Inventory Management User Guide

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IBM TRIRIGA

Version 10.2

Inventory Management

User Guide

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Note

Before using this information and the product it supports, read the information in “Notices” on page 85.

This edition applies to version 10, release 2, modification 0 of IBM® TRIRIGA® and to all subsequent releases and modifications until otherwise indicated in new editions.

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ABOUT THIS GUIDE ... 1

Conventions ... 1

Intended Audience ... 1

Prerequisites ... 1

Support ... 1

1. OVERVIEW OF INVENTORY MANAGEMENT ... 2

Inventory objects ... 2

Key Inventory Features ... 4

Key Features and Benefits ... 11

2. INVENTORY SETUP ... 13

Setup for Classifications ... 13

Managing Classification Records ... 18

Setup for Specification Classes ... 19

3. INVENTORY OBJECTS ... 20

Create and Manage Specifications ... 20

Create Inventory Location Groups (optional) ... 29

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Create Inventory Items ... 35

Process Hold Transactions ... 42

Issue Tickets ... 43

Quick Fill Ticket ... 49

Inventory Count Work Task ... 51

Inventory Pick ... 53

Creating Reservations against Inventory ... 55

4. INVENTORY TRANSACTIONS ... 59

Unit Price ... 62

Adjustment Transaction ... 63

Purchasing Transaction ... 67

Pending Issue Transactions ... 71

Issue Transaction ... 73

5. PROCESS OBJECTS ... 76

Inventory Manager Form ... 76

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About This Guide

This guide describes the procedures for operating, modifying, and maintaining the Inventory

Management application. This guide also contains descriptions of the various tabs and their functions.

Conventions

This document uses the following conventions to ensure that it is as easy to read and understand as possible:

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Note – A Note provides important information that you should know in addition to the standard details. Often, notes are used to make you aware of the results of actions.

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Tip – A Tip adds insightful information that may help you use the system better.

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Attention – An Attention notice indicates the possibility of damage to a program, device, system, or data.

Intended Audience

This guide is for inventory managers and other users responsible for setting up, tracking, and maintaining Inventory Management details.

Prerequisites

This guide assumes the reader has a basic understanding of the IBM® TRIRIGA® Application Platform and the fundamental concepts required to operate the Web-based IBM TRIRIGA system.

Support

IBM Software Support provides assistance with product defects, answering FAQs, and performing rediscovery. View the IBM Software Support site at www.ibm.com/support.

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1. Overview of Inventory Management

The IBM® TRIRIGA® Inventory Management application enables inventory managers to issue materials and assets to technicians, maintain accurate stock counts, and ensure that the optimal stock of materials is on hand.

The Inventory Management process typically involves the following types of users:  Employee of an organization (referred as the requester).

 Inventory Managers (people responsible for one or more Inventory Locations).

 Service Resources (people performing the work such as Inventory Picks or Cycle Counts). Inventory managers perform the following tasks:

 Set up and maintain inventory objects, including locations, inventory items, inventory batches, inventory groups, and cost items.

 Manage the movement of items into inventory through purchase requisitions, adjustments, and transfers.

 Manage the movement of items out of inventory through quick fill tickets, work tasks, issues, transfers, adjustments, and cycle counts.

Inventory objects

The Inventory Management application provides business objects that contain the record information and trigger the workflow processes required for effective Inventory Management. The following are the three main inventory objects:

 Locations: Locations are any type of location where inventory can be stored and distributed, such as Store Rooms, Mobile Carts, Service Trucks, Outdoor Storage Yards, and Motor Pool.  Items: The items stored in the locations. There is an Inventory Item record for each type of

consumable, asset, or vehicle that you manage. The record manages the transactions, quantities, and valuation for the stored items.

 Transactions: Inventory Transaction records are used to manage the inbound and outbound transactions that affect the quantities of an Inventory Item.

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Inventory Locations Inventory Primary Location Inventory Items/ Batches Inventory Storage Area Inventory Group Purchasing (Order, Receive) Pending Issue (Hold, Back Order) Issue (Issue, Loan, Return) Adjustment (Cycle Count, Transfer In, Transfer Out, Lost,

Found, Retire Under Repair, Damaged) Inventory Transactions Specification Assets Product Location Inventory Cost Group and Cost

Items

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Key Inventory Features

Ref: Description

Inventory Locations The Inventory Locations hierarchy allows you to create a hierarchy of your Inventory Locations. This module is designed so that you can manage any type of location where inventory can be stored and

distributed, such as Store Rooms, Mobile Carts, Service Trucks, Outdoor Storage Yards, and Motor Pool. You also can configure the hierarchy with as many (or as few) Storage Areas levels as you need (such as aisles, shelves, cabinets, and bins).

Inventory Locations Hierarchy - Example

Las Vegas Campus (Inventory Location Group) Las Vegas – Building One (Primary Location)

Presentation Equipment (Storage Area)

Staging – LV – BLDG 1 – Loading Dock (Storage Area) Las Vegas – Building Two (Primary Location)

Staging – LV – BLDG 2 – Loading Dock (Storage Area) Las Vegas Warehouse (Primary Location)

HVAC Supplies Cabinet (Storage Area) Staging – Warehouse (Storage Area) Tools and Test Equipment (Storage Area)

Inventory Group _{An Inventory Group is the highest level of the Inventory hierarchy. It is} an optional level (not required). Use Inventory Groups to group

Inventory Primary Locations by Geographical Area (such as all Inventory in the Las Vegas area), or by type of Inventory (such as all Office Supplies).

Inventory Groups provide an organizational tool for managing your Inventory hierarchy.

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Inventory Primary Location An Inventory Primary Location represents the ‘primary’ record for a Store Room, Mobile Cart, Service Truck, Outdoor Storage Yard, Motor Pool, etc. The Inventory Primary Location record contains additional fields and sections to identify the Managing Organization, Primary Contact, Shipping Address, and (if applicable) the ‘physical’ Location (selected from the Location hierarchy).

Think of an Inventory Primary Location as the ‘storeroom’ where the equipment is kept and distributed. You will want to create an Inventory Primary Location for each of your storerooms (for example: You have facilities in McLean, VA, and in Nottingham, UK. You would create a Primary Inventory Location for each site).

