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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 that contains the pricing information for SP-01. * Create a vendor resource and a work cell for outsourced painting, then add the resource to the work cell. * Create a production flow process activity using the painting work cell and the service item as the picking activity. * Create a service term on the activity to tie the purchase agreement to the activity. Does the solution meet the goal?
Correct Answer: A
The solution meets the goal. Here is the explanation: * To create a subcontracting activity for the painting service, you should use the following steps1: * Create a purchase agreement for the subcontracting vendor that contains the pricing information for SP-01. 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 vendor resource and a work cell for outsourced painting, then add the resource to the work cell. 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 using the painting work cell and the service item as the picking activity. This step is correct, because you need to create a process activity that represents the subcontracting service in the production flow1. You also need to specify the painting work cell as the resource group and SP-01 as the product of the process activity. 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 service term on the activity to tie the purchase agreement to the activity. This step is correct, 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