Digital Processing System for Chargeable Subcontracting Order Management
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Solution Overview
Problem
Manufacturing environments face challenges in efficiently managing and tracking outsourcing of assembled units from multiple components, particularly in maintaining information and calculating net payable amounts under the chargeable subcontracting model, which complicates the process of sourcing and inventory management.
Innovation Solution
A digital processing system is implemented to manage outsourcing by maintaining component information, automatically raising sales orders, calculating net payable amounts, and setting up roles for outsourcing and external organizations, enabling efficient tracking and payment processing based on the chargeable subcontracting model.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If chargeable subcontracting model is used for outsourcing manufacturing, then the outsourcing organization can maintain information about orders and track components, but the complexity of managing and tracking outsourcing orders increases
Solution Approach 1:
The patent introduces a digital processing system as an intermediary that automatically manages the chargeable subcontracting process. The system acts as a mediator between the outsourcing organization and external organizations, handling order tracking, component monitoring, and net payable amount calculations without requiring manual intervention, thus reducing management complexity while maintaining information accuracy
Solution Approach 2:
The digital processing system performs self-service by automatically calculating net payable amounts, tracking components, and managing orders without requiring manual calculation or tracking by the outsourcing organization. The system serves itself by automating the entire management process, reducing the burden on human operators while maintaining comprehensive information records
2Productivity
If automatic calculation of net payable amounts is implemented, then payment processing efficiency is improved, but the system complexity increases
Solution Approach 1:
The digital processing system automatically calculates net payable amounts by self-service, eliminating the need for manual calculations. The system retrieves component information, calculates total component costs, subtracts these from the assembled unit value, and determines the net payable amount automatically, significantly improving payment processing efficiency while the complexity is encapsulated within the automated system
Solution Approach 2:
The patent replaces manual mechanical calculation processes with an automated digital processing system. Instead of manual arithmetic and tracking, the system uses computer processors to automatically calculate net payable amounts, track components, and manage orders, thereby improving efficiency while consolidating complexity into a digital infrastructure
Data Source
AI summary
A digital processing system supporting management of purchase orders according to chargeable subcontracting model in an outsourcing organization. In one embodiment, when a user provides an order for a desired quantity of an assembly type from an external organization, the digital processing system automatically raises a sales order, as originating from the external organization, corresponding to each of a set of components required for manufacturing the assembly type. On receiving a receipt indication indicating the successful delivery of the order, the digital processing system calculates a net payable amount to be paid to the external organization. Additional aspects of the invention facilitate setting up of chargeable contracting model with simulated (within the digital processing system) external organizations, planning of purchase orders, etc.