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Notevehicles. Create an Inventory Primary Location for each – Vehicles – The process is the same for managing vehicle storage/distribution area (such as a motor pool location).

Inventory Storage Area An Inventory Storage Area allows you to create a hierarchy of your actual storage locations.

For example you may have:

1) A store room with Aisles, Racks, Shelves, and Bins. 2) A hospital mobile Cart with Shelves and Bins. 3) A motor pool with lots and parking spaces

You can model these hierarchies using the Storage Area object. Think of an Inventory Storage Area as the bin, cabinet, or shelf where the equipment is kept. You may want to create a Storage Area for each type of equipment or for small storerooms you may want to create a single Storage Area record for all equipment types (for example: You may have a cabinet for the LCD Projectors, and a shelf for the Laptop Computers – you would create a Storage Area that represents the cabinet and another Storage Area that represents the shelf). Location You can associate an Inventory Primary Location with a ‘physical’

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Inventory Valuation Method The system tracks the unit price of items in inventory by using an inventory valuation method.

The following are the four valuation methods:

 Average: Item Material Cost = Average Cost of purchased items  FIFO (First In First Out): Item Material Cost = Cost based on the

order of purchase, starting from the earliest purchase incrementally to the latest purchase.

 LIFO (Last In First Out): Item Material Cost = Cost based on the order of purchase starting from the latest purchase

incrementally to the earliest purchase.  Standard: The cost is set by the user.

FIFO and LIFO methods use inventory batches. The system considers the batch in which an item was ordered when determining the cost of the item.

Over time, the same inventory item might be purchased at varying costs. These costs, the purchase date, and the quantity purchased must be evaluated when calculating the issue cost of the item. With the Average method, the cost value is the average of the costs of all of the items. With the FIFO and LIFO methods, the cost is calculated based on the quantity requested and the quantities in the batches, based on the method. With the Standard method, the user sets a cost value for the item.

Inventory Costing The following are the levels of inventory costing:

• Item-level costing: Inventory batches are associated with the item and costing is applied to the item based on the valuation method of the item (Average, LIFO, FIFO, or Standard).

• Cost group-level costing: Batches are associated with a group of one or more primary locations, such as all storerooms in a geographic region, and costing is applied to the items in the primary location or locations based on the valuation method. Inventory Item After you have created a hierarchical view of your Inventory Locations,

including the Primary Locations (the storerooms) and Storage Areas (the bins, shelves, cabinets); you next create records to track and manage the items stored in the Storage Areas. These records are called

Inventory Items. You have an Inventory Item record for each type of

Consumable, Asset, or Vehicle you manage at a Primary Location. The Inventory Item record manages the transactions, quantities, and

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Inventory Batch Inventory batches represent a quantity of items received, on a given date, for a specified cost. They provide the basis for costing based on valuation methods.

The batches that are associated with an item are listed in the Batches section of the Inventory Item record.

For items that use the LIFO or FIFO valuation methods, a batch record is created for every inbound transaction. For outbound transactions, items move out of batches and the quantity in the batches decreases. The system tracks the available quantity as items are added to and removed from inventory. After the available quantity has reached zero for a specific batch, the batch becomes retired and it is no longer available in the Batches section. You can use the Batches sub-query to view all batches, including retired batches, or to view the batch history. Inbound transactions include the following types:

• Receipts • Transfers

• Adjustments (such as found items, unretired items, and repaired items)

• Items added through cycle counts and returns. Outbound transactions include the following types:

• Issues • Transfers

• Adjustments (such as lost items, retired items, damaged items) • Items removed through cycle counts

The batch record includes the date of the transaction, the quantity of the item involved in the transaction, and the unit price of the item, as well as the quantity consumed, quantity available, value, and total cost of the inventory items. It also includes a link to the related transaction record.

For items that use the Standard or Average valuation methods, a single batch record is created and the quantity and total cost fields are updated as appropriate. After the available quantity has reached zero, the batch still exists. If outbound transactions are posted, the quantity will be a negative value.

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Specification To take maximum advantage of the IBM TRIRIGA Inventory application, all Inventory Items should be associated to a Specification. The Specification:

 Seeds the Inventory Item with default values for many fields,  Is the primary link when matching Material Orders against

Available Inventory, and

 Is required for Inventory Transactions to process correctly. Inventory Cost Group Inventory cost groups are collections of one or more primary locations

that enable the costing of inventory to be done at a rolled up level for the group of locations, rather than being done for individual items. Cost groups contain cost items.

If an inventory group is defined for a primary location, all costing for the primary location and cost items in that group is done at the group level. If the primary location is not associated with an inventory group, then the costing is done at the item level. Also, if an item is not included as a cost item in the group, then the costing for that item is done at the item level.

If you change the currency at the inventory group level, the currency of the associated cost items and inventory items also are changed.

The Inventory Locations section shows a list of the primary locations that are included in the cost group. A primary location can only be included in one cost group. When a primary location is associated with a cost group, it is no longer available to be associated with any other cost group.

You can add individual or multiple locations to the group. Inventory locations cannot be removed from the cost group. You can, however, remove cost items or delete the cost group.

The Cost Items section shows a list of the cost items that are included in the inventory cost group.

All of the cost items in the group can use the same valuation method, or you can use different valuation methods for the items.

You can manually add cost items to the group by selecting them from a list of available specifications.

Cost items are unique based on the combination of inventory cost group and specification.

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Inventory Cost Item Cost items are associated with inventory groups and represent the specifications, or types of items, and the valuation method (LIFO, FIFO, Standard, or Average). Cost items contain the rolled up inventory batch records associated with the selected primary locations and their related specifications.

The cost item unit price is based on the valuation method. For example, if the valuation method is FIFO, then the unit price reflects the earliest (first-in) batch. If the unit price changes, the unit price of the inventory items that are managed by the cost item is updated as well. Similarly, if you change the currency or quantity of the inventory cost item, the values of the associated inventory items and batches are changed as well.

The Inventory Batches section shows a list of all batches associated with the inventory items in the cost group.

The Inventory Items section shows a list of all of the items that are associated with the cost item.

