HITS Policy: Open Work Orders

Policy: Open Work Orders

Purpose

This policy establishes clear guidelines for managing open work orders and outside purchase parts in service center locations. The intent is to ensure accurate records, reduce unnecessary open orders, and maintain operational efficiency while protecting company resources.

Policy Statement

All open work orders must represent active and valid work in progress. Open work orders and associated outside purchase parts must be monitored, maintained, and resolved promptly to ensure accuracy in scheduling, inventory, and accounting.

Requirements for Open Work Orders

1. Quotes vs. Work Orders
   - If work has not started and no parts have been ordered, the transaction should be entered as a Quote, not an open work order.
   - If the customer has committed to the work and parts may be required, a work order must be created and an appointment scheduled.
   
   2. Work Order Timeliness
      - Open work orders should not exceed 30 days in age.
      - Any exception must be clearly noted with:
        • A valid reason for delay
        • A documented deadline for completion
   
   3. Outside Purchase Parts
      - Parts ordered for a customer-specific work order must be:
        • Returned off the invoice once resolved, OR
        • Properly received and linked to the completed work order.
      - This ensures the open work order can be closed, and inventory/accounting remain accurate.

Responsibilities

- Service Advisors / Sales Staff: Ensure quotes and work orders are created correctly based on customer commitment and parts status.
- Technicians: Update work order status and confirm when parts are no longer needed.
- Service Center Managers: Review all open work orders weekly to verify compliance and close or update any orders older than 30 days.

Compliance & Enforcement

Failure to maintain accurate open work orders or to properly handle outside purchase parts may result in:
- Customer service issues
- Inventory inaccuracies
- Accounting discrepancies

Repeated violations may result in disciplinary action in line with company policy.

Key Reminder

- Quotes are for undecided work.
- Work orders are for committed jobs with scheduled appointments.
- No open work orders should linger beyond 30 days without documented justification and a deadline.
- Outside purchase parts must always be cleared from the invoice to close the work order.