Re: PDM Costing for Item Number that's either manufactured or purchased

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You're right to be concerned about bills of materials with a single item and
two item numbers. There is also an inventory issue - multiple quantities of
the same item to track.
A better approach is to use item type 9 - (user defined) as MAPICS treats the
item somewhat like a manufactured item and somewhat like a purchased item. Let
me explain...
You can structure type 9 items with components and routings (like
manufactured) but type 9 items are costed more like purchased items. PDM will
allow you to enter material, labor and overhead for a type 9 but it will not
'roll-up' lower level costs.
You can release M-orders for type 9 items (there's a bill and a routing) or
you can release a purchase order as long as you've created an item msater C
record for the item.
The only 'trick' is to decide how you're going to handle PDM costing since the
costs might well be different for buying vs making it. Be careful not to enter
the full purchase cost and have PDM also roll in routing costs. There are easy
ways to handle this depending on how you want to maintin costs.
I see you don't have MRP but this method works well with MRP also - MRP
recommends order type (M or P) based on the item balance (planning) M/P code,
not item type.
Good luck.
Dave Turbide
dave@daveturbide.com
Environment: Mapics DB/Y2K (Mod 4)
IM, PDM, PCC, PUR
Hi Mapics ML:
How do you handle PDM Costing for Item Numbers that are
either manufactured (Item Type 2) or purchased (Item Type 4)?
In our shop, we use the same Item Number for both and this
approach is leading to some costing errors.
I thought about the following approach:
1. If a Item Number XXXXXXXX is normally a Item Type 2 and
it becomes necessary to purchase it from a vendor, create
a new Item Number, as follows: Add an "P" to the new 9th
character of the Item Number (Example: XXXXXXXXP)
1. If a Item Number XXXXXXXX is normally a Item Type 4 and
it becomes necessary to manufacture it, create a new Item
Number, as follows: Add an "M" to the new 9th character of
the Item Number (Example: XXXXXXXXM)
The new 9th character would only be used in situations
where the component is both purchased and manufactured.
The downstream problem I see using the above approach is
that the BOM's of all the products where the component is
used might have to be written two ways, to reflect the old
and new Item Number. This could be a real problem.
With this background, perhaps you can give me some
suggestions. I look forward to your comments.
Al Gershen
Grants Pass, OR
aldg1@charter.net
http:www.AlsPhotographs.com
Dave Turbide, CFPIM, CMfgE, CIRM
Market Analysis and Communication
883 Ocean Blvd
Hampton, NH 03842
phone(603) 926-1435
fax (603) 926-0862
www.daveturbide.com[1]

===References:===
  1. http://www.daveturbide.com/