Product _{Inventory Items can be associated with a specific Product record in the} system (optional). A Product is referenced on a Blanket Purchase Order or Service Agreement Contract and represents an ‘item’ that can be purchased from a particular Vendor for a negotiated amount. Linking Products to Inventory Items allows Inventory Managers to re-stock from an existing Contract, or to issue Purchase Order Releases against Vendor managed inventory.

Assets _{Inventory Items can manage ‘specific’ Assets. The Assets are associated} with the Inventory Item. The Inventory Transactions can manipulate the status of the Assets.

For example: You may manage Calibration Devices for the Las Vegas area. You have a Storage Location configured in your Inventory Location hierarchy for the Calibration Devices. You have an Inventory Item for the Calibration Device that has all the Devices (Assets) associated with it.

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Inventory Transactions Inventory Transaction records are used to manage the transactions that affect the quantities of an Inventory Item. The system provides four types of Inventory Transactions:

 Purchasing Transactions,  Pending Issue Transactions,  Issue Transactions, and  Adjustment Transactions

Each Transaction record carries the values and processes specific to the type of Transaction. The system maintains a history of all Transactions against an Inventory Item.

Transaction records track all inbound and outbound inventory

transactions. They are associated with inventory items and are used to track the resulting quantity values, such as the quantity of issued items, on hand items, and on order items.

After the record has been posted, the system resets the Quantity to be Posted with the Quantity Processed value. This means that the Quantity to be Posted value on the Inventory Transaction Item record is reset according to the quantity that was actually fulfilled.

The transaction records can be created by other IBM TRIRIGA

applications that impact inventory, such as Purchasing, Receiving, and Tasks.

Purchasing Transaction Purchasing Transactions are used for managing On Order and Receiving transactions against an Inventory Item.

Pending Issue Transaction Pending Issue Transactions are used for managing On Hold or Backorder transactions against an Inventory Item.

Issue Transaction Issue Transactions are used for managing Issue, Loan, or Return transactions against an Inventory Item.

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Adjustment Transaction Adjustment Transactions are used for managing adjustment transactions against an Inventory Item.

 Cycle Count

 Transfer In, Transfer Out  Lost, Found

 Retire, Un-Retire  Under Repair, Repaired  Damaged, Repaired

Key Features and Benefits

Some of the key features of the process include:

 End users can raise ‘Product’ requests through an easy-to-use (web-based) employee Request Central portal, increasing employee satisfaction and streamlining the request process

 End users can review progress and modify (if necessary) their requests online, reducing the number of costly ‘call-backs’

 Create ‘on-line’ Catalogs to make finding and selecting Products easier for end users  Assure that users can only view and select items they are ‘entitled’ to request by managing

Entitlement roles

 Full integration with other applications such as Contract Management, Service Management, Preventive Maintenance, Facility Assessment, Real Estate, Facilities, and Operations and Maintenance

 Manage routing of Material Orders to proper Inventory Location, based on the type of product requested, who is making the request, and where they are located (either by Location or Geography)

 Manage Service Level Agreements

 Manage Service Contracts (internal and external)

 Integrate with Blanket Purchase Orders so Inventory Managers can access and issue Purchase Order Releases to satisfy Inventory Requests

 Integrate with the Purchasing processes and objects for Ordering and Receiving

 Leverage Specification data to pre-populate Inventory Items with standard data (ensuring consistency across locations)

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 Link Inventory Items to specific Vendor Products for easier re-ordering

 Manage Cycle Count Tasks, and automatically adjust stock based on assessed conditions,  Manage Batch information

 Manage Inventory Valuation

 Maintain a history of all Transactions for the life of an Inventory Item

 Manage Reservable Inventory, integrated with the IBM TRIRIGA Workplace Reservation Manager application

 Manage Assets in Inventory with quick access to the Asset status

 Leverage CAD graphics to produce web-based ‘intelligent’ views of floor plans, thus, extending the use (and advantages) of graphics beyond the small community of CAD users to everyone in the company

 Automate notifications (via the IBM TRIRIGA portal and email) and approvals at key milestones with user-defined ‘smart’ approval messages

 Automate the service provision process, including assignments and approvals

 Maintain an accurate database as a consequence of performing the work and not as a separate administrative task

 Customized system access and privileges on a user-by-user basis  Create detailed or summary level reports

 Costing of inventory items can be tied directly to the item, to a location, or to a group of locations and is based on the inventory valuation method.

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2. Inventory Setup

This chapter discusses the setup required prior to rolling out an Inventory Management implementation to end-users.

Setup for Classifications

There are several Classifications that should be setup prior to implementing Inventory Management in the system:

 Brands

 Inventory ABC Class  Inventory Category  Inventory Group

 Inventory Location Class  Inventory Type

 Inventory Valuation Method  Service Assignment Class  Specification Order Type

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Tip – The IBM TRIRIGA application ships with default records for all Classifications (as listed below). During your planning and setup phase of implementation you should evaluate and modify these values as needed to best suit your business needs.

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Classification Where Used Description

Brands Specifications The Brands Classification is a list of manufacturers. You can associate a Brand with each Specification.

Inventory ABC Class Specifications,

Inventory Item The Inventory ABC Class system classifies items _{(using the industry standard terms) to identify the} small number of items that will account for most of the volume and that are the most important ones to control.

Default values shipped with the Product include:  A Class

 B Class  C Class

Inventory Category Specifications,

Inventory Item The Inventory Category Class allows you to classify your _{Specifications and Inventory Items by Category.}

Default values shipped with the Product include:  Chemicals  Fiberglass  Food  Hardware  Medical Supplies  Metal  Other  Paper  Rubber  Software  Textile  Wood

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Inventory Group Specifications,

Inventory Item The Inventory Group Class allows you to classify your _{Specifications and Inventory Items by Group.}

Default values shipped with the Product include:  Apparel  Manufacturing  Operations  Point-of-Sale  Retail  Technical  Technology

Inventory Location Class Inventory

Location The Inventory Location Class is used to classify the type _{of Inventory Location.}

Default values shipped with the Product include:  Aisle  Bin  Cabinet  Group  Hook  Mobile Card  Primary  Shelf  Staging  Vehicle  Yard

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Inventory Type Specifications,

Inventory Item The Inventory Type Class is used to classify the type of _{items being stored in the Inventory Location.}

Based on the value selected for Inventory Type on the Inventory Item, the form will change to display the fields and sections pertinent to that class.

