Re: Transfer Costs -- BPCS-L

We are 405 CD.

We are no longer on OSG tech support. We switched to an outfit that isthousands of times better for a tiny fraction of the cost. But when wewere on OSG support, I sent SSA a list of places in CST and other programswhere there are serious rounding errors, to which they said "That's how itis supposed to work."


This topic is part of a royal pain in the rear end for us.

Another dimension is figuring out how come something is messed up so we canfix it.Plus it is too easy for people to transfer inventory from a facility withone cost structure to a facility with a different cost structure, and ofcourse BPCS costs travel with the transfer.


Tools that help us deal with it include:

* When there is a BPCS program where we can select between some item range,or other criteria, we can clone it to add additional selection criteria,and have done so. For example INV260 variant that only lists particularitem type when on-hand times cost variance not zero.** Many of our modifications not only highlight line on report where costis suspicious, but at end of report give count how many ingredients on thereport were of a certain kind of bogusness* CST920 and CST940 which permit selective copying of costs betweenfacilities, cost sets, various other conditions* Reports I run very frequently, some from GO CMDSCDE, others when mostfolks off system for evening ... then I check on spool file ... if nothingthere, I delete the report, else I hopefully not have a lot of stuff to fix.** Think "Screwed up Costs Reports" as one of a series of "Screwed up thisor that reports" that identify those items with particular conditions thatneed fixing.

* We also have "Blanket Fixit Programs" to repair common conditions.

** Some of these are rather complicated, such as a "Cost Reorganization"system I have developed, to get rid of negative costs, and otherabberations ... I found this to be a simpler way to fix the rounding bugsbecause the problem is systemic

* We use Query/400 VERY HEAVILY

** e.g. match certain criteria items in one facility with same itemsdifferent criteria in another facility, list those where the costs disagree*** one of these gets summary query work file for items that are in severalfacilities, showing the cost there, combine them to chart cost by facilityin like a spreadsheet format, with math to highlight which items have costdiscrepancies across facilities

** e.g. list costs that should not be, such as labor on raw materials

** e.g. inquiry to view what we call "hidden costs", which are reallyinputs that are one of the causes of incorrect costs* Have a system for identifying parts that are made in one facility,supplied to another, using fields in IIM and CIC file that BPCS not use forother purposes

** For example
** Item type 1 is for manufactured end items sold to customers
** Item type 7 is for raw materials and purchased parts

** Planner code 7 is for materials we order either from outside vendor orfrom another facility

** Thus, an item with planner code 7 and item type 7 is from an outside vendor

** While an item with planner code 7 in one facility and item type 1 mustbe made at another facility

** Unless we screw it up on keeping all the coding correct

I recently trying to fix some costs & found some parts that getmanufactured, purchased, manufactured, purchased, and the engineering folks(routings, BOM) can't keep up to date, with latest variant, so BPCS isdoubling up the costs, which has got to complicate the decision whether tomanufacture or purchase.

We also using special pricing (ESP file) which is another mess. You cannotdo it by facility, but we do have different prices by facility. I havesuggested using different bill to customer #s for same customers indifferent facilities, so that we can automate the special pricing acrossfacilities. Matching up aggregate customer payments in lump sums hopefullywould not be a problem if we were using corporate accounts. This iscomplicated.

I think confidentiality e-mail agreements such as your company is using,need to be rephrased so as not to be invalidated by usage on discussion forums.

We are on 6.1.2 moving to 8.2 soon.
We have facility costing turned on. How do you handle transfer pricingwhen you are doing cost rolls? We do use DRP and we do have transfersbetween facilities. (None are sales - all one company different locations)
Today - when building new frz std costs for new year- enter new purchaseprices from Supply chain, roll cost set with current bills androuters. Then after checking the DRP listings and the transfers for thelast year between facilities. Pick up the supplied rolled up cost andenter it in to the material bucket in the other facility. Roll the costsagain. Repeat if any items then come back for further processing. Tryingto make sure you get all the parts that are "supplied" to the other plantis a pain. I can't use Item Class or Item type to help identifythem. How do you do this?
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