo intoboth itemrecordsseparatelyandassign

eachitem

as

an

alternate

for

the

other.

3.1.4 CREATINGROTATINGITEMS

A rotating item isaspecialcategoryof item record,used to indicate items thatcanbeused

interchangeably as a replacement for a like item, for example, fire extinguishers, motors, or

pumps, but that are repaired or refurbished as assets when they are removed from service.

Rotatingitemscanbemanagedlikeanyotheritemrecord;theycanbestockedinstorerooms,

issuedandtransferred,reorderedandsoforth.

You

create

a

rotating

item

by

selecting

the

Rotating?

check

box

on

an

item

record.

After

you

createandsavean itemrecord,theRotating?fieldbecomesreadonlyandcannotbeedited,

andtheCurrentBalancefieldbecomesreadonly. Ifanitemisdefinedasrotating,thevaluesin

the Balances fields are controlled by the movement of the rotating items in and out of a

storeroom.

When you list a Rotating Item on an asset record, Maximo copies the Classification and

AttributesthatarelistedontheSpecificationstaboftheitemrecordtotheSpecificationstab

oftheassetrecord.

NOTE: Whenyoucreaterotating itemrecordsthatwillbeusedtocreate information

technology(IT)assetrecords,youmustenteravalueintheClassificationsfieldtoallow

Maximoto

filter

for

IT

assets

when

performing

reconciliation.

3.1.5 UNDERSTANDINGITEMASSEMBLYSTRUCTURES

Anitemassemblystructure(IAS)isalistofindividualitemsandsubassembliesthatarerequired

tobuildanassetordefinetherequirementsofalocation. Ratherthanspecifyitscomponents

eachtimeyouenteranindividualassetoralocation,youcreateanitemassemblystructureas

atemplate. YoucanuseanIASasatemplatewhenbuildingmultipleassetassemblystructures

andtheirrelatedlocationsystems.


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TheIASisbuiltonanitemrecord,andtheIASisthenidentifiedbytheitemnumberatthetop

ofthe hierarchy. You can apply an item assembly structure to an asset or to a location by

specifyingthetoplevelitemnumberintheRotatingItemfieldonanassetorlocationrecord,

thenchoosingtheApplyItemAssemblyStructureaction.

Forexample,

afive

horsepower

motor

and

its

associated

spare

parts

can

be

used

in

10

asset

assemblystructuresinaplant. Ratherthanentering10assetrecordsandspecifyingthespare

partsforeachone,youentertheassetrecordsandapply(copy)theIASforafivehorsepower

motortotherecords. TheentireIASisappliedtotheassetassemblystructure. Similarly,you

couldapplythesameIAStothe10operatinglocationsintheplantthatrequirethemotorand

itsspareparts.

NOTE: AlthoughyoucanuseanyitemasthetoplevelofanIAS,youcanonlyapplyan

IAStoassetoroperatinglocationsifthetoplevelisarotatingitem.

3.1.6 USINGITEMASSEMBLYSTRUCTURES

Itemassembly

structures

are

applied

to

asset

and

location

records

in

the

Assets

and

Locations

applications.Itemassemblystructurescanbeappliedwhenyoucreatenewassetrecordsinthe

Receivingapplication.YoualsouseitemassemblystructureswhencreatingitemkitsintheItem

Masterapplication.

3.1.7 CREATINGITEMKITS

Akitisanitemrecordthatcontainsotheritemrecordsandcanbeissuedasasingleunit.

ItemrecordscontainaKit?checkboxthatisusedtoindicatethattheitemrecordwillactasthe

virtual"container"foralloftheotheritemscontainedwithinthekit. Afteryoucreatetheitem

record for the kit "container" you then define the components of the kit using the Item

AssemblyStructure

tab.

On

this

tab

you

list

items,

and

quantities

for

each

item

that

are

to

be

includedinthekit. Kitscanbeincludedascomponentsofotherkits.

NOTE: Maximodoesnotallow itemsthatareconditionenabled,rotating,or lottedto

beaddedtoakit.