Default values shipped with the Product include:  Asset (Assignable)

 Asset (Reservable)  Consumable  Vendor Managed

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Note – These values are tied to workflows in the system and should not be changed without changing the business logic. Inventory Valuation

Method

Specifications,

Inventory Item The Inventory Valuation Method Class is tied to business _{logic that re-calculates the Specification Item Material}

Cost as Purchase Orders for that Specification are

completed.

 If ‘Average’ then Item Material Cost = Average Cost of purchased items,

 If ‘FIFO’ (First In First Out) then Item Material

Cost = Cost of first purchased item,

 If ‘LIFO’ (Last In First Out) then Item Material

Cost = Cost of last purchased item.

Default values shipped with the Product include:  Average

 FIFO  LIFO

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Note – These values are tied to workflows in the system and should not be changed without changing the business logic.

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Service Assignment Class

Specifications, Inventory Item

The Service Class allows you to link a Specification and an Inventory Item record to the ‘discipline or trade’ that normally services that system. For example: Facilities, Plumbing, Electrical, Mechanical, Interiors, Security, etc. The Service Classification is used throughout the IBM TRIRIGA applications, and is especially important in Inventory and Service Management.

Specification Order Type

Specifications,

Inventory Item Default values shipped with the Product include:  Assemble to Order

 Configure to Order  Pick to Order  Service  Stand Alone

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Managing Classification Records

The Classification hierarchy provides access to all Classification records in the system. The Classification hierarchy can be accessed from the Setup Menu item.

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Noteselections, and are used (in some cases) in workflow logic. The users, who have access to – Classification Records act as ‘smart’ lists, provide consistency by controlling field create, edit, or delete classification records should be limited. Therefore, based on your system security, you may have no access or limited access to the Classification hierarchy.

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Note – The Inventory ABC Class is used as an example in this section. All other Classifications are similar.

To Manage Classification Records

Step 1 Open an Inventory ABC Classification record.

Classification records are created and managed through the Classification hierarchy.

Step 2 In the Inventory ABC Class record, General section:  ID: Enter a unique ID for the record.

 Status: System generated field.

 Name: Enter the name. This name is displayed in most queries and drop down

lists.

 Description: Enter a description.

 Color: Used for some graphical queries (not required).

 Hierarchy Path: System generated field typical for all Classification records.

In the Classification Notes section:

 Enter any additional notes necessary to fully describe the classification.

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Note – Although Inventory ABC Class is used, other Classifications noted in this section are similar.

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Note – If you leave the ID field blank the system will generate a unique ID for the record when you select the Create Draft action.

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Setup for Specification Classes

Although the IBM TRIRIGA application comes with a wealth of data attributes (fields) in each Specification Class business object, if your company needs to add fields to match your business practices, it can be done from within the Specification Class.

The users who have access to create, edit, or delete Specification Class records should be limited. Your access to this functionality may be limited based on your system security.

The Fixture specification class is used as an example in this section. The other Specification Classes are similar.

The Classification hierarchy provides access to all Classification records in the system, including Specification Class. The Classification hierarchy can be accessed from the Setup menu.

To Set Up Specification Classes

Step 1 Select the Tools > Administration > Classifications option.

Step 2 Review the Classification hierarchy.

The Classification hierarchy page appears. You will see the list of existing classifications in the panel on the left.

Step 3 Scroll the left panel and click Specification Class. Note the list of Specification

Classes in the right panel.

Step 4 Use the scrollbars to find the desired Specification Class.

Step 5 Click the name of the Specification Class. The Specification Class form appears.

Step 6 In the Data Attributes section, click Add to add a data attribute (field).

Step 7 The Data Attribute Item form appears. Enter values appropriate for the field being added. Click Create.

Step 8 If you have already set up a template that you wish to include, click Find Using Template.

Step 9 Click the check boxes next to the data attributes to be included. Click OK.

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3. Inventory Objects

The Inventory Management application provides business objects that contain the record information and trigger the workflow processes required for effective Inventory Management. This chapter (and the diagram below) describes the basic Inventory Objects and the order in which they should be created.

Create Specifications (for each type of

Equipment or Vehicle) Create Inventory Primary Locations Create Inventory Storage Areas as needed in each Inventory Primary Location Create Inventory Items for each type of Equipment or Vehicle in each Inventory Primary

Location

Create Assets for each type of Equipment or Vehicle in each Inventory Item If Inventory Item manages Assets

Creating Inventory Objects

Create and Manage Specifications

The Specification page contains a central repository for Specification records. Specification records are shared across applications, so they contain information that is used for many purposes. This section describes the minimum

Specifications represent a ‘description’ of an item, but not an actual item. Think of Specifications

more like the items in a ‘catalog’.

basic setup and configuration required to create Inventory Items and Assets managed by the Inventory Items.

Assets are the actual owned or leased items. An Asset has an association to a Specification.

The Specification Objects include:

Classification Description

Building Equipment Use this Specification object for Building Equipment items such as pumps, motors, fans, electrical equipment, and fire protection equipment. Consumables _{Use this Specification object for Consumable items such as filters, belts,}

fasteners, lamps, and cleaning supplies.

Typically Consumables will include your disposable items and items that you will not be managing as Assets in the system.

Core Use this Specification object for Cores as part of the Key Management application

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Classification Description

Fixtures Use this Specification object for Fixture items such as display cases. Food Service Equipment Use this Specification object for Food Service Equipment items such as

coffee makers, grills, and microwave ovens.

Furniture Use this Specification object for Furniture items such as tables, chairs, desks, and file storage.

Keys Use this Specification object for Keys as part of the Key Management application.

Locks Use this Specification object for Locks as part of the Key Management application.

Point of Sale Equipment Use this Specification object for Point of Sale Equipment items such as bar code scanners and cash registers.

Security Use this Specification object for Security Equipment items such as theft prevention tags and scanners, doorway scanners, and surveillance cameras.

Office Equipment Use this Specification object for Office Equipment items such as printers, fax machines, copiers, and conference and training equipment.

