Part 1
Course reading
A rework order is used when produced goods do not meet the specification but can be repaired instead of scrapped. The aim is to fix the product, record the extra cost and keep traceability.
Typical flow: 1) Quality finds the defect and the batch is moved to quality or blocked stock. 2) Production creates a rework order (often a production order of a rework order type, CO07 without material, or CO01 with the same material). 3) The defective material is issued to the rework order (movement 261). 4) Operators do the rework and confirm the operations (CO11N). 5) The repaired quantity is received back (movement 101) and inspected again before release to unrestricted stock.
The cost of labour, machine time and extra components collects on the rework order, so management can see the real cost of poor quality. Never "rework off the system" — moving stock without an order hides the cost and breaks batch traceability.
Example: 300 gearboxes fail a noise test. 280 can be fixed by replacing a bearing; 20 are scrapped (movement 551). The rework order consumes 280 gearboxes and 280 bearings, confirms 6 labour hours and receives 280 good gearboxes. KPIs: first-pass yield, rework cost per unit and rework lead time.