Anditemrecordcannotbeincludedaspartofakitifithasanyofthefollowingproperties:

ConditionEnabled?=Yes

Rotating?=Yes

LotType=LOT

NOTE:

Kits

are

assembled

in

Inventory

via

the

Assemble

Kits

action.

TIP: AsabestpracticeyoushouldincludeanIssueUnitforanyitemrecordthatmaybe

includedaspartofakit.


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3.2 STOREROOMTAB

Even though an Item record has been created in the database, it is only when the Item is

attached to a Storeroom that a full and functional record is created. To create a new

Inventory/Storeroom record foryournewlycreated Itemrecord,usetheSelectActionsdrop

downlist

and

select

Add

Item

to

Storeroom,

see

Figure

4.6.

Figure4.6ItemMasterApplicationAddItemtoStoreroom

TheAddItemstoStoreroomdialogboxwillappear(asabove). SelectaSiteandaStoreroomID

using

the

detail

arrows

at

the

right

side

of

the

fields.

After

selecting

the

Storeroom,

enter

the

BinIdentity(ifavailable)andtheinitialStandardCostforthePart. TheAverageCostandLast

Receipt Cost fields will automatically populate with the same value that was entered for

StandardCost. (Note: Iftheprice is leftat0whencreatingthepart,thesystemwillassume

thatthesepartswereacquiredatacostof0andmayunderstatetheissuecosttofutureWork

Orders.)IfthereisaquantityofthisPartalreadyonhand,enterthequantityintheCurrentBin

Balance field,seeFigure4.7. OncetheOKbutton isselected futureedits to the information

shown below will have to be made within the Inventory application, rather than on the

StoreroomtaboftheItemMasterapplication.


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3.4 SPECIFICATIONSTAB

Organizations can construct specification templates for Items using the Specifications

functionality within Maximo 7. The prebuilt Specifications template determines which

attributeswillbevisibleforagivenPartcategory,seeFigure4.9. Individualpartrecordsare

thenassociated

with

the

category

and

their

attribute

values

entered

on

the

part

record.

Users

can then better query for and view the attributes of a Part (which through the associated

attributevalueswillbedefinedwithmuchgreatergranularity).

Figure4.9ItemMasterApplicationSpecificationsTab

ToassociateaPartwithapreviouslybuiltSpecificationstemplate,theuserselectsClassification

andSubclassificationvaluesandthenclicksontheAssociateSpecificationTemplatetoattach

theItemrecordtoalistofassociatedattributes,seeFigure4.10.

Figure4.10ItemMasterApplicationSpecificationsTabClassifyDetails


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TheprespecifiedfieldentrieswillappearbasedontheUsercreatedtemplate. Thereasonfor

populating the attribute values for a Part canbe understood when the user is searching the

databasethrougha long listofAirFiltersandwantstoreducetheresultsettoonlythoseAir

Filterswithasizedimensionof24x24x2(attribute). Otherexampleswouldincludethesearch

for a Pump with a rating of 20 GPM or greater or a Motor that is 3 Phase, 230 Volts with a

Horsepowerratingof5.

3.5 ITEMASSEMBLYSTRUCTURETAB

ThepurposeoftheItemAssemblyStructureistodevelopahierarchyofParts(thetoplevelof

which isgenerally a Rotating Part) that have child Asset subassemblies and Parts, see Figure

4.11. ItsprimaryuseistospeeddatabaseloadingoperationsforAssetsthatarerepetitiveand

have large numbers of child Assets and extensive lists of Part components, which can all be

attachedusingtheoptionSelectActions>CopyItemAssemblyStructure.

Figure4.11

Item

Master

Application

Item

Assembly

Structure

Tab

4 MANAGINGITEMMASTERRECORDS

You manage data about an item record, for example vendors and classifications, in the Item

Masterapplication,butyoumanageitembalancesintheInventoryapplication.

4.1 MANAGINGVENDORS

Youuse

the

Vendors

tab

of

an

item

record

to

view

or

manage

alist

of

vendors

or

companies

thatsupplytheitem. Thelistcanincludevendorsyouhavepreviouslyorderedfrom,aswellas

vendorsyouhavenotpurchasedtheitemfrom. Youcanusethevendordatatocompareprices

anddeliveryinformation.


