Method and system for handling production problems in an extended enterprise environment

An exemplary embodiment of the invention relates to a computer-based method and system for identifying and resolving manufacturing conflicts across an extended enterprise via a network environment. The system includes a manufacturing enterprise system comprising a host system operating a web server, an applications server, and a database manager; a data storage device in communication with the host system, and at least one terminal for accessing the host system. The manufacturing enterprise system runs on a network that is coupled to the Internet and is accessible to a supplier enterprise system identified with proper permissions. The applications server executes a set of programs for managing the manufacturing enterprise system, including the problem reporting and resolution application of the present invention. Problems associated with the components or assemblies for a manufactured product including defective materials are inputted into the manufacturing enterprise system via the problem reporting and resolution application where analysis and corrective action planning are performed on the inputs.