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Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution. After you answer a question in this section, you will NOT be able to return to It. As a result, these questions will not appear in the review screen. A manufacturing plant uses Lean processes. You plan to outsource a painting operation to a subcontracting vendor. You create a service item named SP-01 to represent the painting service. You need to create a subcontracting activity for the painting service. Solution: * Create a purchase agreement for the subcontracting vendor and add SP-01 as the painting service. * Create a vendor resource then create a work cell for outsourced painting and add the resource to the work cell. * Create a production flow process activity for the painting work cell and add the component to be painted as a picking activity. * Create a server term to tie the purchase agreement to the activity. Does the solution meet the goal?
Correct Answer: B
The solution does not meet the goal. Here is the explanation: * To create a subcontracting activity for the painting service, you should use the following steps1: * Create a vendor warehouse for the subcontracting vendor. This step is missing in the solution, but it is required to track the inventory that is located at the vendor's site. You need to create a warehouse that is assigned to the vendor account and set it as vendor-managed1. * Create a vendor resource and add it to a new work cell for outsource painting. This step is correct, because you need to create a resource that is assigned to the vendor account and add it to a resource group that represents the subcontracting work cell1. This way, you can assign the subcontracting activity to the vendor resource. * Create a production flow process activity for the painting work cell and add the component to be painted as a picking activity. This step isincorrect, because you need to add the service item (SP-01) as the product of the process activity, not the component to be painted1. The service item represents the subcontracting service that is provided by the vendor. You also need to select the Generate license plate option on the mobile device menu item that is used for reporting as finished1. * Create a purchase agreement for the subcontracting vendor and add SP-01 as the painting service. This step is correct, because you need to create a purchase agreement that defines the terms and conditions for purchasing the subcontracting service from the vendor1. You also need to add a purchase agreement line for SP-01 and specify the quantity and price of the service. * Create a server term to tie the purchase agreement to the activity. This step is incorrect, because you need to create a service term that links the purchase agreement line to the production flow process activity1. A service term defines how a service item is consumed in production and how it is invoiced by the vendor. 1: Activity-based subcontracting
