Re: shop orders -- BPCS-L

Your idea would not work for us, because our BOM has several levels of sub-assemblies, and common components shared with many finished goods. Our setup time is critical. We think we know our costs and rates, but we need to track actual in parallel with standard to find out where we do not know as well as we thought we did. Also we have very short lead times.

We need to process shop orders on the components for the purpose of having an accurate inventory on our manufactured components and raw materials. Cost of Goods Sold is not the only reason to have labor reporting ... inventory accuracy is more important to us. But if you have no need for inventory accuracy, or if your product structure is such that you not need to track inventory consumption, through BPCS, perhaps this idea might work.

Let's suppose that you do need to account for the materials used up when you manufacture your finished goods ... you might consider what I believe is called a FLAT STRUCTURE.

In our case we have finished wiring harnesses that have a hundred wires in them, those wires were made as separate leads, then combined into sub-assemblies that have a few wires, with several steps, in which intermediate steps are discrete items. So our BOM has several levels.

But if you are somehow able to do your product structure so that there are no intermediate items between raw and finished, then when you receive finished product, do transaction that consumes all the materials that must have been needed to make that end item.

In fact this way you could also do away with shop orders.

That way you would get your inventory accurate, and book standard hours for financials.

Now depending on the kind of business you are ... you could go to jail for this. Because how do you know if your standards are any good?

And even if you can get away with it, the company could go bankrupt because you no longer have any idea of your true costs, scrap, setup, indirect time.

, you wrote:

Hi All,

We are a manufacturing comapany using BPCs full client server version 6.1.01 without modifications.

Currently today the bpcs system is settup to report labour tickets against shop order operations and the financials use the actual hours booked for analysis.

Management have asked if the following is achievable,

No longer report labour tickets, just book the finished goods into stock and use the std hours for financial reporting

is this achievable , if so will the shop orders close automatically , are ther any gotcha,s
Brgds Patrick
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