Re: [BPCS-L] Scrap

[Alister Wm Macintyre <macwheel99@xxxxxxxxxxx>]

We are on version 405 CD ... about a year ago top management was concerned 
about shortages and speculated that perhaps we were under reporting scrap, 
so to compensate, a decision was made to add 8% scrap factor (1.08 in the 
BOM) when consuming certain classes of items (wire and terminals), so I 
wrote some software to mass update the new rules.  In case they changed 
their minds, I also wrote opposite software so we could reverse the process 
if need be, on short notice. Well minds did get changed ... it was no 
longer wire and terminals for ALL facilities but now more complex what to 
include and exclude from this deal.

What is happening, is that we no longer have discrete items.
There might be something whose Unit of Measure is EACH and we have 0.07 of 
it on hand.
This also applies to components of our wire, such as color compound.
BPCS shows on-hand various fractions that are not real valid.

Then another manager declared that this extra consumption was to be posted 
into the General Ledger using a separate account from scrap that is 
reported through the regular system of reporting.  I determined that the 
detail on the extra consumption is only accessible so long as the relevant 
shop orders are still open, so I created a report that lists the extra 
inventory consumption at standard $ cost within all the shop orders coded 
as completed.  On the eve of a shop order purge (when this detail data will 
go away forever), I run this report with $ total by facility and item class 
of the extra scrap consumed by the 1.08 deal, since the last shop order 
purge.  I run this report again after the purge, because we have what I 
call "bad orders" where labor reporting claimed the job was completed, but 
not all the inventory transactions posted yet associated with that order, 
so it not get purged yet.  Subtract the AFTER report totals from the BEFORE 
purge report details, and we have the $ total that needs to be posted to 
the General Ledger of the consequences of this 1.08 % deal.

You might take a look at Order Policy Codes.

There's all kinds of formulas in there where a customer requirement might 
be for some quantity that is not economical to make, and what you want to 
manufacture is a little more, up to whatever is the economical volume.  In 
our case, one of the limiting factors is setup time ... we have machines 
that make thousands of parts in minutes, but it can take 1/2 an hour to 
setup the machine, so it is counter productive to make 100 then do setup 
then make another 100.

> We are on the 6.04 version of BPCS and we are trying to find a way to
> have scrap I realize that you can enter a quantity in the BOM however it
> pulls up fractions of planned orders. This is what we would like to do,
> add a 2% scrap factor to orders preferably planned orders before they
> are released.
>
> So if we need an order for 100 pieces we would like the planned order to
> tell us to release it for 102 every time. Is there some other place
> other than the BOM that we can do this in, and if not and our only
> option is the BOM and we would like to add 2%, how would we do that?  I
> have already tried as they system automatically defaults to 1 in this
> location 2% would be 1.02 which in turn pulls up orders for fractional
> parts. Can anyone help with this????
>
> Thanks
> Susan A. Wyatt
> Production Control Coordinator
> The Wittern Group
> 8040 University
> Des Moines, Ia 50305
> 515-271-8412
> 515-274-5775 Fax

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Al Macintyre  http://www.ryze.com/go/Al9Mac