Software Licenses Use this Specification object for Software License items such as IBM TRIRIGA Facilities, IBM TRIRIGA Capital Projects Manager, and IBM TRIRIGA Workplace Reservation Manager.

Space Standards Space Standard is a unique Specification object used to manage typical office standards such as Executive Office, Manager Office, Staff Office, and Hoteling Workstation.

Services Use this Specification object for Service items such as floor jacks, ladders, and vacuums.

Technology Use this Specification object for Technology items such as Laptop Computers, Desktop Computers, and Handheld Devices.

Telephones Use this Specification object for Telecommunication items such as Desk Phones and Mobile Phones.

Tools and Test Equipment

Use this Specification object for Tools and Test Equipment items such as Calibration Devices, Measuring Devices, Meters, and Protective Clothing. Vehicles Use this Specification object for Vehicles.

Work Area Outlet Use this Specification object for Work Area Outlets such as Electrical Outlets, Data Outlets, and Phone Outlets.

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Note – Refer to the IBM TRIRIGA 10 Portfolio Management User Guide or the IBM TRIRIGA

10 Real Estate Environmental Sustainability Portfolio Management User Guide for a more

complete description of the specification objects.

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Note – Since Specifications are used by many different users, based on your system security, you may see some or all of the objects, tabs, and sections described.

Step

Specification Set Up

The Specification Set Up can be accessed from the Portfolio > Set Up > Specification. The results page contains a list of the Specification objects.

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Note – Since Specifications are used by many different users, based on your system security, you may see some or all of the objects described.

Select a Specification type from the results page:

• The Specification records for the selected object will be displayed in the results page

Specification Set Up

To Add a Specification record:

• Select the Add action from the results page • A new record will open in a separate window

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Attention system. ‘Retire’ Specification records instead of ‘Deleting’ them. ‘Retiring’ a record – Specification records can be associated to many other objects in the keeps the record in the system (thereby preserving the valuable historical

information) but removes it from active processes. The system provides a workflow that traps an attempt to delete a Specification record and retires it instead.

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Step

To Delete a Specification record:

• Select the Specification type

• Select the check boxes to the left of the record(s) to be deleted • Select the Delete action

Specifications

Create a Specification record for each type of item you want to manage as Inventory (for example: you can select a Furniture Specification for a Work Chair).

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Note – A Furniture Specification is used in this example. Other Specifications are similar.

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Note – Only the sections and fields pertinent to Inventory Management are described in this section.

General Tab: General Section:

• ID: Enter a unique ID for the record

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Note – If you leave the ID field blank, the system will generate a unique ID for the record when you select the Create Draft action.

• Status: System generated field • Name: Enter the name

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Note – The Name field is displayed in most queries. • Description: Enter a description

• Image: Select an Image for the item.

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Note – The Image is used throughout the system and is particularly important for Request Central users.

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Step

Furniture Specification General Tab:

Details Section:

• Spec Type: Select if the Specification is a Hard Spec, Performance Spec, or Other

• Spec Class: This field provides a way to sub-class the specification type. For example: You can note that the Furniture Specification you are creating is in the Seating Spec Class.

• Spec Group: This classification can be used to Group like specifications. For example: a Conference group, or Executive Office Group.

• Specification Order Type: Select the appropriate Order Type. • Construction Class: Select the appropriate Construction Class • Building System Class: Select the appropriate Building System Class • Specified: The name of the person who created the record

• Manage Inventory: Select this check box if the item will be managed as Inventory

• Self Service Request: Select this check box if the item is to be viewed and selected by Request Central users

• Contains Haz Mat: Select this check box if the item contains hazardous materials

• Move Item: Select this check box if the item is to be used in the Move Management process

Environmental Details Section:

Energy Rating Type: Select from the rating types.

Energy Rating Value: Enter the value for the Energy Rating Type.

Overall Product Rating: Indicate whether the Specification is Preferred, Approved, Not Rated, or

Has Issues.

If the Spec Class is Fixtures, Food Service Equipment, Point of Sale Equipment, or Security Equipment, there will be an additional Specification Class Data Attributes section between the Details section and the Units section. The Specification Class Data Attributes section contains relevant data defined by your company and set up when the Specification Class was created.

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Step

Units Section:

Currency and Item Units: Select the appropriate Unit of Measure.



Note(UOM) by pointing all fields on an object to a common UOM field. For example: On – UOM: The IBM TRIRIGA applications ensure consistency across Units of Measure the Specification record, all Currency fields can be in US Dollars, and all Item Unit fields can be in a Quantity of Each.

Manufacturer Section (optional):

Select the Manufacturer for the Specification.

Manufacturer Details Section:

Enter the Manufacturers information as required

Item Cost Section:

Enter the Material and Service costs and the Markup. The system will calculate the Total Price.



Note – As Purchase Orders are placed against Specifications, the system will read the

value of the Inventory Valuation Method field and will adjust the Item Material Cost to reflect the latest Purchase Order and the selected Valuation Method.



Note – The Total Price from the Specification is used as the Estimated Price for all Material Orders.

• Initial Purchase Price: The system will record the price from the first Purchase Order for the Specification

• Last Purchase Price: The system will record the latest Purchase Order price for the Specification • Average Price: The system will calculate and display the average price from Purchase Orders for

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Step

Item Use Cost Section:

Enter the Usage Cost for the Specification (for example: $10/day). The system uses this cost in the IBM TRIRIGA Workplace Reservation Manager application multiplied by the duration of the

reservation to determine the ‘usage’ chargeback for the Asset. If you do not charge for reserved Assets; or are not using the Workplace Reservation Manager application enter the number ‘0’. Select the unit of measure for the Usage Cost (for example: $30/hour, $120/day, and

$1000/occurrence). The system supports hour, day, and occurrence only.

Entitlements section:

Entitlements define the ‘Roles’ for people who are entitled to view and request an item. Employee

records contain a Functional Role field with values such as Staff, Manager, Director, Vice President, etc – these values are user defined to match your company’s business nomenclature).



Note – On the Entitlement section use the Find action to display the list of available roles and select those, which are allowed to view and select the item described in the specification record. (For example: only people in the organization with a role of Staff, Manager, and Director might be able to view and select the Desk Chair – but perhaps you want Executives and Vice Presidents to have a different grade of Desk Chair – in this case you would create another Specification for the Executive/VP Desk Chair and select the Executive and Vice President roles in the Entitlement section.