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4.2 MANAGINGKITS

YouusetheAssembleKitandDisassembleKitactionsavailableintheInventoryapplicationto

create and dismantle kits. You can only assemble kits from components available in an

individualstoreroom.

KitscanbeissuedandtransferredusingtheIssuesandTransfersapplication. Whenreturning

kitsyoucanonlyreturncompletekits. Ifsomeofthecomponentshavebeenconsumed,you

shouldreturntheremainingitemsasindividualitems,sinceMaximodoesnotrecognizepartial

kits.

4.3 LINKINGITEMSTOCLASSIFICATIONS

Maximo includes a feature called Classifications which can be used to structure records into

organizedhierarchies. Usingclassificationshelpsyoutomoreeasilylocaterecords,andhelpto

ensurethat

records

are

not

duplicated

unintentionally.

YoucanaddnewitemrecordstoClassificationsbyassociatingaspecificationtemplatewiththe

recordontheSpecificationstab. After itemsareassociatedwithspecificationtemplates,you

canusetheClassificationSearchdialogtosearchthroughMaximotofindtherecordsyouare

lookingfor. FormoreinformationaboutClassifications,seeMaximohelp.

4.4 DELETINGITEMS

You can delete an item record using the Delete Item action available from the Select Action

menu. Youcannotdeleteanitemrecordifanyofthefollowingaretrue:

Inventorybalancesorreservationsexistfortheitem.

TheitemisassociatedwithanassetrecordasaRotatingItemorasasparepart.

TheitemislistedonamasterPMrecord.

Theitemislistedasplannedmaterialsonajobplanorworkorder.

Theitemislistedonadesktoprequisition,purchaserequisition,orpurchaseorder.

Maximodisplaysamessageiftheitemcannotbedeleted.

5 REVIEWQUESTIONS

1.FollowingtheinstructionsinSection4above,createanewPartintheItemMastersapplication.

a. LocatetheItemMasterapplicationundertheInventorymodule.


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b. ClicktheInsertrecordicononthetoolbarwhenyoufirstentertheapplicationat

theFindscreen.

c. FilloutthefieldsintheItemapplicationandclicktheSavebuttonicontomake

thenewrecordapermanentone.

d. WritedowntheItemNumbersothatyoucanquicklyreferenceforusewiththe

nextchaptersworkshop.

2. Now, add the new Part record to the one of the available Storerooms, including the

Price,Balance,andBinLocationdata.

a. Ifyouhaveforgottenwheretoaccessthisfunction,checktheoptionsunderthe

SelectActiondropdownmenuonthetoolbar.

b. CompletetheinformationfieldsontheremainingItemapplicationscreens.

3. Howwouldonequerytofindhowmanyfiltersthereareinthedatabase?

4. Howwouldafilterwithdimensionsof24x24x2bemosteasilylocatedthroughtheuse

of:

a. standardscreenfields

b. Specificationattributes


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IV CHAPTER4SERVICEITEMS

SERVICE ITEM CREATION A ND MA INTENANCE

1 OBJECTIVES

GiventheMaximo7platform,learntocreateandmodifyServiceItemrecords,includingtheir

usewithJobPlans,PurchasingandWorkOrders. Learnthefollowingconceptsandhowbestto

applythemtoyourownOrganizationenvironment:

PlanningservicesusagewithJobPlansandWorkOrders

Orderingservices

with

Desktop

Requisitions,

Purchase

Requisitions

and

Purchase

Orders

2 OVERVIEW

A Service Item is a special type of item used to define services that your company utilizes.

ServiceItemscannotbeissued,transferred,orcontainbalances,buttheycanbeusedaspartof

jobplans,workorders,andcanbeusedinthepurchasingapplicationswhencreatingpurchase

requisitions,purchaseorders,andsoforth. AnotherwaytothinkofServiceItemsisthatthey

are"plannedservices"orservicesthatyouplantouseorpurchase.

