Re: Alternate Routings / BOM -- 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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