Furniture Specification Details Tab:

Enter the Specification details are required.

Bill of Materials (Parts List) Section:

Select the Specifications and enter the quantities to create a complete Parts list.

Compatible Specifications Section:

Select the Specifications that are considered ‘Compatible’ with the current Specification.

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Step

Specification Products Tab:

This section displays any Catalogs and Products associated with the Specification.

Specification Inventory tab:

The Inventory tab contains information used to ‘seed’ (pre-populate) Inventory Items. This simplifies the creation of an Inventory Item and provides consistency across the company.

Inventory General Section:

Select the appropriate Classification values for each field. • Inventory Group:

• Inventory Category: • ABC Class:

• Inventory Valuation Method: • Service Class:



Note – The ABC Class system classifies items (using the industry standard terms) to identify the small number of items that will account for most of the volume and that are the most important ones to control.



Note – The Inventory Valuation Method Class is tied to business logic that re-calculates the Specification Item Material Cost as Purchase Orders for that Specification are ‘Completed’.

 If ‘Average’ then Item Material Cost = Average Cost of purchased items,  If ‘FIFO’ (First In First Out) then Item Material Cost = Cost of first purchased

item,

 If ‘LIFO’ (Last In First Out) then Item Material Cost = Cost of last purchased item.

Inventory Details Section:

• Create Asset on Receipt: Select if Asset records should be created when new items are received • Inventory Type: Select the appropriate Classification value

• Manage Safety Stock: Select if by default new Inventory Items created from this Specification should include safety stock

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Step

• Quantity Safety Stock: Enter the number of items that by default should be withheld as safety stock.

Inventory Units Section:

• Currency and Item Units: Select the appropriate Unit of Measure.



Note(UOM) by pointing all fields on an object to a common UOM field. For example: On – UOM: The IBM TRIRIGA applications ensure consistency across Units of Measure the Specification record, all Currency fields can be in US Dollars, and all Item Unit fields can be in a Quantity of Each.

Inventory Purchasing Details Section:

Select the default Reorder Logic and Reorder Point

Specification Inventory Tab:

Inventory Summary and Inventory Details Sections:

These sections contain read-only fields that reflect the totals (for each category of transaction listed) across ALL Inventory Items.

Inventory Items Section:

This section displays a list of ALL Inventory Items that are associated with the Specification.

Inventory Transactions Section:

This section displays a list of ALL Inventory Transactions that are associated with the Specification.

Specification Self Service Tab:

The Self Service tab is the only tab typically visible to Request Central employees (via system security) if they drill into a record in a search query. This provides them with a read-only view of the item Image, Spec Name, and Spec Class, a Description of the item and a list of Features.



Note – The Description and Features sections are rich-text sections. The section type provides you with additional formatting options.

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Step



Note – While you can enter information in these fields, end users will typically see this information as read-only.

Specification

Notes & Documents Tab:

Use the sections on this tab to add additional comments or documents.



Note – Documents are managed by the IBM TRIRIGA Document Manager and are stored in the database.

Create Inventory Location Groups (optional)

An Inventory Location Group is the highest level of the Inventory hierarchy. It is an optional level (not required). Use Inventory Location Groups to group Inventory Primary Locations by Geographical Area (such as all Inventory in the Las Vegas area), or by type of Inventory (such as all Office Supplies).



Note – Inventory Location Groups provide an organizational tool for managing your Inventory hierarchy.

Step

Inventory Locations

To create a Inventory Location Group: Create Inventory Location Groups

• Click the first-level Inventory menu item

• Select Inventory Locations under Related Links - Inventory > Inventory portal section. This will display the Hierarchy view

• Select the ‘root’ in the hierarchy (Inventory Locations) • Select the New action

• Select Inventory Location Group from the drop down list The Inventory Location Group form will open in a separate window.

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Step

Inventory Location Group General Tab:

General Section:



Note – If you leave the ID field blank the system will generate a unique ID for the record when you select the Create Draft action

• Description: Enter a description

• Inventory Location Class: Select ‘Group’ from the list.

Location Section (optional):

Select the physical location of the Inventory Location Group

Manage By Organization Section:

Select the organization responsible for managing the Inventory Location Group

Manage By Contact Section:

Select the person responsible for managing the Inventory Location Group

Ship To Address Section (optional):

Enter the Shipping Address for the Inventory Location Group.



Note – Documents are managed by the IBM TRIRIGA Document Manager and are stored in the database.

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Create Inventory Primary Locations

An Inventory Primary Location represents the primary record for a Store Room, Mobile Cart, Service Truck, Outdoor Storage Yard, Motor Pool, etc. The Inventory Primary Location record contains additional fields and sections to identify the Managing Organization, Primary Contact, Shipping Address, and (if applicable) the ‘physical’ Location (selected from the Location hierarchy).



Notekept and distributed. You will want to create an Inventory Primary Location for each of – Think of an Inventory Primary Location as the storeroom where the equipment is your storerooms (for example: You have facilities in McLean, VA, and in Nottingham, UK. You can create a Primary Inventory Location for each site).



Note – Vehicles – The process is the same for managing vehicles. Create an Inventory Primary Location for each vehicle storage/distribution area (such as a motor pool location).

Step

Inventory Manager

To create a Inventory Primary Location: Create Inventory Primary Location

• Select the appropriate point in the hierarchy where you want to create the new Inventory

Primary Location

• Select the New action

• Select Primary Location from the drop down list

• The Inventory Primary Location form will open in a separate window

Inventory Primary Locations General Tab:



Note – If you leave the ID field blank the system will generate a unique ID for the record when you select the Create Draft action

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Step

• Storeroom Type: Select Self-managed to auto-create Issue transactions. Or, select Managed to auto-create Hold transactions.

• Inventory Location Class: Select Primary from the list.

Location Section (optional):

Select the physical location of the Inventory Primary Location

Manage By Organization Section:

Select the organization responsible for managing the Inventory Primary Location

Manage By Contact Section:

Select the person responsible for managing the Inventory Primary Location

Ship To Address Section:

Enter the Shipping Address for the Inventory Primary Location

Inventory Primary Locations Inventory Items Tab:

The Inventory Items tab displays a list of ALL Inventory Items stored at that Inventory Primary Location.

