Elevated 'Local Setup' from README to dedicated file with Reference bullet

Local Setup.md

@@ -0,0 +1,65 @@
+# Local development quick-start
+
+## 1. Move to runtime directory (why: inspector resolves `server.py` from current directory)
+
+```bash
+cd Workday/workday-mcp
+```
+
+## 2. Activate environment (why: guarantees the project Python and dependencies are used)
+
+```bash
+source .venv/Scripts/activate
+```
+
+## 3. Launch inspector (tested)
+
+Use the explicit Python path to avoid shell alias/path drift:
+
+```bash
+npx @modelcontextprotocol/inspector "c:/Users/castn1.CORP/OneDrive - Wheels/Repos/mcp_servers/Workday/workday-mcp/.venv/Scripts/python.exe" server.py
+```
+
+Why: this starts the Inspector UI and spawns the MCP server over STDIO. If startup succeeds, the CLI prints a localhost URL that includes an auth token.
+
+## 4. Port cleanup when blocked (tested)
+
+If you see `Proxy Server PORT IS IN USE at port 6277`, use one of the following:
+
+PowerShell (recommended):
+
+```powershell
+Get-NetTCPConnection -State Listen -LocalPort 6277,6274 |
+    Select-Object LocalAddress,LocalPort,OwningProcess
+
+Stop-Process -Id <PID> -Force
+```
+
+Why: kill by PID is more reliable than killing `node.exe` by name because the owning process may vary.
+
+Git Bash alternative:
+
+```bash
+for p in 6277 6274; do
+  pids=$(netstat -ano | awk -v port=":$p" '$2 ~ port {print $5}' | tr -d '\r' | sort -u)
+  for pid in $pids; do
+    cmd.exe /c taskkill /F /PID "$pid"
+  done
+done
+```
+
+## 5. Optional quick health checks after connect
+
+Run these tools in Inspector and verify non-empty output:
+
+- `scan_status_reconciliation`
+- `scan_job_title_drift`
+- `scan_department_mismatches`
+- `scan_name_variance_mismatches`
+
+Expected baseline in current mock data:
+
+- status drift: 1 mismatch
+- title drift: 1 mismatch
+- department drift: 1 mismatch
+- name variance: 3 mismatches

README.md

@@ -67,25 +67,6 @@ This page is the high-visibility execution status for Workday Integration Suite
 | --- | --- | --- | --- |
 | Mock-to-API transition | WIS-008 | 🟡 Yellow | Non-prod credentials approved, secure token flow operational, first API-backed read call validated. |
 
-## Local development quick-start
-
-### 1. Activate environment
-
-```bash
-source .venv/Scripts/activate
-```
-
-### 2. Launch inspector
-
-```bash
-npx @modelcontextprotocol/inspector python server.py
-```
-
-### 3. Port cleanup (if blocked)
-
-- Proxy (6277): `taskkill //F //IM node.exe`
-- Inspector (6274): `taskkill //F //IM node.exe`
-
 ## Reference documents
 
 - [Workday execution backlog](Workday/Planning/workday-ad-identity-sync-next-steps.md)
@@ -93,3 +74,4 @@ npx @modelcontextprotocol/inspector python server.py
 - [Workday implementation plan](Workday/Planning/workday-mcp-implementation-plan.md)
 - [Workday installation guide](Workday/Planning/workday-mcp-install-guide.md)
 - [Workday runtime entrypoint](Workday/workday-mcp/server.py)
+- [Operational startup guidance](Local%20Setup.md)