The document discusses the process for transferring production of item X from location A to location B. It involves requesting the transfer, qualifying location B to assemble item X, switching the business area and acquisition code from A to B, and optimizing the cost of producing item X in location B. The key steps are testing an assembly in location B, inspecting it in location A, switching codes if inspection passes, expressing A's future needs, confirming deliveries from B, and addressing supply cost issues to optimize the cost in location B.

1. “Production
Transfer”
request
“Assembly”
transfer
“Logistic”
transfer
“Supply”
transfer
Item X produced in location A requested to be produced in location B
Form filled by requestor
B is qualified to assemble X
X business area is
switched from A to B
A acquisition code
is switched from 1 to 3
X producing cost in B
is optimized
Item X produced in location B
Decisions to or not to:
• Transfer
• Keep assembly in A
INPUTS OUTPUTS
P/N information in A
BOM (No open modification)
Routine, Tooling (Stable)
Clear view of coming needs
of X in A
GOALS
Strategic decision
Sales requirements
Need to bring
knowledge
from A to B
Need to initiate
production
ramp-up in B
Need to decrease
the costs
1
2
3
4
5
6

2. CostCost
TimeTime
TimeTime
B
A
TimeTime1
3
A
B
TimeTime1
3
A
B
1 2 3 4 5 6
TimeTime
Assembly cost
Transfer cost
Component Freight cost
Component supply cost
Assembly load in BAssembly load in B
Business areaBusiness area
Acquisition codeAcquisition code
(New item in B)(New item in B)
Acquisition codeAcquisition code
(trading item in B)(trading item in B)

3. “Production
Transfer”
request
Form filled by requestor
Decisions to or not to:
• Transfer
• Keep assembly in A
INPUTS OUTPUTSGOALS
Strategic decision
Sales requirements
1/ Get a theoretical capacity after transfer figure
Faire une administration papier du type ROQ / PEN de VOR
- circulating in A
- approved in A
- faxed to B
When faxed to B, should mention the theoretical capacity that will be transferred and all the
components supply assumptions that have been made to calculate the Location B cost.

4. 1/ Create Technical Data in location B(BOM and Routine)
Use BOM info from location A and adjust to location B
Get routine and tooling info from location A
2/ Supply Test MO components and tooling in location B
To be available before the Technician visit
3/ Arrange Test MO in location B
Planner to flag the Test MO (Use Transfer Procedure)
To be in the workshop before or on the Technician visit
4/ Arrange expected amount of operators to be allocated to this transfer MO
To calculate in regards to the expected quantity to be assembled
To be available during the Technician visit
4/ Assemble Test MO in location B
5/ Arrange Test DO from location B to location A
6/ Assembly Inspection in location A
7/ Inspection passed = Location B qualified to assemble item X
Inspection failed = Go back to step 3
“Assembly”
transfer
B is qualified to assemble X
X business area is
switched from A to B
INPUTS OUTPUTS
P/N information in A
BOM (No open modification)
Routine, Tooling (Stable)
GOALS
Need to bring
knowledge
from A to B

5. Input: Location B qualified to assemble item X
1/ Location A express its needs in terms of a few DOs
2/ Location B confirms the delivery of the DOs
3/ Location A received the DOs
Output: In location A the acquisition code can be switch to location B
“Logistic”
transfer
A acquisition code
is switched from 1 to 3
INPUTS OUTPUTS
Clear view of coming needs
of X in A
GOALS
Need to initiate
production
ramp-up in B

6. Input:
• Location A has stocks to deal with
• Location B has Components supply cost issue
Output: In location B the global cost of assembling X is optimized
“Supply”
transfer
X producing cost in B
is optimized
INPUTS OUTPUTSGOALS
Need to decrease
the costs