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We also have 8% yield on selected raw materials to compensate for a perception that scrap is under-reported.
I run various reports for management (a) how much $ in some date range involved in scrap, broken down various ways (b) material component cost as a percentage of $ billed I was recently asked if scrap $ included in cost of goods soldI am 99% sure that it is not because scrap is part of ACTUAL reporting, while our cost reports are based on the STANDARD
When we first setup BPCS eons ago, we put in an expected scrap rate of 2%, but that led to MRP telling us to make 2% extra across the board, which we did not want, so we took that out of our standard.
We have sub-components in our BOM structured so that they could conceivably end up on more than one customer # of end item, but I guess we could look at actual sales of those end items in the month of production, and the following month, and pro-rate the scrap as probably being for a customer with concurrent activity.
I am looking for ideas to get a report that shows cost of scrap by customer for some date range.
- Al Macintyre http://www.ryze.com/go/Al9Mac BPCS/400 Computer Janitor ... see http://radio.weblogs.com/0107846/stories/2002/11/08/bpcsDocSources.html
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