Re: MRP -> Shop Orders

Daniel,

You have really "hit the nail on the head".

In most companies, management digs their own reporting "hole", and the 
pendulum usually swings from a "micro-management" level of reporting to no 
reporting after they realize the cost of gathering all the data, and they 
realize that no one (except accounting) uses it. The whole question that 
management is missing is "why do I need detailed labor reporting if I have 
good controls and disciplines in place?". Often the answer is that they 
need to know exactly what it is costing them to make a product, versus 
what they thought (cost roll-up) it would cost. This goes back to having 
good controls and disciplines in place, because the manufacturing 
"dynamics" would be captured when they were occurring with good controls. 
So the natural evolution of improved efficiencies created with improved 
setup, tooling,and fixtures, would be updated in the routings and 
bills-of-material without the need of Shop Orders showing big variances 
that take weeks to review (if ever) to find those improvements. If your 
product pricing and costing is so finite (due to very intense competition) 
you may need both the controls and the shop orders to really identify the 
winner and the losers, but the real question remains, what do I want to 
spend in resources to compare actual to planned costs. Before you can 
answer that, you need to know what constitutes a variance in each category 
of cost that is "out-of-control". 




"Daniel Warthold" <daniel.warthold@xxxxxxxxxxxx> 
Sent by: bpcs-l-bounces+amkavoulakis=sealinfo.com@xxxxxxxxxxxx
08/30/2005 09:37 AM
Please respond to
"SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>


To
"SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>
cc

Subject
Re: [BPCS-L] MRP -> Shop Orders






You dont have to report labor. In companies where I worked where material
was 75% of the cost, labor 5-10% and overhead 15-20%, we didn`t bother
reporting labor.  It`s basically a management strategy: what more value is
there in reporting labor? Is someone going to use this information?

Daniel Warthold


----- Original Message -----
From: "Al Mac" <macwheel99@xxxxxxxxxxx>
To: "BPCS_L discussion" <bpcs-l@xxxxxxxxxxxx>
Sent: Tuesday, August 30, 2005 2:36 AM
Subject: [BPCS-L] MRP -> Shop Orders


> Managers are questioning the level of clerical support needed to launch
> paperwork to our shop floor, so I'm reviewing what alternatives may be
> available to 405 CD.
> * Do we really need to report actual time for the labor, since the
quantity
> done is good enough for the dispatch report?  What is the cost to the
> company tracking that, and what is the benefit knowing performance and
> actual costs, when we don't track everything anyway, such as setup
> time?  And if we can eliminate actual time, then we not need to know 
which
> employee did it, just plug in a dummy clock # for everything.
> * We have a proposal for discussion on the table to alter the sequence 
of
> shop paperwork from by shop order to by shop dept, then item, then shop
order.
> * I have rejected several requests to have MRP250 sub-assembly data by 
end
> item customer, because no one in the company seems willing to enter and
> maintain correct info by item what customer it is for, figure out which 
is
> the right customer for components that are common to several customers,
and
> other variations
>
> We do full MRP500 600 CAP600 regen nitely, then production planning uses
> MRP250 (a several hundred page report which we have modified), MRP540,
> SFC550.  If there's a rush item (which happens a lot): SFC500, SFC520.
The
> only JIT we do is JIT600 series.
>
> Is anything obviously missing from this picture?
>
> I think what we'd like to have is
> 1. A way to put a stop order on MRP requirements we not want to make 
right
> now, with optional reasons
> 1.1 Engineering Change in the works, hold off on production start until
> this done
> 1.2 Onsies uneconomical, live without them
> 1.3 Tooling down for repair, hold off on adding to the bottleneck until
> they get done
> 1.4 Serious shortage, don't aggravate
> 1.5 This work is to be moved to another factility, wrap up what is here
> 2. Then when we have flagged stop on everything MRP says we need, that
> production planning says we not gonna make, at this time, have something
> that will automatically release & print 100% planned orders in some date
> range, whose MRP251 conclusions would be "Ok to release" 100% because we
> have all the raw materials needed, and where there are multiple
> requirements for same item within the selected date range, aggregate the
> whole thing into a single shop order ... this would replace production
> planning now having to individually release stuff ... which is several
> thousand new shop orders each week
> 3. Full regen would not undo the "stop flag"
> 4. Reports listing stuff with the "stop flag" for review which to take 
off
> that condition
> 5. This way we shift focus from manual effort getting the non-exceptions
> paperwork on its way, to managing the stop conditions that we never seem
to
> have time to deal with, and thus they tend to pile up, complicating the
> task of selecting what to release
>
> -
> Al Macintyre  http://www.ryze.com/go/Al9Mac
> BPCS/400 Computer Janitor ... see
> http://radio.weblogs.com/0107846/stories/2002/11/08/bpcsDocSources.html
> --
> This is the SSA's BPCS ERP System (BPCS-L) mailing list
> To post a message email: BPCS-L@xxxxxxxxxxxx
> To subscribe, unsubscribe, or change list options,
> visit: http://lists.midrange.com/mailman/listinfo/bpcs-l
> or email: BPCS-L-request@xxxxxxxxxxxx
> Before posting, please take a moment to review the archives
> at http://archive.midrange.com/bpcs-l.
>
> Delivered-To: daniel.warthold@xxxxxxxxxxxx