1.

 At 1st step do we need to create a Std. Maintenance (Breakdown/Corrective) order?  This

order is for checking issue/dismantling equipment and replacing faulty material from
warehouse if any. Let me know if I am Correct?
If you labour cost involved (if you want to capture labour cost) in dismantling of
defective part & installation of new part, then you can go ahead with PM orders. Else,
you can use IE4N transaction which dismantle the Sub Equipment from Maintenance
equipment (in the equipment master) & will do the receipt of defective material into
stock.
       The same applies for installation of new part.
2. To get Faulty material back in Warehouse,  we can use –ve qty in above PM Order
Component Screen. MIGO for same will update the spare part qty in inventory. Is this
correct process. Let me know if any other process is there for this? We are not using
serialization of spare part or equipment’s.
Refer point No. 1 for this.
3.      In Split Valuation we will be maintaining Valuation Type as C1=New, C2=Refurbished,
C3=Faulty. When we create material master initially we will be maintaining Valuation
Category as C and later we will be extending same material with valuation type C1/C2 and
C3. Let me know, in this case do we need to maintain price (MAP) for Valuation category C
also or it will be calculated automatically based on Price maintained for C1, C2 and C3.
It’s advisable to maintain price for C1, C2 & C3 directly.
4.      Let me know while uploading initial stock how we should calculate price for C2 and C3
or else we need to set both of these price as 0 initially?
C2 & C3 prices can be approx price as its not possible to mention the exact value.
5.      What will be idle price control indicator need to be set for C1, C2 and C3 valuation type
while creating material master? I refer some post suggesting C=V, C1=V, C2=S and C3=S.
As per my knowledge, all three valuation types should be in moving average (V). As
refurbishment process settlement happens to material itself, moving average price will
give the more appropriate value than standard price. By having standard price, price
difference account may have entries which may be unwanted by business.
6.      Technically how to make a analysis based on value C2 and C3 with C1. e.g. If value of
refurbished product is more that  New, than we should scrap such product and purchase
new one.
You will have planned cost for refurbishment order. By comparing that cost with new
material price, analysis can be done out of SAP.
7.      How to get report which shows how many times particular materials was refurbished
previously?
You can get the details from standard IW38 / IW39 reports.