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Question from CWK on Dec 15 at 12:35 PM 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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