Re: BOM question for purchase part that has outside processing -- BPCS-L

You might ask the vendor, that does the plating, if they can accept aluminum direct from the other vendor, and do appropriate inspection, charging you for the extra steps. If practical, this would shorten your process supply time, but could add additional financial complications. Like if you are to pay the vendor that delivers product to the other vendor, how do you track what they got?

We have parts whose manufacture goes through an outside vendor via inventory locations used to "stage" and inspect match with "pick list" of components and paperwork to be sent.

Think part X001 is the output of vendor-X in which we send them part X001-X and some other components ... part X0001-X means sub-assembly lacking the work done by vendor X while part X0001 has completed the work of vendor X. We using this kind of system of part labeling so it is obvious to everyone where the parts are in the process.

When the parts come back from vendor X, their inspection is a shop operation using a dedicated cost bucket to record piece rate rather than traditional manufacturing time.

For our version of BPCS, we had to be careful what is coded as a manufactured part, purchased part, and we found planner codes to be helpful when organizing parts needing different processes.

In addition to the returning part having unique part # and costing based on what happened to it, it also has a unique item class, meaning parts completed by vendor-X. We have a report that charts for each item with that item class, by facility, quantity issued so far this month, times cost bucket unique to what vendor-X does, extended cost total. This report is matched (manually) to invoice from vendor for the work they did for us.

In theory we know count of our inventory at vendor-X
by looking at data in open shop orders on that item class.
What we sent them via operation 100 (BOM),
minus what they sent back via operation 200 (inspected)

some problems still to patch some time recording THEIR scrap timely enough for prompt replenishment parts in transition used to be made another way, now to go thru vendor X the coding system assumes one way or the other, when there can be overlap between work being done old way vs. new way

We also have parts that are supposed to be physically identical, that end up following different manufacturing and supply chain paths to get where they are to go. We address this with "common" items described by their configuration, and "redesignating" parts that may have a different item # when they are getting different treatment, but when inspected and found to be identical to what they need to be, the "redesignation" transaction changes item #.

Al Mac

    We have a purchased part X001 that used to be bought already plated.
Due to some vendor issues, we have
    recently started dealing with two vendors on this part - vendor x is
    providing the aluminum to vendor y who is doing the plating.  This has
    caused several different problems - some in accounting having to match
    invoices to do the costing.  There are approximatley 40 different
aluminum
    barstocks that have to be matched from each of the two vendors and the
cost
    consolidated for item X001.  Another problem has been in purchasing
and
    receiving trying to keep track of what parts are where.

    We're thinking of creating two child items under X001  - one for the
    aluminum and one for the plating.  This way the two could be costed
    independently of eachother and the total costs would be correct. Also,
    this eliminates the need to go out and change all the BOM's that have
X001
    and it gives us flexibility if we ever go back to buying pre-plated.
In
    this scenario, purchasing would issue two different PO's.  When the
invoice
    would be received from the aluminum vendor (and the qty's verified by
the
    plater via a shipping manifest), the aluminum would be costed at this
time.
    When the plated parts are invoiced, the costing of the plating would
be
    done at that time.  Does this sound like a logical approach?

    Also, what is the best way to handle the inventory transactions?  One
    person thinks it would work best to have a shop order put out for item
X001
    at the same time the PO's are cut.  Any suggestions would be much
    appreciated.  Thanks!

Jenny Carr
The Durham Company
jgcarr@xxxxxxxxxxxxxxxxx

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- Al Macintyre http://www.ryze.com/go/Al9Mac Find BPCS Documentation Suppliers http://radio.weblogs.com/0107846/stories/2002/11/08/bpcsDocSources.html