You

use

the

Service

Items

application

to

create

records

for

any

type

of

service

that

your

companyusesorpurchasesoneitherafrequentorinfrequentbasis. SomeexamplesofService

Items include standard services associated with purchasing such as freight or installation, or

regularmaintenanceservicesthatyoumightpurchase fromavendor,suchas landscapingor

janitorialservices.


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2.1 MULTISITEANDSERVICEITEMS

Service Items are defined at the Item Set level. Item Sets exist below the System level, but

abovetheOrganizationlevelsothatOrganizationscansharedata. Thismeansthat:


RecordsareavailabletoallusersintheOrganizationsthatsharetheItemSetandwho

havesecuritypermissionstotheapplication.

SomeofthedataonaServiceItemrecordmaybespecifictoasingleOrganizationorSite. For

examplethecompanieslistedontheVendorstablewindowareattheOrganizationlevel.You

use the Service Item/Organization Details action available from the Select Action menu to

specifyOrganizationspecificdatasuchasGLAccountandTaxCodesforeachOrganizationthat

usestheItemSet.

2.2 SERVICEITEMSANDJOBPLANS

The Job Plans application includes a Services sub tab on the Job Plan tab, allowing you to

includeServiceItemsaspartofajobplan.

2.3 SERVICEITEMSANDPURCHASING

ServiceItemscanberequisitionedusingDesktopRequisitionsorthePurchaseRequisitions(PR)

applications, and ordered using the Purchase Orders (PO) application. When you order a

ServiceItem,thePRorPOlineType=STDSERVICE. ServiceItemsarealwaysdirectissueitems

becausethey

cannot

be

"stored"

in

astoreroom

location.

2.4 SERVICEITEMSANDWORKORDERS

TheWorkOrderTrackingapplicationincludesaServicessubtabonboththePlansandActuals

tabs. Thisallowsyoutoplanforserviceswhencreatingaworkplan,andrecordtheactualcosts

forServiceItemsneededtocompletetheworkorder.

3 CREATINGSERVICEITEMRECORDS

ToaccesstheServiceItemsapplication,clicktheapplicationlinkonyourStartCenter,orselect

Inventory>ServiceItemsfromtheGoTomenu.

TheServiceItemsapplicationcontainsthefollowingtabs:

ListtosearchMaximoforServiceItemrecords.

Servicetocreate,view,ormodifyServiceItemrecords.


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You can create a Service Item record for any type of service that your company uses or

purchasesoneitherafrequentorinfrequentbasis,seeFigure5.1. Youcanlistthevendorsthat

youpurchasetheservicefromintheVendorstablewindow.

Figure5.1ServiceItemApplicationServiceTab

If

you

want

to

associate

a

GL

Account

or

a

Tax

Code

with

a

Service

Item,

you

can

use

the

Service

Item/OrganizationDetailsactionavailablefromtheSelectActionmenutodoso.Youcanuse

theDuplicateService ItemactiontocreateacopyofanexistingService Item, forexample if

purchasedifferentservicesfromthesamevendor. OnceyouduplicateaServiceItemyoucan

thenmodifyitasneeded.

4 MANAGINGSERVICEITEMRECORDS

Because they cannot be received into inventory or stored in a storeroom, Service Items are

always categorized as direct issue items. You can reorder a Service Item using the Reorder

DirectIssue

Itms/Svcs

action

available

from

the

Select

Action

menu.

YoucandeleteaService ItemrecordusingtheDeleteService Itemactionavailable fromthe

SelectActionmenu. Formoreinformationabouttherecorddeletionrules,refertotheMaximo

SystemAdministrator'sGuide.

5 REVIEWQUESTIONS

1. Followingthe instructions inSection3above,createanewService Item intheService

Itemapplication.