Inventory Primary Location Service Locations Tab: Building Sub-Tab and Section:

On the Service Locations tab define the types of Buildings or Structures that are serviced by the

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Step



Note – This information is used as filter criteria, so that users are selecting only Equipment that is available for the Building(s) / Structure(s) serviced by this Inventory Location.

Inventory Primary Location Service Locations Tab:

Equipment Sub-Tab and Section:

On the Service Locations tab define the types of Equipment managed by the Inventory Primary

Location (storeroom).



Note – This information defines what items users can select when ‘Reserving’ Equipment from this Inventory Location.

Inventory Primary Location Notes & Documents Tab:

Documents are managed by the IBM TRIRIGA Document Manager and are stored in the database.

Create Inventory Storage Areas

An Inventory Storage Area allows you to create a hierarchy of your actual storage locations. For example you might have:

 A store room with Aisles, Racks, Shelves, and Bins.  A hospital mobile Cart with Shelves and Bins.  A motor pool with lots and parking spaces

You can model these hierarchies using the Storage Area object.



Note – Think of an Inventory Storage Area as the bin, cabinet, or shelf where the

equipment is kept. You may want to create a Storage Area for each type of equipment or for small storerooms you may want to create a single Storage Area record for all

equipment types (for example: You might have a cabinet for the LCD Projectors, and a shelf for the Laptop Computers – you can create a Storage Area that represents the cabinet and another Storage Area that represents the shelf).

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Step

Inventory Storage Areas

Next you create Inventory Storage Areas (as needed) within the Inventory Primary Locations. Create Inventory Storage Areas

To create Storage Areas:

• Select the appropriate point in the hierarchy where you want to create the new Inventory

Storage Area

• Select the New action

• Select Storage Area from the drop down list

• The Inventory Storage Area form will open in a separate window

Inventory Storage Area General Tab:

• ID: Enter a unique ID for the record. If you leave the ID field blank the system will generate a unique ID for the record when you select the Create Draft action

• Inventory Location Class: Select ‘Storage Area’ from the list

• Primary Inventory Location: System generated field. This field provides a link back the Primary Location record

• Hierarchy Path: System generated field. Provides the full hierarchy path for the record.

Inventory Storage Areas Inventory Items Tab:

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Create Inventory Items



Note – At this point you have created a hierarchical view of your Inventory Locations, including Inventory Groups, Inventory Primary Locations (the storerooms) and Storage Areas (the bins, shelves, cabinets).

The next step is to create records to track and manage the items stored in the Storage Areas. IBM TRIRIGA calls these records Inventory Items. You will have an Inventory Item record for each type of Consumable, Asset, or Vehicle you manage at a Primary Location. The Inventory Item record manages the transactions, quantities, and valuation for the stored items.

Step

Inventory Items

To create an Inventory Item record:

Create Inventory Item records for each type of equipment or vehicle stored in a Storage Area

• Click Inventory > Manage Inventory > Items • Select the Add action

• The Inventory Item form will open in a separate window.

Inventory Item



Note – In this example we will create an Inventory Item to manage some equipment. The process is similar for all Inventory Items.

General Tab: General Section:

• ID: If preferred, enter a unique ID for the record.



Note – If you leave the ID field blank, the system generates a unique ID for the record when you select the Create Draft action.

• Status: System generated field. • Name: Enter the name.

• Description: Enter a description.

Units Section:

Quantity: Select the appropriate Unit of Measure (UOM).

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Step

a cost group, then this field shows the currency from the cost group.



NoteUnits of Measure (UOM) by pointing all fields on an object to a common UOM field. – Unit of Measure (UOM): The IBM TRIRIGA applications ensure consistency across For example: On the Inventory Item record, all Quantity fields can be in a Quantity of Each.

Specification (Stock Item) Section:



Note – Specification: Based on the Inventory Type selected in the Details section below, the Spec Name field may or may not be required. Here are the Inventory

Types:

 Asset (Assignable) – Spec Name is required.  Asset (Reservable) – Spec Name is required.  Consumable – Spec Name is not required.  Vendor Managed - Spec Name is not required.

Click the Find action and select the Specification of the item.



Tip – On selecting a Specification, the section will be filled in with the information from the Specification record.

Inventory Item



Note – Most of the fields on the Inventory Item record are populated with the default values from the selected Specification.

General Tab: Product Section:

• Select the Find action and select the Product.



Note – Products: Inventory Items can be associated with a specific Product record in the system (optional). A Product is referenced on a Blanket Purchase Order or Service Agreement Contract and represents an ‘item’ that can be purchased from a particular Vendor for a negotiated amount. Linking Products to Inventory Items allows Inventory Managers to re-stock from an existing Contract or to issue Purchase Order Releases against Vendor managed inventory.

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Step

Primary Inventory Location (Storeroom) Section:

• Select the Primary Location where this Inventory Item will be located.

Inventory Location (Bin, shelf, cabinet…) Section:

• Select the Inventory Storage Area where this Inventory Item will be located.



Note – The Inventory Location section Find list is filtered to display only Storage Areas that are associated with the selected Primary Inventory Location.

Inventory Item General Tab: Details Section:

Select the appropriate Classification values for each field. • Inventory Group

• Inventory Category

• Inventory Valuation Method. This field defaults to the valuation method from the specification but you can change it. When costing is done at the inventory item level, this field is used to determine the costing method that is used by the workflow for all issues. This field also defines how inventory batches are created and managed.

• ABC Class

• Inventory Valuation Method • Service Class

• Specification Order Type

• Inventory Type: (Required Field) Depending on the selection, the tabs, sections, and fields on the Inventory Item form are changed to display the options pertinent to the type of inventory being managed.

(1) Asset (Assignable)

(2) Asset (Reservable) – The Inventory Purchasing Details, Hold or Pending Issue, and Issued or

Returned sections are hidden.

(3) Consumable – The Asset Details tab is hidden, and the Create Asset on Receipt check box is grayed out.

(4) Vendor Managed - The Asset Details tab is hidden, the Create Asset on Receipt check box is grayed out, and all the sections below the Details section are hidden.

