Reply from giso_vonpetersdorff on Dec 16 at 3:55 AM Hello Carl
Your situation is not unique and is experienced in most manufacturing operations. Planning this with SAP always requires some compromise and approximation, but there are ways to achieve it.
There are several ways in which scrap can be maintained in the process, each with its features:
1. On the material master of the component as component scrap, as you have seen
2. On the BOM item, as component scrap, which overrides the values above.
3. On the routing operation, which is essentially what you require in that this is scrap occurring during production. Unfortunately MRP does not include this in its calculation.
4. As assembly scrap on the finished material, which thus affects all components equally.
Except for the scrap on the routing, which does not affect planned quantities, all the others will initiate goods issues of components including the requirements for scrap. Scrap is also included in the product costing, and here I have frequently seen the finance dept. dictate that "thou shalt not plan for scrap", which is usually problematic all round.
Neither the service level % nor safety stock are designed to cater for the planning of scrap.
If you really want to achieve what you have described below, the only way I can think of doing this is by entering each component on the BOM twice, once in the theoretic quantity and again with just the scrap requirement. The initial issue/pick can then be done by filtering on just the theoretic quantities. I have not yet seen this done in practice.
What I have seen done is to pick the entire quantity from the warehouse to the production storage location, issue the actual quantities and then return the balance to the warehouse. In those cases dedicated reports were written to report on the scrap actually used in each case.
Regards
Giso
| | | ---------------Original Message---------------
From: CWK
Sent: Monday, December 15, 2014 12:43 PM
Subject: How Do You Handle Real Factory Attrition?
We suffer component losses DURING the manufacturing process, not before. The component losses we experience for any specific production order are unpredictable, but we are able to calculate fairly accurate attrition percentages for a given material when used in specific assemblies and, in aggregate, for a given plant. We do need to order and stock more than the (theoretical) required quantity of a component because of factory attrition DURING the manufacturing process.
Safety Stock functionality does not seem to solve our problem. We don't want to plan a specific quantity of "extra" material to keep in stock – we want a percentage and we want to purchase and store that material as project stock for specific WBS Elements. The safety stock service level seem to offer the potential for ordering extra material based on an attrition percentage, but we cannot seem to get it to work, regardless of how we configure – but we may not understand the full potential and configuration requirements of the service level. Can anyone explain how the service level % can be used to order extra material to cover attrition during the manufacturing process (for project stock)?
[Note: In the past, we have been advised to use the Component Scrap percentage on the material master. This does cause MRP to order extra project stock based on the component scrap percentage. Unfortunately, the definition of component scrap clearly states that this functionality is intended to identify component material that is lost or damaged BEFORE the actual manufacturing process begins. The extra component material appears on the planned order and the production order once the planned order is converted. The expectation is that you will issue all of the component's required quantity (including scrap requirements) to the order PRIOR to beginning the assembly process. Perhaps there are industries out there that lose or damage a meaningful percentage of their components before they are actually used in the manufacturing process, but that is not our company's problem.
We do not want attrition requirements to appear on production orders when the orders are created. We wish to issue the actual requirements to the order and only increase requirements as attrition is experienced.]
Regards,
Carl |
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