2. Selectatleasttwovendorsthatwillbeabletoprovidethisservice.

3. WhatcontrolstheItemSetthatautomaticallypopulatesinthenewrecord?

4. SettheStatustoActive.


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V CHAPTER5MANAGINGTHESTOREROOMINVENTORY

1 OBJECTIVES

Given the Maximo 7 platform, learn to create and modify Inventory records, including

Storeroombalances,price,andreorder information,andtorecognizethe functionalityofthe

variousStoreroomprocedures. Learnthe followingconceptsandhowbesttoapplythemto

yourownOrganizationenvironment:

ReorderPointandAutomaticReorderProcess

EconomicOrder

Quantity

ABCAnalysis

WorkOrderReservesandAvailableBalance

2 OVERVIEW

An inventory is a listing of all items, materials, and rotating assets that are stored in your

storerooms. With Maximo you create item records in the Item Master application, and you

createstoreroomrecordsintheStoreroomsapplication,butyoumanageyourinventoryinthe

Inventoryapplication.

UsingtheInventoryapplicationyoucantrackitembalancesdowntothebinandlotlevelfora

storeroom,aswellas itemcostsusingconditioncodes. Youcantrackvendorsthatsupplyan

itemaswellasreorderdetailssuchaspriceand leadtime fororders. Youcanviewrotating

assetsthatlistarotatingitemrecord,aswellasassetsthatlisttheitemasasparepart.

You use the Inventory application to view information about a specific item at a specific

storeroomlocation. Thefieldsonaninventoryrecordrefertoitem/locationrecords. Current


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Balance, for example, means the current balance of the item at the storeroom in the

Storeroomfield. LikeCurrentBalance,thefieldslistedunderBalanceSummary,IssueHistory,

andBalancesallapplytotheiteminaspecificstoreroom.

Inaddition

to

inventory

cost

tracking,

several

other

inventory

related

objectives

have

evolved

from the improved Inventory functionality within the EAM/CMMS packages. Implementing

thesestrategieshasproventobeinvaluableinimprovingtheStoresManagementprocessand

inmaximizingtheOrganizationsReturnonInvestment. Apartiallistisshownbelow:

JustinTimeInventoryProcedures(reducingstockbalances)

Automatic Stock Reorders Based upon Current Bin Availability and Upcoming Work

OrderRequirements

HistoricVendorandPriceHistoryInformation

Automatic Compilation of a Bill of Materials for Assets (accomplished through Part

Usageon

Work

Orders)

QuickIdentificationofPartNumberforIssuanceandPurchasingApplications

ReducedNumberofStockouts(PartsUnavailable)andExpeditedBuys

The annual cost of maintaining an inventory storeroom is considerable. Through industry

studies,ithasbeenfoundthatthepercentagecostofmaintaininganinventorystoreroomwill

annually run between 2030% of the total inventory dollar value. Thus, a reduction of $1

millionofPartsheldonhanddeliversanannual(andrepetitive)savingsof$200,000 $300,000.

Theprimarycomponentsofthisholdingcostincludethecostofmoney(capital)associatedwith

holding inventory, insurance, facilityspaceandmaintenancecost,thecostofphysicalcounts

andreconciliation,

the

cost

of

theft,

obsolescence

and

spoilage,

and

so

on.

The

high

storage

cost certifies the need to reduce the volume of stocked inventory, but to accomplish the

reduction in stock without increasing the number of outofstock occurrences. Without the

implementationofother inventorystrategies,acrosstheboardstockreductionmightprove

counterproductive as the increased cost of labor, transit time, and related purchasing

expensesfromstockoutsmightfaroutweightheextracarryingcost.

2.1 MULTISITEANDINVENTORY

TheInventoryapplicationtracksitemsandmaterialsinstorerooms,whichareattheSitelevel.

Thusthe

Inventory

application

is

managed

at

the

Site

level.

2.2 INVENTORYANDCONDITIONCODES

ConditioncodesarecreatedintheConditionCodesapplication,andappliedtoitemrecordsin

theItemMasterapplication.

When youaremanagingacondition enabled item record,entering aconditioncode value is

mandatorywhenusingthefollowinginventoryactions:


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IssueCurrentItem

TransferCurrentItem


InventoryAdjustments>PhysicalCount

2.3 INVENTORYANDITEMRECORDS

With Maximo you create item records in the Item Master application, but you manage your

inventoryintheInventoryapplication.