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Step

Inventory Item General Tab: Details Section:

Select the appropriate options for each field.

• Create Asset on Receipt: Select if Asset records should be created when new items are received.

• Contains Hazardous Material: Select if the items being managed contain any hazardous materials.

• Storeroom Type: Select the type of storeroom management. (1) Self-managed – This option creates an Issue transaction.

(2) Managed – This option creates a Hold transaction, until the item is ready to be issued.

Inventory Item General Tab: Expiration Section:

Select the appropriate options for each field.

• Start Date: Specify the date when an item is available to be issued.

• Expiration Date: Specify the date when an item is expired (for example, when a perishable food item can no longer be issued). Expired items must be handled manually. An inventory manager manages expiration dates and notes when items have reached their dates. The inventory manager then uses adjustment transactions to retire the expired items. The adjustment transactions trigger adjustments to the associated batch records.

Inventory Item General Tab:

Batches Section: This section shows the inventory batches that exist for the item. A batch record is created for each receipt (inventory in) transaction. If the inventory item is associated with a cost item in an inventory cost group, this section is hidden.

When the quantity in the batch record equals zero, the batch record is retired and it is removed from the default Active Batches display. You can still view retired batch records by choosing All

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Step

Inventory Item General Tab:

Inventory Purchasing Details Section:

Enter the Purchasing Details.



Tip – Selecting the MIN-MAX option on the Purchasing Reorder Logic field displays the EOQ fields.

• U. Purchasing Reorder Point (ROP): Use this field to enter the quantity when you should reorder.

• EOQ (Economic Order Quantity) fields: Use these fields to specify the quantity that should be ordered when the reorder point is reached, the unit of measure used for reorders, if you want the system to automatically create a Purchase Requisition when the ROP point is reached, and the Estimated Request duration.

• W. Reorder Logic – Reorder Point (V-U): This calculated field displays the Reorder Point factoring in what is already On Order.

Inventory Summary, Hold or Pending Issue, Issued or Returned, and Adjustments Sections:

These sections display the results of each of the four primary Transaction types for the Inventory Item.

The Unit Price field shows the unit price based on the inventory valuation method: • If the valuation method is LIFO, the unit price is the last active batch price. • If the valuation method is FIFO, the unit price is the first active batch price.

• If the valuation method is Average, the unit price is the total quantity in divided by the total cost.

• If the valuation method is standard, you can edit the unit price.

The value in the Estimated Stock Value (On Hand) field is the unit price multiplied by the quantity on hand. If active batches exist for the inventory item, then this value is the total value of the batches.

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Step



Notevarious Transaction Types. For this example we will create an Adjustment – Refer to the section on Inventory Transactions for a detailed description of the Transaction (Inventory Cycle Count) to populate the initial quantity and create the Assets managed by the Inventory Item.

• Select the Adjustment action.

• An Adjustment Transaction form will open.

Adjustment Transaction General Tab:

Detail Section:

• Transaction Type: Select Inventory Cycle Count. • Quantity to be Posted: Enter the quantity.

• Reason for Adjustment: Enter a reason for the Transaction.



Tip – The system maintains a history of all transactions so record your comments whenever reasonable.

• Create Assets: Check this field if you want the system to create an Asset records for the quantity entered.



Note – The remainder of the form is pre-populated by the system. • Select the Post Action.

• The Transaction form closes and the quantity is posted against the Inventory Item.



Note – The quantity from the Transaction is posted to the respective field (in this example, the Quantity Adj by Count field) on the Inventory Item record and all calculations are updated.

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Step

Inventory Item Asset Details Tab:

The Asset Details tab displays all Assets associated with the Inventory Item.



Note – In this example the Assets that were created in the previous Transaction step are displayed.

You also can use the Find and Remove actions to add Assets or Remove Assets from the list. Inventory Item

Contacts Tab:

The Contacts tab is used to identify ‘Contact Roles’ specific to the Inventory Item and the Person filling that role.



Tip – The Contact Role section is used in conjunction with Approvals and Notifications.

Use the sections on the Notes and Documents tab to add additional comments or documents.



Note – Documents are managed by the IBM TRIRIGA Document Manager and are stored

in the database.

Inventory Item History Tab:

The History tab displays a list of all Transactions against the Inventory Item.

Primary Location

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Process Hold Transactions

At this point, while Inventory Items are on Hold (Managed), you can select items for Issue or Recall transactions.

Step

Inventory Manager

To process Hold transactions:

Process Hold (Managed) transactions by creating Issue and/or Recall transactions of Inventory Items

• Access the Inventory first-level menu.

• Select Inventory On Hold Pending Issue under Related Links - Inventory > Inventory Transactions. This will display a list of existing Inventory Items.

• Click the Process Hold Transactions action.

• The Inventory On Hold Pending Issue form will open in a separate window.

Inventory On Hold Pending Issue General Tab:

Select Consumable Hold Transactions Section:

• If Hold transactions are available, select the transactions to be issued.

Select Assignable Hold Transactions Section:

• If Hold transactions are available, select the transactions to be issued.

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Issue Tickets

Issue Tickets are used to Issue items from Inventory to customers.

 Customer orders originate from Product Requests, Tasks, and Purchase Requisitions  The system creates a Material Order for each requested product

 The Material Orders are routed/assigned to the appropriate Organization/Location for fulfillment

 The Inventory Manager fulfills the Material Orders via Issue Tickets (for in-house inventory) or Purchase Order Releases (for vendor managed inventory).



Note – Based on your business practice and setup, you can specify the routing/assignment of Material Orders by the type of item requested, the location or geography of the request, and the requesting organization. For example: you might want all requests for electrical supplies in the Las Vegas buildings to be routed/assigned to the Central

Storeroom (Inventory Location) for Las Vegas; requests for Conference Room equipment in Knoxville, Tennessee, might be routed/assigned to the Conference Supplies Storeroom (Inventory Location) in Knoxville; a request to re-stock (Purchase Requisition) the LCD Projectors in the Conference Supplies Storeroom in Knoxville, might be routed/assigned to the corporate Purchasing department in New York. The system contains a powerful routing/assignment engine.

Inventory Management User Guide

IBM TRIRIGA

Version 10.2