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Evo-ERP and DBA Classic >> Manufacturing >> Why do we do it this way?
http://www.istechforum.com/YaBB.pl?num=1114524417

Message started by GasGiant on 04/26/05 at 06:06:57

Title: Why do we do it this way?
Post by GasGiant on 04/26/05 at 06:06:57

I am asking for advice...

I think we are causing ourselves a big headache, and I'm hoping to find a better way of doing things.

Currently, we process every Work Order through WO-I Enter Finished Production at standard cost with backflushing. Nothing sits in WIP. However, since our labor is not entered into DBA, every WO has a huge WIP variance that is posted to a variance GL. In my opinion, this whole process is just plain wrong. Wrong wrong wrong.

Obviously, since I would like to be able to take an inventory and also do cycle counting, work-in-process needs to start using WIP again. Production will be learning how to use WO-G. Splendid. However, since there is a great amount of resistance to spending time entering labor, I will be no better off on the WIP Variance problem.

So, I was looking for a way to make DBA automagically book labor at standard. The Routings default that sets Use Std Time looked very promising, but when I read it I was deflated, since it seems to be telling me that someone still needs to run WO-F to post the labor.

I really want to start using actual costs in Work Orders. Is there any way to make DBA grab standard labor times for Work Orders without having to enter labor for every order? How is this handled at your company?

Title: Re: Why do we do it this way?
Post by Tim Keating on 04/26/05 at 07:02:43

Just one thought; you could create a class of 'inventory' items for labor (Type L), assign costs and add them to your BOM's. These would roll-up and backflush like any other costs and you could still get away without posting labor.

Title: Re: Why do we do it this way?
Post by RAGINE on 04/26/05 at 07:19:41

That is how we do it, as Tim suggested. We have 5 labor accts set up under inventory, which are then added to the BOM & backflushed @ actual cost. We have no WIP, but our sub-assemblies are completed daily. at a very fast pace, so this seems to work for us. If we have special requests to produce something different i use WO-B and add additional parts or labor as needed.
Ragine

Title: Re: Why do we do it this way?
Post by GasGiant on 04/26/05 at 12:39:46

Unfortunately, we have many hundreds of products/assemblies with BOMs and routings, so I don't think that our Engineering department would be interested in that particular work-around. It does seem as though that would have been the better option at the beginning. :-/