scrap reporting

["Chick Doe" <Cdoe@xxxxxxxxxxxxxxxxxxxxxx>]

how do other companies handle this situation?

we release a work order to the shop and we have some 'scrap ' along the way. we 
use sfc650 (version 6.04) to report production against the various operation on 
the shop order. suppose we have some scrap at one of the early operations.  if 
we report the scrap at that operation via sfc650, bpcs generates an RJ 
transaction specifying the shop order number and the operation that reported 
the scrap. but the part number is the part number of the final product that the 
shop order is making, and the cost of this RJ transaction is the full cost of 
this final part number. thus the cost of the RJ transaction reflects the full 
cost of the finished part, which includes all material and all labor needed to 
make the part. but we only scrapped a few component parts at an entry operation 
that did not include all labor content. the cost of the RJ transaction 
overstates the cost of the scrap.

i appreciate any comments that you might have on how you report and value this 
on the shop floor.

chick doe
barton instrument systems

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