steel usage

["Jeff Snyder" <jeffreygsnyder@xxxxxxxxxxx>]

   Here's another one, we are grappling with:  Steel usage variance. 
    
   We currently back flush coils from 'std' bom, at RM of finished item
   time.  No location cntrl and a physical once a yr.
    
   We would like to have better control of the perpetual onhand balances, and
   usage variances.
    
   To this end we will :
    
   1.  establish location control of store rm , and floor locations.
    
   2. record receipts, and movements as they ocur.
    
   The major issues we have is on consumption.  A coil may be used for
   multiple MOs, i.e. we may put up a 15K coil and run 2 - 5 MOs.  We run MOs
   1 - 4 complete, but only 1/3 of MO 5, which could finish with another
   coil.   This prevents us from doing a discrete issue, (we'd have to
   reweigh the coil between jobs)
    
    We are thinking of measuring the actual coil wt used (from packing slip)
   to the std Back flush qty for the MOs run. and recording the var. at that
   time.  This would give us accurate Inventory at all locations , and a var
   . to the jobs run.
   example we used a 15K coil and Backflushed only 13K, based on MO qty
   reported.
   we could 'IA' the 2K right then,  and report it as a matl variance,  not a
   cycle count variance.
    
   Does any body have thoughts, solutions they'd like to share.
    
   looking for input.
    
   Jeff Snyder,  CPIM
   Mapics Consultant