2.4 INVENTORYANDPURCHASING(REORDERING)

When you reorder items either manually (using one of the reorder actions in the Inventory

application), or automatically (via a reorder cron task set up by your system administrator),

Maximoautomaticallycreatesoneormorepurchasingrecords forthereorder. Exactlywhat

type

of

purchasing

records

are

created

is

based

on

settings

controlled

by

your

system

administrator. Your system administrator can configure Maximo so that when purchase

requestsarereceivedoneofthefollowingtypesofrecordsiscreated:

Unapprovedpurchaserequisitions(PRs)

Approvedpurchaserequisitions(PRs)

Unapprovedpurchaseorders(POs)

Approvedpurchaseorders(POs)

2.5

INVENTORYANDSTOREROOMS

Inventory records refer to an item/location combination, usually an item at a storeroom

location. StoreroomrecordsarecreatedusingtheStoreroomsapplication. Itemsareaddedto

storeroomsusingtheAddItemtoStoreroomactionintheItemMasterapplication.

3 CREATEINVENTORYRECORDS

YouusetheInventoryapplicationtoenter,display,andupdateinformationforaspecificitem

at a specific storeroom location. With Maximo you create item records in the Item Master

application,and

you

create

storeroom

records

in

the

Storerooms

application,

but

you

manage

yourinventoryintheInventoryapplication.

WhentakingalookattheInventoryapplication,rememberthatforeachItemandStoreroom

combination,therewillbeoneInventoryrecord. EnteringtheInventoryapplication,webegin

at the List tab where we can query byPartnumber,PartDescription,Storeroom,Vendor, or

other fields to locate thedesired record. The Quick key search (locatedon the toolbar)can


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alsobeusediftheItemNumberforthePartisexactlyknown. PullingupanexistingInventory

record,wewilltakealookattheavailablescreensandcriticalfields.

You use the Inventory application to view information about a specific item at a specific

storeroom

location.

Item

records

are

created

in

the

Item

Master

application.

StoreroomrecordsarecreatedintheStoreroomsapplication. YouadditemstostoreroomsusingtheAdd

ItemstoStoreroomsactionintheItemMastersapplication.

3.1 INVENTORYTAB

The topsectionof the Inventory tab includesseveral fields whichwere previously populated

fromthedataenteredonthe ItemMasterMainScreen,seeFigure7.2. Thecost information

completes the remainder of the top section. In the Balance Summary Section, the current

balance for the Storeroom CENTRAL is shown along with the quantity of Parts currently

reservedforexistingapprovedWorkOrders.

Figure7.2InventoryApplicationInventoryTab


Storeroom: ItemrecordsmayresideinmorethanoneStoreroom. Thebalance,issuehistory

andreorderinformationdisplayedonthisrecordareonlyforthisStoreroom.

Default Bin: An Item may also reside in multiple bin locations within the same

storeroom. Maximotracksthebalancesineachbinseparately. Ifbalancesaremoved


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from one bin to another (or charged out from bin A not bin B) then the transactions

enteredmustreflecttheuniquenessofthebalanceswithineachbin. Whenestablishing

anewrecord,besuretoplaceanyexistingbalancesinabinlocation. Ifyoustatethat

therearethree(3)ItemspresentinaStoreroom,butdonotspecifyabin,thebalance

willbeplacedintoanullbin. Whenadefaultbinissubsequentlyidentified,Maximowill

reflectabalanceofthreeinthenullbinandnoneinthenewlyspecifieddefaultbin.

LotType: IflotsareutilizedbyyourOrganization,anyexpiredstockwillbedeductedto

determine the Quantity Available (or free) Balance. When a Part is set to LOT, an

expirationdate(ornumberofdaysuntilexpiration)canbeestablishedfor Itemswhen

receivedthroughthePurchasingModule. ThedefaultforallPartsisNOLOT.

