Re: scrap percentages for MRP

[dflynch@xxxxxxxxxxxx]

David -
We use the bill of material scrap factor field (MBM.BMSCP) for scrap allowances
for planning purposes.  This same scrap factor shows up on released shop orders
(FMA.MSCP) for each component on a shop order's bill.

We have some front end shop floor entry programs (developed in house) that use
the FMA scrap factor to issue material as a CI (non-scrap issues) or CS (scrap
issues).  We then track the CS quantities to monitor scrap performance.
Don Lynch
Business Systems Architect
Interface Solutions, Inc.



From: "David Baird/NMT" <dbaird@nmtgroup.com> on 08/07/2000 05:39 PM GMT

Please respond to BPCS-L@midrange.com

To:   BPCS-L@midrange.com
cc:    (bcc: Donald F Lynch/ful/Sealinfo)
Subject:  scrap percentages for MRP



We are version 6.1 full cs running on AS400 v4r3.

We are looking to find some information on how to capture the cost of scrap
within MRP systems. It has been suggested to us that scrap is captured in
the bill of materials by inflating the quantity per unit by the scrap
percentage. So a component with a quantity per unit of 1 and an average
scrap rate of 2% would have a new quantity per unit of 1.02.

However this will have implications for the current system of inventory
processing and control (which we are keen to avoid!). Is anyone out there
currently using or aware of an alternative method? Ideally I think that
there should be an additional field separate from the BOM that captures
scrap percentages for MRP purposes.

If anyone out there can offer any guidance or assistance on this one, it
would be very much appreciated.
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