RE: item costs

To all:

In Deb's second posting on this subject she wrote:

Our problem is that regardless of the components or mfg location, all are
using the same F/G item number.  So, we have xxx product in our finished
goods warehouse with multiple costs.  Once we generate a customer order, we
allocate by lot for FIFO.

My comments/questions:

It appears the finished goods are going into inventory at each plant with a
lot identification.  Deb, is this a valid assumption?

It also appears goods are transferred to distribution warehouses, retaining
the assigned lot numbers.  Deb, is this also a valid assumption?

Is picking also done and reported by lot number?  If not, why not and could
it be?

Remember, allocation by lot is not the same as picking by lot.

And given the products Alba manufactures doesn't Alba want/need lot
trace-ability on all sales?

Lot numbers are the key to retaining actual costs.  If picking is not being
reported at that level of detail then the only cost number with any validity
is standard.


Roy Luce

Main:   847-540-9635
Cell:   847-910-0884
Fax:    847-620-2799 *new*
Email:  lwl@xxxxxxxxxxxxx

-----Original Message-----
From: bpcs-l-bounces+lwl=ix.netcom.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+lwl=ix.netcom.com@xxxxxxxxxxxx]On Behalf Of Daniel
Warthold
Sent: Wednesday, October 12, 2005 10:51 AM
To: SSA's BPCS ERP System
Subject: Re: [BPCS-L] (no subject)

Hi

The same item number with an additionnal suffix character, becomes in fact a
new part number. Your assortment setup is also a good idea, but a bit labor
intensive. There are no free lunches.

Daniel Warthold P. eng. CPIM

----- Original Message -----
From: "Frederick C Davy" <fcdavy@xxxxxxxxxxxx>
To: "SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>
Sent: Wednesday, October 12, 2005 9:52 AM
Subject: Re: [BPCS-L] (no subject)


> Dan,
>
> I agree with you regarding the fact that there should have been two
> different part numbers in my example, but the client argued that the can
> material did not have an effect on "form, fit or function" and would not
> move from that position. I believe that Deb is also "dancing" around the
> unique item number issue when she points out that different materials are
> used by different divisions, which probably also requires different
> processing to get to the same/similar finished good. Personally, I would
> suggest a base item number with an intelligent suffix alpha character to
> reflect what division manufactured the part. To keep everything
> transparent to the customer, I would create a BPCS "Assortment" item that
> would translate any of the different items to a Sales Item. But, not
> knowing all the constraints that she is working with, I could only offer
> the "quick and dirty" fix. Not what I normally would recommend, but what
> could provide a suggestion that might give her a different approach to the
> same problem.
>
>
>
>
> "Daniel Warthold" <daniel.warthold@xxxxxxxxxxxx>
> Sent by: bpcs-l-bounces+amkavoulakis=sealinfo.com@xxxxxxxxxxxx
> 10/12/2005 08:50 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] (no subject)
>
>
>
>
>
>
> In my opinion, since the cans were different materials, that alone would
> justify two distinct part numbers. If some customers only accept one type,
> you still need distinct part numbers.
>
> Daniel Warthold P. eng. CPIM
>
>
> ----- Original Message -----
> From: "Frederick C Davy" <fcdavy@xxxxxxxxxxxx>
> To: "SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>
> Sent: Wednesday, October 12, 2005 7:42 AM
> Subject: RE: [BPCS-L] (no subject)
>
>
> > Deb,
> >
> > I worked with a client that had the same problem. They produced the same
> > item number at two different locations, and each had unique costs (one
> > location used an aluminum can, the other a steel can). Where it really
> > gets "fuzzy" is when you ship product from both locations to a
> > distribution warehouse. Now how do you separate the costs? What they did
> > was to use a unique lot number designation (the first digit represented
> > the manufacturing location) to identify the originating manufacturing
> > location/cost. This could have a subtle effect on fifo, but other than
> > using a suffix number at the end of the item number to create unique
> > items/costs, this was the only workable solution for them.
> >
> >
> >
> >
> > "Deb Newcomb-Burke" <debnewcomb-burke@xxxxxxxxxxxxx>
> > Sent by: bpcs-l-bounces+fcdavy=sealinfo.com@xxxxxxxxxxxx
> > 10/11/2005 03:42 PM
> > 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] (no subject)
> >
> >
> >
> >
> >
> >
> > Ron,
> >
> > The mfg costs are captured properly.  Our problem is that regardless of
> > the components or mfg location, all are using the same F/G item number.
> > So, we have xxx product in our finished goods warehouse with multiple
> > costs.  Once we generate a customer order, we allocate by lot for FIFO.
> > At this point we really don't know how much that particular item costs
> > for a true margin picture
> >
> > Deb Newcomb-Burke
> > IT Director - Alba/Tefron-USA
> > 828-879-6518
> > 336-682-4493 - cell
> > 240-306-2681 - efax
> > debnewcomb-burke@xxxxxxxxxxxxx
> >
> > -----Original Message-----
> > From: bpcs-l-bounces+debnewcomb-burke=tefronusa.net@xxxxxxxxxxxx
> > [mailto:bpcs-l-bounces+debnewcomb-burke=tefronusa.net@xxxxxxxxxxxx] On
> > Behalf Of Ronald Smith
> > Sent: Tuesday, October 11, 2005 3:35 PM
> > To: 'SSA's BPCS ERP System'
> > Subject: RE: [BPCS-L] (no subject)
> >
> > The only way to capture actual costs is from the closed shop orders.
> > +With their being at different locations, then the actual costs will
> > change with each shop order closed.
> >
> >
> > Ron Smith
> > 704/864-2499    (home office)
> > 704/674-1121      (mobile)
> > 704/864-3431     (fax)
> >
> >
> > -----Original Message-----
> > From: bpcs-l-bounces+rsmith17=carolina.rr.com@xxxxxxxxxxxx
> > [mailto:bpcs-l-bounces+rsmith17=carolina.rr.com@xxxxxxxxxxxx] On Behalf
> > Of Deb Newcomb-Burke
> > Sent: Tuesday, October 11, 2005 3:08 PM
> > To: bpcs-l@xxxxxxxxxxxx
> > Subject: [BPCS-L] (no subject)
> >
> >
> >
> >
> > To All,
> >
> >
> >
> > We have a situation where a single product can be made at several
> > locations around the world.  The manufacturing location has a direct
> > bearing on the mfg cost.  Within these locations the product can be made
> > of cotton or polyester which also is reflected on the cost.  We are
> > manufacturing all of the different scenarios with alternate BOM methods
> > and corresponding alternate routing method.  My question is how can we
> > capture the actual cost so a true margin can be calculated for customer
> > orders?
> >
> >
> >
> >
> >
> > Deb Newcomb-Burke
> >
> > IT Director - Alba/Tefron-USA
> >
> > 828-879-6518
> >
> > 336-682-4493 - cell
> >
> > 240-306-2681 - efax
> >
> > debnewcomb-burke@xxxxxxxxxxxxx
> >
> >
> >
> >
> > --
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> >
> > Delivered-To: debnewcomb-burke@xxxxxxxxxxxxx
> >
> >
> >
> > --
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> > Delivered-To: fcdavy@xxxxxxxxxxxx
> >
> > --
> > This is the SSA's BPCS ERP System (BPCS-L) mailing list
> > To post a message email: BPCS-L@xxxxxxxxxxxx
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> >
> > Delivered-To: daniel.warthold@xxxxxxxxxxxx
>
> --
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> Delivered-To: amkavoulakis@xxxxxxxxxxxx
>
> --
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