StockCategory: Stocked,Nonstocked,andSpecialOrderItems

STK isthedefaultvalueand indicatesthatthisPart issubjecttothereorderprocess

whenever the Part falls to, or below, its reorder point. NS or nonstock Parts are

objectsregisteredintheMaximo7Inventorydatabase,butarenottobeevaluatedfor

reorder purposes. Parts that fit this category would include those that are used

intermittently,buttheyarePartsthatyouwouldnotwanttoreorderunlesstherewasa

specificupcomingWorkOrder requirement for thatPart. SPorSpecial Order Parts

arePartsthatarenotsubjecttoreorder,andSPrecordsaredeemedtobetemporary

subjecttodeletionafterreceipt,seeFigure7.3.

Figure7.3InventoryApplicationStockCategory

MaximousestheStockCategoryfieldaspartofthereorderprocess,asameansofdetermining

which items should be reordered on a regular basis. By default Maximo recognizes three

categoriesofinventoryitems:


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NSNonstockeditem. Nonstockeditemsareitemsyoudonotstockonaregular

basis, need only occasionally, or do not want to maintain in your storerooms

throughout the year. Nonstocked items are not automatically reordered, but

becauseyouordertheseitemsasneededyouwanttoretaintheitemrecordsinthe

database. Theserecordsareusefulboth forcosttrackingpurposesand for future

reference(forexample,thevendor'sname,theprice,andsoon).

Exampleofnonstockeditemsincludeitemsneededonceayearforinspections,or

itemsthatareonlystockedduringcertainseasonsoftheyear. Forexample,each

springyoureplaceyourairfilters. Sinceyouonlyneedtheairfiltersonceayear,you

donotstocktheminyourstorerooms,youonlyorderthemjustbeforetheyneedto

bereplaced. Butbecauseyouordertheairfilterseveryyear,youwanttokeepthe

recordfortheiteminyourdatabaseforreferencenextspring.

SP Special Order Item. Special order items are typically items that are ordered

onlyonce,

often

for

unexpected

needs

or

for

aone

time

work

order.

These

items

arenotkept instock,andyoudonotexpecttoorderthemagain,thusyoudonot

needapermanentrecordoftheiteminyourdatabase. Inmostcases,aftertheitem

isreceived,youwanttodeletespecialorder itemrecords fromthedatabase. For

more information about deleting item records, see the section on Managing Item

MasterRecords.

STKStockedItem. Thisisthedefaultvalueforanewitemaddedtoastoreroom.

A stocked item is an item that youstock on a regular basis, and want to keep on

handbecauseithasaregularturnoverrateandisfrequentlyneeded. Stockeditems

are automatically included in Maximo's reorder process. Stocked items have a

reordercriteria

(for

example,

areorder

point

and

an

economic

order

quantity)

which

isspecifictoeachstoreroomlocation.

Examplesofstockitemsincludebearings,gaskets,valves,andbelts.

3.1.2 ISSUEHISTORYSECTION

This section allows users to gauge the volume of prior year issues for that Part in this

Storeroom. Attheendofeachyear,theMaximoadministratormustremembertoexecutethe

OptiontoZeroYeartoDateQuantitiessothattheprioryearstotalissuesaremovedintothe

LastYeartotal andotheryearstotalsarelikewisemovedoneyearforward.

3.1.3

ABCANALYSISSECTION

The system employs a Cycle Count Tool known as ABC Analysis to assist with the Inventory

physicalcountprocess. TheadministrativesettingsallowanOrganizationtogroupitspartsinto

categories(A,B,C,andNforNotApplicable)anddetermineatwhat intervalan item

needs to be physically counted and reconciled (if the physical count and bin balance do not

match)totheMaximo7systembalance.


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The system options allow Organizations to determine what percentage of Parts should be

counted as A,B and C items. A represents the most critical Parts. The B and C

classificationsrepresentlessandleastcriticalranking,respectively. TheBreakpointpercentiles

are designed to support a standard Maximo 7 Inventory report, the InventoryABCAnalysis

report. ThisreportassistsUsersinthedeterminingtheABCvalueforaPartbymultiplyingits

historical issue volume by the Part cost to mathematically calculate an Extended (or Issued)Costvalue. ThePartswiththehighestproductofcostmultipliedbyvolumeareshowninthe

reportasAitems,whilethelowerextendedcostPartsarelistedasBsandCs. Thisreport

containstheoptiontoupdatetheABCfieldvaluesinthedatabaseusingthosevaluescalculated

bytheReport. TheoptionappearsontheReportoutputscreenasClicktoUpdateDatabase

with

new

ABC

Values.

