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Evo-ERP and DBA Classic >> Manufacturing >> REMOVING MRP SHORTAGES
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Message started by Karen Mason on 06/24/03 at 07:59:00

Title: REMOVING MRP SHORTAGES
Post by Karen Mason on 06/24/03 at 07:59:00

Sometimes we have small amounts showing as needed on the MRP report-a job might require 1000# of material but I only receive in 950#. That is what gets sent to the job. The 50# shows up on the MRP as a shortage.

I change my quantity to make to equal the yield of the steel but with a 5% scrap factor in the BOM it still causes a shortage to show up.

I want the actual yield so I can have true scrap rates figured.

Are there any other alternatives?

Title: Re: REMOVING MRP SHORTAGES
Post by Tim Keating on 06/24/03 at 09:15:39

I don't know how helpful this will be but I'll tell you how we look at scrap and yield, particularly with the steel we use.

Yield is the number of parts we can get per pound of material assuming all parts are good. There is no built-in scrap factor.

Scrap, to us, is bad parts - parts that cannot be used. These we handle by issuing material to the work order under WO-G to reflect the amount scrapped. So if 3% of the parts are found to be defective, we would issue the equivalent quantity of raw material to the job and not enter finished production on the bad parts. In therory, this accounts for all material.

Quite often we will adjust the lot size of a work order to reflect a variation in the raw material on hand. In your case, we would not want to trigger a re-order for 1000 lbs. of material when we are only short 50 lbs.

We "cover" scrap by ordering slightly more material than is needed for a job. If it ends up sitting on the rack, fine, we'll use it on the next job or over-run slightly.

We are not a job-shop so we have the luxury of doing this.

Title: Re: REMOVING MRP SHORTAGES
Post by Karen Mason on 06/24/03 at 09:57:50

Well, hindsight is 20/20. I built in the 5% so purchasing would know what to order, but now that doesn't look so hot.

Is there a global change I can make to remove that? Where/how?

Title: Re: REMOVING MRP SHORTAGES
Post by Tim Keating on 06/24/03 at 11:57:13

If you entered a scrap % in BM-A, you can globally change the field BKBM_PROD_SCRAP in the file BKBMMSTR to Zero.

I guess you still have the issue of ordering "extra" material to cover scrap. If it is a known amount, you could cover it in the yield.

Title: Re: REMOVING MRP SHORTAGES
Post by Karen Mason on 06/24/03 at 15:05:03

Thanks Tim, that worked for removing the % from my BOM. I will just have to let the jobs go through that I have already released material on.