I am wondering if anyone out there has this situation and what they did to
solve it.

We have a high volume repetitive manufacturing dept. with short
manufacturing times (less then 1 day).  It is a progressive manufacturing
line that makes a number of different items. There are three sub assemblies
work stations that provides assemblies to it.  Each feeder work station also
produces a mix of different parts.  We originally set up these sub assy
parts as make parts.  But now we want to make them "phantom" X parts because
of the short assembly times and there is no value in counting these parts to
manufacturing and planning.

However, when the parts are reclassified from make to X, the associated
labor costs are no longer posted into the General Ledger though AFI.  JBA
tells us AFI cannot "post" labor from X parts, even though material cost is
properly transferred. In manufacturing in the indented cost simulation
(22/MDC) the end items does capture all the labor cost of the X parts!

For us the only options seem to be either staying with counting the parts so
we can get the proper costs into the ledger, or to make the sub assy parts
as operations on a routing. Neither of these options are acceptable. The
first because of the valueless counting, the second because of the following
issues.  For example the first sub assy 12345 becomes operation 10 on the
end item routing, and sub assy 56789 becomes operation 20.  This posts labor
costs correctly to the ledger, but prevents us from scrapping operation 20
without also scrapping operation 10. This is an issue as each operation is a
stand alone sub assembly, and operation 20 would be scrapped independently
of operation 10.  Secondly, it also make routes and structure maintenance
much more problematical because now instead of maintaining a single sub
assemble structure (p/n 12345) you would have to maintain all the end item
operations that use it (10 in this example).

Also has anyone had any experience is scrapping phantoms?


Robert Stidstone
Pollak Engineered Products
300 Dan Road 
Canton, MA 02021

tel 781-830-5457
email Robert.Stidstone@pollak.com  

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