Re: BOM and Reuse Material

Christy,

To add regrind into stock at the same time as you report production of 
good product you would have to setup the regrind as a "Co-Product" in the 
bill-of-material (you must have the API module to accomplish this). What 
happens is that you would identify the regrind part number as the 
co-product, and you would estimate a percent of the run that would result 
in regrind. When this is done, BPCS will split out the cost of the regrind 
from the cost of the good product (a co-product usually has value) and 
when the production of a shop order is done, both part numbers will be 
received to stock/wip. The only draw back is that you usually don't know 
exactly how much regrind you will end up with for a specific order, beyond 
the standard setup loss. Accounting may also have an issue with splitting 
out the cost of the regrind if they want to capture the full manufacturing 
cost exposure against the standard item. Also, you should realize that it 
may cost you more to generate the regrind than what the off-set of cost is 
to using the virgin material (usually you are limited to a maximum of 20% 
regrind to 80% of virgin material for a formula), if your work 
center/overhead costs are added (and they are in this scenario). 

One company I worked with used a yield factor on the standard item and 
created a regrind shop order once a month to report the time used to do 
the regrind operation for the whole department. The regrind had a unique 
part number and was added to several of the bills-of-material with a zero 
quantity. When the backflush screen appeared to the operator, they would 
report the actual amount of virgin and regrind that was used. The material 
variance for the shop orders was captured as salvage by the Accounting 
Department. This allowed them to account for the loss with the yield, and 
acknowledge the salvage when it was reused.




"Christy Poole" <Christy.Poole@xxxxxxxxxx> 
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10/19/2005 01:25 PM
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[BPCS-L] BOM and Reuse Material






Hi

Does any one know if it is possible, when you declare production and 
backflush components on the BOM, to add back into stock on the same 
process.

Eg.  During production, excess plastic is trimmed which can then be 
reground and reused, is it possible to add the regrind back into stock at 
the same time as declaring production of the parent item and backflusing 
the component parts.... ?  Have tried a negative quantity on the BOM 

Thanks
Christy
 
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