Afterdeterminingthecountinterval(numberofdaysbetweencounts)foreachPart,theCycle

CountReportcanbeusedtoprovidealistofallItemsthatneedtobephysicallycountedona

weekly,monthlyorotherdesired intervalbasis. Thisreportevaluatesthe lastphysicalcount

dateandaddsthedefaultintervalassetbytheABCOptionsettings,todeterminedwhetheracountofthatpartisrequired. ThereportthenprintsanoutputlistofallItemsthatneededto

be counted during the upcoming designated period. If the number of days since the last

physicalcountexceededtheintervalfromtheABCAnalysis,thenthatPartwouldappearonthe

Reporttobephysicallycounted.

3.2 REORDERDETAILSTAB

YouusetheReorderDetailstabtoenter,view,ormodifyreorderdetails,suchasthereorder

point, lead time, and issue units of an item. In addition, you can enter or view information

aboutone

or

more

vendors

for

aitem,

as

well

as

information

about

multiple

manufacturers

or

modelsforeachvendor,seesFigure7.4.

Figure7.4InventoryApplicationReorderDetailsTab


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ReorderPoint: Thisvalue reflectsthequantityatwhichPartswillbereorderedupon

generationof the Reorder Items option. Whenever theavailable balance falls to the

Reorderlevelorbelow,initiationoftheReorderItemsoptionwillgenerateaPurchase

Requisitionto

the

designated

Primary

Vendor

for

that

Part.

Lead TimeDays: Theestimated timenecessary for thatParttobereceived fromthe

VendorafterthepointofapprovalofaPurchaseOrderinstrument.

EconomicOrderQuantity: TheoptimalquantityofPartstobeorderedwhenanorderis

dictated by the Reorder Point calculation. In a much summarized definition, this

quantity balances the carrying cost of holding inventory in stock against the cost of

purchasingtheItemondemand.

IssueUnit: ThequantityunitofmeasuredefinedforissuesforthisPart(e.g. EACH).

OrderUnit: ThequantityunitofmeasuredefinedforusewithMaximoPurchasingand

IssuefunctionsforthisPart(e.g. BOX24,DOZEN,ROLL,etc.).

VendorTable: ThissectionprovidesareferencelistofhistoricalvendorsforthisPart

automaticallyupdatedfromtheMaximo7purchasingactivitiesforthisPart.

Internal?: By checking this field, you are indicating thatCentraldoesnot receive the

Item FLT003 from an outside vendor, but instead receives it via another corporate

Storeroom. If the Internal field is checked, the Storeroom and Storeroom Site fields

becomeenabledtopopulatetheordersource.

3.2.2 REORDERPOINTANDECONOMICORDERQUANTITIES

Inordertooptimizetheinventorystockbalanceandorderingfunction,wewillwanttoemploy

twoprovenStoreroomManagementconceptsthatareincluded intheMaximosoftware: the

ReorderPointandtheEconomicOrderQuantity. TheReorderPointisdefinedasthatpointat

which

the

stock

balance

should

trigger

the

system

to

automatically

generate

a

reorder

documenttoreplenishthestockbalance. ByexecutingtheReorderPartsoptionunderSelect

Actions, Maximo will execute the reorder process for all Parts with a part type of STK

stocked, which have an available balance at or below their stated reorder point. For those

Parts that require replenishment, the Reorder process will automatically generate Purchase

RequisitionsgroupingbyvendortheorderedPartsintonewPRrecords.


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Initially, the Stores Manager will want to manually populate the Reorder Point field and

EconomicOrderQuant

Documents

Maximo7Inventory_FIUTrainingManual