Re: Alternate Routings / BOM

Al ... We use a lot of alternate bills and methods (usually when we're
using up rework product), and it seems to work just fine.  Our planners add
the alternate bill/method when they're firming the planned order in MRP510,
but you can also do it in MRP540.  (I didn't test it in MRP540, but if you
do an F11 and unfold, there's a blank for alternate bill/method.)  My
planner did say it's a bit of a problem with campaign planning, if you use
that ... you can't do it when you firm the plan, but have to do for each
individual shop order as you release.




                    Ruben Mirensky
                    <rmirensky@imco        To:     BPCS-L@midrange.com
                    99.com>                cc:
                    Sent by:               Subject:     Re: Alternate Routings 
/ BOM
                    bpcs-l-admin@mi
                    drange.com


                    08/19/2001
                    04:01 PM
                    Please respond
                    to bpcs-l






Alister Hi!

You can not choose the method when you release from
MRP540.

I don't know if you have MRP640 in 4.05 CD, however
you can choose it if you release through that program.

>From a Cost Accounting perspective, it is
inconsequential which method you use.  The standard
cost, when built, should take into account that a
certain % of the orders are going to be made using
such or such alternate method.  Obviously when you use
a more efficient method, you will get a positive
variance, when you use a less efficient one you will
get a negative.  At the end of the costing period
(whatever that is), a positive variance will show,
amongst other things, that you used the more efficient
method a % of times higher than what you had
"budgeted" or you were moer efficient than expected
overall.

To check if a particular method is hurting you (is
less efficient that what you had presumed) or favoring
you (is more efficient than what you had presumed )
you will have to take it at the shop order level, and
see in a particular shop order how the performance was
compared to what was expected (not to the standard
that is a mixture of all the methods used).

I hope this is clear enough.

Regards,

Ruben A. Mirensky



--- MacWheel99@aol.com wrote:
> Questions
>
> Assuming Alternate Routings & BOM have been setup
> for some parts,
> can production management from the MRP540 screens
> where they usually release
> orders, make the selection of which method to use,
> or would that have to be
> done through the SFC500 process?
>
> As the labor gets reported against this or that
> method, does the shop order
> propagate the method used into FLT ITH history so
> that subsequent evaluation
> of overall performance & costs can see which method
> got which total results?
>
> I have not seen anything in cost roll ups that
> references which method is
> being used.  Is there some flag that needs setting
> by part that indiicates
> which is the current official method?
>
> Background on our latest situation
>
> We have not been using Alternate Routings or
> Alternate BOM Methods in 405 CD
> & one of my co-workers asked me to ask the BPCS_L
> group how they work out in
> a new scenario we having, or if other companies have
> previously thought
> through this challenge & have a better way of
> dealing with it.  If I was in
> the APICS discussion group I would be asking the
> question there, because this
> seems to me more a question of the best way to
> rap

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